If email is the most common vector, fraud is the most common method – especially for organized crime.
If email is the most common vector, fraud is the most common method - especially for organized crime.
If email is the most common vector, fraud is the most common method – especially for organized crime. Malicious actors behind BEC scams are attempting to defraud companies out of thousands of dollars. Digital extortionists are fraudulently tricking users into paying them in Bitcoins. And when it comes to advance fee fraud, well, it’s right there in the name.
None of this is new. Email is just one of the latest tools criminals have used to commit fraud. Historically speaking, criminals strive to grasp the opportunities to maximize illicit takings presented by each generation of technology.
Steven Wujek, Senior IT Architect, Technology Concepts & Design, Inc.
Looking at the losses recorded by the German Federal Police (Bundeskriminalamt BKA) and the FBI, more than 80 percent of all recorded cybercrime losses can be attributed to the pursuit of fraud. The emphasis here is on 'recorded,' since there may be intangible losses that are hard to quantify and record accurately. This does mean that the statistics that are recorded are fairly reliable.
Therefore, stating that fraud is the driving force behind cybercrime losses is accurate. In fact, in examining two fraud methods called out by the FBI statistics—namely Business Email Compromise (BEC) and Email Account Compromise (EAC)—we see that losses in 2018 were $1.3 billion. As a comparison, the equivalent losses recorded for ransomware, an oft mentioned and analyzed form of cybercrime, was $3.6 million. And the fact remains: every indication is that losses associated with undetected fraud will continue to grow, as losses associated with BEC/EAC increased 78 percent alone between 2016 and 2017.
For more on fraud and cybercrime losses, check out our blog series on Cybercrime and Fraud.
