Online extortion is becoming a huge problem – and the war in Ukraine is making everything worse

According to Allianz, the danger of online blackmail for companies, governments and critical infrastructure will increase in the coming years. In addition, the risk of cyber-attacks “by nation-states” increases over the course of the war in Ukraine.

That is what the experts of Allianz industrial insurer AGCS write in their Cyber ​​​​Report that was published on Wednesday. The cases of online extortion are therefore not only increasing in number. The damage to the attacked institutions is also increasing, and not just financially. “Double and triple extortion attacks are now the norm,” said Scott Sayce, chief of cyber insurance at AGCS.

3 forms of blackmail

Online blackmail in its original simple form works in such a way that hackers install malicious encryption software (ransomware) on a network and then demand a ransom to unlock it. In double blackmail, the hackers also steal sensitive data, which is then also used for blackmail attempts.

In the triple form, customers, suppliers, business partners and other contacts of the organization originally attacked are then blackmailed. Sayce and his colleagues warn that small and medium-sized businesses are increasingly targeted by blackmailers.

High attack count

The AGCS cites estimates by US cybersecurity firm Sonic Wall, according to which there were 623 million online extortion attempts worldwide in 2021, twice as many as in 2020. This year the number of cases decreased slightly worldwide, but continued to rise in Europe.

How do hackers get in?

Gateways for the hackers are still often emails with attached files in which the blackmail software is hidden.

Another scam, in which hackers impersonate superiors and deceive subordinates with fraudulent money orders and other instructions, is also spreading, according to AGCS. According to the AGCS report, hackers are increasingly using artificial intelligence to gain management roles with manipulated “deep fake” audio files or videos.

In 2021, there was a case in the United Arab Emirates in which $35 million was stolen from a bank after an employee was fooled with his boss’s cloned voice.

What does the war in Ukraine have to do with it?

In connection with the war in Ukraine, AGCS believes that the risk of espionage, sabotage and cyber-attacks against companies associated with Russia and Ukraine, as well as allies and companies in neighboring countries, is increasing. State-sponsored cyberattacks could target critical infrastructure, supply chains or businesses, the report said.

“So far, the war between Russia and Ukraine has not resulted in a significant increase in cyber insurance claims, but it does indicate a potential increased risk for nation-states,” Sayce said.

(aeg/sda/dpa)