By Simon Eyre
For years, phishing training taught people to look for poor grammar, strange email addresses and suspicious links. That model is becoming outdated.
Latest reports confirm what many security teams are already seeing. Phishing is no longer a crude numbers game. It has become a highly targeted, AI-assisted operation designed to exploit trust, familiarity and normal business processes. According to a recent report, 86% of phishing attacks now involve AI, while attacks are increasingly moving beyond email into collaboration tools, calendars and messaging platforms.
For hedge funds and private equity firms, this matters because attackers understand how the industry operates.
Attackers no longer need to guess
We know alternative investment firms are attractive targets. They operate in fast-moving environments, rely heavily on third parties, often have lean internal teams, and manage or store highly valuable data. AI has changed the attacker’s workflow, just as it has changed our own internal workflows.
Estimates show that AI-driven attacks are seven times more efficient because automation dramatically reduces the manual effort needed to research targets.
Public websites, LinkedIn profiles, regulatory filings and social media have become reconnaissance data mines. A threat actor no longer needs weeks to understand an organization. AI can assemble information, identify relationships and create believable stories and deep fakes in moments. For hedge funds, the pretext might involve an investor, broker, fund administrator or law firm. For private equity firms, the attack surface extends even further. Portfolio companies provide opportunities for attackers to exploit trust between organizations.
The inbox is no longer the only battleground
Cyber and phishing are not just about email anymore. The KnowBe4 Threat Report states there has been a 49% increase in calendar invite phishing and a 41% rise in Microsoft Teams attacks over the last six months alone. These figures demonstrate the significant shift to methods beyond email in what are known as “multi-channel” attacks; taking advantage of the reduced scrutiny staff apply to these communications.
We have spent years training our teams to scrutinize email; calendars and collaboration tools are different. Invitations, Teams chats and voice messages feel trustworthy. That familiarity creates opportunities for attackers. Building a pretext of events and stories can begin with an email or a call, followed up with a calendar invite and finally a Teams meeting. Links and attachments can be included in each step of the way giving an attacker multiple chances of a successful attack. Reports also highlight the growing use of impersonation and AI-generated content. These attacks are designed to look routine, timely and legitimate rather than obviously malicious.
What firms should do now
The answer is not more training. It is better training. Modern awareness programmes need to reflect how attacks happen. Firms should:
- Teach employees what AI-enabled phishing looks like.
- Focus on recognizing suspicious threads of communications, not just suspicious emails.
- Treat impersonation as a business process risk.
- Reinforce verification procedures using trusted channels.
- Extend awareness to portfolio companies and third-party relationships.
- Use realistic phishing simulations that mirror modern attack techniques.
- Run ongoing compliance modules.
Building a stronger human defence
Technology remains important, but people and processes matter just as much.
At Drawbridge, we are helping alternative investment firms adapt to this new reality through targeted security awareness training, phishing campaigns and cyber and AI risk assessments designed specifically for hedge funds and private equity firms. These assessments are ongoing and interactive, creating a vital improvement in acceptable and safe behaviour while allowing unusual activity to be spotted quickly and effectively.
Get the right support
Cybercriminals are no longer relying on obvious mistakes. They are advancing their technology at a pace equal to or better than the industry average. Contact our team at Drawbridge to understand what above industry average looks like for your firm.
