Latest Numbers Show Unrelenting Rise in Phishing Attacks

The criminal activity known as phishing soared to new heights last month, according to statistics released today by the Anti-Phishing Working Group. The consortium of Internet companies and law-enforcement agencies reported that the number of unique phishing incidents recorded by the group rose 180% to 1,125 in April, more than double the number in March and a 40-fold increase since last November, when the group first issued a monthly report. Indeed, according to the group's statistics, the number of unique attacks has rocketed upward at a rate of 110% per month since November, when 28 attacks were recorded. Phishing refers to the criminal practice of creating bogus e-mails and Web sites whose language and graphics mimic those of legitimate sites in an effort to gull consumers into giving up sensitive personal data, such as passwords and account numbers. The online marketer most favored by phishers, says the report, is now Citibank, with 475 incidents in April targeting the banking company. Online auction powerhouse eBay, which had been the number-one target, came in second at 221 attacks, while eBay's payment processor, PayPal, finished third with 135. A single unique attack can constitute millions of bogus e-mails, the group says. The stunning increase in the fraud may stem in part from its effectiveness. A study released recently by technology researcher Gartner Group indicated that 19% of recipients of phished e-mail clicked on links embedded in the messages, and of these 3%–or nearly 2 million consumers–entered personal information on the bogus Web sites to which they were directed (Digital Transactions News, May 6). Altogether, Gartner estimates phishing costs financial-services companies $1.2 billion annually while also taking a toll on the trust consumers must have to perform transactions online. Some experts speculate the popularity of Citibank as a target may result from its global brand presence. Many phishers operate from countries in Central Europe, for example, where Citi and its parent, Citigroup, are well-known as financial-service brands.