A guide to cybercrime

Digital technology continues to transform the world of business, exposing organizations to both opportunities and threats. Cybercrime, a growing threat since the early 2000s, continues to escalate, ranking as a significant reported economic crime. Take a look at the types of cybercrime and the methods by which they’re committed so you can learn how to better protect your business. 

What is cybercrime?

Cybercrime, also referred to as computer crime, is criminal activity that involves the internet, a computer system or computer technology. Examples include identity theft, phishing, ransomware and other kinds of cybercrime.

An understanding of the cybercrime problem is a prerequisite for any discussion of computer security. It's an incredibly serious threat that grows daily.

How often does cybercrime happen?

According to the Identity Theft Resource Center (Opens in a new tab), phishing and ransomware were the two main motives for data breaches in 2021. There has been an increase in data compromises from 2020 to 2021 due to an increase in phishing, supply chain and ransomware attacks.

The most comprehensive report on cybercrime activity is provided in the Verizon Data Breach Investigation Reports (DBIR) (Opens in a new tab). These reports have been around since 2010, and the most recent data show that financial gain and stealing secrets remain primary motives for cybercrime.

What are some of the types of cybercrime?

There are many types of cybercrime attacks, ranging from hacking to ransomware or even the low-tech act of losing a laptop or having it stolen from an unlocked vehicle. Some different types of cybercrime include:

Insider threat

The disgruntled insider is a source of cybercrimes. Insiders do not need a great deal of knowledge about computer intrusions because their knowledge of victim systems often allows them to gain unrestricted access to cause damage to the system or to steal system data.

Hackers

Hackers are a common threat. They sometimes crack into networks simply for the thrill of the challenge or for bragging rights in the hacker community. While remote hacking once required a fair amount of skill or computer knowledge, hackers can now download attack scripts and protocols from the internet and launch them against victim sites.

Distributed denial of service attacks

These types of cybercrime attacks work when the hackers plant tools on several unwitting victim systems. Then when the hacker sends the command, the victim systems in turn begin sending messages against a target system. The target system is overwhelmed with the traffic and is unable to function. Users trying to access that system are denied its services.

Data breach

A data breach is the intentional or unintentional release of secure information to an untrusted environment. Other terms for this phenomenon include unintentional information disclosure, data leakage and data spilling. A data breach is a security incident in which sensitive, protected, or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so.

Malware infection

Short for malicious software, a malware infection consists of programming (code, scripts, active content and other software) designed to disrupt or deny operation, gather information that leads to loss of privacy or exploitation, gain unauthorized access to system resources and other abusive behavior.

Cyber espionage

This threat is a type of cybercrime where attacks are linked to state-affiliated actors with the motive of espionage. A malicious phishing email is usually the way that the attackers can infiltrate the network. They do not try to be noticed but, instead, set up a portal where they can access data for long periods of time without being noticed.

Ransomware

For the attacker, holding files for ransom is fast, low risk and easily monetizable, especially with Bitcoin to collect anonymous payment. Ransomware is a more recent type of cybercrime, extorting millions of dollars from people and organizations after infecting and encrypting their systems.

Physical theft

This type of crime still happens, though it does not make the headlines that other, more high-profile thefts get in the news. Encryption can stop theft and loss incidents from becoming breaches. However, encryption cannot always help prevent cybercrime; most confirmed breaches involve the loss of hardcopy documents.

Payment card skimmers

While ATMs continue to be the main target for skimming, gas pump terminals have quickly become a common location for this form of cybercrime and identity theft. Skimming attacks are almost always discovered by third parties.

Point-of-sale Intrusion

Point-of-sale (POS) environments are almost always successful, with most POS attacks resulting in a confirmed data breach. The focus of attacks has shifted from hotel chains to restaurants and small businesses.

Phishing schemes

This may be a catch-all category, but that does not mean there are no interesting and important trends to observe within this type of cybercrime. A key emerging tactic is email compromises where “the CEO” orders wire transfers with an urgent and believable back story. 

How to prevent cybercrime

The cyberattacks that have already taken place demonstrate that significant damage can be incurred by attackers and attacks pose serious risks to businesses. No business can anticipate all potential vulnerabilities, and even if one could, it may not be cost-effective to implement every measure available to ensure protection against cybercrime. However, some basic steps can be taken by businesses to improve its position against cybercrime. These steps include strengthening the following:

Monitor and mine event logs

By monitoring and extracting certain events from logs, there is a focus on the obvious issues that logs pick up. Reducing the compromise-to-discovery timeframe from weeks and months to days, can pay huge dividends.

Eliminate unnecessary data

If you don’t need it, don’t keep it. Data must be kept, identified, monitored and securely stored to prevent the possibility of a cyberattack.

Use two-factor authentication

This can limit damage with lost or stolen credentials.

Secure remote access services

Restrict these services to specific IP addresses and networks, minimizing public access to them. Also, ensure that the business is limiting access to sensitive information within the network.

Audit user accounts and monitor users with privileged identity

While you should trust your employees, still consider monitoring them through pre-employment screening, limiting user privileges and using separation of duties. Managers should provide direction, as well as supervise employees to ensure they are following security policies and procedures.

Educate staff to apply safe password protocols

Practice identifying phishing schemes so everyone knows what an email may look like. Establish open communication to inform IT about suspect emails. Consider rewarding employees for reporting suspicious activity, such as potential phishing or pretexting attacks.

Patch and update software promptly

Strengthen passwords to limit the chance of them being guessed.

Be aware of physical security assets

Pay close attention to payment card input devices, such as ATMs and gas pumps, for tampering or manipulation.

Protect your business from cybercrime

Information security is gradually improving. However, the business reality of computer and internet use makes the reality of cyber intrusion and possible cybercrime inevitable. While malicious programs are well known to security experts, hackers tweak them frequently enough to render them undetectable to antivirus software.

Cybersecurity is not something that line of business executives are measured on until something goes wrong, but they are the stewards of data that is most coveted by cybercriminals. To keep your organization secure, ensure everyone is trained in cybersecurity best practices and help protect your business with cyber insurance.

Head to our loss control and risk management page to learn more ways to protect your business

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