Pharming Scams-Online Fraud

Pharming (farming) is a close cousin to Phishing. But pharming relies on a fake Web site and the theft of confidential information or if it is a bank, your money.

The main difference between phishing and pharming is bait. Phishing relies heavily on the individual accepting the "bait" message; while pharming can install an email virus onto your system that will redirect victims to a "Look-alike bogus Web site" even when they (the victim) types the right address of their bank or other financial service into their Web browsers.

How Does Pharming Works?

Pharming can be achieved through several methods. the first method is called DNS cache poisoning.

First let's define a DNS server. A DNS server (domain naming system) is a hierarchical naming system for computers. You type in a name: such as www.sample.com and the DNS server will translate that into computer language, which of course, is the IP address. ( example: 201.66.123.122).

The pharmer attacks the DNS server. When you type a Web site's name into your browser, your server will read the name, look up its numeric address and take you to the site. This is where the Pharmers interfere with that process. They change the real site's numeric address to the fake site's numeric address.

Note: Pharmers can interfere with your DNS only when you use the "http" and not the "https" for your contacting url.

The other method of pharming is through changing the host file on a victims computer. Through the use of an email virus- they can hack into your system. If they get in, they will install a small program (virus) that will direct the user to the fake site. You may be suspicious and refuse to take the bait. But...

When you clicked the link, it activates a virus on your system. The virus will remain dormant on your system until you do go into the site they are seeking. The virus will then track your keystrokes, thus, capturing your password and user-id. (A password-management tool can keep you safe and secure from keylogging because you will not have any keystrokes hitting the site.)

How To Stay Safe

Here is a list of some of the things that you can do to protect yourself from a pharming scam.

1. Make sure that your operating system is always current, including latest patches.
By keeping your operating system current you are able to block most attacks on your system.

For example, Microsoft operating systems can be configured to automatically download updates and patches on your system. This method is the best, because its an automatic process.

2. Your Internet Browser security, be it Internet Explorer or Firefox, should be set to the highest security level.

3. If you use passwords to enter sites, make sure that the passwords cannot be easily guessed. Strong passwords contain eight characters with a combination of letters and numbers.

4. Use different passwords and user names. Do not use the same password or user name for all your different sites. It makes it too easy for the hacker to break in. In addition, use a password management system, that allows you to safeguard your passwords. Roboform and Norton Internet Security, are several examples of programs that have the password management system.

5. Change your passwords on a regular basis. Why? If someone has compromised your entry-it will help to lessen the damage.

6. Protect your computer with security software. Use security software like Norton Internet Security, Kaspersky, McAfee, AVG which identifies whether the site is safe or not, and run regular scans on your site (according to your settings).

Compromised Site-What To Do?

If you think something is not quite right-when you enter a financial site. Close out of the site and contact the financial institution immediately. They will close your user-id and password down and you will have to wait until they verify the intrusion.

You will probably be asked to report an Initial Security Alert to one of the three consumer agencies listed below:

a) Equifax- equifax.com
b) Experian- experian.com
c) TransUnion - .transunion.com

The Initial Security Alert puts an alert on your credit file, as well as, alert creditors to follow certain procedures to protect you. This is protecting your identity.

What Are Businesses Doing To Protect You?

What do businesses have to lose if they don't protect you? They can lose money and your business if their security is breached. Here are just some of the ways in which businesses are helping you.

1. Some businesses only allow so many attempts into the site in a day. Then you have to wait for the next day to do business.
2. They monitor your IP address for safety.
3. They eliminate all pop-ups during sign-up and sign-in.
4. Some have eliminated emailing altogether.
5. Many businesses use server side software to protect their customers and employees who use internal or private web-based systems

The first line of protect begins with knowledge. The second line of protection is following through with securing your computer, your passwords and your Internet connection.

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