Latest Cyber Crime Statistics from the UK: FAQs

FAQs Following Our Lastest Cyber Crime Statisics from the UK Blog

What is Action Fraud?

Action Fraud is the UK’s national reporting centre for fraud and cyber crime where individuals or organisations report fraud if they have been scammed, defrauded or experienced cyber crime in England, Wales and Northern Ireland.

The centre is run by the City of London Police working alongside the National Fraud Intelligence Bureau (NFIB) who are responsible for assessment of the reports and to ensure that the fraud reports reach the right place. The City of London Police is the national policing lead for economic crime.

What is the National Fraud Intelligence Bureau (NFIB)?

The National Fraud Intelligence Bureau (NFIB) sits alongside Action Fraud within the City of London Police, which is the National policing lead for economic crime.

The NFIB gets it data through three main channels:

• Reports from individuals and small businesses (coming either directly or via a police force) made to Action Fraud on the phone or online.
• Fraud data from industry and the public sector which includes banking, insurance, telecommunicationsand government departments.
• A variety of intelligence sources including, but not limited to, national and international police crime/intelligence systems.

What is cyber crime?

Cyber crime refers to criminal activities that are carried out using computers, networks, or the internet. It involves illegal actions in the digital realm that aim to exploit individuals, organisations, or computer systems for financial gain, malicious intent, or disruption.

In simpler terms, cyber crime is like a digital version of traditional crime, where criminals leverage technology and the interconnectedness of our digital world to commit unlawful acts.

These acts can include:

• Hacking into computer systems to steal sensitive information
• Conducting online fraud or scams
• Spreading malware or viruses
• Identity theft
• Cyberbullying
• Launching large-scale cyber attacks on businesses or governments

Cyber crime poses significant risks as it can lead to financial loss, data breaches, reputational damage, and disruption of critical services.

It affects individuals, businesses, and society as a whole.

To combat cyber crime, it is essential to have robust cyber security measures in place, stay informed about emerging cyber threats, and adopt safe online practices to protect one’s digital assets.

Additionally, law enforcement agencies, governments, and international organisations work together to investigate and prosecute cyber criminals, aiming to maintain a safe and secure digital environment for everyone.

How much does cyber crime cost the UK?

Business

According to the UK Government, the estimated economic cost of cyber crime to UK businesses is£21bn per annum.

This estimate includes:

• £9.2bn per annumfrom IP theft, which is likely to have the largest impact on companies that create significant quantities of IP or those whose IP is relatively easy to exploit
• £7.6bnper annum from industrial espionage (involving the theft and exploitation of non IP-related data), which affects companies involved in open-tendering competitions, that rely on large numbers of financial transactions or that are affected (or can be affected) by large share price movements
• £2.2bn per annumfrom extortion, with large companies being targeted (Estimates are largely illustrative because it’s believe this type of cyber crime goes largely unreported)
• £1.3bn per annumfrom direct online theft, with cyber criminals targeting support services, financial services, the construction and materials industry, and the not-for-profit sector
• £1bn per annumfrom the loss or theft of customer data, with the significant majority of the impact falling on large companies with more than 500 employees.

Many UK businesses are investing in stronger physical security, such as:

• Segregated networks
• Advanced intruder detection hardware
• Training initiatives to increase their employees’ awareness

Individuals

It is estimated that the economic cost of cyber crime to UK individuals is £3.1bn per annum.

This estimate includes:

• £1.7bn per annum for identity theft
• £1.4bn per annum for online scams
• £30m per annum for scareware and fake anti-virus software.

Individuals can help themselves to reduce the impact of cyber crime by ensuring that they take a number of sensible precautions to stay safe online, such as:

• Installing a firewall
• Regularly patching or updating software applications
• Using legitimate anti-virus software.

They could also take out specialist insurance to protect against the impact of identity theft.

No defences are fool proof, though, and even well-prepared individuals may suffer a range of costs as a consequence of and in responding to cyber crime. The prevalence of these types of cyber crimes means that their aggregate effect is detrimental to the UK economy. Furthermore, this could create additional knock-on effects.

For example:

A loss of confidence in services such as online banking. Why are cyber crimes increasing? Cyber crimes are increasing due to:

• Digital dependency
• Financial incentives
• Evolving techniques
• Global operations
• Lack of awareness
• Rapid technological advancements.

