Taken directly from my Bullguard newsletter:
Whereas phishing uses fraudulent e-mail messages to lure you to fake Web sites and try to get you to supply personal information like account passwords, pharming attacks redirect you to a hacker's site even when you type the address of a real site into your browser. Pharming does not require that a user clicks on an email message or has a system compromised by a Trojan or a keylogger, and therefore pharming is often described as "phishing without a lure."
Pharmers typically redirect users to a spoofed Web site by tampering with a company's hosts files or domain name system (DNS) so that requests for certain URLs return a bogus address and subsequent communications are then directed to a fake site. This means that users are unaware that the Web site where they are entering confidential information is controlled by hackers.
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