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The FBI’s Internet Crime Complaint Center (IC3) reported 880,418 cyber incidents in 2023, resulting in a record $12.5 billion in losses.
Healthcare saw the highest number of compromises by industry, with 809 as tracked by the Identity Theft Resource Centers (ITRC).
The big picture: Cybercrimes continue surging, with increasing financial losses, supply chain attacks, and weakened breach notification practices heightening risks for both individuals and organizations.
Why it matters: Escalating cyber threats jeopardize critical infrastructure, businesses, consumer finances, and personal data privacy on an unprecedented scale.
By the numbers: The ITRC tracked 3,205 publicly reported data breaches last year, which affected an estimated 353 million individuals. Many more cybercrimes likely go unreported.
IC3 reports some notable cybercrime statistics:
- Investment scams topped $4.57 billion in losses
- Business email compromise (BEC) losses exceeded $2.9 billion
- One BEC incident caused $50 million in losses
- Ransomware attacks increased by 18%, with 42% targeting critical infrastructure
How it works: Phishing remains the top attack vector for criminals. In phishing attacks, malicious actors create fake communications, such as emails or texts that look legitimate. When a victim opens the message, hackers may steal login credentials or contain malware that impacts the computer system.
The FBI says scammers increasingly use cryptocurrency platforms, third-party payment processors, and custodial accounts to disperse funds from BEC and investment scams quickly.
What they’re saying: The FBI emphasizes the importance of two-factor or multi-factor authentication to help protect against scammers.
Other solutions to minimize risk and impact include:
- More robust payment verification practices.
- Avoiding engagement with unsolicited texts and emails.
The bottom line: An “unprecedented” wave of financially motivated cybercrimes in 2023 points to even higher identity fraud levels in 2024 without dramatically improving security practices and transparency.
Security and privacy (Cyber) liability insurance can help protect organizations from data breaches and other cybersecurity issues. If you have questions about cyber insurance coverage, contact a trusted insurance advisor.
