What is Cyber Crime? Types, Example, How to Prevent?

Cybercrime is becoming an increasing threat in today's digital age, where almost every personal and business activity is being conducted online. This invisible danger is constantly evolving, exploiting vulnerabilities within our interconnected network systems.

Many individuals and businesses find themselves unprepared and overwhelmed when faced with cyber threats, such as identity theft, malware attacks, and ransomware. This blog will help you understand ‘what is cybercrime’, different cyber security threats, and the significant impact it imposes on both personal and financial levels. 

What is Cyber Crime and How it Works?

Cybercrime refers to a wide variety of illegal activities that use computers, the internet, or networked devices to accomplish their objectives.

These activities can range from straightforward actions such as identity theft or data breaches to more complex operations like cyber espionage.

At its core, cybercrime utilizes technology to commit acts for the purpose of financial gain, personal revenge, or political motives.

Check out these factors contributing to the rise of cybercrimes in the world.

• Technological advancement:

  Advanced tools and technologies like AI, deepfake, IoT devices, and cryptocurrency are increasing cyber-attacks. Cyber criminals are using AI to enhance their attacks and evade detection.

• Internet accessibility:

  Access to online data, rise in online presence, and access to training material has boosted cyber attacks. For example, there was a surge in cybercrime cases in 2022 with a jump of 24.4% compared to the previous year. This is an indication of rising internet penetration.

• Data reliance:

  Rise in data-driven decision-making and data analytics has opened the door for ransomware attacks. Ransomware activity grew up 50% year-on-year in 2023, which is an evidence of growing importance of organizational data.

If you want to learn about the cybercrimes that could impact you, see the details below.

Types of Cybercrime

In the world of cybercrime, understanding different types of attacks can help you shield yourselves and your organizations better.

Here is a list of different cybercrimes that can help you understand different types of cyber security threats.

Malware Attacks 

Malware includes viruses, worms, spyware, and trojans that can infect systems and steal, corrupt, or destroy data. Cybercriminals make use of malware to damage or exploit systems for financial gain, spying, or to cause disruption.

Example: The Stuxnet malware that destroyed the Iranian nuclear program.

Phishing 

Phishing is like a deception game where attackers disguise themselves as trustworthy entities to extract sensitive information from victims. The collected information usually includes login credentials, credit card numbers, or other personal data, which can be used for fraudulent purposes.

Example: During the 2018 World Cup, many football fans were duped into revealing personal details with promises of a free trip to Moscow.

Ransomware 

Ransomware is a type of software that encrypts your data and demands a ransom for a decryption key. A ransomware virtually locks your data, making you unable to perform important functions. It can spread through emails, text attachments, infected websites, or software vulnerabilities.

Example: The WannaCry ransomware attack in 2017 affected millions of systems across the world.

Denial of Service (DoS) Attacks 

A DoS attack burdens a server with excess traffic, causing slowdowns or outright system crashes. It is like switching on every light in a building to overload the circuits. When the attacker uses multiple devices to carry out this attack, it is known as a Distributed Denial of Service (DDoS) attack.

Example: The Mirai botnet in 2016 launched a DDoS attack on IoT devices with weak or default passwords.

Identity Theft 

Identity theft usually involves stealing personal information, such as aadhar number, to pose as someone else and commit illegal fraud. The information stolen from victims is often used for unauthorized purchases, opening new accounts, or other fraudulent activities. Unsuspecting victims are often unaware that their identities have been misused. 

Example: The Equifax breach in 2017 exposed the sensitive information of 147 million individuals.

Cyberstalking and Harassment 

Cyberstalking and harassment involve using online channels to threaten, monitor, or intimidate an individual. Cyber harassment involves sending threatening messages, posting defaming content, or spreading false information to damage the victim’s reputation.

Example: Sending anonymous messages over social media.

Financial Fraud 

Financial fraud involves using deception to gain money or assets, often by manipulating online banking, payment systems, or credit cards. This crime usually involves identity theft or manipulating individuals and companies to make fraudulent payments.

