With cyber risks and insurance fraud becoming increasingly intertwined, it is crucial for every New Zealander to understand how to navigate these challenges. In this blog, we’ll delve into the latest cyber risk and insurance fraud trends in New Zealand and emphasise the importance of initiatives like Cyber Smart Week 2024 by Cert NZ in promoting a safer online environment for all.
Insurance Fraud Trends in New Zealand (2024)
The problem of insurance fraud persists and continues to grow. In 2024, we’ve seen a further rise in fraudulent claims linked to cyber incidents. According to new data from Cert NZ, in the second quarter of 2024, The National Cyber Security Centre (NCSC) responded to 1,203 incident reports about individuals and businesses from all over Aotearoa, and 121 incidents of potential national significance. These fraudulent activities include falsified reports of cyberattacks and exaggerated claims for damages caused by digital breaches. This troubling trend not only affects insurers but also honest policyholders, who bear the cost through rising premiums.
Cyber Risk Trends in New Zealand (2024)
New Zealand’s digital landscape is facing greater challenges than ever before. Cybercriminals have become more sophisticated, using advanced techniques such as ransomware attacks, phishing schemes, and identity theft to target businesses and individuals alike. In fact, while reported cyber crimes dropped in Q2, New Zealanders reported to CERT NZ $6.8m in financial loss due to cyber crime between 1 April and 30 June this year, a 61% increase on the $4.2m reported in the same quarter last year.
How Cybercriminals Exploit Identity Theft
Identity theft remains one of the key tools cybercriminals use to perpetrate fraud. Here are several ways stolen identities are misused for cybercrime and fraudulent activities:
- Financial Fraud: Cybercriminals access victims’ bank accounts, open new accounts, or apply for loans under stolen identities.
- Online Shopping Fraud: Stolen identities are used for unauthorised online purchases, often under the radar.
- Phishing Attacks: Victims are tricked into providing personal data, which cybercriminals use to commit various fraudulent activities.
- Tax Fraud: Stolen identities can be used to file fraudulent tax returns and claim refunds.
- Medical Identity Theft: Cybercriminals may use stolen identities to access medical services, causing confusion in the victim’s medical records.
- Criminal Activities: Fake IDs created from stolen identities are used for illegal activities, including human trafficking or terrorism-related activities.
In an era where personal information is highly valuable, it’s essential to stay vigilant and practise good online habits to avoid falling victim to identity theft. This year’s Cyber Smart Week campaign is called The Scamathon. The focus is on continuing to raise the importance of being secure online and encouraging New Zealanders to have strong password practices and adopt two-factor authentication on their main accounts.
The Role of Cyber Smart Week in Combating Cybercrime
As the threat of cybercrime grows, initiatives like Cyber Smart Week 2024 become even more critical. Held annually, this awareness campaign by Cert NZ equips New Zealanders with the knowledge and tools they need to protect themselves online. By promoting best practices for online security, Cyber Smart Week plays a vital role in preventing both cyber incidents and insurance fraud.
Cert NZ provides a range of resources, from practical tips to interactive workshops, all designed to help individuals and businesses stay safe. The campaign’s impact is evident, with a 30% decrease in cyber incidents reported during last year’s Cyber Smart Week, compared to the same period in 2022. This shows the tangible difference awareness and proactive measures can make in reducing both cyber risk and insurance fraud.
A Collective Responsibility
Cyber risk and insurance fraud are complex challenges that affect all of us, and tackling these issues requires collective action. By participating in Cyber Smart Week 2024, staying informed, and adopting good cybersecurity practices, we can reduce our vulnerability to fraud and cybercrime. As a community, we can protect our personal data, financial assets, and the integrity of New Zealand’s insurance industry.
For more information on how you can participate in Cyber Smart Week 2024 and protect yourself from cyber threats, visit Cert NZ and take the first step towards being cyber smart today.