What Is a Phishing Simulation? Definition, Steps & Best Practices (2025)

A phishing simulation is a safe, controlled exercise that checks how employees detect and respond to realistic phishing attempts delivered by email, SMS, voice calls, or QR codes. The aim is to measure behavior and then coach people quickly with actionable feedback, so the organization closes process gaps and reduces the impact of real incidents.

Definition

A phishing simulation is a planned security exercise in which an organization sends realistic but harmless phishing messages to employees and observes what they do, open, click, submit data, or report. The primary goal is to measure behavior, coach fast, and improve processes; it is not about blaming individuals.

Well-designed phishing simulations mirror modern attack channels (email, SMS, voice/vishing, QR/quishing, and callback scams), use plain privacy notices, and provide just-in-time micro-learning when someone interacts with a lure. Programs track metrics such as click rate, report rate, and time-to-report, then use those insights to update training, strengthen controls, and build a culture of confident reporting.

Ready to simulate a real-world phishing attack in your organization? Try our Phishing Simulation Software and turn awareness into action.

Why Phishing Simulations Matter (Current Data)

Phishing attacks remain one of the most persistent and effective entry-points for cybercriminals, making phishing simulation programs critical for organisational resilience. According to the Verizon 2025 Data Breach Investigations Report, human error is the reason behind 60% of incidents. Meanwhile, the Keepnet's, 2025 New Hires Phishing Susceptibility Report (covering 237 organisations) showed that 71% of new hires fall for phishing within their first 90 days, and that new employees are 44% more likely to be phished than longer-tenured staff. 

Moreover, in Q1 2025, the Anti-Phishing Working Group (APWG) recorded 1,003,924 phishing attacks. In 2024, 1 in 5 emails globally (20%) contained some form of phishing or spam content according to Keepnet's research (phishing statistics).

Adding another layer of evidence, the Keepnet Vishing Response Report (2024) revealed that 70% of personnel disclosed sensitive information or performed unsafe actions when targeted by simulated voice phishing (vishing) calls. Adding regular simulations to cybersecurity training helps employees recognize and respond to voice phishing attacks with up to 90% success.

Because technical filters miss some attacks, training the human layer measurably reduces click-through and speeds reporting.

How a Phishing Simulation Works (The 5-Step Workflow)

Phishing simulations are most effective when approached as a structured, repeatable learning process, not a one-time test. Below is a five-step workflow followed by leading organizations using Keepnet’s multi-channel simulator.

1) Plan — Define Objectives, Audience, and KPIs

Every phishing simulation begins with clear objectives: Are you measuring awareness, improving reporting rates, or benchmarking department-level performance?

Organizations should define who will be targeted (e.g., departments, new hires, executives), how often campaigns will run, and which metrics will matter most — typically:

• Click rate – % of employees who fall for the simulated lure.
• Report rate – % who correctly identify and report phishing.
• Time-to-report – how quickly employees flag a suspicious message.

Planning also involves aligning with internal stakeholders (HR, legal, compliance) and setting expectations that this is a learning exercise, not a punitive test.

2) Craft — Design Realistic and Localized Lures

In this stage, the security or awareness team crafts phishing emails, SMS, or voice scripts that mirror real-world threats.

Keepnet’s simulator allows role-based customization — tailoring scenarios for finance, IT, legal, or executive staff — and localization into over 120 languages to ensure authenticity.

Key tactics include:

• Mimicking familiar services (Microsoft 365, Slack, HR portals).
• Adding emotional triggers such as urgency, curiosity, or authority.
• Including company-specific branding or tone to make simulations convincing.

3) Launch — Deliver Securely and Transparently

After testing internally, simulations are deployed via secure, GDPR-compliant channels.

Keepnet’s patented delivery technology bypasses spam filters without whitelisting, ensuring every test reaches the inbox safely.

Transparency is critical: communicate the program’s learning goals, respect employee privacy, and ensure opt-out mechanisms comply with regional data protection standards.

4) Observe — Track and Measure Responses

Once launched, the system monitors employee actions in real time:

• Email opens and link clicks.
• Data entry on fake landing pages.
• Reports via email or integrated buttons.

As illustrated in the Keepnet Advanced Report, phishing simulations provide valuable data by tracking user actions, such as opening emails or clicking links. This visual breakdown helps organizations identify vulnerabilities and focus their security training efforts where they are most needed, reinforcing the importance of regular simulations.

Keepnet’s unified dashboard visualizes results instantly, helping awareness teams spot patterns — like repeat clickers, top reporters, or departments needing reinforcement — and measure improvement over time.

5) Coach & Improve — Turn Mistakes into Learning Moments

After the campaign, employees who interacted with a lure receive immediate micro-learning modules explaining the cues they missed and how to recognize similar threats.

Managers receive anonymized, role-based analytics to shape targeted follow-up training.

Continuous iteration — comparing results across months or departments — builds resilience, turning awareness into measurable behavioral change.

