I've heard a lot about something called "phishing" but I've never heard it explained. Can you give me some information?
Here's an excellent description provided by a security-minded friend of ours: e-mails asking consumers to update account information are one of the hottest tools right now for identity thieves seeking to steal personal information, according to federal law enforcement and Internet service providers. Nicknamed "phishing" (as in phony fishing for information), the scams usually use legitimate-looking company e-mail to tell a reader that an account error or fraud has occurred, and that they should go to a certain Web site to clear up the problem by providing account information. The Web site is a fake and the information provided is then used to create new identities or to drain a reader's bank account or charge up credit cards. The names of many well-known companies have been used to perpetuate the scams including Citibank, e-Bay, Best Buy, Discover Card and Earthlink.
On another front, a new scam is creeping up in smaller communities where financial institutions use ads in local papers to offer loans. The ads look official, but the phone numbers listed are actually prepaid cell phones. Potential victims who respond are asked for Social Security numbers, then are faxed a loan application, which they're asked to fill out, providing bank information and all sorts of juicy data that can be used to steal.
Victims often are then asked to provide upfront fees using Western Union wire transfers. Not only do they lose those fees, they also provide the thieves good information for stealing identities. Banks should warn their customers that legitimate lenders usually do not use cell phones or ask customers to use a third-party to wire money.
On a third front, scam artists are using the names of legitimate banks in their solicitations for charitable causes. In one of the most notorious recent schemes, a lady in Boston created a charitable organization for treatment of ovarian cancer, but used the money instead to buy a new car and for liposuction. She opened a bank account where people could send money, but banks are only responsible for making sure the person who signs for the account is the one that receives the money, they're not responsible for ensuring the charity is real.
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Here's an excellent description provided by a security-minded friend of ours: e-mails asking consumers to update account information are one of the hottest tools right now for identity thieves seeking to steal personal information, according to federal law enforcement and Internet service providers. Nicknamed "phishing" (as in phony fishing for information), the scams usually use legitimate-looking company e-mail to tell a reader that an account error or fraud has occurred, and that they should go to a certain Web site to clear up the problem by providing account information. The Web site is a fake and the information provided is then used to create new identities or to drain a reader's bank account or charge up 