What is phishing?

Phishing is defined as a tactic used by malicious actors to obtain sensitive information such as usernames, passwords, credit card details, and other personal information by masquerading as a trustworthy entity in electronic communications. Typically, this is done through emails or messages that appear to come from legitimate sources, enticing individuals to click on links or provide their data.

This method exploits the trust that individuals have in recognized brands or organizations. For example, a phishing email might look like it is from a bank and prompt the recipient to enter their account details on a counterfeit website that resembles the legitimate site. Understanding phishing is crucial in the realm of payment systems and cybersecurity because it highlights the vulnerabilities individuals face when interacting with digital financial services.

The other options do not accurately describe phishing; data encryption is a security measure, a virus is a type of malicious software, and software updates are meant to improve functionality or security; none relate to the act of deceiving individuals into revealing sensitive information.