How Do Phishing Scams Work?

Phishing scams are one of the most common types of Internet fraud being committed today. While they have been around for years and virtually everyone has heard about them at least a few times, new victims continue to fall into their traps every single day. For criminals, this is a very lucrative business, but for everyone else it can turn into a nightmare.

A scam artist using phishing methods will first set up websites that look exactly like popular sites that millions of people use every day. Some of the most popularly copied sites include Paypal, eBay, and a variety of banking institutes.

Phishing Scams...broken links

The goal of the fake site is to look as genuine as possible. They copy even the smallest details in design, including listing the same links at the bottom of the page. One dead giveaway that a site is a fake is that the links are not actually links, but just words made to look like links. They do not lead anywhere or your cursor will not change when you scroll over them.

Yet, some more detailed phishing sites will have all the links that really open to what will appear to be a legitimate webpage. Scams are getting extremely sophisticated these days and con-artist are always thinking of new ways to rip honest people off.

How Phishing Scams Contact You

Next, the scam artist will approach people at random. This is usually done through email, though some people have reported being approached through instant messages as well. The message will appear to be from your bank or another website that may have some of your personal information, such as Paypal.

This is a professionally designed email aimed at making you click a link that supposedly leads to the legitimate website you are dealing with. They usually use scare tactics, such as saying your account has been suspended or your information needs to be updated or the account will be removed.

Phishing Scams, How They Work

Some may even say that your information has been compromised and you need to prove your identity to secure the account. None of this is true of course, but when you click through the link they provide you are taken to the phishing site they have already set up, which looks just like the real website you are used to seeing. When you input your account information, the scammers now have access to your account at the real site!

Often, a Paypal (please read "How Paypal Scams Work") account can be wiped out or completely compromised before the victim has any clue what has happened. More important, since sites such as Paypal often have credit card and bank account information stored, the scammers have access to those accounts as well without the victim even knowing it in most cases.