Why Do Employees Fail to Report Phishing Emails Despite Recognizing the Threat? Understanding the Psychology Behind Inaction

Organizations have invested significantly in security awareness and phishing simulation programs to equip employees with the skills needed to detect and avoid phishing attacks. These initiatives have proven effective in teaching employees to recognize phishing emails, thereby reducing the likelihood of falling for such scams.

However, a confusing issue remains: employees who identify phishing emails often choose not to report them. This lack of reporting undermines organizational defenses and leaves gaps for potential future attacks. Understanding the psychological factors behind this behavior is critical for addressing the problem effectively.

Check out our blog on how to spot phishing emails for a comprehensive guide.

This blog post explores the key psychological barriers that prevent employees from reporting phishing emails and provides actionable strategies to overcome them.

The Recognition-Reporting Discrepancy

Despite comprehensive training programs, a significant number of employees fail to report phishing emails they recognize. This discrepancy between recognition and reporting can be attributed to several psychological and organizational factors:

• Perceived Low Risk: Employees might assume that if they recognize a phishing email, the organization is already protected.

Example: An employee thinks, "If I didn't click on it, it's not a problem anymore."

• Desensitization to Phishing Simulations: Repeated exposure to phishing simulations can lead to complacency, with employees treating these exercises as routine rather than potential threats.

Example: "It's just another test; I'll ignore it."

• Unclear Reporting Processes: Employees may not fully understand how or where to report phishing emails, leading to inaction.

Example: "I don't know if I'm supposed to report this or who to send it to."

Psychological Barriers to Reporting

Despite understanding the importance of phishing awareness, employees often hesitate to report suspicious emails due to various psychological factors. These barriers can significantly impact an organization's ability to respond to threats in a timely manner.

1. Fear of Negative Consequences

Employees may fear being blamed for incorrectly identifying a phishing email as legitimate or worry about being seen as overly cautious or disruptive.

Example: An employee hesitates to report a suspicious email, thinking, "What if I'm wrong and waste everyone's time?"

2. Bystander Effect

When multiple employees receive the same phishing email, the responsibility to report may feel less urgent. Individuals assume that someone else will report it.

Example: In a team of ten, employees might think, "Someone else will handle it, so I don't need to."

3. Cognitive Overload

In fast-paced work environments, employees often prioritize immediate tasks over-reporting phishing emails. The extra step of reporting may feel like extra work.

Example: An employee sees a phishing email but decides, "I'll deal with this later," and then forgets to report it.

4. Lack of Immediate Feedback

The impact of reporting phishing emails is not always immediately visible to employees, leading to a lack of motivation.

Example: An employee might think, "Why bother reporting if I never see the results of my action?"

5. Normalization of the Threat

Employees exposed to frequent phishing attempts might begin to see them as a routine part of their inbox, reducing the urgency to report.

Example: "These emails are so common; IT probably already knows about them."

Behavioral Science Behind the Inaction

Psychological habits and social influences can make employees downplay the importance of reporting phishing emails, even when they recognize the threat.

1. Optimism Bias

Employees may believe that the organization's existing security systems are robust enough to handle phishing threats without their input.

Example: "The IT department will catch this; they don't need me to report it."

2. Social Proof

If employees notice that their colleagues are not reporting phishing emails, they are less likely to report them themselves.

Example: "No one else seems concerned about these emails, so why should I report them?"

3. Perceived Lack of Impact

Employees may not understand the significance of reporting phishing emails and how it contributes to organizational security.

Example: "What difference does one email make?"

Organizational Factors That Contribute to the Problem

Company policies and workplace culture directly impact whether employees report phishing emails. If the process is unclear, difficult, or unrecognized, employees are less likely to take action.

1. Unclear Policies and Training Gaps

Even organizations with robust awareness programs may fail to clearly communicate the importance of reporting phishing emails and the proper channels for doing so.

2. Inadequate Reporting Systems

Reporting phishing emails should be as simple as possible. If the process is complicated or time-consuming, employees are less likely to engage.

