Phishing Scams Explained

Phishing scams are attempts to gather sensitive information such as passwords, usernames, and bank account numbers from unsuspecting individuals. There are a few different ways for cybercriminals to conduct phishing scams, but they almost always involve fake personalities or inaccurate statements that trick internet users into revealing vital information.

Early Phishing Scams

You can learn a lot from the way that early phishing scams worked. The first phishing scams occurred on the AOL network in the mid-1990s. AOL was cracking down on illegal software pirating and credit card fraud, so they created an algorithm that made it extremely different for hackers to set up fake accounts. The hackers responded by posing as AOL representatives in emails and instant messages sent en masse to AOL members. The emails requested the members’ usernames and passwords. Many people in the mid-1990s didn’t have a full understanding of cybercrimes, so they unwittingly handed out sensitive information that allowed the hackers to use their accounts for illegal activities.

Phishing Scams Focus on Financial Information

Eventually phishers realized that they could go straight for the financial information of internet users. They posed as bank officials, PayPal agents, and other company representatives. Many of them copied the logos of institutions such as PayPal to make their emails look even more legitimate. The most convincing aspect of the phishing schemes was the use of link manipulation to make the emails look like they had come from a legitimate institution. When someone reads an email from their banking institution that contains an accurate logo and a reply address that seems legitimate, they are often all too willing to give up their private information.

Phishing Scams That Focus on Greed

Not all phishing scams focus on tricking internet users into providing fake account representatives with private information. Some of them simply make wild claims in an attempt to capitalize on the common greed that most people have. These ploys usually promise huge rewards for insignificant favors. For instance, many phishers claim that they are foreign diplomats who cannot gain access to a large sum of money that is rightfully theirs. They ask an American, Canadian, or European citizen to help them by sending a small amount of money. In return, they will repay the person thousands of dollars. Over several weeks or months, the phishers continue to request more and more cash until the victim catches on or runs out of money. Many people fall for these phishing scams because they cannot say “no” to the possibility of a huge payoff.

Phishing Scams Use Thousands of Emails and IMs

Most people today are wary of emails and IMs that promise huge rewards. And most internet users are even aware that some hackers can manipulate email addresses and links to appear legitimate when, in fact, they are not. Increased awareness has made it more difficult for phishing scams to accomplish their goals, but the criminals who run them send out thousands of emails and IMs. Even if 99 percent of the people who receive the phishing email disregard it as a scam, the cybercriminals can still make a lot of money off that one percent that doesn’t know better. In this way, phishing resembles real life fishing. There are millions of fish in the sea, but a good dinner only requires the one that took the bait.