🧭 Ethics and Privacy

Phishing simulations must uphold employee trust. That means:

• No public shaming or naming individuals.
• Clear communication about purpose: education, not punishment.
• Data minimization and anonymization where possible.
• Compliance with GDPR, HIPAA, or equivalent frameworks.

Ethical transparency ensures employees see simulations as empowerment, not entrapment.

Send safe, realistic phishing emails to test user behaviors under authentic conditions—see How to Run Email Phishing Simulations: A Step-by-Step Guide for a full technical walkthrough.

Table 1: Phishing Test Best-Practice Checklist

Measurement: What to Track (Beyond Clicks)

Effective phishing simulation programs go far beyond counting who clicked. They measure behavioral change, responsiveness, and long-term improvement trends. The following key metrics provide a more complete picture of your organization’s human risk posture:

• Click Rate: The percentage of employees who clicked on simulated phishing links. A baseline indicator but not sufficient alone.
• Report Rate: The percentage of employees who identified and reported phishing attempts. Higher report rates indicate cultural maturity and confidence.
• Repeat-Offender Rate: The number of users who repeatedly fail phishing simulations. Tracking this helps tailor targeted retraining or personal coaching.
• Time-to-Report: The average time it takes for employees to report a phishing email after receiving it—an important metric for real-world incident response readiness.
• Phish-Prone by Role: Identifying which roles or departments are more susceptible helps allocate training resources strategically (e.g., finance or customer support teams).
• Program Trendline (3–6 Months): Evaluating progress over time allows you to visualize measurable behavioral change and demonstrate ROI to management.

To demonstrate business impact, link these metrics to operational outcomes:

• Fewer help-desk tickets related to phishing or suspicious emails.
• Lower Mean Time to Respond (MTTR) for real phishing incidents.
• Improved audit readiness and compliance evidence for frameworks such as ISO 27001, SOC 2, or PCI DSS.

When aligned with security and HR objectives, these metrics turn awareness into measurable resilience.

Check this blog for further information on phishing simulation metrics beyond click.

Common Phishing Simulation Scenarios (and When to Use Them)

Phishing simulations are most effective when they mirror real-world attack patterns your employees actually face. Below are common scenarios and the best time to use each:

• Business Email Compromise (BEC) / CEO Fraud: Ideal for executive assistants, finance teams, or senior leaders who approve payments or wire transfers.
• MFA Fatigue Attacks: Best for IT and technical staff; simulates repeated MFA push requests to test vigilance under pressure.
• QR Code Phishing (Quishing): Targets mobile users in retail, hospitality, or field operations; raises awareness of malicious QR codes in public or printed materials.
• Package Delivery Notifications: Great for general employees—exploits everyday curiosity (“your parcel couldn’t be delivered”).
• Payroll or HR Updates: Focuses on staff who handle sensitive HR data, pay slips, or tax forms.
• Fake IT Support Tickets: Tests internal help desk or employees’ trust in IT communications.
• Callback Scams: Trains employees to verify inbound calls requesting access or authentication.
• Vendor Invoice Scams: Suitable for finance, procurement, or supply-chain departments—simulates fraudulent invoices or bank account changes.

Rotating these scenarios quarterly helps maintain realism and combat training fatigue. Check this article to see more phishing simulation scenarios. <

Risks & Pitfalls (What Not to Do)<

Even the best-intentioned phishing simulations can backfire if mismanaged. Avoid these common mistakes to preserve trust and ensure ethical engagement:<

• Overusing “Gotcha” Tactics: Tricking employees with unrealistic or overly personal lures breeds resentment and undermines learning.<
• Ignoring Localization and Accessibility: Non-localized messages or poor formatting can alienate global teams or employees with disabilities.<
• Skipping Follow-Up Coaching: Without post-simulation feedback, employees miss the opportunity to learn from mistakes.
• Measuring Only Clicks: Relying solely on click metrics provides a shallow view. Real success is seen in faster reporting and fewer incidents.<

The best phishing programs prioritize learning over punishment, empathy over embarrassment, and continuous improvement over one-time testing.

Hands-on: Run a Phishing Program with Keepnet (How-To)

Once you understand the principles of phishing simulation, it’s time to put them into practice. Keepnet’s platform makes it easy to plan, automate, and measure a complete multi-channel simulation program—all while ensuring ethical engagement and measurable results.

As demonstrated by the Keepnet Phishing Simulator, organizations have access to a wide range of customizable phishing templates, as seen in the visual, where targeted campaigns are prepared to engage employees. This method enables companies to run simulations across various time zones and languages, ensuring comprehensive global coverage for their security awareness programs.

Keepnet’s phishing simulation tests your employees with real-world-style phishing emails. It uncovers vulnerabilities and provides immediate, targeted feedback to strengthen your security posture:

Configure Multi-Channel Phishing Simulations

Start by setting up phishing simulations across multiple communication channels: email, SMS (smishing), voice calls (vishing), QR codes (quishing), and callback scams. Each campaign can be localized by role, region, and language to reflect your workforce’s real-world diversity. For instance, HR teams can receive fake payroll messages, while IT teams might face credential-harvesting attempts through a voice call.