These factors expand the target pool, attract criminals with financial gains, enable sophisticated attacks, complicate investigations, exploit vulnerabilities, and outpace security measures.

Mitigation requires awareness, cybersecurity measures, cooperation, and technological advancements.

Who are affected by cyber crimes?

Cyber crimes affect a wide range of individuals, organisations, and entities, including:

Individuals

Cyber crime can directly impact individuals through various forms of online fraud, identity theft, phishing attacks, cyber bullying, and other malicious activities.

Personal data breaches can lead to financial loss, damage to reputation, emotional distress, and invasion of privacy.

Businesses

Small, medium, and large businesses are all potential targets of cybercrime.

Data breaches, ransomware attacks, intellectual property theft, and business email compromise can result in financial losses, disruption of operations, compromised customer data, and harm to brand reputation.

Cyber crimes can particularly impact industries handling sensitive information like healthcare, finance, and e-commerce.

Governments

Cyber crime poses a significant threat to government agencies and public institutions.

State-sponsored cyber attacks, hacking attempts on critical infrastructure, espionage, and information warfare can undermine national security, compromise sensitive data, and disrupt essential services.

Charities

Charities are not immune to cyber threats.

They can be targeted for financial gain, activism purposes, or to compromise their operations.

Cyber attacks on non-profits can lead to financial loss, reputational damage, and hinder their ability to carry out their mission effectively.

Critical infrastructure

Cyber attacks on critical infrastructure, including power grids, transportation systems, and healthcare facilities, are some of the most severe cyber crimes. They can have severe consequences.

Disruption or manipulation of these systems can cause widespread chaos, jeopardise public safety, and impact essential services upon which society relies.

Society at large

Cyber crime impacts society as a whole by eroding trust in online platforms, compromising privacy, and creating a sense of vulnerability.

The financial burden of cyber crimes, including the costs of prevention, recovery, and legal proceedings, ultimately affects individuals and businesses, contributing to economic implications on a broader scale.

Addressing cyber crime requires collective efforts from individuals, organisations, governments, and law enforcement agencies to enhance cyber security measures, raise awareness, and develop strategies to combat cyber threats effectively.

How often does cyber crime occur?

Cyber crime occurs on a constant and pervasive basis in today’s digital landscape.

The frequency of cyber crime incidents can vary widely, and it is challenging to provide an exact figure due to the vast number of unreported or undetected incidents.

However, the following points provide insights into the prevalence of cyber crime:

Global reach

Cyber crime has a global reach and affects individuals, businesses, and organisations across the world.

It knows no borders or time zones, and cyber criminals can target victims from anywhere.

Growing numbers

The number of reported cyber crime incidents continues to rise year after year.

This includes various forms of attacks such as:

• Data breaches
• Phishing attacks
• Ransomware attacks
• Identity theft
• Online fraud.

Underreporting

It is important to note that many cyber crime incidents go unreported.

Victims may hesitate to report due to factors such as concerns about reputation damage, lack of awareness, or limited confidence in law enforcement’s ability to address the issue effectively.

This further complicates the accurate measurement of the true extent of cyber crime occurrence.

Evolving tactics

Cyber criminals constantly evolve their tactics and exploit emerging technologies and vulnerabilities.

As technology advances, new attack vectors are discovered and exploited, leading to an ongoing cat-and-mouse game between cyber criminals and cyber security professionals.

Industry-specific trends

Certain industries, such as finance, healthcare, and e-commerce, tend to be frequent targets of cyber crime due to the potential for financial gain or the value of sensitive data they possess.

However, cyber criminals can target any industry or individual, depending on their motivations.

To effectively combat cyber crime, it is essential for individuals, organisations, and governments to remain vigilant, implement robust cyber security measures, and stay informed about the latest threats.

Collaboration, information sharing, and continuous advancements in cyber security technologies are crucial in the ongoing battle against cyber criminals.

What is eavesdropping in cyber crime?

In the context of cyber crime, eavesdropping refers to the unauthorised interception and monitoring of electronic communications or data transmissions. It involves the covert act of listening in on private or confidential conversations, either in real-time or by accessing stored data.