Example: Stealing credit card information to make purchases online.

Intellectual Property Theft 

A cybercriminal steals ideas, inventions, or creations by hacking into corporate systems to obtain trade secrets or designs, by violating IP laws. IP theft can lead to loss of competitive advantage, revenue reduction, and can affect brand reputation.

Example: Stealing research data from vaccine manufacturers and selling it on the dark web.

Illegal Gambling 

It involves participating in betting or gaming activities that are not authorized by the jurisdiction in which they take place. Unregulated websites facilitate illegal gambling, making it difficult to monitor.

Example: Online betting on cricket matches.

Selling illegal items online 

Selling illegal items such as drugs or weapons on dark web marketplaces where transactions are anonymous, is also a cybercrime. Dark webs offer anonymity through encryption and untraceable cryptocurrency payments, making them popular for illicit activities.

Example: The Silk Road marketplace sold illegal items like arms and drugs.

Soliciting, producing, or possessing child pornography 

This crime includes producing, distributing, or possessing illegal content involving minors. Possessing child pornography is universally condemned and punishable by lengthy prison terms, hefty fines, and mandatory sex offender registration.

Example: Playpen site that hosted illegal minor pornographic material was closed down through a global crackdown.

Cryptojacking

Cryptojacking involves secretly using someone’s computing power to mine cryptocurrency without their knowledge or consent. Cryptojacking can take place on devices such as computers, smartphones, and even server systems.

Example: Coinhive cryptocurrency mining tool used the CPU power of users for crypto mining.

Also Read: Spoofing in Cybersecurity. How it Works and How to Prevent it?

Impact of Cybercrime

Cybercrime has far-reaching impacts on various aspects of society. Its effects are particularly evident in economic, reputational, operational, and legal areas.

Learn about the potential damage cybercrime can cause.

• Economic Losses

Cybercrime can have devastating economic impacts on businesses, causing significant financial losses. According to a report, cybercrime costs will grow by 15% annually over the next five years, reaching USD 10.5 trillion by 2025.

The snapshot of changing trends in cyber crimes is given below.

Image courtesy: IMF

• Reputational Damage

The reputational damage from cybercrime can erode customer trust and loyalty, making it difficult for companies to sustain their market position. A cyber attack on a company usually causes a drop in its market value.

For instance, a recent glitch in Microsoft software caused a global IT outage that disrupted airline and hospital operations. Fortune 500 companies lost an estimated USD 5.4 billion due to this software glitch.

Crowdstrike, the cybersecurity firm responsible for this glitch in Microsoft software, lost a market value of USD 16 billion due to reputational damage.

• Operational Disruption

Attacks like ransomware and Distributed Denial of Service (DDoS) can affect critical systems, often resulting in costly recovery processes.

A relevant example of this is the disruption caused by cybercriminals to approximately 70% of gas stations in Iran. 

• Legal Consequences

Data breaches can lead to regulatory fines, legal costs, and the expenses involved in complying with data protection regulations. A company may have to face legal challenges from its customers and the government.

A famous example of legal consequences is Equifax's case, which faced one of the largest data breaches and was sued by thousands of customers. The company had to pay USD 700 million as part of a settlement with a US regulator.

Also Read: How to Become a Successful Cybersecurity Engineer?

Cybercrimes target anyone, regardless of who they are. Find out if you're vulnerable to cyber attacks.

Who is Affected by Cybercrime?

Cybercrime has a broad scope, affecting individuals, businesses, organizations, and government bodies. The impact on these groups can be damaging to their well-being and reputation.

You can check out how cybermine affects individuals, businesses, and governments.

Individuals

Even on an individual level, the threat is incessant and deeply personal. These crimes range from phishing to the more complex SIM swapping and identity theft. 

One of the most famous victims of a cyberattack was Amazon’s CEO, Jeff Bezos, whose smartphone was targeted by cybercriminals, leading to the leak of personal data.

