California Makes Phishing a Civil Crime

A bill signed into law Friday by California Gov. Arnold Schwarzenegger makes Internet phishing—stealing personal data by luring someone into divulging it over the Web—a violation of civil statutes.

The bill is the first of its kind among U.S. states and would allow victims to sue to recover actual damages or $500,000 per violation, whichever is greater.

Phishers usually work by sending e-mail that purports to be from a reputable and well-known company. They often direct recipients to go to a legitimate-looking Web site and enter personal data, such as log-ins, passwords and credit card numbers, then capture that information for their own use or resale.