How Phishing Scams Work

The typical phishing scam begins with an e-mail that looks entirely legitimate. The e-mail can appear to be from a bank, online auction company (such as eBay), money-transfer service (such as PayPal), or even a charity. Often, the e-mail states that your account is about to expire (or will be suspended) unless the person's account information is verified. A link to a website is usually provided. When you click the link, you are directed to a web page that prompts you to enter your account information or passwords or credit cards numbers or some other sensitive (and potentially damaging) information, or all of the above.

The problem is, even though the website you were taken to looks legitimate, the website is a fake whose only purpose is to capture that valuable account and password information, or worse, your credit card information.

Phishing scams can also be sent via instant messaging or even as invites to online contact libraries.

From the perspective of the thieves, this is a good business because they literally send millions and millions of e-mails out using automated programs. Even just a few responses make the effort worthwhile. When they have a mark, they empty the victim's accounts and move on to the next one. These folks are usually set up in countries with no extradition laws, and they move around a lot. So, even if the authorities find them, it is difficult to bring them to justice.