Despite the growing perils globally, government policing of cyber risks and global criminal enterprises is not even close to keeping up with their proliferation, the latest numbers indicate.
The number of complaints on cybercrimes – and losses attributed to them -- has been steadily rising over the past five years, according to the FBI’s 2017 Internet Crime Report. The FBI received more than 4 million complaints from 2013 through 2017, with 300,000 complaints registered in the last year alone.
Of the nearly $2 billion in reported cybercrime losses in 2017, the FBI found that the bulk of those losses – some $676 million – were classified as “business email compromise.” Another $61 million was lost in corporate data breaches. These findings were compiled by bureau’s Internet Crime Complaint Center, so they are likely conservative estimates, since many cybercrimes go unreported.
In 2013, the FBI reported $781 million in losses from cybercrimes, a figure that rose to $1.4 billion last year. The losses have nearly doubled as more cybercriminals engage in everything from online identity theft to ransom attacks, in which entire systems (such as that of the Atlanta municipal government) are locked up until “hostage” payments are received.
Of the top five commercial insurance brokers, only one – A.J. Gallagher – would provide a spokesman to comment on cyber risks. “Threats are outpacing us in terms of preparation,” says Adam Cottini, managing director of Gallagher’s cybersecurity practice.
Although artificial intelligence will certainly help companies detect and defend against threats, Cottini said, human intervention is still essential. “We’re still playing defense. You still need people to look at this stuff.”
Given that state sponsorship and global trade conflicts are fueling cyberwars, attackers will become more aggressive and go after ever-larger targets such as health-care records, banking systems and major infrastructure such as the electrical grid; that has already happened to some degree. So-called “aggregation” events will continue to target thousands of systems simultaneously.
Although every branch of the U.S. military has its own extensive cybersecurity team, two leaders on the White House’s cybersecurity team were forced out in May. Replacements have not been announced.
If you’ve been the victim of a cybercrime, you can report it to the FBI at www.IC3.gov.
Main Story: How the Boom in Cyber Insurance Could Cripple Global Finance
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