Hacking, phishing and cyberbullying - every year, hundreds of thousands of consumers in Austria fall victim to cybercrime. The consequences are sometimes enormous, and the perpetrators benefit from anonymity on the internet.
The number of reported offences in most areas of crime, such as domestic burglary and economic crime, remains high. In the case of cybercrime, however, the number of reported offences rose by 30.9 per cent in 2016 compared with the previous year, reaching just over 13,000 cases, according to Austria's Federal Criminal Police Office.
Cybercrime can affect anyone
Anyone who uses the internet today can fall victim to cybercrime – even if many individuals and entire companies are unwilling to acknowledge it. People remain the weakest link. The resulting financial losses are enormous. Cybercrime causes losses of several million euros in Austria every year, explains Wolfram Littich, Chairman of the Management Board of the Allianz Group in Austria and Vice-President of the Austrian Insurance Association (VVO). A recent survey by the Austrian Road Safety Board (KFV) shows that many cybercrime offences and the resulting losses in Austria go unreported. In fact, 24 per cent of respondents say they have fallen victim to cybercrime in recent years and suffered harm as a result.
High financial losses and long-term psychological consequences
Extrapolated to the population who use the internet (around 4.2 million people in Austria), this means that at least one million people in Austria have suffered financial loss or psychological harm as a result of at least one incident in recent years. "According to those affected, viruses and fraud involving the non-delivery of goods have accounted for most financial losses in recent years," explains KFV Director Othmar Thann. According to the KFV survey of more than 2,400 people, financial losses are particularly high in cases involving the theft of sensitive data (identity theft). Those affected put their average loss at around €1,200. Victims of online fraud can also suffer substantial financial losses. For businesses, these losses can quickly run into millions or billions as soon as sensitive data falls into the wrong hands.
Small businesses particularly at risk
Those affected report average losses of €480. But cybercrime does not only have financial consequences; the psychological harm can also be considerable: in the KFV survey, 72 per cent of those affected report moderate to severe psychological and emotional distress following an incident. Victims of bullying and identity theft experience the most severe psychological effects. A recent study by the accountancy firm KPMG also shows that cybercrime does not just affect individuals. Thirty per cent of the companies surveyed report having suffered harm as a result of cybercrime. "Small and medium-sized businesses and large corporations alike need to raise their awareness of cybersecurity," explains Andreas Tomek, a partner in KPMG's Advisory practice. "Companies need a holistic perspective to tackle the challenges of cybercrime effectively." What is needed is an integrated, balanced approach that takes people and processes into account as well as technology. Cybersecurity simply has to become a board-level priority if companies are to defend themselves against cybercrime.
Solutions: