As cyber scams continue to rise in 2024, Australia faces increasing risks. The Australian Cyber Security Centre’s Annual Cyber Threat Report 2021-2022 recorded 76,000 cybercrime reports, marking a 13% increase from the previous year. This statistic depicts that one cybercrime report is made every seven minutes, highlighting an alarming rate.
During his recent discussion on 9 News Perth, Ches Rafferty, CEO and Co-Founder of Scantek, a market leader in providing instant identity verification solutions, emphasised the critical factors for every Australian to be mindful of when engaging in the digital space.
Sophistication of AI in Scams
The cyber scams landscape is becoming more advanced, using increasingly sophisticated attacks including the use of high-tech AI. The same report discloses that the most frequently reported cybercrimes included online fraud (27%), online shopping (14%), and online banking (13%).
Not to mention the increased popularity of ransomware attacks, including a notable example: ChatGPT, an AI-powered tool that scammers use to precisely replicate voices, videos, and text. This enables them to create deceptive content that closely resembles real communication.
Australians are advised to take note of a concerning trend – the use of AI to mimic people’s voices in phone calls. This makes fake communication appear more genuine, making it increasingly challenging for individuals to distinguish between real conversations and scams.
Exploiting Human Emotions
Cybercriminals use intricate psychology to exploit three main human emotions in scams: greed, love, and fear.
People make poor decisions when driven by greed. Cybercriminals’ promise financial gain or great opportunities, making people act impulsively in pursuit of wealth.
Love is also exploited, mainly through online relationships. Fraudsters pose as the perfect partner, creating a false sense of closeness and making victims more vulnerable to sending money.
Fear gives cybercriminals an edge. Threats of legal action, financial ruin, or exposure of sensitive information induce fear, impairing rational thinking and leading people to comply with scammer demands out of panic.
“They will always try to use those levers because they know that humans, when in highly emotional states, don’t think rationally. That’s what allows them to manipulate us and get away with the scams they’re attempting to pull off,” Ches stated.
Targeted Digital Blackmail
Ransomware attacks increased nearly 500% post COVID-19, according to the Australian Cyber Security Centre. Targeted digital blackmail shows how fraudsters compromise business networks to steal sensitive data, a critical issue that everyone should take seriously.
Cybercriminals utilise these modern methods to break into business network security and steal financial, consumer, and intellectual property data. Once inside, these malicious actors can extract sensitive information.
Scammers leverage extracted data to extort money from businesses, often through threats of exposing compromised information. Ransomware attacks, such as the well-known Medicare scandal, exemplify this, where organisations were blackmailed in an attempt to get them to pay a substantial amount to prevent the exposure of their customers’ sensitive data.
The potential consequences, ranging from reputational damage to legal issues, highlight the severity of the threat. Cybercriminals exploit this vulnerability, knowing organisations may comply with their demands to protect their interests.
“Every time a new piece of technology emerges, humans tend to use it for good. However, scammers are always on the lookout for ways to exploit that technology to cause harm,” Rafferty added.
Businesses must improve security, risk assessments, and access control as cyber threats evolve. Understanding cybercrime methods is crucial to building effective countermeasures and strengthening defences.
Privacy Concerns Over Chat-Based Apps
Increasing privacy concerns have caused a decline from major chat-based apps like Messenger and WhatsApp, emphasising the importance of users being aware of potential risks associated with their choices.
Privacy concerns with mainstream chat apps has prompted users to explore alternative platforms for better privacy and data protection. However, blindly adopting lesser-known alternatives has its own risks, including instances where those “secure” platforms provided user data to totalitarian governments.
This underscores the need for user due diligence. While seeking increased privacy, individuals must carefully research the security measures and data protection practices of any chosen chat application.
“You really need to be careful about trying to find more obscure chat services because you simply don’t know who may be running them at the end of the day,” Rafferty noted.
Privacy-conscious users should not rely solely on popularity or marketing claims. Instead, explore the specific privacy policies, encryption methods, country of domicile, and security infrastructure of your chosen chat app to ensure your choices align with privacy preferences and avoid unforeseen threats.
Demographics at Risk
Younger people, often sceptical of major platforms, are more prone to exploring alternative services to enhance their privacy. However, this desire can only expose them to risks, especially on less-established platforms with their vulnerability.
Two-thirds of Australians aged 15 years and over were scammed in 2021-22, as declared by the Australian Bureau of Statistics (ABS). However, all age groups need education and awareness, highlighting the need for informed digital platform selection. Fostering a culture of responsible digital engagement demands that users of all ages be aware of risks and how to mitigate them.
Warnings for Cryptocurrency Enthusiasts
Cryptocurrency fans, especially digital asset investors, are not exempt from dealing with these hazards. The surge in Bitcoin’s value attracts scammers, while increased government scrutiny adds another layer of risk. Users must stay vigilant amid regulatory developments to avoid falling victim to scams exploiting legal concerns.
“What they could end up doing is putting their bitcoin into alternative crypto exchanges that simply disappear overnight and steal the money, a scenario that has occurred a number of times in the past,” Rafferty mentioned.
The overarching message is clear: buyers must exercise caution, conduct thorough research, and stay informed about regulations and market risks when making investment decisions.
Final Thoughts
These findings highlight the importance of staying informed about cyber dangers. Vigilance must be maintained if you want to avoid the expensive costs of a cybercrime incident to your business—over $39,000 for small businesses, $88,000 for medium entities, and $62,000 for large enterprises.
Technological improvements affect cybercriminals’ strategies. Australia’s businesses and individuals must always be proactive about online safety since cyber frauds are becoming more sophisticated as time goes on, making it vital to stay informed and pay attention to the importance of security.