Eavesdropping can take place in various forms, including:

• Network Eavesdropping: Cyber criminals can intercept and monitor network traffic, such as emails, instant messages, or Voice-over-IP (VoIP) calls, by gaining unauthorised access to network infrastructure or utilising specialised tools. They can capture and analyse the data transmitted over the network, potentially accessing sensitive information or confidential communications.
• Wi-Fi Eavesdropping: Public Wi-Fi networks, which are often unsecured or improperly configured, can be exploited by cyber criminals for eavesdropping. By intercepting the wireless signals, they can monitor the communications of unsuspecting users, capturing usernames, passwords, or other confidential information.
• Malware-based Eavesdropping: Malicious software, such as keyloggers or spyware, can be deployed on a victim’s device to record keystrokes, capture screenshots, or secretly activate the microphone or camera. This allows cyber criminals to gather sensitive information or eavesdrop on conversations without the user’s knowledge.

The primary objective of eavesdropping in cyber crime is to gather valuable information for various malicious purposes, including identity theft, corporate espionage, financial fraud, or blackmail.

Eavesdropping attacks can compromise privacy, confidentiality, and the security of individuals, organisations, and even governments.

To protect against eavesdropping, individuals and organisations should employ encryption technologies, such as using secure communication protocols (e.g., HTTPS, VPN), utilizing end-to-end encryption for messaging apps, and being cautious when connecting to public Wi-Fi networks.

Regularly updating and patching software, using robust anti-virus and anti-malware solutions, and practicing safe browsing habits also contribute to reducing the risk of eavesdropping attacks.

What are the common types of cyber crime?

Phishing Attacks

Phishing attacks involve sending fraudulent emails that appear to come from legitimate sources. The goal is to trick the recipient into revealing sensitive information like passwords or credit card numbers.

Ransomware Attacks

Ransomware attacks involve encrypting a victim’s files and demanding payment for their release. Increasingly, ransomware attacks also include threats to leak sensitive data, if the ransom is not paid.

Identity Fraud

Identity fraud involves cyber criminals gather personal information through various means, like hacking or phishing attacks, to impersonate an individual and commit fraud, such as opening new accounts or making purchases.

DDoS Attacks (Distributed Denial of Service)

In a DDoS attack, a large number of compromised computers are used to flood a target website with traffic, making it inaccessible to legitimate users.

Malware

This is any software specifically designed to harm or exploit computer systems, including viruses, worms, and Trojans.

SQL Injection

This involves inserting malicious SQL code into a website or database, enabling the attacker to view, edit, or delete content.

Man-in-the-Middle Attacks

Here, the attacker intercepts communications between two parties to eavesdrop or impersonate one of the parties, usually to gain sensitive information.

Social Engineering

This involves manipulating people into divulging confidential information. Unlike phishing attacks, social engineering can occur in person or over the phone, as well as online.

Credential Stuffing

Attackers use stolen usernames and passwords to gain unauthorised access to multiple accounts, relying on the fact that people often reuse the same login details across different platforms.

Cyberstalking

This involves tracking someone’s online activities and/or real-life movements, often involving harassment and intimidation.

Zero-Day Exploits

These are attacks that target unpatched vulnerabilities in software. Because the vendor has not yet issued a patch, the software remains vulnerable to exploitation.

Final thoughts

The comprehensive cyber crime statistics from across the UK paint a clear picture. Cyber-enabled crime is a widespread and evolving threat, impacting individuals and organisations alike.

The staggering financial losses reported, especially in cases of consumer, banking, and investment fraud, underline the depth and severity of this issue. Notably, the impact of these crimes varies significantly across different regions and demographics, suggesting a need for targeted prevention and education strategies.

For organisations, particularly SMEs, the threat is significant, with substantial losses indicating the importance of robust cyber security measures. Alarming trends, such as the rise of AI-driven cyber attacks and the prevalence of Ransomware-as-a-Service, demonstrate the sophistication of modern cyber threats.

These evolving techniques challenge traditional security measures, necessitating advanced and adaptive responses. However, a decline in prioritisation of cyber security, especially among smaller businesses, alongside a reduction in basic cyber hygiene practices, raises concerns. This decrease in vigilance may lead to increased vulnerabilities and a higher likelihood of successful attacks.

In conclusion, these statistics and trends strongly advocate for a proactive approach to cyber security. It is imperative for both individuals and businesses to stay vigilant, adopt robust security measures, and continuously educate themselves to navigate the ever-changing landscape of cyber crime effectively.

Sources:

National Crime Agency
Action Fraud
NFIB Fraud and Cyber Crime Dashboard
NCSC
UK Gov
Surf Shark
Money.co.uk