Phising is the most common, and likely the most damaging fraud on the internet. It's even more prevalent than viruses now days as it can clear ordinary peoples bank account without anything they can do about it.
Phising is email fraud where someone forges the email signature to a credible source, and provides a link for the to update their account information to banks, or merchanting accounts like ebay. The most common fraud is with paypal, ebay, and washington mutual.
Many people believe when they receive an email from support@paypal.com, it's really from paypal. When you click their link, it sends you to some random domain that may contain the word paypal for example, paypal.update192471.com. The real domain is update192471.com. Next the website asks you to "verify" all your account information.
<paypal logo here> This is paypal, your account will soon be terminated due to illegal activity suspected. You may keep your account but your assets have been frozen. In order to further investigate your case you must verify your account information with us. Click the link after this message and update your account. If it is not updated after 48 hours of this notice you forfeit all account funds.
Clicking the link will open a popup and send you to the official paypal site. The popup, asking you for important information is from my server, even though it looks official since the paypal site opened in the background. Scammers use other sneeky tactics such as address forging with images. Many will go on korean and japanese servers so they cannot be easily reported to the hosting companies. Since they scam banks, credit card customers, and paypal accounts, they can pay for new hosting from the money they steal and unabashed, continue to do so.