Phishing leaps as US consumer losses reach $500 million

OUT-LAW is organising an Edinburgh Phishing Conference on 23rd November 2004 to address the problem in the UK.

The study on victims of spoofing and phishing scams was conducted by the Ponemon Institute and sponsored by TRUSTe, an on-line privacy non-profit organization and also NACHA, an electronic payments association.

The report reveals that 76% of consumers are experiencing an increase in spoofing and phishing incidents and that 35% receive fake e-mails at least once a week. It is based on a national sample of 1,335 internet users across the US.

Seven out of 10 respondents revealed that they have unintentionally visited a spoofed Web site and more than 15% of spoofed respondents admit to being phished, providing sensitive private information including credit card numbers, checking account information and Social Security numbers.

Sixty-four percent of respondents surveyed said that it is unacceptable for organisations to do nothing about spoofing and phishing, and 96% want companies to consider new technologies to help authenticate e-mail and on-line sites.

Internet users are also interested in having organisations work with law enforcement to shut down the spoofers before they strike.

"Consumers should be cautious when disclosing sensitive information unless they have proactively initiated the online transaction," said Fran Maier, president and executive director of TRUSTe. "This simple consumer protection message needs to be conveyed through a broader consumer education campaign."

"This is the first study to objectively estimate the impact of phishing and spoofing on American consumers," said Dr. Larry Ponemon, founder and chairman of Ponemon Institute. "As we become more educated on the problem, organizations will be better equipped to develop strategies to address these issues."