Monday, September 23, 2019

Cybercrime as a global risk: impact and challenges of governing the risk


Introduction
The cyberspace has been growing in significance in recent years. This has especially been the case in the developed world where the internet and online transactions are becoming acceptable to consumers (KPMG, 2011). Companies have also been making use of computer systems to develop intranets that ensure the cost effectiveness and efficiency of their communication systems. The internet has also led to the creation of a borderless economy with information flowing freely across national boundaries with governments having little control over it (Global Economic Symposium, 2012). Companies have moved to capitalise on this fact and advance their brand awareness to other regions and countries.

The growth of the internet usage around the world has led to the emergence of one major risk: cybercrime. Cybercrime involves theft of information, sabotage of operations of corporations and government departments, impersonation and others (KPMG, 2011). This leads to loss of money, organisational secrets that could compromise how secure an organisation is, security threat to the public, and loss of confidence in an organisation’s systems. Curbing cybercrime becomes a big challenge due to its borderless nature with countries having to share intelligence in order to fight the vice more effectively (Global Economic Symposium, 2012). This paper expounds on the common forms of cybercrime and challenges that make it difficult for the risk to be mitigated. It also makes recommendations on how such challenges can be surmounted.    

Notable trends in cybercrime and common technologies used for the vice  
In recent years, cybercrime has been on the increase. Statistics in 2010 indicate that the global spam rates increased by 1.4% over the 2009 rates (Europol, 2012). While cyber attacks have in the past been associated with geniuses innocently trying to prove their prowess in computers and computer networks; the emergence of an underground economy dealing in restricted information on people and companies have seen the practice turn criminal. Cybercriminals are increasingly using their prowess to steal and sell information which is then used to manipulate personal bank accounts, steal company secrets and sabotage organisations and government departments (Smith, 2007).

In 2010, a computer worm Stuxnet was produced with an aim to sabotage computer systems at the Iran nuclear plants (Pinguelo, Lee and Muller, 2012). This worm made computers give wrong instructions and led to the malfunction that saw the country’s nuclear operations after destroying their nuclear centrifuges. Even though the target was Iran, the worm also affected Pakistan, Indonesia and India. Night dragon is a program that was in operation from 2009-2011 and was targeted at the largest multinationals dealing in oil and gas operations (KPMG, 2011). The program enables the stealing of sensitive data on company operations and strategies. Similar attacks were reported in 2010 when Google reported that personal accounts for certain human rights activists had been compromised (Europol, 2012). Governments and government departments have also been subjected to cyber attacks. In 2011 January, Canada was a victim of cyber attacks with various government departments being unable to access the internet for a period of 2 months (KPMG, 2011). In 2009, the US’s Pentagon was hacked into stealing sensitive data hence compromising the production of the country’s costliest weapon ever to be made: the F-35 Lightning II (Global Economic Symposium, 2012).  

There are various technologies that are used to advance cybercrimes. Viruses and worms are used to attack the storage devices they tend to replicate information hence jamming the computers. Some viruses also hamper the normal functioning of computers (ITU, 2009). Scareware is used to trick users to download software disguised as antivirus. The attackers then demand payment to remove such viruses (KPMG, 2011). Phishing attacks on the other hand include specially designed programs that are able to capture passwords to users’ accounts and use the information to effect financial transactions or pose as the user in social sites (Will, 2011). Cybercriminals also use fiscal fraud tactics that target official online payment systems and can hamper the transactions of businesses and government agencies. With the growth of cybercrime, attention is being turned towards fighting the vice. However, there are challenges that need to be overcome before such risk mitigation measures can be effective.

Implications for rising cybercrime
Over 148,000 computers are affected by viruses around the world on a daily basis (KPMG, 2011). The increase in the crime leads to the escalation of costs. Governments and corporations have to spend in order to restore their systems after a cyber attack. In 2011, the UK’s costs attributed to cybercrime were estimated at $43 Billion (Global Economic Symposium, 2012). Theft of intellectual property and espionage activities made the greatest proportion of the estimates. In Germany, phishing activities are believed to have risen by 70% to hit the $22 million mark in 2010 (KPMG, 2011). The costs related to cybercrime are not only related to restoration of systems; they also include the cost of anticipating and preventing the crimes, reputational damage discouraging online transactions, and the cost of compensating persons whose security has been compromised by the crime (Doyle, 2009). These costs are very high and governments around the world are exuding increased determination to fend of the vice.     