3. Lack of Positive Reinforcement

When employees report phishing emails, organizations often fail to acknowledge or reward these actions, missing an opportunity to encourage such behavior.

The Impact of Reporting and Inaction: Statistical Insights

Reporting phishing emails has a direct impact on cybersecurity. By August 2022, the UK’s National Cyber Security Centre (NCSC) received over 13 million reports through its Suspicious Email Reporting Service (SERS). These reports helped take down 95,000 scams and 174,000 dangerous websites (Source: NCSC).

According to IBM’s Cost of a Data Breach report, phishing is the most common data breach vector, accounting for 15% of all breaches. So, when phishing emails go unreported, the risks grow, leading to serious financial and operational damage for businesses (Source: FBI).

Overcoming Barriers to Phishing Email Reporting

To bridge the gap between recognition and reporting, organizations need to implement strategies that address both psychological and systemic barriers:

1. Simplify the Reporting Process

• Provide easy-to-use tools, such as a "Report Phishing" button integrated into email clients.
• Ensure the process requires minimal effort and is accessible to all employees.

2. Enhance Training Programs

• Focus on the importance of reporting phishing emails, not just recognizing them.
• Use real-life examples to show how reporting has prevented breaches in the past.

3. Build a Culture of Security

• Foster an environment where employees feel encouraged and supported to report suspicious emails without fear of judgment.
• Make security a shared responsibility across all levels of the organization.

4. Provide Immediate Feedback

• Notify employees when their reports lead to actionable results, such as blocking malicious emails or identifying threats.
• Share success stories of how employee reports have strengthened organizational defenses.

5. Use Behavioral Nudges

• Send reminders or prompts encouraging employees to report phishing emails.
• Highlight the collective impact of reporting, such as metrics showing how many attacks were prevented through employee vigilance.

How Keepnet Human Risk Management Platform Removes Barriers to Phishing Email Reporting

The Keepnet Human Risk Management Platform provides a comprehensive solution to overcome barriers that prevent employees from reporting phishing emails. By integrating seamless reporting, real-time feedback, behavioral insights, and engaging training, it ensures employees actively contribute to cybersecurity.

1. Seamless Phishing Reporting: The Keepnet Phishing Reporter is directly integrated into Microsoft Outlook, G-Suite, and other email infrastructures, making it easy for employees to report phishing emails. A simple "Report Phishing" button allows users to forward suspicious emails as attachments to a designated security team while preserving critical metadata like email headers for detailed analysis.
2. Instant Feedback and Acknowledgment: Employees receive immediate confirmation after reporting a phishing email, reinforcing their proactive role in cybersecurity. This instant feedback highlights the importance of their action and encourages ongoing participation.
3. Behavioral Analytics: Keepnet analyzes employee actions during simulated phishing tests and applies risk segmentation to assess security awareness. The system tracks every interaction, from opening emails to clicking links or reporting suspicious messages, providing real-time insights into employee behavior. By identifying trends and patterns, Keepnet assigns risk scores to individuals and departments, helping organizations pinpoint vulnerabilities and strengthen their phishing resilience.
4. Adaptive Security Awareness Training: The security awareness training module is designed to address psychological barriers that prevent employees from reporting phishing emails. Interactive, scenario-based lessons help employees understand the real-world impact of their actions. The platform offers over 2,100 training materials from 15+ training providers in 36+ languages, ensuring tailored content for multilingual teams and diverse business needs.
5. Gamification and Rewards: To boost engagement, the platform includes gamification features such as leaderboards, achievement badges, and incentives for employees who actively report phishing attempts. This transforms security awareness into an engaging and rewarding experience.

Conclusion

The failure to report phishing emails, despite recognizing them, stems from a complex interplay of psychological, cultural, and organizational factors. Employees may fear judgment, assume others will act, or simply lack the motivation to report.

Organizations can close the gap between awareness and action by addressing these barriers through simplified processes, enhanced training, and cultural shifts. Solutions like those offered by Keepnet play a vital role in fostering a proactive security culture where reporting phishing emails becomes second nature. In the fight against phishing, every report counts—and empowering employees to take that step is critical to securing the organization.