Unreported Cybercrime: The Hidden Threat to Your Business

What You’ll Learn

• The staggering extent of unreported cybercrime and its impact on businesses
• Common reasons why cyber incidents go unreported
• The rise of tech support fraud and how to protect your organization
• Real-world examples illustrating the consequences of unreported cybercrime
• Steps your business can take to prevent and respond to cyber threats effectively

 

The Silent Epidemic of Cybercrime

Cybercrime is surging, yet a significant portion goes unreported. The FBI’s Internet Crime Complaint Center (IC3) received over 880,000 complaints in 2023, with potential losses exceeding $12.5 billion. However, the true scope is likely much larger.

Estimates suggest that only about 10% to 12% of cybercrimes are reported, indicating that the actual number of incidents could be closer to 8 million.

 

Why Aren’t Cybercrimes Reported?

Several factors contribute to the underreporting of cyber incidents:

• Employee Mistakes: Employees may fear repercussions if they inadvertently cause a security breach, leading them to conceal the incident. For example, an unintentional click on a malicious link can open the door to cybercriminals.
• Doubt in Law Enforcement Efficacy: Businesses might believe that reporting cybercrimes won’t lead to arrests or recovery of losses, discouraging them from coming forward.
• Reputational Concerns: Companies may worry about damage to their reputation and loss of customer trust if a breach becomes public knowledge.
• Legal Concerns: Companies have concerns if they report crimes, they will be held liable and possibly be sued. (This is why you should have a cyber insurance policy and an MSSP who can help your company follow documented best practices.)

 

The Rise of Tech Support Fraud

Tech support scams have become increasingly prevalent, particularly targeting older adults. In 2023, nearly 18,000 victims over the age of 60 reported losses totaling almost $600 million due to tech support fraud. These scams often involve fraudsters posing as legitimate tech support agents, convincing victims to grant remote access to their computers or to pay for unnecessary services.

 

Real-World Example

Consider the case of a 79-year-old woman who lost over $120,000 after receiving a fake pop-up message on her computer. The message claimed her system was infected and provided a number to call. The scammer, posing as a federal agent, instructed her to purchase gold bars to safeguard her assets, which she then handed over to the fraudster.

 

The Importance of Reporting Cybercrime

Reporting cyber incidents is crucial for several reasons:

• Assisting Law Enforcement: Detailed reports help authorities track and combat cybercriminal activities more effectively.
• Preventing Further Attacks: Sharing information about breaches can alert other businesses to emerging threats, fostering a more secure business environment.
• Potential Recovery: Timely reporting increases the chances of recovering lost assets and mitigating damage.

 

Steps to Protect Your Business

To safeguard your organization against cyber threats:

1. Educate Employees: Regular training sessions can help staff recognize phishing attempts, suspicious links, and other common tactics used by cybercriminals.
2. Implement Robust Security Measures: Utilize up-to-date antivirus software, firewalls, and intrusion detection systems to protect your network.
3. Establish Clear Reporting Protocols: Create a non-punitive environment where employees feel comfortable reporting potential security incidents immediately.
4. Regularly Update Systems: Ensure that all software and hardware are updated with the latest security patches to minimize vulnerabilities.
5. Conduct Frequent Security Audits: Regular assessments can identify and address potential weaknesses in your IT infrastructure.

 

Help Report Cyber Crimes

Unreported cybercrime poses a significant threat to businesses of all sizes. By understanding the reasons behind underreporting and taking proactive steps to encourage transparency and strengthen security measures, your organization can better protect itself against the ever-evolving landscape of cyber threats.

Remember, acknowledging and addressing vulnerabilities is not just about safeguarding assets—it’s about ensuring the trust and confidence of your clients and partners.