Cybercrime

Forrester: Cybercrime to cost $12 trillion in 2025

Forrester’s 2025 Predictions report outlines critical cybersecurity, risk, and privacy challenges on the horizon. Cybercrime costs are expected to cost $12 trillion by 2025, with regulators stepping up efforts to protect consumer data. Organisations are urged to adopt proactive security measures to mitigate operational impacts, particularly as AI technologies and IoT devices expand.

Another major prediction is that Western governments plan to prohibit certain third-party or open-source software due to rising concerns over software supply chain attacks, which are a leading cause of worldwide data breaches. Increased pressure from Western governments has prompted private companies to produce software bills of materials (SBOMs), enhancing transparency regarding software components.

However, these SBOMs also reveal the reliance on third-party and open-source software in government purchases. In 2025, armed with this knowledge, Forrester says that a government will impose restrictions on a specific open-source component for national security reasons. Consequently, software suppliers will need to eliminate the problematic components and find alternatives to maintain functionality.

Among the key forecasts is the EU issuing its first fine under the new EU AI Act to a general-purpose AI (GPAI) model provider. Forrester warns that companies unprepared for AI regulations will face significant third-party risks. As generative AI models become more widespread, businesses must thoroughly vet providers and gather evidence to avoid fines and investigations. Another major prediction is a large-scale Internet of Things (IoT) device breach, with malicious actors finding it easier to compromise common IoT systems. Such breaches could lead to widespread disruption, forcing organisations to engage in costly remediation efforts.

Forrester also anticipates that Chief Information Security Officers (CISOs) will reduce their focus on generative AI applications by 10%, citing a need for measurable value. Currently, 35% of global CISOs and CIOs prioritise AI to boost employee productivity, but growing disillusionment and limited budgets are expected to hinder further AI adoption. The report reveals that 18% of global AI decision-makers already see budget limitations as a major barrier, a figure projected to increase as organisations struggle to justify investment in AI initiatives.

The report also highlights a rise in cybersecurity incidents. In 2023, 28% of security decision-makers reported six or more data breaches, up 16 percentage points from 2022. Additionally, 72% of those decision-makers experienced data breach costs exceeding $1 million. Despite these alarming statistics, only 16% of global security leaders prioritised testing and refining their incident response processes in 2023, leaving many organisations unprepared for future attacks.

Human-related cybersecurity risks, such as deepfakes, insider data theft, generative AI misuse, and human error, are expected to become more complex as communication channels expand. Forrester also explores how generative AI could reshape identity and access management, addressing challenges like identity administration, audit processes, lifecycle management, and authentication. In conclusion, the report urges companies to brace for evolving threats and adopt forward-thinking strategies to protect their assets as cybersecurity landscapes shift.

Russia opens criminal case against Cryptex founders

Russian authorities have initiated a criminal investigation against the founders of UAPS and Cryptex, accusing them of generating over $40 million in illegal profits. It follows allegations of running unlicensed banking operations, unauthorised access to protected information, and creating a payment infrastructure that supported cybercriminal activities. The probe is being led by Moscow’s Investigative Committee.

UAPS, established in 2013, and Cryptex, launched in 2018, were primarily used by criminals for illegal currency exchanges and money laundering. In 2023 alone, the network saw more than $1.2 billion in illicit transactions. Russian law enforcement conducted 148 raids across 14 regions, detaining 96 suspects, many of whom face charges of organised crime and illegal banking.

The investigation comes just days after OFAC sanctioned Cryptex and its founder, Sergey Ivanov, accusing them of laundering funds linked to ransomware attacks and darknet markets. US authorities have labelled Ivanov’s other exchange, PM2BTC, as a major money laundering concern.

Indian government redefines ministry roles in telecom and cybersecurity

The Indian government has recently redefined the roles of key ministries concerning telecom network security, cybersecurity, and cybercrime through amendments to the business allocation rules. As a result, this strategic reorganisation ensures that each ministry is assigned clear responsibilities, streamlining efforts to manage these vital areas more effectively.

The roles have been precisely delineated to enhance governance. Specifically, the Ministry of Communications is responsible for telecom security under the Telecommunication Act of 2023, which enables authorities to access traffic data, including from OTT services like WhatsApp. Meanwhile, cybersecurity falls under the Ministry of Electronics and Information Technology (MeitY), as outlined in the IT Act of 2000, with strategic guidance provided by the National Security Council Secretariat.

