For Immediate Release                                                                                                 News

Legislators Fight Internet Fraud

With Anti-Phishing and Anti-Spyware Legislation

 (PHOENIX, AZ)  - Per capita, Arizona is fourth in the nation for internet fraud, according to FBI cybercrime statistics.  Today, during National Consumer Protection Week, the legislature will pass out of committee two important bills to fight online fraud. 

Senator Dean Martin and Representative Jonathan Paton are co-sponsoring SB 1447, an anti-phishing measure to make it a felony to impersonate an online business or financial institution to fool you into giving your personal financial information.  Known as phishing, it is the newest and fastest-growing form of online identity theft.  The two lawmakers also introduced HB 2414, an anti-spyware measure to make it illegal to use illicit software to covertly gather personal information through the user’s internet connection. 

Regarding phishing, Sen. Dean Martin said, “We must give law enforcement the tools to crack down on the newest forms of online identity theft.  These criminals are using new technology to flood the internet with urgent sounding messages pretending to need your personal information to keep accounts from being closed, when really they are trying to steal your money and identity.  SB1447 will allow individuals and law enforcement to directly combat this new online fraud.”

Rep. Jonathan Paton said regarding spyware, “People should not be besieged by these high-tech invasions of their homes and businesses.  These computer attacks shake confidence in a major developing area of our economy, and must be dealt with.”

Phishing attacks use 'spoofed' (faked) e-mails and fraudulent websites masquerading as legitimate companies to trick recipients into divulging personal financial data such as credit card numbers, account usernames and passwords, social security numbers, etc.    

The estimated amount of money lost to phishing scams last year was $1.2 billion, according to a study by information technology research company Gartner Inc, and is expected to top $3 billion this year.  According to the non-profit Anti-Phishing Workgroup, hijacking the trusted brands of well-known banks, online retailers and credit card companies, phishers are able to convince up to 5% of recipients to respond to them.

According to the National Cyber Security Alliance, 9 out of 10 computers connected to the Internet are infected with Spyware, which allows unauthorized access to a computer, whether to spy on user activities, hijack user computer configurations or to deliver intrusive and unwanted pop-up advertising.  A recent audit by Earthlink found that the average computer had over 26 Spyware programs installed.  

This legislation is designed to protect Arizona consumers and businesses from online identity theft and internet fraud, and is part of the 2005 joint Republican Majority Program’s commitment to fight crime and focus on public safety.                                                                  

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