The annual IC3 Internet Crime Report for 2020, recently released by the Internet Crime Complaint Center (IC3), a division of the FBI, sheds light on the trends in internet-based crimes reported to their agency. This year’s findings are particularly disturbing.
Record Numbers and Disturbing Escalation
The IC3 received an unprecedented number of complaints in 2020, totaling nearly 800,000, with reported losses exceeding $4 billion. This marks a staggering 69% increase from the previous year, a stark contrast to the 16% to 18% uptick seen in earlier periods.
Recoveries and Challenges
While the IC3 managed to recover a significant portion of reported losses, amounting to $380 million out of $462 million, reflecting an 82% success rate, this success applies to reported losses rather than actual incurred losses. The task of combating these crimes remains akin to a game of ‘whack-a-mole.’
Unveiling the Categories of Internet Crimes
The report categorizes these crimes based on the complaints received over the years, revealing a consistent upward trajectory. From 2016’s 1.5 billion complaints to 2020’s 4.2 billion, the numbers have risen alarmingly. Similarly, the number of complaints surged from 300,000 to nearly 800,000 over the same period.
The Top Five Complaints
Among the various complaints, phishing complaints lead the pack, followed by non-payment and delivery issues, extortion (including ransomware), personal data breaches, and identity theft.
The Prevalence of Business Email Compromise (BEC)
A significant concern highlighted in the report is Business Email Compromise (BEC), responsible for a substantial portion of the complaints. This sophisticated scam targets businesses and individuals, resulting in adjusted losses of $1.8 billion, encompassing scenarios where funds are fraudulently transferred under false pretenses.
Understanding the Risks and Mitigating Measures
The report emphasizes the evolution of scams, including compromised personal and vendor emails, posing substantial risks to businesses. It underscores the necessity for preventive measures within companies and highlights the prevalent risks posed by cybercriminals.
Cyber Threats: The New Business Concern
The report underscores the shift in risks faced by businesses, moving away from traditional concerns like physical damage or internal theft to the omnipresent threat of cybercriminals. It stresses the need for comprehensive awareness and preventive measures across all levels within an organization.
Prevention and preparedness
While acknowledging the prevalence and growth of cyber fraud, the report offers reassurance, suggesting straightforward preventive measures to lower the probability of falling victim to such crimes. It advises considering insurance coverage to mitigate potential losses in the event of a cyber incident.
The report serves as a stark reminder of the evolving landscape of cybercrime, urging businesses and individuals alike to remain vigilant and adopt proactive measures to safeguard against these growing threats.
