Robust Cyber-Security Infrastructure Needed

Global monetary losses due to cybercrime in 2021 was around US$6 trillion (RM27.4 trillion). Malaysia needs a robust cyber-security infrastructure to stave off cyber attacks from derailing its economy. This is according to US-based global cyber-security specialist Palo Alto Networks Inc.

Cyber-security is the practice of protecting critical systems and sensitive information from digital attacks.

Source: https://en.wikipedia.org

Internet adoption is directly correlated with economic development. The importance of data security was not only pertinent for information industries, but also for other manufacturing and traditional businesses. The proliferation of innovative technologies is transforming the nation’s financial ecosystem, enabling new business models such as neobanks to grow and become a mainstay in an economy.

Neobanks are online-only financial institutions that are similar to banks. It is therefore imperative the internet is given adequate protection against cyber attacks to secure the data it carries, stores and transmits.

For context, the amount of USD6 trillion loss is the equivalent to the gross domestic product or GDP value just behind the world’s third-largest economy after the United States and China. This is according to Cyber-security Ventures. 

Emails and collaboration tools have become one of the most common and overlooked cyber threat entry points today. These incidents generally start with a phishing email requesting email credentials. Business email compromise (BEC) incidents could be extremely costly and impactful to organisations. The most common motive in BEC attacks is financial fraud via wire transfers, that often results in additional spam or phishing emails sent from compromised accounts.

In Malaysia, it was reported that a total of 71,833 commercial crime cases involving losses amounting to RM5.2bil were recorded from 2020 to May 2022. Cyber fraud is on the rise in Malaysia. A total of 13,703 cases with losses amounting to RM539 million were reported in 2019, and the number increased to 17,227 in 2020 with losses of RM511.2 million. In 2021, 20,701 cases were recorded with losses of RM560.8 million. This is according to the IGP. For January-July 2022, online fraud cases amounted to RM414 million.

There are 10 different types of scammers from their encounters on social media. These include porn chat scams, mysterious love scams, Nigerian inheritance scams, KLIA pick-up scams, forex, gambling, fake investment guru, Ah Long, job scams and various online sales.

Two ways commonly adopted by scammers to syphon off money – using an Android Package Kit (APK) file to “hijack” mobile phones and steal the transaction activation code (TAC) number and enticing someone by using emotions. This is according to LGMS Bhd, a company involved in forensic audit.

Personally, I am rather cautious on online transactions. The dangers of scammers/security breaches restrain many from using only payment systems. Banks are vulnerable and generally deny any security breaches. Consumers are usually left on their own. BNM generally favours the bank than the consumer. So how could one safely do internet banking?

References:

Robust cybersecurity infrastructure needed to prevent attacks, Daljit Dhesi, The Star, 26 Sept 2022

We’re losing the battle, warns expert, Aliza Shah and Iylia Marsya Iskandar, The Star, 26 Sept 2022

IGP: RM414mil lost from 12,092 online fraud cases in Jan-July, Bernama, TheEdge CEO Morning Brief, 27 Sept 2022