Cyber Crime
This Country Faced A Whopping Rs 99,000 Crore Loss to Cybercrime in 2023, Read Full Report Here
FBI report shows cybercrime spike in 2023, with $12.5B lost, older adults most at risk, and a focus on BEC scams and investment fraud.
NEW DELHI: The FBI’s Internet Crime Complaint Center (IC3) released its 2023 Internet Crime Report, revealing a sharp rise in cybercrime incidents and financial losses across the United States.
According to the report, there was a staggering $12.5 billion in reported financial losses due to internet crime last year, equivalent to approximately Rs 99,000 crore.
The report also noted an alarming uptick in complaints, with the number reaching 880,000 in 2023, a 10% hike from the year before. The report highlighted individuals aged over 60 were the most affected group, indicating a heightened vulnerability among older adults to cybercrime threats.
The data from IC3 underscores a concerning trend that has been ongoing since 2019, with both financial losses and the number of complaints climbing annually.
Among the varied types of internet crimes reported, the year saw a rise in tech support scams and extortion, while there was a slight decrease in phishing attacks, personal data breaches, and non-payment/non-delivery scams.
Data shared by FBI in Internet Crime Report 2023
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Four particular types of online crimes were highlighted in the report for causing substantial financial detriment: Business Email Compromise (BEC) scams, investment fraud, ransomware, and tech/customer support along with government impersonation scams. BEC scams alone accounted for over $2.9 billion in losses from 21,489 complaints, equivalent to approximately Rs 236.84 billion.
Fraudsters increasingly turned to cryptocurrency platforms to swiftly disperse funds.
Investment fraud notably surged by 38% in 2023, culminating in confirmed losses of $4.57 billion, or roughly Rs 373.09 billion.
A significant portion of these losses, amounting to $3.94 billion (a 53% increase), was attributed to cryptocurrency scams, translating to about Rs 321.82 billion.
Ransomware also continued to pose a serious threat, particularly to critical infrastructure sectors, with 2,825 complaints leading to estimated losses exceeding $59.6 million, or approximately Rs 4.86 billion.
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However, these figures likely represent just a fraction of the actual financial impact, as they only account for reported incidents.
The report also sheds light on the FBI’s Recovery Asset Team (RAT), which plays a crucial role in mitigating the aftermath of internet crimes. By collaborating with law enforcement and financial institutions, RAT has successfully traced and frozen funds related to fraudulent activities. In 2023, notable recoveries included the reversal of a $50 million payment made to BEC scammers by an organization in New York, equivalent to approximately Rs 4.08 billion, a $426,000 BEC loss in Connecticut, around Rs 34.78 million, and the freezing of nearly $45 million tied to various internet crimes, or approximately Rs 3.67 billion.
Since its inception in February 2018, RAT has boasted a success rate of over 71%, freezing $538.4 million in stolen funds, roughly Rs 43.95 billion.
With cybercrime on the rise, vigilance is key. The IC3 encourages everyone to practice safe online habits, such as using strong passwords, being cautious about unsolicited emails and calls, and reporting suspicious activity to authorities.