Here are some ways you can suffer due to cybercrimes.

• Loss of privacy due to cyberstalking
• Financial consequences due to phishing
• Privacy threat due to malware
• Misuse of identity to commit crimes

Businesses and Organizations

Despite having more resources than individuals, businesses face significant financial impacts from breaches. 

If you’re keen on knowing the impact of cybercrime on businesses, check out the following examples.

• In 2017, the WannaCry ransomware attacked the UK's National Health Service (NHS), encrypting files and demanding a ransom in Bitcoin to restore access. 
• In 2020, hackers infiltrated Haldiram's IT infrastructure and encrypted its data. A hefty ransom was demanded for data decryption and retrieval.

Government and Public Infrastructure

Cyber attacks on the government often transcend financial damage, posing a risk to national security and public safety. The most concerning fact is that these attacks can seriously cripple the country’s public infrastructure.

For example, the Kudankulam Nuclear Power Plant’s network was breached by cybercriminals, affecting its functioning. Similarly, Mumbai experienced an unexpected power outage due to a cyber attack on its power grid.

In recent years, the Aadhaar data leak, in which the data of 81.5 crore Indians was leaked on the dark web, is another such incident where government infrastructure faced cyberattacks.

You can check the following impacts on public infrastructure.

• Cyber attacks on power grids or water supply systems can lead to widespread blackouts or water shortages.
• Attacks on railways, airlines, and traffic management systems can lead to severe delays, accidents, or complete shutdowns.
• Cyberattacks on healthcare infrastructure can delay treatment or even put lives at risk.
• Breaches in defense systems can lead to the exposure of classified information.

Essential Cybercrime Prevention Tips

Adopting preventative measures against cybercrime is not only advisable but also necessary. Without such measures, you could lose your identity or important data. 

Here are some critical steps you can take to protect yourself and your organization:

• Use Strong and unique passwords

One of the foundational steps in cyber security is using strong, unique passwords for each account. Passwords should contain at least ten characters and combine letters, numbers, and symbols to maximize protection.

An example of a strong password is “9d*R5^pLz!82Qs#nA”. It consists of both uppercase and lowercase letters, numbers and special characters, and is 16-character long. 

Using a password containing 4-5 characters such as “123456” is not advisable. Moreover, using your name or birthdate as a password should be avoided.

• Enable Two-Factor Authentication (2FA)

Two-factor authentication adds a vital layer of protection by requiring a secondary verification step. It can be an SMS code, an authenticator app code, or even biometric verification. 

• Regularly update software 

Regular software updates are essential as they often include patches to address security vulnerabilities identified by software developers. Keeping your software up-to-date makes it much more challenging for cybercriminals to find entry points into your systems.

• Install antivirus software

Antivirus software offers benefits like firewall protection and anti-ransomware capabilities. However, you need to use a paid version of the software to receive maximum protection for your devices.

• Be wary of suspicious emails and links

Always hover over links to verify their legitimacy before clicking, and avoid opening suspicious attachments that might harbor malware or be part of phishing scams. Do not click on links from any unknown senders.

• Educate yourself and employees

By ensuring that you and your employees are aware of the risks and signs of cyber threats, you create a resilient defense against attacks. Keep track of the latest cyber security threats and update yourself with preventive measures.

• Regular data backups

Backing up your data is indispensable. It safeguards your information and allows for swift recovery in the event of an attack like ransomware. This practice can save your data from ransomware attacks.

• Secure Wi-Fi networks

Utilizing strong encryption and a VPN can encrypt your internet traffic, making it difficult for anyone to intercept your data. Avoid connecting to public Wi-Fi networks, which are not trustworthy.

• Limit access permissions

Only grant access permissions to necessary individuals. This reduces the risk of data breaches from both internal and external threats. Remove permission from mobile apps that are rarely used.

• Monitor accounts regularly

Keep a diligent eye on your financial transactions, email activity, and other online accounts to identify unauthorized usage or anomalies promptly. Keep changing your passwords regularly to avoid being attacked.

