Investigations have been conducted into a particularly nasty form of cybersquatting known as "phishing", by Web security firm Finjan Inc. Phishing sites are sites which used Domain Names that mimic the domains of legitimate websites, often by exploiting an easily-made typo (such as mircosoft.com instead of microsoft.com). These sites are then used to collect information about visitors, such as email addresses, passwords, or even bank details. Finjan found that some websites install malicious code on Web users’ machines when they are visited. Trojans and other malware are often used to relay important private information from users’ machines to the phisher.

Because of the ever-growing World Wide Web, it is very difficult to keep track of hackers' malicious websites and to block them efficiently. Therefore good anti-spyware and anti-virus software is a must if Web users are to safeguard their machines and identities from malicious code.