Cybersquatting and phishing increased significantly in 2008

Harm to major brands caused by activities such as cybersquatting and phishing rose dramatically in 2008 according to research by MarkMonitor. Cybersquatting affected big brands in every sector, increasing by 18%, while phishing hit the financial industry hardest, with attacks up 51% in the second half of the year alone.

“Online brand abuse has reached a critical phase,” said Irfan Salim, president and chief executive officer of MarkMonitor. “The good news is that brand holders have resources available to them to take action. The companies who are most successful in fighting abuse are those that make defending their brand a priority at the highest levels of management.”

The clothing industry was hit hardest in 2008 with brand attacks rising by 28%. Other industries experiencing notable growth in brand attacks included automotive (21%), technology (21%), food and beverage (17%) and media (11%).

While brand abuse is prevalent through the world, for the second year the UK, United States, and Germany are home to the majority of the websites launching brand attacks. Two thirds of hosted in the US, 9% in Germany and 4% in the UK.

The one piece of good news came for the retail and online auction sectors, with phishing attacks plummeting 83% and 67% respectively in the second half of the year.

The figures were generated by analysing abuses of 30 brands from the Best Global Brands study by Interbrand.