AOL filed suit against several major phishing gangs on Tuesday, alleging that emails sent by the phishers tricked AOL and CompuServe members into divulging personal information. The ISP is seeking total damages of $18 million.
Phishing occurs when a fraudster sends an email that contains a link to a fraudulent website where users are asked to provide personal account information. The email and website are usually disguised to appear to recipients as though they are from a trusted service provider, financial institution or online merchant.
It is a growing phenomenon. According to a recent report by the Anti-Phishing Working Group (APWG), almost 50,000 phishing websites were created last year – and more than 7,000 in December alone – while a 2005 survey of personal computers by AOL and the National Cyber Security Alliance found that one in every four home computer users are hit by phishing attacks each month.
AOL has tried to deal with phishers before, through spam blocking, lawsuits and by blocking access to suspected phishing sites, but this is the first time that a phishing gang has been targeted by the ISP.
The three actions, filed in the District Court for the Eastern District of Virginia, allege that the gangs breached federal trade mark and anti-spam legislation and Virginia’s groundbreaking new anti-phishing statute, adopted in July 2005.
The three phishing gangs are believed to be based in the US, Romania and Germany.
