A weakness has been discovered in Internet Explorer, which can be exploited by malicious people to conduct phishing attacks.

The problem is that it's possible to display a popup with a somewhat spoofed address bar where a number of special characters have been appended to the URL. This makes it possible to only display a part of the address bar, which may trick users into performing certain unintended actions.

Secunia has constructed a demonstration, which is available at:
http://secunia.com/internet_explorer_7_popup_address_bar_spoofing_test/

The weakness is confirmed in Internet Explorer 7 on a fully patched Windows XP SP2 system.

Solution
Do not follow links from untrusted sources.

Provided and/or discovered by
Discovered by an anonymous person.

Changelog
Further details available to Secunia VIM customers

Other references
Further details available to Secunia VIM customers

Deep Links
Links available to Secunia VIM customers