Phishing Attacks Rise, Public Oblivious

Phishing attacks now affect one out of every four Americans every month, according to details of a survey released Wednesday by AOL and the National Cyber Security Alliance (NCSA). The study is the only one to actually go into homes and see what malware resides on users' PCs.

Worse yet, more than two-thirds of respondents are mistakenly identifying scam e-mails as legitimate, meaning a large number of computer users are at risk of identity theft.

"Phishers are getting better at tricking consumers into revealing their bank account and financial information, and most Americans can't tell the difference between real e-mails and the growing flood of scams that lead to fraud and identity theft," said Tatiana Platt, Senior Vice President and Chief Trust Officer for AOL.

18 percent of respondents knew someone who had become a victim of an online identity theft scam. Only 42 percent had heard of "phishing," and of those familiar, only half could define it accurately.

Eight out of every ten computers lack at least one of the three crtical protections needed to stem online identity theft: updated antivirus protection, spyware protection, or a firewall. A large majority, 83 percent, also believe they were protected on their computers from online threats.

"As we move into a broadband world, where consumers have an always-on connection to the Internet, these core protections are even more vital," NCSA executive director Ron Teixeira said. "This is particularly troubling, given that more than two-thirds of those surveyed say they keep sensitive information on their PCs."

Even with all the bad news, the study did find some improvements since the survey was last conducted in 2004.

The number of homes with properly installed firewalls doubled from 28 to 56 percent thanks to the release of Windows XP Service Pack 2. Also, 44 percent of consumers are now ensuring their antivirus software is up to date, versus 33 percent last year.

The amount of infected computers has also dropped, with 61 percent of systems infected with spyware and adware, and 12 percent infected with a virus, versus 80 percent and 19 percent last year.

"Although we have made some strides in helping consumers protect themselves, the threats are growing broader and more dangerous, so the risk of failure can be that much more catastrophic," Platt added. "You can't lock just a few of the windows in your house and expect to stay safe from thieves.