Microsoft Taking Phishers To Court

Microsoft Corp. on Thursday filed 117 federal lawsuits against unnamed defendants, accusing them of a high-tech form of identity theft known as "phishing."

The lawsuits, filed in U.S. District Court for the Western District of Washington, accuses the "John Doe" defendants of using mass e-mail or pop-up ads to coerce consumers into revealing personal information such as bank account information, passwords or social security numbers.

The Redmond-based software company said it filed the lawsuits in hopes of uncovering some of the largest operators.

In phishing scams, the Internet-based communications often purport to be from legitimate organizations, such as banks, and use that perception of a trusted relationship to get people to reveal personal information.

"Lawsuits may have some impact but they won't solve the problem, especially with the phishing schemes that operate from overseas," reports CBS News Technology Consultant Larry Magid. "The best defense is consumer education."

To avoid such identity theft, experts warn that users should be wary of giving out any personal information via e-mail or pop-up ads, especially if someone contacts them unexpectedly. Users also should be wary of clicking on e-mail links, which could divert a user to a malicious site that will then steal personal information.

"It's increasingly common to get a very genuine looking piece of e-mail that appears to come from a bank, credit card company or other legitimate organization," reports Magid. "Once consumers provide confidential information its easy for criminals to steal their identity and their money and even commit crimes in their name."