Internet ‘phishing’ increasing in Germany amid financial crisis

Internet users beware - hucksters are taking advantage of the global financial crisis with an ever-rising number of frightening spam emails in Germany designed to get you to reveal your private information.

Published: 25 October 2008 13:53 CEST

Internet 'phishing' increasing in Germany amid financial crisis

Photo: DPA

Internet criminals are profiting from the financial crisis, hitting up bank customers running scared over plummeting share values and currency fluctuations, according to a report in the Saturday edition of Munich daily Süddeutsche Zeitung.

German internet security firm G-Data told the paper that tricksters have been sending out an increased number of phishing and spam messages in recent weeks, trying to con individuals into revealing their private banking information.

According to G-Data, the number of such mails has been on the rise, and the subject lines have grown increasingly alarmist.

“Beginning tomorrow, €100 will only be worth €9.33” was one subject, while others ask whether shares in Deutsche Bank or Allianz insurance company will be worth anything by the next day.

An unsuspecting individual watching the plummeting share market could be inclined to subscribe to a newsletter for an answer – but a newsletter that requires the revelation of private data, Ralf Benzmüller of G-Data said.

He said the company, which manufactures anti-virus and anti-spam software, had been catching a steadily rising number of such e-mails in their spam filters.

Federal officials have also been warning of racketeers, who lure individuals to seemingly legitimate websites before getting them to reveal their account numbers, passwords and other personal information.

Officials said consumers should never respond to such queries, report them to authorities and keep their virus software up to date. A bank, for instance, would contact them through official channels such as by letter and not via e-mail.

Intel’s delay

The US chip giant announced Monday it is postponing plans for its project in Germany for two years as it focuses more on the United States.

This is a blow to Berlin, which had pledged 10 billion euros ($11 billion) – a third of the cost – to build the production plant in the eastern city of Magdeburg.

While Intel’s own struggles are the immediate cause for the delay, it has also fuelled concerns that Germany is becoming less attractive as a place to do business.

In this year’s ranking of the most competitive economies by Swiss business school IMD, Germany slipped two spots to 24th, with taxes, bureaucracy and poor infrastructure cited as major handicaps.

Volkswagen stalls

Auto titan Volkswagen announced earlier this month it could take the unprecedented step of closing factories in Germany for the first time in its 87-year history.

Europe’s biggest carmaker is struggling with high costs, problems in the transition to electric vehicles, and fierce competition from local rivals in key market China.

Employees of German car maker Volkswagen (VW) protest at the start of a company’s general meeting in Wolfsburg, northern Germany, on September 4, 2024. Photo by Moritz Frankenberg / POOL / AFP

A week after VW’s shock announcement, BMW announced it was recalling 1.5 million vehicles due to problems with their brakes and downgraded its outlook for the year, also citing problems in China.

Steel storm

Efforts by Thyssenkrupp to spin off its loss-making steel division and get its business back on track ran into trouble last month when a host of senior executives quit in protest at the what they said was the unacceptable behaviour of the group’s CEO.

The row centres around plans to restructure the division, which operates Europe’s largest steelworks in Duisburg, western Germany.

The conglomerate wants to separate the steelmaking unit from its other activities, which include building submarines, as it faces higher manufacturing costs and competition from cheaper Asian steel.

It already announced that it plans to cut jobs in Duisburg and reduce production.

Firms face being gobbled up

Deutsche Bahn announced last week that logistics unit Schenker, traditionally one of its most profitable arms, is to be sold to Danish group DSV, with unions fearful it could lead to thousands of job losses in Germany.

Meanwhile Italian bank UniCredit is targeting a takeover of Commerzbank after building up a nine-percent stake in Germany’s second-biggest lender, a development that reportedly blindsided Berlin and has angered German unions.

Still some say such takeovers also highlight that German firms remain attractive, despite the woes of the broader economy.

Poor indicators

After starting the year on a positive note, recent surveys – from business morale to consumer confidence – have been on a downward trend, denting hopes of a strong rebound.

Some economic institutes have cut their forecasts, and now expect either stagnation or a slight recession for the whole year.

In its last official forecast in April, the economy ministry still expected growth of 0.3 percent this year, but it may downgrade that forecast when it updates the figure soon.

Commenting after a recent batch of negative data, ING economist Carsten Brzeski summed up Germany’s problems: “Years of stagnation, and underestimating technological trends and international competition do not come without consequences.”

By Sophie MAKRIS