The Internet has made online transactions commonplace. However, you should be aware of two forms of Internet identity theft - phishing and pharming.
Phishing involves convincing consumers to divulge personal financial information on fraudulent web sites. For example, a consumer might receive an email message from a phisher asking the recipient to click on a link in the email to confirm account information. The website the consumer is directed to is a fake or copy of the real website. When the consumer enters the financial information, the phisher acquires all information needed to access the consumer's bank account or commit other forms of identity theft.
Pharming is a similar, but more sophisticated, process. When the consumer simply opens the email message, a virus installs a software program on the user's computer. When the consumer tries to go to an official website, the pharmer's program redirects the browser to the pharmer's fake version of the website. The pharmer then learns the consumer's financial information when that information is typed in the fake web site. Another form of pharming bypasses the email message. A virus can be placed on a computer that tracks a user's typing while on legitimate sites, thus stealing passwords and other sensitive information.
Some tips to help avoid this type of identity theft include:
• Do not use links in an email message to go to a web page. Type the address directly in your browser.
• Avoid completing forms in email messages that ask for personal financial information.
• Use a secure website when submitting credit card or other financial information.
• Regularly check bank, credit card, debit card, and brokerage statements to make sure all transactions are legitimate.