In simple terms, phishing is when someone else masquerades as ‘you’ by stealing your online authentication details. What happens later, is of course, entirely upto the individual who engages in phishing, right from an e-mail prank to use up your credit limits.

If you are looking to enhance security, devices based auto-passcode generator seem to be a decent option. For instance, a product like Aladdin’s e-Token PRO’s RSA 1024-bit key operations enable seamless integration into Public Key Infrastructure (PKI) architectures. eToken can generate and store users’ personal credentials, such as private keys, passwords and digital certificates, inside the protected environment of the Smartcard chip itself. Users’ private keys never leave the token.

Related links
   Phishing on Wikipedia
   Aladdin