PHISHING, PHARMING AND IDENTITY THEFT
Richard G. Brody, Elizabeth Vallery Mulig, Valerie Kimball · 2007
Identity theft is the fastest growing crime in America, occurring when the criminal obtains confidential information from an individual or business and uses it to access private financial accounts. In today’s world of information technology, many thieves prey on their victims via the Internet. The level of disclosure of personal information in many of today’s information age transactions is what leaves so many individuals and businesses open to identity theft. Two of the most common ways that thieves acquire personal information to aid them in identity theft are phishing and pharming. Phishing utilizes bulk e-mail messages to entice recipients into revealing personal information. Pharmers, on the other hand, cast a wide net for the unwary. There is a huge potential reward for criminals who succeed in these malicious acts. In addition, now that organized crime has become involved, the money available to help thieves carry out the crimes is immense. Information indicates that U.S. losses are approximately $52.6B per year. Approximately 90% of this total is being carried by businesses and financial institutions, and consumers ’ cost is the remaining 10%. Another huge cost of identity theft, to businesses is the loss of customer trust. Creating awareness is one of the most important tools in fighting identity theft via phishing and pharming schemes. However, it is not enough. Financial institutions and consumers need to work together to prevent future occurrences. Hopefully, with advanced technology and continued educational outreach by businesses, financial institutions and educational organizations, there will be a decline in the level of identity theft taking place on the Internet.