Phishing

Phishers use the Internet to steal money and personal identities. Victims usually receive fraudulent e-mails containing authentic looking company logos and familiar graphics and are asked to divulge financial information.

A study by the Gartner technology research firm shows 52 million U.S. Internet users received phishing e-mail during the past 12 months, from which 1.8 million consumers divulged information and one million fell victim. While consumers at banks and credit unions are prime targets, AOL and eBay users also are victims of frequent attacks.

Elizabeth was a victim of an AOL attack when she discovered her credit card number had been stolen from her online AOL wallet. She now enters her credit card number and password each time she makes a purchase, no longer keeping them saved.

As consumers such as Elizabeth catch on, phishers develop new ways to scam their victims. Many phishers now are trying techniques that have worked well for virus writers. The newest phishing scam is activated when you simply open an e-mail, no clicking required. Once infected, the scammers change the IP (Internet Protocol) address in your PC's Hosts file to their choosing. The fraudsters then associate the IP address with bogus bank/credit union Web sites, which forces your browser to go to fake Web sites that look like your financial institution's site.

A phisher using the name Robotecteur is responsible for sending out the e-mail virus "I Still Love You" to three million people. The virus recorded user names and passwords when the user visited any of 30 online banks and payment Web sites programmed in the virus. Robotecteur then received e-mails containing the sensitive information.

This form of phishing is different because the scammers don't have to lure you to a specific Web site. Instead, they get your username and password once you log in to a banking Web site. A keylogger then records your information and takes screen shots of your PC activity.

Unfortunately, most PC users will not detect a problem until it's too late, because most are not knowledgeable with Hosts files. While the attacks have only occurred in Brazil, Australia, and the United Kingdom, security experts expect to see the scam soon in the U.S. However, experts also say all phishing scams, these included, are preventable. As always, run and update antivirus software frequently and, if you don't have one already, install a firewall. More information about phishing is available on the Anti-Phishing Working Group Web site.

While phishing remains a high concern, experts also caution consumers against high-risk Internet use. The FTC (Federal Trade Commission) reports 55% of filed complaints are related to Internet fraud. The median loss for an Internet attack is $195. While online banking is safe, consumers still are more fearful of online banking transactions than giving out financial information for online shopping. Experts advise consumers to monitor their accounts regularly rather than wait for the monthly mailed statement.

Experts say it's also a good idea to change your online banking and shopping account passwords every three to six months. And to avoid being led to fraudulent Web sites, retype the Web address in your browser rather than click through e-mail links. These simple steps can protect you from serious hassles down the road.