Furthermore, the Ministry of Home Affairs (MHA) oversees cybercrime, working closely with the Department of Telecommunications to address fraud and utilising tools such as Pratibimb to track mobile numbers involved in cybercriminal activities.

There is an ongoing debate on regulating OTT communication services. While telecom companies continue to push to regulate these services under the Telecom Act, the government in India has reiterated that OTT services like WhatsApp and Telegram fall under the Information Technology Act. This differentiation reflects the broader scope of the IT Act in handling digital communication services, even as pressure mounts for more stringent telecom-specific regulations.

German authorities shut down 47 cryptocurrency exchanges in major anti-money laundering operation

German authorities have shut down 47 cryptocurrency exchange services in a major crackdown on illegal money laundering. The Federal Criminal Police Office (BKA) and the Central Office for Combating Internet Crime led the operation, targeting platforms that allowed users to exchange conventional currencies and cryptocurrencies without verifying their identities. These services bypassed the ‘know-your-customer’ (KYC) rules, enabling users to trade cryptocurrencies like Bitcoin and Ethereum quickly and anonymously.

Criminals reportedly used these exchanges to conceal the origins of illicit funds, often obtained through dark web drug sales or ransomware attacks. As part of the operation on 20 August, authorities confiscated 13 crypto ATMs and seized nearly $28 million in cash from 35 locations across Germany. Financial watchdog BaFin led the raids, targeting machines operating without the necessary licences, which posed significant money laundering risks.

The closure of these exchanges is part of a wider effort to disrupt cybercrime networks. Investigators managed to secure vital user and transaction data, which could assist in future money-laundering investigations. It follows earlier German crackdowns, including the seizure of ChipMixer, a platform involved in laundering €90 million in crypto.

Tanzania embraces AI to tackle rising cybercrime

Tanzanian President Samia Suluhu Hassan has called for the integration of AI into the strategies of the Tanzania Police Force to address the escalating threat of cybercrime. Speaking at the 2024 Annual Senior Police Officers’ Meeting and the 60th Anniversary of the Tanzania Police Force, President Samia emphasised that in today’s digital age, leveraging advanced technology is crucial for effectively combating online threats. She highlighted the necessity for the police to adapt technologically to stay ahead of sophisticated cybercriminals, underlining the importance of embracing these advancements.

In her address, President Samia also drew attention to a troubling surge in cybercrime, with incidents increasing by 36.1% from 2022 to 2023. She noted that crimes such as fraud, false information dissemination, pornography distribution, and harassment have become more prevalent, with offenders frequently operating from outside Tanzania. The President’s remarks underscore the urgency of adopting advanced technological tools to address these growing challenges effectively and to enhance the police’s capability to counteract such threats.

Furthermore, President Samia emphasised the need to maintain peace and stability during the upcoming local government and general elections. She tasked the police with managing election-related challenges, including defamatory statements and misinformation, without resorting to internet shutdowns. President Samia underscored that while elections are temporary, safeguarding a stable environment is essential for ongoing development and progress by stressing the importance of preserving national peace amidst political activities.

23andMe to pay $30 million in data breach settlement

American personal genomics and biotechnology company 23andMe has agreed to a $30 million settlement after a data breach exposed the personal information of 6.9 million users. The breach, which occurred last year, compromised sensitive data, including DNA Relatives profiles and Family Tree information. Affected users will receive financial compensation and three years of security monitoring under the Privacy & Medical Shield + Genetic Monitoring program.

The lawsuit also accused 23andMe of failing to inform customers of Chinese and Ashkenazi Jewish descent that they were specifically targeted in the breach. The stolen information was later found for sale on the dark web. A federal judge must now approve the proposed settlement, which the company considers fair and beneficial for its users.

Despite its financial challenges, the company expects to cover $25 million of the settlement with cyber insurance. The breach, which began in April 2023 and lasted five months, affected nearly half of the company’s 14.1 million customers at the time. 23andMe disclosed the incident in an October 2023 blog post.

The company, led by co-founder Anne Wojcicki, is also facing financial difficulties. It posted a significant quarterly loss and has been attempting to go private. Shares of 23andMe have been trading below $1 since December 2023, a sharp drop from its original public offering price.

