Spam messes up users inbox, consumes resources and spread attacks like DDoS, MiM, phishing etc. Phishing is a byproduct of email and causes financial loss to users and loss of reputation to financial institutions. In this paper we examine the characteristics of phishing and technology used by Phishers. In order to counter anti-phishing technology, phishers change their mode of operation; therefore a continuous evaluation of phishing only helps us combat phisher effectiveness. In our study, we collected seven hundred thousand spam from a corporate server for a period of 13 months from February 2008 to February 2009. From the collected data, we identified different kinds of phishing scams and mode of operation. Our observation shows that phishers are dynamic and depend more on social engineering techniques rather than software vulnerabilities. We believe that this study will develop more efficient anti-phishing methodologies. Based on our analysis, we developed an anti-phishing methodology and implemented in our network. The results show that this approach is highly effective to prevent phishing attacks. The proposed approach reduced more than 80% of the false negatives and more than 95% of phishing attacks in our network.