Kay Pilcher pointed out this CNN article on how phishing schemes are getting more sophisticated.
Apparently these crooks are now installing entries in host files on compromised desktop systems so that even if the unsuspecting person types in their own URL in the browser they can be directed off to the scam site.
And there are even reports of compromised DNS servers being used to redirect people to the wrong place.
If you can’t trust DNS, the Internet is effectively over.