Basically, password scamming is making a "fake" site that looks like a legitamate login request and posting it, and then re-directing site members to the fake site to make them re-log in. Instead of actually logging into the site, the victim is typing in their information to the fake site which is sent to the scammer. That way, the scammer has the login info to use for whatever purposes they want. Usually to make it look real, the victim is then bounced to the regular site as if they logged in, even though they may not have been logged out to begin with. Making a password scam site look real takes a lot of work and usually involves hacking the legitimate website in order to make the fake page look convincing and to get users re-directed. Myspace had a real problem with this a few months back as I recall.

I hope that makes sense! Password scamming isn't only immoral, its quite illigal especially when it comes to sites that involve money. I basically found out though that anyone on the site I was on can accuse someone of password scamming and without investigation, the site can ban the accused member. Honestly, I think an accusation this sirious demands investigation (especially since it involves someone "ripping off" parts of the site) but really with as many hacking/scamming complaints as this site gets, I'm sure the admins (Who are unpaid I found out) don't really want to take the time to investigate every complaint.

I'm not sure if I was the victim of a password scam or if I was just falsely accused. According to the terms of service, the admins don't have to tell me either way. They really did write the use agreement in their favor. If I get anything out of this, its that before signing up for a site READ the TOS carefully to see what rights as a member you have, as realistically sites can write service agreements that basically give you no rights at all but if you click that I agree thing when you sign up there isn't a thing you can do about it after the fact.