The latest information on phishing indicates that fraudsters are increasingly using malicious software to direct users to their deceptive sites. The Anti-Phishing Working Group (APWG) said in a new report Thursday that it saw a sharp rise in November in malware that directs users to DNS (Domain Name System) servers controlled by phishers.

DNS servers play a crucial role in locating Web sites. The servers translate a domain name into an IP (Internet protocol) address, enabling a Web site to be located and accessed through a browser. Often, the phishers will set up their own DNS server that works fine most of the time but can redirect to their own malicious site. Tainting a person’s DNS settings is particularly dangerous since the user probably won’t notice the redirection, the APWG said.
"The fraudulent server replies with ’good’ answers for most domains, however, when they want to direct you to a fraudulent one, they simply modify their name server responses," the report said. Phishers Use DNS Tricks to Direct Users to Bad Sites - Security Feed - News - CSO Magazine

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