Phishing in the Age of AI
Phishing is one of the most common practices used by hackers looking to gain access to company systems. Phishing attacks typically rely on an individual impersonating a trusted person or organization to convince the victim of the attack to click a link, provide login credentials, send money or disclose other – often sensitive – information.
A recent settlement involving Ambry Genetics (Ambry) is a reminder that phishing attacks can create consequences beyond a single compromised account. In September 2026, the U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) announced a $700,000 settlement with Ambry following a phishing incident that potentially exposed protected health information (PHI) belonging to over 200,000 people.
The settlement highlights why businesses need to consider phishing awareness and prevention as part of their broader cybersecurity program – especially as AI can amplify the scale of phishing attacks and can make impersonation attempts more difficult to decipher.
What does phishing look like?
According to NIST, phishing attacks occur when “the perpetrator masquerades as a legitimate business or reputable person” to gain access to personal, confidential, or other sensitive information. An example of phishing might be an employee who receives an email that appears to come from another co-worker, bank, vendor or boss asking them to reset a password, review an invoice or log into an account. The link may then lead to a fake website designed to steal information.
Phishing may also happen through text or SMS messages and phone calls. The FBI refers to these variations as “smishing” and “vishing,” respectively, and they look like typical phishing attempts, just transacted through a different means of communication.
Attackers do not always need to break through technical security controls. Often, they just need to convince one employee to give them access through fraudulent means.
What happened at Ambry Genetics?
Ambry Genetics is a California based genetic-testing company. In 2020, the company discovered that an employee had compromised a company email account via a phishing attack.
According to OCR, the attacker potentially gained access to PHI belonging to over 200,000 people. The compromised information may have contained data points such as names, addresses, birthdays, diagnoses, lab results, and financial information.
OCR’s investigation of the attack revealed more than a single phishing incident: It uncovered that Ambry was not compliant with broader security practices required by HIPAA and its relevant rules, including questions of whether the company had conducted an adequate risk analysis, properly removed employee access after they had left the company, and assigned unique user login information to individual users.
As part of the settlement, Ambry agreed to a two-year corrective action plan. The plan includes elements such as requirements to conduct proper risk analyses, address identified security risks, and review data protection policies and procedures, while also providing additional workplace training.
It is important to highlight that a phishing attack can be the impetus for regulators taking action. What looks like an isolated incident may lead regulators to examine more than just how the attacker got in – they may also investigate whether the company had reasonable security practices in place before the incident occurred.
How might AI change phishing?
The FBI has warned that criminals are using AI to create more polished and personalized phishing messages to imitate voices or images of trusted people. AI-generated audio can be used to impersonate people to make a phone call that sounds like it’s coming from a boss, co-worker, or family member.
Because AI is generally increasing the ability to create phishing messages, traditional warning signs may be less reliable. For example, poor grammar, awkward wording or random phone numbers may be less obvious when AI can quickly generate messages and voices.
Therefore, businesses who are providing training on how to recognize phishing may consider focusing less on whether a message simply looks or sounds legitimate, and more on whether the request itself should be independently verified. For example, if someone asks for a wire transfer, password reset or access to confidential information, employees should consider verifying that request through other means. This could include calling a known number or using a separate communication method. The FBI recommends independently confirming the identity of someone making a suspicious or unusual request.
Key Takeaways and Security Practices to Consider
Phishing attacks aren’t new, but the age of artificial intelligence may be changing the scope and frequency of these kinds of attacks. For example, a study by IBM shows how AI can be used to amplify both the amount of phishing attacks and the human quality of the attack itself. With this in mind, fundamental phishing prevention is as important as ever. When considering how to lower its susceptibility to phishing emails, business may consider the following:
- Training employees: Employees are often key targets for phishing attacks and should understand what these attacks can look like and how to report suspicious messages to information security teams within the business.
- Enabling MFA: Multi-factor authentication (MFA) is a process where an individual has to provide multiple forms of verification to enter an account. For example, if MFA is enabled, a stolen password alone should not give an attacker immediate access to an account.
- Limiting employee access: As a general rule, employees should only be able to access systems and information that is needed for their job. Typically, this access is revoked after a period of time or when it is no longer needed.
- Preparing for incidents: Businesses may consider having tools in place to disable compromised accounts, investigate incidents and determine if sensitive information was exposed, among other steps that may be required in the investigation process.