Developments in the fight against cybercrime
Advanced technologies have seen countries develop databases that allow for identification and apprehension of cybercriminals (Dominique, 2011). Countries have in realisation of the seriousness of cybercrime come up with legislations to help in fighting it. For instance, in 2010, the FBI established a separate division to address cybercrime (Cybercrime and Trustworthy Computing Workshop, 2010). In the UK, a special division of the police, the Police Central e-Crime Unit was established to collaborate with corporations and other government agencies to step the vice (Brenner, 2010). China has also been keen to defeat cybercrime despite the fact that it is believed to be the largest source targeted hacking attacks. In 2009, China incorporated cybercrime into its laws in an important first step in their fight against the vice (KPMG, 2011).

In realisation of the borderless nature of cybercrime, various international agencies have been formed to coordinate cross-border efforts in the fight against the vice. Europol created the European Union Cyber crime Task Force. This task force shares information with European governments to inform them on developments in the cyberspace, risks involved and how to counter such risks. In 2010, NATO approved a proposal to create a network that coordinates efforts against cybercrimes in member countries (Cybercrime and Trustworthy Computing Workshop, 2010). Despite these initiatives, cybercrime remains a big challenge with the intergovernmental agencies seen to be largely ineffective due to the sensitive nature of international law enforcement practices.  

Challenges faced in cybercrime mitigation efforts
Cybercrime remains very challenging due to a number of reasons. To begin with, cybercrime is borderless (Ghosh, 2010). A cyber attack can be initiated in one part of the world and executed in another. The internet’s reach and subsequent flow of information does not respect political and national boundaries. This increases the complexity of cybercrime investigations and this often requires cooperation with governments in countries where the crimes have been committed or originated. In most cases, cybercriminals will pre-empt the direction investigations will take and situate their operations in locations which are either difficult to trace or regions that are outside of the jurisdiction of investigators (Clifford, 2011). Effective mitigation of cybercrime would require that there be a global agency that can access security data in different countries. This requires cooperation. This may be difficult as countries tend to be uneasy when it comes to letting international agencies access their systems. There may be issues arising from such agencies accessing state secrets and leaving the countries in question vulnerable. Such a regime would also need that laws in most countries and judiciary processes be made similar (Europol, 2012). This would ensure that crimes can be punished in any country. However, this goes to the core of sovereignty. There are many countries that are yet to criminalise cybercrime. China only did so in 2009 after immense pressure from their trading partners in the West. Cybercrime is truly global in nature and can only be controlled effectively once regulatory agencies and judiciary systems embrace a global approach (Europol, 2012). This is still long in coming.

There has been a significant growth in the underground cybercrime economy with sensitive information as the main commodity. This economy is quite lucrative and players often tend to realise great returns on their efforts in the crimes.  Economic motivation is a very powerful force: it forms the basis for most human actions (Smyth, 2010). The realisation that extraordinary skill could be used to yield returns that are higher than average motivates people with great computer skills to explore this option. The information gathered through cyber attacks are distributed and sold to interested parties. For instance, research reveals that in the US, bank account information, credit card data, and email account information trades at about $125, $30 and $12 respectively (KPMG, 2011). The data acquired can then be used in purchases and other monetary transactions. The fact that the economy is underground makes it extremely difficult to investigate. The players in the industry are little known and it is even more difficult to capture sustainable evidence that can secure convictions in courts of law (Clifford, 2011). This ambiguous nature of the sector similar to that of illicit drugs; where authorities have tried to eradicate drug peddling for decades without much success.

