cybercrime

SE Asia casinos that shut down during pandemic were turned into social-engineering call centers to scam wealthy individuals

Pig butchering: Proving the Luddites right

Lou Covey

Pig-butchering may be proving the Luddites were right. The social-engineering scam bypassed ransomware as the most profitable cybercrime approximately two years ago. After government regulations and law enforcement took a big bite out of returns for ransomware this past year, public-private partnerships are taking aim at the new champ.

TL;DR
* Pig butchering eclipses losses from ransomware
* Top targets are tech savvy people under 50
* Human error trumps cyber awareness
* Public/private partnerships making inroads at dismantling scam operations
* Tips to avoid scams
* Podcast with Arkose CEO
Between 2020 and 20023, scammers reaped more than $75 billion from victims around the world. Approximately 90 percent of the losses came from of purchasing fraudulent cryptocurrency, according to the US Treasury Department’s, Financial Crimes Enforcement Center. In comparison, ransomware attacks in that same period harvested $20 billion worldwide in ransoms and cost approximately another $20 billion in recovery costs.

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Cyberint midyear report shows declinen in ransomware attacks per victim

Have we reached peak ransomware?

Lou Covey

Cybercrime reports flowing out of marketing departments still highlight the danger of ransomware. However, a closer look at the numbers reveals a much different story and poses the question: Have we reached peak ransomware?

Last year, ransomware attacks hit all-time highs with paid ransoms exceeding $1.1 billion and attacks exceeding 5000, according to FBI and Interpol reports. However, looking at midyear reports from Cyberint, SonicWall and Check Point and a dozen others, attacks and ransoms paid have crashed. Still, the crime is not to be discounted, and industry recommendations are to double down on efforts to combat the “scourge”.

There are three reasons why the ransomware industry is hitting a wall.

Law enforcement agencies, working In cooperation, have found the means to identify and shutdown ransomware gang operations around the world.
Potential victims have learned hard lessons regarding the gangs’ willingness and ability to decrypt data, and becoming repeat targets. They are deciding in greater numbers to ignore ransom demands, cutting into revenue streams.

The “honor among thieves” philosophy does not relate to these criminals. Ransomware service providers are stiffing their affiliates, causing a fracturing of the criminal industry into multiple, independent gangs.

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Data thefts keep rising in spite of investment in security tools and services

Do corporations really care about your security?

Lou Covey

“Your security is important to us,” is a common phrase on corporate websites and emails, usually after some data breach that affects customers. To prove that statement, corporations invest billions of dollars in the cybersecurity industry. Most market projections say the industry is worth about $180 billion. About 15 percent of that market goes to data security. But all the indications are that we are losing the war in personal identity security That leaves is with the question: Do corporations really care about customer security?

Probably not

US Department of Health and Human Services reported recently that. in the US, there have been 2,213 breaches since 2020, with 152.1M affected individuals. That is almost half of the American population. But that is just breaches involving medical data.

The FBI reports, in the same period, more than 350 million stolen personal information records, exceeding the known population of the country. Worldwide, the number of personal identity information (PII) records exceeds one billion people.

So how bad is it? “I always tell people assume your social security number has been breached. Just assume that,” said John Meyer, senior director for Cornerstone Advisors, an organization providing security consultation to financial organizations.

So we are spending tens of billions of dollars to protect data from exfiltratation on almost a weekly basis from attacks bypassing current defenses. Is it worth the investment? Does protecting that data even matter?

Well, yes… sort of

Data security professionals say it is and it does. Communications, industry intellectual property, state secrets, and control of crucial systems must still be protected. Most professionals we talked to cite ransomware attacks as the primary reason for investing in security precuts and services.

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Voters mareking ballots at voting station

Election security is not a technology problem. It is how naive we are

Lou Covey

When it comes to election security, the technology we use to vote and count those votes is not the problem. The problem is how naive we are.

Election security has been at the forefront of daily news cycles for more a decade. The concerns about illicit use of technology to input and count the votes turned out to be largely overblown. Every U.S. state other than the Commonwealth of Louisiana, uses paper ballots, matching the practice of every other western democracy. Lawsuits have bankrupted people and organizations claiming the technology was changing votes. Those that have complained the loudest about election interference are now facing prosecution for the crimes.

Now the tech focus is on the use of artificial Intelligence to create deepfake video and audio. A recent pitch from Surfshark,

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FBI statistics showing the break down of elder fraud. $1.2 million in investment scams is on the top. which is twice as much as the second, tech support scams

Elder fraud festers out of control

Lou Covey

As legislatures around the world try to get a handle on the growth of ransomware, another category of cybercrime is festering out of control: Elder fraud.
The FBI’s Internet Crime Complaint Center (IC3) reported more than 100,000 people in the US, 60 years and older, lost $3.4 billion total to digital scams. The IC3 pointed out that the elderly are half as likely to report a loss. So the actual crimes and losses are probably much higher.

In contrast, the total ransomware payouts last year from reporting companies was $1.1 billion according to Chainanalysis. While the total number of fraud reports to the IC3 appears to have leveled off after years of growth, elder fraud increased by 14 percent year on year.

“Combatting the financial exploitation of those over 60 years of age continues to be a priority of the FBI,” wrote FBI Assistant Director Michael D. Nordwall, who leads the Bureau’s Criminal Investigative Division, in the report. “Along with our partners, we continually work to aid victims and to identify and investigate the individuals and criminal organizations that perpetrate these schemes and target the elderly.” 

Who is vulnerable?

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