Crime has always negatively correlated with economic development, and one declines as the other improves. Cybercrime was already a growing concern, and the COVID-19 crisis accelerated the prevalence and complexity of digital space, creating opportunities for both good and bad actors.
Adopting remote work and increasing online presence created new opportunities for cybercriminals, expanding the list of likely victims. The economic slowdown and increased unemployment have further increased the risks. Making individuals and businesses more susceptible to cybercrime, either as perpetrators or victims.
While some cybercrimes, like malware and viruses, may not be as prevalent as they used to be and may have decreased in frequency, others, like sim swap scams, a type of identity theft fraud, phishing, Account compromise, and some financial scams, are increasingly prevalent and growing in popularity.
This article explores these specific crimes, their execution, their impact on victims, and preventive measures.
How Safe Is Your Identity?
Identity theft involves criminals stealing personal information to impersonate victims and commit fraud. The data can be used to take over a physical or digital asset, such as a SIM card, social media account, bank, or credit card.
Bad actors can obtain or request your information through fake messages or prompts, known as phishing emails, designed to persuade you into releasing your data through data breaches or social engineering. Perpetrators of this crime aim to take over the victim’s assets, such as a bank account, email account, social media or SIM card, or any asset that gives them access to another of the victim’s assets or of all.
Cybercriminals can trick victims into disclosing personal information, like passwords and social security numbers, through mail or direct phone calls disguised as legitimate entities like their bank or software vendor.
The economic slowdown has increased the risk of identity theft. As financial pressures increase, organizations may Reduce their security budgets, and heightened desperation can make individuals more vulnerable to these attacks.
Defence against identity theft.
Despite the rise in identity theft, individuals can take steps to protect themselves. Implementing strong security measures, such as unique passwords and two-factor authentication, and not sharing private and personal information with unknown or unverified entities remains crucial.
Business Email Compromise (BEC)
Business email compromise involves unauthorized access to an organization’s email account to hijack the victim’s business transactions. Criminals may achieve this by exploiting weak passwords, phishing, and system or platform vulnerabilities.
Over $1.8 billion was lost in damages to BEC attacks in 2021. However, the economic slowdown has slowed down this threat, with only 32% of cybercrimes in 2023 being BEC. On the flip side, individuals’ and businesses’ growing reliance on social media for communication and marketing has created greater exposure for them online. Not only are business emails a target but social media accounts have also been added to the mix.
As businesses are attacked, business activity slows, and as a result, the economy slows; this cybercrime can be said to be a true enemy of the economy as it attacks its backbone.
Defence against Business Email Compromise
For protection, businesses should enable two-factor authentication mechanisms on all their assets and scan systems for malware, such as remote access tools and keyloggers. These tools can remotely view your device screen and record each keystroke you type on your keyboard. They can also collect and send this information back to the attacker.
Internet Fraud
Internet fraud encompasses various deceptive schemes, including fake online stores, investment scams, rental, employment and auction fraud. These fraudulent activities exploit economic uncertainty by preying on individuals seeking financial relief or profitable opportunities.
Most of these scams are advertised on social media, promising to be true rewards or offers. In most cases, they are enabled by the use of cryptocurrencies, making it easy for the scammer to receive his prize unrestricted and, in most cases, anonymously.
The economic downturn has heightened the prevalence of internet fraud. Scammers exploit individuals’ financial hardships, using increasingly sophisticated tactics to deceive victims.
Defence against Internet fraud.
Verifying the legitimacy of online businesses and investment opportunities is vital to protecting yourself or your business against internet fraud.
Verify the legitimacy of websites and, check security certificates, reviews and professionalism,
Employing secure payment methods and staying informed about common scams can help reduce the risk of falling victim.
The Rise of Phishing Attacks
Phishing attacks involve fraudulent communications designed to trick individuals into divulging sensitive information. These attacks often take the form of emails that appear to be from trusted entities. You receive messages similar to that of the legitimate entity asking you for some private information, either used on the legitimate entity’s platform being impersonated or on another platform; this can include your email, phone number, password to a digital account, or other personally identifiable information.
Phishing attacks have surged over the years. Today, 35% of cyberattacks are phishing attacks, and 70% of these attacks are carried out on businesses. The growth in Internet use has also undoubtedly added immensely to the list of potential phishing victims.
Defence against phishing
To defend against phishing, scrutinize emails for suspicious links or requests for personal information, use advanced email filters and security software, and educate yourself about phishing tactics.
Seizure and a Ransom: The Ransomware
Ransomware is malicious software that encrypts a victim’s data, demanding money or a ransom for its release. Cybercriminals often deliver ransomware through phishing emails or malicious downloads. In 2023, 72% of cyberattacks were ransomware. The data shows how huge the situation is and sheds light on the ease of execution and how vulnerable businesses and individuals are to fall victim to this attack.
Economic Impact on Ransomware Attacks
From the 2023 data on cyberattacks, it is evident that the financial downturns of post-pandemic have made ransomware attacks more frequent and severe. Reduced security budgets by organizations and increased desperation create a favourable environment for cybercriminals. To protect against ransomware.
Defence against ransomware
Maintaining regular backups, using comprehensive and trusted security vendors and solutions, and educating employees about recognizing phishing attempts are essential. Proactive measures are vital to mitigating the impact of ransomware.
What lies ahead?
According to the World Economic Forum 2024 cybersecurity report, the number of organizations that maintain viable cybersecurity practices is down 30%, and 56% of organizations state that lack of skill is their biggest challenge. Therefore, there is a need for a proactive stance in mitigating cybercrime.
Artificial intelligence and cryptocurrency have also made executing cybercrimes easy and flawless.
Individuals or businesses must be proactive, not cut costs and stay current on security requirements and trends in the changing security landscape.