Internet Phraud "Phishing" and "Pharming"

Imagine this: you receive an e-mail from your bank. It appears similar to every other e-mail they've sent you in the past. It tells you that due to "site upgrades", you need to verify your account information by clicking on a link. Sounds legitimate, right? Or perhaps you go to your favorite online clothing store to buy a pair of jeans you saw earlier in the week — just enter some personal information to "complete your order" and you assume they're on their way.

Your identity might have just been stolen. Identity thieves have recently started stealing personal information through schemes known as "phishing" and "pharming." Phishing involves sending fraudulent e-mails that appear to be from reputable companies (charities, stores, banks, etc.) in order to collect and use your personal information. Phishing can also occur through SPAM messages by using enticing offers or bogus attachments.

Pharming occurs when your computer has become infected with a virus that can compromise your identity. These malicious programs can record your keystrokes, giving thieves any personal information you enter, or can even misdirect you to fraudulent sites. This means that even when you enter a valid Internet address, you could be taken to a bogus site.

Cyveillance Inc., a Virginia-based firm that monitors the Internet for user threats, cites a rise in this type of fraud: "The number of companies whose customers were targeted by phishing attacks ... grew by 20% in the second quarter 2007." They also note, "While such attacks used to target customers of only a few large banks, they now impersonate credit unions, hotel chains [and] insurance companies."*

There are, however, several ways to protect yourself by safeguarding your information as well as identifying and avoiding these scams in the first place. This month's newsletter is full of tips and information to help you understand and avoid the pitfalls of online fraud.

The best way to avoid being caught by phishing or pharming is to know what to look for. Many phishing and pharming schemes are easy to avoid if you know how to identify them and what sorts of information they commonly request from you. Protect the power of your credit and identity by taking important steps to safeguard yourself against fraudulent Internet scams.

Identify:
It's important to handle all Internet transactions carefully, since phishers and pharmers can access your personal information through seemingly innocuous channels like these:
Fake e-mail messages that appear to be from a well known or respected company or charity.
Fake online sales transactions are quick ways for criminals to get both your personal AND banking information.
Fake Web sites can be made to look legitimate through similar links to well-respected companies or link masks. By making the mistake of clicking these links, you could unknowingly download a virus that can log your personal information.
Attachments to suspicious e-mails often contain viruses that could potentially rob you of your identity.
Personal Information requests tend to be similar across these schemes and include urgent requests for your account numbers, credit card numbers, Social Security Number, Internet banking login and password, mother's maiden name, date of birth, and other personally identifiable information.

Safeguard:
Guard your personal information: Never give highly personal information (SSN, credit card numbers or other personally identifiable information [PII]) to an unsolicited individual or company. Reputable companies would never request this information via e-mail or phone.
Protect your computer: One of your best bets for avoiding pharming and other subversive Internet scams is to make sure that your computer is safe and virus-free. Protect your computer through firewalls, encryption and antivirus software to help ensure your safety against computer virus-borne scams.
Examine your e-mail: Never click a link or download an attachment from a suspicious e-mail. This is often the first step in pharming schemes and the only step you can take precautions to prevent.
Keep track of your documents: Make sure that all important documents containing personal information are either filed in a safe, secure place or properly shredded.
Monitor your credit file: Make sure to monitor all three of your nationwide credit files, as these are some of the first places that fraud like phishing and pharming may become evident. With tools like Equifax Credit Watch™ Gold with 3-in-1 Monitoring, you can be alerted within 24 hours of key changes to your credit file — enabling you to take immediate action to guard against increased damage.