Keepnet’s patented delivery engine ensures realistic delivery by bypassing spam filters—without whitelisting—so your employees experience authentic conditions safely.

Adaptive Targeting & Nudges

Keepnet enables adaptive segmentation by department, location, or employee risk profile. Once campaigns are launched, the platform automatically adjusts difficulty levels based on user behavior.

Employees who click on a simulated link receive instant micro-learning nudges, reinforcing positive behavior through real-time feedback. These behavioral cues—rooted in nudge theory and learning psychology—have proven to increase phishing report rates by up to 60% across long-term Keepnet customer programs.

Automation & Analytics

Save time with fully automated scheduling and campaign orchestration. Integrate seamlessly with Microsoft 365 or Google Workspace to import users and track participation effortlessly. Keepnet’s real-time dashboard displays click rates, report rates, and time-to-report metrics in one unified view. The platform also generates executive summaries for compliance audits and board reports—helping security leaders quantify the impact of awareness efforts with clear ROI data.

Roll-Out Plan (Pilot → Scale)

• Start with a Baseline: Run an initial simulation to measure your organization’s current phishing susceptibility.
• Pilot with One Department: Begin small—perhaps with HR or IT—to refine timing and feedback mechanisms.
• Communicate the “Why”: Emphasize learning and improvement over punishment. Transparency builds trust and participation.
• Scale Monthly or Quarterly: Expand to the whole company once baseline data and feedback loops are established.
• Refine Continuously: Use Keepnet’s analytics to adjust simulation types and frequencies based on evolving risks.

Check this blog to learn how to start Multichannel Phishing Simulation Campaign, step by step.

📊 Example Case Snapshot: Nautilus

Nautilus International, a maritime professionals’ union, faced recurring ransomware threats due to its diverse workforce and remote work setup. After implementing Keepnet’s Security Awareness Training and Phishing Simulation, the organization achieved remarkable results:

• 97% faster reporting speed on phishing incidents
• 75% reduction in employees clicking malicious links
• A lasting security-first culture that empowered even non-technical staff

Through continuous communication, tailored simulations, and behavior-based training, Nautilus transformed cybersecurity from a compliance task into a shared responsibility.

🎥 Watch the full story:

How Phishing Simulations Boost Security Awareness: Keepnet’s Focused Approach

Keepnet's Phishing simulations are a game-changer for security awareness, and Keepnet makes them smarter and more effective. Here’s how:

• Real-World Scenarios: Employees face multi-channel attacks—emails, SMS, voice calls, and QR codes—preparing them for real threats.
• Instant Feedback: When someone falls for a simulation, they get microlearning modules right away, turning mistakes into teachable moments. Check out our Just in Training Feature.
• Targeted Training: Detailed analytics highlight vulnerabilities, so training focuses on high-risk areas like finance teams or remote workers.
• Behavioral Science: Using nudge theory, we guide employees toward better habits, like verifying sender addresses or reporting suspicious messages.
• AI-Powered Adaptability: Simulations evolve with Generative AI, keeping pace with the latest phishing tactics, from deepfakes to MFA bypasses.

The result? Organizations see up to a 90% drop in phishing susceptibility, building a human firewall that complements technical defenses.

Also, watch the video below to get more details on how you can create these realistic and engaging scenarios with Keepnet Phishing Simulator.

Try Keepnet's Phishing Simulation

The Keepnet Phishing Simulator empowers businesses to strengthen their defenses by offering an easy-to-use platform for simulating phishing attacks and boosting employee awareness. With an intuitive interface, Keepnet makes it easy for both beginners and professionals to create, launch, and manage tailored phishing campaigns that reflect real-world threats specific to their organization. Its ability to customize simulations ensures that companies can address unique vulnerabilities while benefiting from actionable insights.

Additionally, Keepnet offers a free phishing simulation for businesses to evaluate the platform before committing. Recognized by industry experts and endorsed by Gartner’s Voice of the Customer, Keepnet stands out as a reliable tool for fortifying cybersecurity and reducing phishing risks.

Key Features of Keepnet Phishing Simulator:

• User-friendly design: Accessible for both cybersecurity professionals and those new to phishing simulations.
• Realistic, customizable simulations: Create phishing scenarios tailored to your business's specific challenges.
• Seamless email delivery: Ensure phishing emails bypass spam filters for effective testing.
• Multi-language and global support: Phishing campaigns available in over 120 languages and across time zones.
• Detailed insights and reports: Comprehensive feedback on employee responses for targeted improvements.
• Free phishing simulation: No-commitment test to evaluate the platform’s effectiveness.

These features make Keepnet a valuable tool for building a proactive, security-aware workforce. Looking to run your own simulation? Check out our Phishing Simulation Tool.

Watch the video below to learn more about Keepnet Phishing Simulator and how it helps organizations strengthen their defenses against phishing attacks.

Editor's note: This article is updated on October 27, 2025