They call it 'phishing.' Crooks use official-looking e-mails and fake Web sites to get your personal data, then steal from you.

Some facts about the scam:

· In this scam, crooks use official-looking but fake e-mails and Web sites that will ask you to reveal your personal financial information. Then they can drain your bank accounts, charge up your credit cards or steal your identity.

· According to some industry experts, it's the biggest fraud on the Internet.

· The Anti-Phishing Working Group (APWG) says the number of reported incidents of the scam climbed 800% in the first six months of 2004, and 4000% in the six months between November 2003 and May 2004. With mass e-mailings, each of those unique attacks can potentially hit thousands, if not millions, of people.

· The fake "phishing" e-mails look so official, so real. They appear to be from trusted banks, retailers or other companies. Citibank is targeted more than any other business; its name was used in almost 500 of the 1,422 unique attacks reported to APWG in June. PayPal, US Bank, and eBay names are also used as fronts.

· The e-mail often says the company needs to verify your information, such as account numbers or passwords, for supposed security purposes.

Tips on how to protect yourself from the scam

· DON'T provide any personal financial information via e-mail. (Banks and other companies frequently remind customers that they don't ever ask for sensitive financial data via e-mail.)

· Be extremely suspicious of any e-mail with urgent requests for personal financial information.

· Don't use the links in an e-mail to get to any Web page if you suspect the message might not be authentic. Instead, call the company or log onto the Web site directly by typing its Web address in your browser.

· Don't give your credit card numbers or account information unless you're using a secure Web. Check the beginning of the Web address in your browser's address bar. A secure site should show as "https://" rather than just "http://."

· Beware of e-mail attachments. Don't open them or download any files, regardless of who sent them.

· Check your bank and credit card statements online on a regular basis. Make sure the transactions are legitimate. Don't wait for a mailed paper statement, which can take up to a month. If you see something suspicious, contact your bank and all card issuers using a phone number you know to be legitimate or by typing in a secure Web site URL into the Internet browser address bar.

· Use anti-virus software and keep it up to date. Anti-virus software and a firewall can protect you from accepting unwanted key-logger files. Look also for anti-virus software that recognizes current viruses as well as older ones.

· Keep your computer's operating system up to date and download security patches. These free software patches for your operating system close holes that hackers or phishers could exploit. (You can check for Microsoft patches here: http://www.microsoft.com/security/.)

· Consider installing a Web browser tool bar to help protect you from known phishing fraud Web sites. EarthLink ScamBlocker alerts you before you visit a page that's on Earthlink's list of known phisher Web sites. Ebay offers a free toolbar that warns you when you might be on a spoofed eBay site.

· Report the attacks by forwarding the phishing e-mail to the following addresses: spam@uce.gov, reportphishing@antiphishing.org.

Source: Jennifer Mulrean, MSN Money