Best Practices for Businesses to Prevent Cybercrime

As cybercrime threats continue to rise, businesses must adopt robust strategies to protect their digital assets and sensitive data. 

Here's how you can strengthen your defenses against cyber threats.

Employee Cybersecurity Training

Regular workshops or online courses can empower employees to recognize, avoid, and deal with various cyber threats, such as phishing emails or social engineering tactics, and help reduce human errors that may lead to breaches.

Use Firewalls and Network Security Solutions

Firewalls and other network security solutions form the first line of defense against cyber threats. It acts as a shield between the internal company network and the external internet, preventing malicious entities from infiltrating the system.

Businesses can significantly bolster their defense mechanisms by implementing comprehensive security measures that incorporate firewalls, antivirus, and intrusion detection systems.

Implement Incident Response Plans

An effective incident response plan should be in place to ensure that any attack is managed swiftly and efficiently. This plan should include steps like containing and eradicating the threat, recovery processes, and a meticulous post-incident analysis to prevent future breaches.

Encryption and Data Protection

By encrypting data both during transmission and when stored, businesses can ensure that even if the data is intercepted or accessed illegally, it remains unreadable to unauthorized users.

Obtain Cyber Insurance Policies

Insurance policies cover data breaches, including legal fees, notification expenses, and business interruption losses. It's crucial to pick an insurance provider with a deep understanding of cyber risks and the ability to offer resources to help manage a breach effectively.

Also Read: Top 7 Cybersecurity tools

Best Practices for Individuals to Prevent Cybercrime

In the digital world, cybercrime has become an omnipresent threat that requires vigilance and proactive measures. Individuals are increasingly becoming victims of cybercrimes.

Here are some practices to help you avoid cyber attacks.

Use secure websites

Check the authenticity of websites before visiting. Some browser extensions can help you identify and neutralize threats by blocking known phishing sites and verifying the safety of websites you visit.

Security and education

Cybersecurity threats are constantly evolving. To stay aware of recent trends, use free resources like newsletters from cybersecurity sites like CyberScoop.

Follow digital hygiene

Make it a habit to review your digital security each month. Check for unusual activity in accounts, old passwords, unused apps, and any unapproved access permissions.

Use virtual payment cards

Virtual credit cards are digital versions of credit or debit cards, generated through a bank or payment provider. Virtual cards generate a new card number for each purchase, so even if the card details are stolen, they can’t be misused.

Practice data minimization

Avoid optional fields while filling data online, especially for non-critical accounts. This can help you reduce exposure if a data breach occurs. Wherever possible, anonymize data to reduce the risk of exposing identity.

Avoid oversharing

Avoid sharing personal information on social media. This can help you protect your privacy and avoid identity theft or cyberstalking risks. Always consider the potential consequences before sharing personal information on online platforms.
If you’re looking for legal measures to protect yourself from cyberattacks, explore the details below.

Legal and Regulatory Measures Against Cybercrime

As the digital world expands, the legal framework to combat cybercrime in India becomes increasingly critical. A multifaceted approach involving legislation, enforcement, and proposed updates can help tackle cyber threats.

Here are some legal and regulatory measures to tackle cybercrime in India.

 Information Technology Act, 2000 (IT Act)

The Information Technology Act, 2000 proposes legal action against various cyber offenses like hacking, phishing, and identity theft. It has led to the setup of a Cyber Appellate Tribunal for handling appeals, ensuring that the legal process remains robust and responsive.

Indian Penal Code (IPC) sections related to cyber offenses

Many sections in the Indian Penal Code are pivotal in prosecuting cybercrime. These include Section 420 for cheating and Section 499 for defamation, which also help tackle crimes that occur in cyberspace.

Cybercrime Investigation Cells

Cybercrime Investigation Cells at the national and state levels help effectively investigate and prosecute cybercriminals. The Cyber Crime Investigation Cell under the CBI focuses on cybercrimes beyond international borders.