Cyber threats soar: BT identifies 2,000 attacks per second

BT has reported detecting 2,000 potential cyberattacks on its network every second. The rise is attributed to criminals deploying disposable ‘bots’ to bypass existing security measures.

In July, digital surveillance activity by hackers using malicious scanning bots surged by 1,200% compared to the previous year. The telecom giant revealed that these attacks are targeting a wide range of sectors, including retail, education, hospitality, defence, and financial services.

Tris Morgan, BT’s managing director of security, stated that hackers are probing connected devices every 90 seconds in their attempts to breach systems. However, this reflects a significant escalation in cyber threats.

At its Secure Tomorrow cybersecurity event, BT showcased its advanced quantum secure communications and AI-driven cyber defence technologies.

UK National Crime Agency losing 20% of cyber experts annually, report warns

The National Crime Agency (NCA), once regarded as the UK’s frontline defense against serious and organized crime, including cybercrime, is now in a state of crisis, according to a new report from Spotlight on Corruption, a British nonprofit organisation which focuses on financial corruption.

The report highlights a severe ‘brain drain’ within the agency, with a significant number of experienced personnel leaving, leading to a concerning loss of nearly 20% of its cyber expertise annually. This exodus is primarily blamed on a dysfunctional pay system, which has not only resulted in a high number of vacancies but has also driven up costs. To fill the gaps, the NCA has increasingly relied on temporary workers and consultants, who account for over 10% of the agency’s budget.

The report calls for urgent reform and increased investment in the NCA, warning that the agency’s ability to protect the UK from serious threats, including fraud, corruption, and organized crime, is at a tipping point. Without major changes to pay and working conditions, the agency’s effectiveness is at risk of further deterioration.

The report also contrasts the NCA with the FBI, noting that while the NCA is sometimes referred to as Britain’s equivalent, there are significant differences between the two agencies. The FBI is considered a desirable career path due to its competitive pay, benefits, and opportunities for professional development, resulting in a low staff turnover rate of just 1.7% in 2023. In comparison, British police officers would have to accept a pay cut to join the NCA, which lacks similar financial incentives.

It’s worth noting that the report doesn’t go into the details of the recent successful operations conducted with the participation of the NCA.

Cybersecurity breach costs Enzo Biochem $4.5 million

Enzo Biochem has agreed to pay $4.5 million to settle claims that it failed to protect sensitive patient data, leading to a significant cyberattack in April 2023. The breach compromised the personal and health information of approximately 2.4 million patients, including Social Security numbers and health histories. The settlement, announced by New York Attorney General Letitia James, involves payments to New York, New Jersey, and Connecticut.

The attack was made possible by shared login credentials among Enzo employees, including one password that hadn’t been updated in ten years. The attackers installed malware on the company’s systems, which went undetected for several days due to insufficient monitoring. The company has since taken steps to enhance its security measures, such as enforcing stronger passwords, implementing two-factor authentication, and improving its response plan for future incidents.

Enzo began notifying affected patients in June 2023. The breach impacted 1.46 million New Yorkers, including 405,000 whose Social Security numbers were compromised. New York will receive $2.8 million from the settlement. Attorney General James emphasised the importance of protecting patient information, particularly in the context of medical services.

Enzo Biochem has not commented on the settlement. The company previously exited the clinical lab testing business in August of the previous year. The settlement marks a significant reminder of the importance of robust cybersecurity protocols in protecting sensitive data.

Ransomware group dismantled by global authorities

An international operation has dismantled the criminal ransomware group Radar/Dispossessor, which had been targeting companies across various sectors, including healthcare and transport. Authorities from the United States and Germany led the effort to bring down the group, which was founded in August 2023 and initially focused on the US before expanding its attacks globally.

The investigation has identified 43 companies as victims, spanning countries such as the UK, Germany, Brazil, and Australia. The group, led by an individual using the alias ‘Brain’, primarily targeted small to medium-sized enterprises. Many more companies are believed to have been affected, with some cases still under investigation.

Radar/Dispossessor exploited vulnerable computer systems, often through weak passwords and the absence of two-factor authentication, to hold data for ransom. Authorities successfully dismantled servers and domains associated with the group in Germany, the US, and Britain.

Twelve suspects have been identified, hailing from various countries, including Germany, Russia, Ukraine, and Kenya. Investigations are ongoing to identify further suspects and uncover more companies that may have been victimised.