The FBI dedicates an entire division to the investigation and prosecution of cybercrime and is the lead agency in charge of this criminal activity. Below is a brief description of the leading types of cybercrime as identified by the FBI.
1. Business Email Compromise (BEC)
Also referred to as email account compromise, BEC is an online crime with potentially devastating financial consequences. The way BEC works is that a criminal sends a business email that looks legitimate and asks the recipient to complete an ordinary request.
For example, the recipient may receive an email from a vendor the company regularly does business with that provides new contact information for remitting payments. Since businesses change their address and bank account information all the time, the accounts payable department may not think much of it and remit a payment without confirming the new details. A cyber liability insurance policy protects you from this type of loss.
2. Identity Theft
Individuals and businesses can become the victim of identity theft when someone steals personal information such as a social security number or credit card number. Businesses face substantial risk of a hacker stealing sensitive customer information, including customer data and physical addresses. The more data the online thieves access and use for criminal purposes, the greater the risk to the company’s reputation.
3. Ransomware
Ransomware attacks can impact computer files, systems, or entire networks through malicious software known as malware. People unknowingly download ransomware to their computers in the following ways:
- Clicking an ad that takes the online user to a malware site • Following a link to an infected website.
- Opening a corrupt email.
- Visiting a website infected with malware.
Once ransomware has loaded itself onto a computer, it prevents access to files and everything else stored on the device. The worst types of ransomware encrypt folders and files stored on local drives, attached drives, and network systems.
Most people have no idea their computer contains malware until they attempt to access their files and cannot do so. Running current antivirus software on a regular schedule is an effective way to prevent these attacks. After a ransomware attack has already happened, having a cyber insurance policy in place prevents catastrophic loss that can put a company out of business. The cost of cyber insurance is low compared to the potential devastation caused by a ransomware attack.
4. Spoofing and Phishing
The term spoofing refers to the act of the sender changing one or more letters or characters in an email address, website address, phone number, or name. The change is so slight that people often do not notice it. Unfortunately, this causes them to trust and interact with the sender without questioning whether the source is legitimate.
Criminals who engage in spoofing always have ill intentions in mind, such as convincing the recipient to send money, download malware, or disclose personal information that they would normally feel more cautious about releasing.
Most cybercriminals use spoofing and phishing together. The goal is to get the recipient to believe the sender is legitimate and then convince that person to take action, such as downloading malware or sending money. Phishing emails that ask the victim to verify or update their personal and financial data are common. The email then redirects to a website where the criminal steals information entered by the victim and uses it to commit fraud.