Data Protection Bill (proposed)

The Data Protection Bill will address growing concerns about personal data security. This bill aims to establish a Data Protection Authority to protect individuals' data and oversee compliance.

CERT-In (Indian Computer Emergency Response Team)

CERT-In is a national agency that monitors cybersecurity threats and guides incident responses. It provides immediate assistance and expertise when cyber incidents occur.

National Cyber Security Policy

The National Cyber Security Policy was launched in 2020 to create a secure cyberspace ecosystem. It focuses on public-private partnerships, research, and a trained cybersecurity workforce to address cybersecurity threats.

Personal Data Protection Bill, 2019 (proposed)

The Personal Data Protection Bill, 2019 complements the Data Protection Bill and seeks to establish comprehensive data protection regulations. It focuses on handling cross-border data flows and dealing with data-related grievances.

Future of Cybercrime and Emerging Trends

Emerging trends in cybercrime are primarily driven by the integration of Internet of Things (IoT) devices and Artificial Intelligence (AI) into our everyday lives, leading to drastic changes in the cyber threat environment.

Here’s a list of emerging trends in cybercrime and how it can affect your everyday life.

Growth of Cybercrime with IoT and AI

IoT devices permeate nearly every aspect of modern life, from smart homes to connected cars. Unfortunately, many of these devices come with insufficient security measures, creating a perfect situation for cybercriminals to exploit.

The best illustration of this threat is the 2016 Mirai botnet attack, which infected thousands of IoT devices by launching DDoS attacks by exploiting default or weak passwords.

Increased Use of Ransomware-as-a-Service (RaaS)

Cybercriminals are using AI to automate attacks, making them more sophisticated and more complex to detect. The latest technologies have allowed the growth of Ransomware-as-a-Service (RaaS) attacks for economic gain.

In 2021, a RaaS operator called DarkSide launched a ransomware attack on Colonial Pipeline in the United States. This attack forced Colonial Pipeline to temporarily halt operations, causing widespread fuel shortages and price spikes across the country.

Rise of Deepfakes and Synthetic Identity Fraud

Deepfakes can produce audio and video that are nearly impossible to distinguish from genuine recordings. These can be used for spreading fake news, blackmail, and identity fraud.

One such sentence of misuse is the deep fake video of the Ukrainian president, which was used to urge Ukrainian soldiers and citizens to lay down their arms and surrender to Russian forces.

Expanding Dark Web Marketplaces for Cyber Tools

The dark web offers a haven for exchanging sophisticated hacking tools and offering illicit services. These marketplaces have contributed to the professionalization of cybercrime.

A popular dark web marketplace called Silk Road popularized the concept of offering cybercrime-as-a-service (CaaS), where cybercriminals could sell their skills, malware, and tools to willing buyers. 

Evolution of Social Engineering Tactics

Social engineering attacks are becoming more personalized and challenging to identify. AI-enhanced techniques allow cybercriminals to craft highly convincing targeted messages.

For instance, in the 2016 U.S. presidential elections, a rival country used social engineering techniques to manipulate voters, create social division, and amplify controversial issues. 

Are you considering a career in cybersecurity? These top 5 cyber security courses will help you succeed as a cybersecurity expert. 

Why Choose upGrad for Cybersecurity Learning?

In today's digital age, cybersecurity education has never been more critical. With the rising incidence of cybercrime, individuals and organizations alike are seeking advanced knowledge and skills to safeguard their digital assets.

upGrad stands out as a leader in this educational revolution, offering a range of comprehensive programs specifically tailored to meet these demands. upGrad’s unique learning approach helps users gain hands-on experience using advanced cybersecurity tools.

Here are some top cybersecurity courses you can check out.

• Advanced Certificate Programme in Cybersecurity
• Fundamentals of Cybersecurity

Are you curious to learn more about a cybersecurity career? Talk to upGrad's professional career expert for key insights to help you make the right choice.

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