The other challenge faced by governments relates to the dynamic nature of cybercrime. New technologies are developed on a daily basis and this makes it difficult for law enforcement agencies to keep up with such changes. Such an initiative would require lots of skilled employees. The private sector offers better packages and skilled people tend to prefer the private sector to the public sector (Europol, 2010). Cybercrime is also such that it can be initiated by a single person with its effects often very grave. It would normally require teams to develop countermeasures. This means that the law enforcement agencies will at any particular point be outnumbered by cybercriminals in terms of the actual volumes of work to be undertaken. The UK cybercrime unit of the police is run by a mere 40 core team members (KPMG, 2011). Similar problems are experienced in Australia with cases piling up for lack of adequate labour and skill to resolve them (KPMG, 2011). Cybercriminals are ever researching on new ways of committing the crime and when they discover one, it takes a relatively long time before regulators are able to come up with a countermeasure (Cybercrime and Trustworthy Computing Workshop, 2010). This even leads to a situation where governments could stay offline for days while erecting firewalls. In a recent development, the US senate introduced debate on a legislation in 2011 allowing the president to shut down the internet in the entire country in the event that there was a massive cyber attack (Europol, 2012). Such a move would have far-reaching repercussions with the economy losing billions of dollars per day. 

The rise in cybercrime is made worse by the growing popularity of pirated software. Pirated software tends to be more prone to cyber attacks with increased vulnerability to viruses, trojans and malware (Smyth, 2010). The piracy covers various types of software and applications as well as security software. Counterfeiters tend to develop antivirus software which is available for free on trial basis and very easy to install. Such software may be used to weaken firewalls or even capture passwords from a computer. For instance, the Conficker virus that spread rapidly around the world in 2008 is believed to have been able to spread quickly due to lack of regular updates for unlicensed software (KPMG, 2011). The same applies to applications such as computer games which are increasingly popular around the world. These systems could compromise security of computer systems and make them prone to cyber attacks. Piracy rates have been buoyed by the rising number of computers in emerging countries such as China and Brazil. The piracy market in China is believed to be the largest with over $19billion spent on pirated software in 2009 as compared to India’s $2billion in the same year (KPMG, 2011). In the Gulf cooperation countries, pirated software is believed to stand at 50% of all software (KPMG, 2011). 

Recommendations for overcoming challenges
The underground economy can be weakened by the targeting of underground forums in a move that could interrupt the circulation of powerful and easy to use cybercriminal tools. Such tools include botnets and malware kits. Governments and agencies should disrupt the infrastructure in the underground economy and dismantle the ‘bullet proof’ hosting companies (Dominique, 2011). Since most of the crimes are directed at the financial sector, there should be cooperation with banks which can volunteer information on the sources of the cyber attacks. The information could then be used in cooperation with other government agencies to identify developer groups and disable their infrastructure. There should also be an active system of gathering information and submitting it for analysis. Such analyses help in identifying trends and moving to curb them.

The only solution to overcoming the borderless nature of the crime is to develop systems that can be effected around the world. This calls for international pressure on countries that are yet to criminalise the vice and develop special agencies which can then cooperate with their counterparts around the world.  This could be made even more effective by introduced centralised agencies that coordinate activities against cybercrime in every region.

Antipiracy laws should be enforced around the world are weed out all pirated software from the world economy. Such a move would make computer systems less vulnerable to cyber attacks and would also help in tracing the sources of the attacks in the event that they actually occur.

Conclusion
Cybercrime has been on the rise around the world and this has had regulatory agencies jittery as they move to curb the vice. However, there have been some major challenges that have seen theiur efforts become largely fruitless. For instance, cybercrime is borderless. The virus, Trojans and phishing attacks can be coordinated from different countries and that makes it difficult for a single country to effectively regulate it. This implies the need for cooperation between countries in a move that would see countries establish agencies that can share intelligence and work in synergy with each other. The other challenge hinges on the fact that cybercrime is developing into a lucrative underground industry. The computer geniuses are quickly running to the vice to make quick riches and this makes it difficult to curb the vice. This challenge can be overcome by targeting and destroying the infrastructure of such underground economies and making it difficult for code developers and others to do so without proper supervision. Piracy is not only a concern in relation to cybercrime; it also causes great losses for companies and individuals that produce the genuine software. By curbing piracy, software in most computers would be less prone to cyber attacks and this could go a long way in reducing the spread of cybercrime. Cybercrime is a major risk in global business and governance and it is important that efforts be made to stop it.





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