RSS feed Get our RSS feed

News by Topic

BizReport : Internet : June 23, 2017

IC3 Report: Email compromise scams account for greatest financial loss

Business and email compromise scams represented over a quarter of financial loss totals in 2016, according to the FBI's Internet Crime Complaint Center's latest Internet Crime Report.

by Helen Leggatt

According to the Internet Crime Complaint Center's (IC3) latest report, 298,728 complaints were received in 2016 totaling more than $1.3 billion in financial loss.

Business Email Compromise (BEC) and individual Email Account Compromise (EAC) scams accounted for more than a quarter of the total financial loss, or around $360.5 million. And yet, reports IC3, BEC and EAC scams accounted for a very small proportion of Internet crime reported - just 12,005 incidents in 2016, the 16th most frequently reported crime.

According to the report, in 2016 BEC scams" evolved to include the compromise of legitimate business email accounts and requests for Personally Identifiable Information (PII) or Wage and Tax Statement (W-2) forms for employees". The BEC/EAC scam continues to grow, evolve, and target small, medium, and large businesses. Between January 2015 and December 2016, there was a 2,370% increase in identified exposed losses.

After BEC and EAC scams, reported crimes responsible for the next highest financial loss totals were confidence fraud and romance scams ($219.8 million) and non-payment/non-delivery crimes ($138.2 million).

The three Internet crimes that were most commonly reported to IC3 last year were non-payment and non-delivery incidents (81,029 incidents), personal data breaches (27,573), and 419/overpayment scams (25,716).

Despite making the news in 2016, ransomware registered relatively low on IC3's list of threats, receiving 2,673 complaints (ranked 22nd) with losses of over $2.4 million ranked 25th).

Tags: cyber crime, fraud, Internet, scams, trends

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.