In today’s digital age, the threat of cybercrime has become more prevalent than ever before. Cybercriminals are now more advanced, using sophisticated tactics to steal and exploit personal information. According to a report by Cybersecurity Ventures, cybercrime will cost the world over $6 trillion annually by 2023, up from $3 trillion in 2015. Therefore, Home Title Lock says that understanding the types of cybercrimes and the new scams to watch out for can help individuals and businesses protect themselves against these costly and dangerous attacks.
Types Of Cybercrimes
a. Identity Theft
Identity theft occurs when a criminal steals someone’s personal information to access their finances, healthcare, and other sensitive data. Cybercriminals use various methods to steal people’s identities, including phishing, malware attacks, and data breaches. According to Javelin Strategy and Research, identity theft cost Americans $16.9 billion in 2019. Therefore, individuals and organizations must proactively protect their data by using strong passwords and enabling two-factor authentication.
According to the Identity Force, almost half of the American population (47%) experienced financial identity theft in 2020. This alarming trend is echoed in the Insurance Information Institute’s report, which states that the FTC received 4.8 million identity theft and fraud reports in 2020, a 45% increase from the previous year. These cases have cost individuals dearly, with losses due to identity theft growing from $502.5 billion in 2019 to $712.4 billion in 2020. The threat is particularly severe in the US, where citizens are 50% more likely to have their identities stolen than anywhere else, according to Legaljobs.
b. Phishing Scams
Phishing is the fraudulent practice of tricking people into revealing sensitive information, such as passwords or credit card numbers, by posing as a legitimate entity. Phishing attacks typically involve sending emails or text messages that claim to be from reputable sources, such as banks or corporations. According to the FBI’s Internet Crime Complaint Center, phishing scams accounted for 241,342 complaints in 2020, with losses totaling over $54 million. People should exercise caution when clicking links or downloading attachments from unknown sources to avoid falling victim to phishing scams.
According to the FBI’s 2019 report on internet crimes, phishing attacks victimized over 100,000 individuals, resulting in a staggering loss of over $57 million. The trend has continued to worsen, with phishing attacks almost doubling in frequency from 2019 to 2020, as revealed by Consumer Affairs. Furthermore, recent statistics from Tessian suggest that email is the most common medium for phishing attacks, accounting for 96% of all such incidents. The report also highlights a significant increase in ransomware payments, up 82% in the first half of 2021, and a 42% rise in supply chain attacks. The IC3’s report demonstrates that phishing attacks, including SMiShing and vishing, pose a significant threat to unsuspecting individuals.
c. Data Breaches
Data breaches occur when hackers gain unauthorized access to an organization’s computer systems to steal sensitive information, such as credit card numbers or social security numbers. Data breaches can occur from various sources, including employee errors, weak passwords, and outdated software. According to a report by Varonis, the average cost of a data breach is $3.86 million. It’s essential to keep software up-to-date, use strong passwords, and encrypt sensitive information to prevent data breaches.
UpGuard says the average number of records compromised in a data breach is around 25,575. However, the most extensive data breach record belongs to Yahoo, with a staggering 3 billion user accounts impacted. In a recent incident, Clearview AI, a facial recognition company that provides services to law enforcement agencies, had its client list and over 3 billion photos stolen on February 26, 2020. The incident raises concerns over the security of sensitive data and the potential misuse of facial recognition technology. The companies and institutions involved in these incidents face significant public scrutiny and pressure to implement more robust security measures to protect sensitive data.
d. Malware & Ransomware Attacks
Malware and ransomware attacks are another common type of cybercrime. Malware is any software intentionally designed to harm a computer system, while ransomware is malware that encrypts a user’s files until a ransom is paid. According to Cybersecurity Ventures, ransomware attacks could cost businesses over $20 billion in 2021. To prevent malware and ransomware attacks, individuals and organizations should use antivirus software, keep their software up-to-date, and regularly back up their data.
Ransomware attacks pose a significant threat to organizations worldwide, with estimated global costs set to exceed $6 trillion annually by 2021. There has been a surge in ransomware payouts recently, with one victim reportedly paying out a staggering $50 million in 2021. Furthermore, ransom fees have significantly increased, with the average request rising from $5,000 in 2018 to approximately $200,000 in 2020. The severity of these attacks and their rising costs highlight the importance of implementing robust cybersecurity measures to mitigate the risks and prevent future losses.
Other Online Scams to Watch Out For in 2023
As cybercriminals continue to evolve, they launch new scams that leverage emerging technologies like artificial intelligence and blockchain. A few of the online scams to watch out for in 2023 include:
1) Deepfakes
Deepfakes are manipulated videos that use technology to make it appear like someone is saying or doing something they did not do.
2) Fake Social Media Influencers
Cybercriminals can create fake social media profiles posing as influencers to trick users into sharing their personal information or buying products.
3) Crypto Scams
As cryptocurrency continues to gain popularity, cybercriminals are using scams like fake investment opportunities and fake exchanges to steal users’ digital assets.
Final Thoughts
Home Title Lock observes that cybercrime is a growing threat to individuals and businesses alike, and it’s essential to stay informed on cybercriminals’ latest trends and tactics. By understanding the types of cybercrimes and new scams to watch out for, individuals and organizations can take proactive measures to protect their personal data and financial assets. Staying vigilant, employing basic cybersecurity practices, and relying on the knowledge of security experts can go a long way in mitigating the risks of cybercrime.