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Government Shuts Down Internet 'Phishing' Scam

19-Year-Old Identity Thief Halted By Feds

POSTED: 8:41 am EST March 24, 2004

Federal officials say they have shut down an identity theft scam.

A 19-year-old Houston man pleaded guilty last month to tricking Internet users into providing their credit card and bank account numbers. Federal prosecutors say Zachary Hill is set to be sentenced in May and could face up to 15 years in prison.

There's no comment from Hill, who is free on bond.

The government said Hill got hundreds of people to provide information by sending e-mails that appeared to come from America Online or Paypal.

The "from" line identified the sender as "billing center" or "account department," and the subject line carried warnings such as "AOL Billing Error Please Read Enclosed Email," and "Please Update Account Information Urgent!" The text of the message contained a warning that if the consumers did not respond to the e-mail, their account would be canceled.

The Federal Trade Commission calls this type of scam "phishing." The agency has also filed a civil action against Hill.

"Phishing is a two-time scam," said Timothy Muris, FTC chairman. "Phishers first steal a company's identity and then use it to victimize consumers by stealing their credit identities."

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