'Phishing' attacks lead to loss of identity

Gartner estimates that 57 million U.S. adults received
a "phishing" attack e-mail within the past year,
wherein more than half of those who responded were
also victims of identity theft.

MUMBAI: Gartner announced the results of a survey
showing that an estimated 57 million American adults
received e-mail attacks from "phishers" - hackers
or cyberthieves who pretend to be trusted service
providers to steal consumer account information.
Survey respondents included 5,000 online adults,
selected
as a representative sample of the U.S. population.
Extrapolating from this sample, Gartner concludes that
more than 30 million people were "absolutely
sure" they were victims of a phishing attack, and
another 27 million thought they had received what
"looked like" a phishing attack - and over 90 percent
said the attacks happened within the past year.
Another 35 million were unsure whether they had
experienced an attack, and just 49 million of 141
million
online consumers said they had not experienced one.

Gartner research conducted in April 2004 indicates
that millions of consumers unknowingly fall for
phishing attacks - e-mail communications designed to
steal consumer account information, such as credit
card data, home addresses and telephone numbers.
Consumers have reason to be nervous. Phishing attacks
undermine their confidence in the authenticity of
e-mail originators, threatening consumer trust in the
very foundation of Internet-based communications.

Based on the representative sample, Gartner believes
that nearly 11 million online adults - representing
about 19 percent of those attacked - have clicked
on the link in a phishing attack e-mail. Even more
seriously, 1.78 million Americans, or 3 percent of
those attacked, remember giving the phishers sensitive
financial or personal information, such as credit card
numbers or billing addresses, by filling in a form on
a spoof Web site. Gartner believes that at
least a million more individuals may have fallen for
such schemes without realizing it. Direct losses from
identity theft fraud against phishing attack
victims - including new-account, checking account and
credit card account fraud - cost U.S. banks and credit
card issuers about $1.2 billion last year.

Gartner believes that the double-digit expansion of
U.S. e-commerce will slow down unless service
providers adequately address consumer security
concerns.
A future Gartner note will outline emerging
anti-phishing solutions, ranging from digitally signed
e-mail to managed anti-phishing services. Without the
implementation of phishing antidotes, consumer trust
will further erode and annual U.S. e-commerce growth
will slow to 10 percent or less by 2007 (0.6
probability).

The rise in phishing attacks is threatening consumer
confidence as never before. Eventually, all
participants in Internet commerce will be hurt by
diminished
consumer trust in online transactions. Given that the
victims are more likely to suffer from identity theft,
consumer distrust in Internet security is
certainly a reasonable reaction. Service providers
must begin implementing solutions that authenticate
themselves to their customers, and their customers
to them.