Cybercrime – Evolution of Scams, Hacks and Financial Attacks
With the arrival of the internet age, many positive changes occurred in our world in a way that there is a direct communication link as well as working together like never before. Today, the world industries and institutions have reached every individual and organization for that matter. This interconnectedness and open nature of the system has many benefits. But as the world is getting more open, the threat level is increasing too. Cybercrime is now a norm, where criminals are targeting businesses, governments, and individuals. Brand reputation, financial assets, intellectual property, personal information, among others, are just a handful of the assets at risk due to various digital scams and attacks.
However, there is also complexity introduced with new technologies like Blockchain technology, machine learning, and AI. These technologies may increase cybercrime or provide means to prevent these crimes. In this article, we’ll navigate through the sand dunes and mountains of this desert- cybercrime- the types of it and how to protect one’s self from it and preventative measures to reduce the risks posed by it.
Cybercrime? Stereotypes and definitions!
Cybercrime is a broad term used for any crime that involves any offense or revolves around a computer, a network, or a device that is connected to the internet or other similar devices. For majority of the cyber criminals, this act is driven by the greed for money and is executed by either a single person or group. There are also some hackers that take such crimes up a notch and search for sensitive data, personal information or intellectual property.
In a few instances, the sabotage of systems or the>>he interruption of networks are committed by the hackers for shear providence or aspersion.
Notable cases of cyber crime include 2011’s PlayStation network cyber attack, and the ransomware attack on the Colonial Pipeline that occurred on 2021 which put 17 US states into chaos.
Cybercrime and Cryptocurrency
Bitcoin and any other bitcoins are one of the few cryptocurrencies that do not possess central authorities. The reason for this is peer to peer transactions that take place in blockchain. This enables quick transactions at no cost of borders.
Such characteristics have led to the emergence of cryptocurrencies such as the famous Bitcoin, however they also provide hackers cybercrime opportunities that were once unexplained. Perhaps the central reason for this is the cheap to cost nature of transporting resources because even with high regulations criminals have found potential markets to exploit.
Types of Cybercrime
Cybercrimes come in various forms but they have one thing in common, they have distinctive techniques and unique reversals. They include, but are not limited to, the following:
Phishing
Phishing is perhaps the most understood one as it is also the most used one. It aims to trick users by stealing confidential data such as credit card info or encouraging them to install network viruses that help hackers gain access into their devices. First, they pretend to be reliable identities like the president, CEO or bank in order to sneak into the system, and once they get hold of their targets the damage is often irreparable either in terms of financial loss or political influence.
Vishing (Voice Phishing)
Using a mobile phone, it is possible to send a WhatsApp or Telegram to get the victim to reveal personal information. Such approaches are often called Vishing whereby scammers seat at a desk posing as real companies or services to request names, passwords or even addresses. If you receive phone calls you did not initiate, remember to be careful and never give out sensitive information unless the other person’s identity has been confirmed.
Email Scams
There are many emails that is termed as a scam but in majority of cases, the email scams are primarily designed to skimming credentials or installing a malware on your machine. It would be very easy to fall for such emails whose intention is to commit fraud since they would appear to come from genuine accounts, it is therefore necessary that one verifies the details of the sender and even mouse the pointer over the link to check its credibility.
Malware
Any illegal linking from insiders gets treated as malware which is aimed at disrupting any digital systems or endpoints. Trojans and key loggers are few of the examples where some link is given for download which appears to be normal but in reality it is malicious whereas key loggers are those tools that record keys typed in a keyboards in an attempt to retrieve passwords and other confidential information.
Ransomware
The term “ransomware” describes the holding captive of information or a system until payment in a form of cryptocurrency is made, A clear example is the recent attack on Colonial Pipeline where 75 bitcoin which is more than 5 million dollars was demanded in exchange for access to the colonial system. One more reason why the usage of Cryptocurrencies has increased due to its anonymity and freedom. Paying such ransoms have long-lasting adverse effects such as loss of reputation.
Identity Theft and Account Takeover (ATO)
Personal identity fraud takes place when someone impersonates the victim using unauthorised information for fraud such as taking loans or credit cards.
ATO occurs when a hacker uses the login credentials of a specific account and consequently commits more fraud. Weak password practices, such as password reuse, augment the chances of these attacks.
Ponzi Schemes
The classic letter “P” and the world ‘Ponzi’ would always grab a spot in fraudulent schemes that promise low risks but high returns, as old investors are paid off with the investments made by new ones. Cryptographic forms of Ponzi schemes are often used in such scams as they tend to be hard to trace the networks or funds.
Distributed Denial of Service (DDoS)
DDoS attacks refer to a dangerous method of attack for companies where flooding servers and networks with too much traffic results in disruptions of their services. Even giant corporations such as Google and Amazon have suffered from these attacks resulting in losses, and harm to their reputation and revenue.
Initial Coin Offering (ICO) Scams
Similar to how the name suggests, ICO scams are frauds that target investors through enticing coins and currencies that do not hold any real value and make outlandish claims. Most of the time scammers vanished with the funds thst were raised making the investors suffer losses. Conducting Research is vital for those who would like to pursue investing in ICOs.
Cryptojacking
In the modern world, cryptojacking includes the mining of cryptocurrency through other person’s computers without their authority. Some of the indicators of cryptojacking can include simple heating of devices or bad performance.
Artificial Intelligence and Machine Learning
With the assistance of AI, businesses have been able to grow as well as expanding tools that assist cyber criminals, AI enhances phishing attacks as they tend to become personalized. In such cases it becomes even harder for individuals to detach from the streamlined attacks.
On the other hand, patterns and anomalies such as malicious links and suspicious emails can be detected by machine learning which in turn can help protect the cyberspace.
Protecting Yourself Against Cybercrime
This is how you can protect yourself against the threat of Cyber Crime:
- Treat Emails with request or sensitive information with extreme caution.
- Create complex, random passwords and use a password manager.
- Enable two-factor authentication for better protection.
- Refrain from discussing personal matters on the phone with unknown callers.
- Always check the links and senders of emails before clicking or responding to them.
- Check your financial statements for any discrepancies.
- Always use official websites whenever needed for payments and investment activities.
- Be careful and do all the due diligence before you trade or invest in cryptocurrency.
For more assistance, see online scam publications and crypto fraud articles that we have previously done.
