Pharming (based on the word farming) is a term for a fraudulent attack designed to elicit confidential information from users via controlled websites. Pharming is a more insidious form of phishing, because the attacker does not attack directly to the user and does not create fake websites, but masters (redirects) the actual web page of the institution (such as banks pages). In technical terms, this is an attack on the DNS server.
Pharming in practice: Pharming is a fraudulent technique that falsifies the real web site causing the unsuspecting victim to launch a sensitive information such as bank account number, password, access details to the company, credit card or payment gateway. Filled data the attacker can then use for his favor.
Defense against pharming is mainly on the website operators, security of the DNS server, use a certificate or verification SMS. There are also pharming attacks launched on the local computers and devices (so-called local pharming). Most important, as in the case of Phishing, is a caution of the user.