Research: Cyber extortion up 39% in a year
July 10, 2023
There was a 39 per cent rise in the number of reports made by victims of cyber extortion to Action Fraud in 2022, jumping from 2,300 to 3,200, according to research by international law firm RPC.
Cyber extortion includes ransomware and other instances where criminals threaten to release illegally gained sensitive information unless the victim makes a payment.
There has been an 8 per cent rise in reports made by victims of email and social media hacking, up from 13,500 in 2021, to 14,600 in 2022. This type of fraud often involves hackers accessing the email account of a trusted individual, such as a lawyer, accountant or a vendor and then using emails from that account to trick the victim into sending funds to the fraudster’s bank account.
Richard Breavington, Partner and Head of Cyber and Tech Insurance at RPC, said that small and medium-sized businesses (SMEs) and individuals are likely to form the bulk of victims in cyber extortion.
Breavington commented: “It is a concern that the number of victims of cyber extortion are still rising. While successful cyberattacks against larger organisations have fallen over the last year, many SMEs and individuals still haven’t taken the initial steps needed to manage risk. SMEs trying to reduce costs and not investing in properly training staff on how to manage data and avoid phishing attacks is a false economy. There are an increasing number of cyber insurance policies available, some of which are aimed at SMEs that cover the cost of dealing with a data breach. However, some of these policies will require basic security steps to have been taken. Insurance cover isn’t going to completely remove the impact of a data breach such as reputational damage but will allow a business to get back on its feet faster.”
Other forms of cybercrime have started to fall, including reports of malware, which decreased 26 per cent from 7,200 in 2021 to 5,300 in 2022. Reports relating to the hacking of servers, PCs and phones dropped by 10 per cent, from 5,800 to 5,200.