Internet users should use various strong passwords to ensure that fraudsters do not get 'the keys to the kingdom' if a password is lost.
The best way to avoid online phishing attacks is to have different passwords for each site visited, according to an IT security firm.
Phishing refers to the practice of fraudsters who contact consumers and pretend to be from a bank or other financial institution. They then ask for victims' passwords in order to steal money from accounts.
According to Roger Thompson, chief research officer at AVG Technologies, phishing is becoming increasingly popular. This claim is backed by an Office of Fair Trading report from February which found that nearly a quarter of British internet users said that they or someone close to them had been a victim of a phishing scam in the last 12 months - less than a tenth said this in 2008.
Additionally, social networking site Facebook has warned users about the threat of phishing.
Mr Thompson said that people should understand that "99 percent" of these attacks come from the internet - and should take precautions as a result.
"The single most important thing that people can do is probably to use multiple, strong passwords, and write them down," he explained. "Then if one account gets phished, they only lose one password, not the keys to the kingdom."
