Be alert to the growing risk of cyber fraud post pandemic

Daniel Helps, Global Deputy Head of Counter Fraud, British Council

As we emerge from the pandemic we are seeing the threat of fraud and risk to finances move to more of a cyber dependant phase – where actors are relying increasingly on computers and internet connected devices. We are also seeing challenges to how we conduct effective investigations around the world, in person and remotely.

Ten years ago, ‘Cyber Enabled Crime’ was all the rage, this was where a crime was perpetrated using computers but wasn’t depended on one; for example, forging a document could be done using a computer but could also happen with a pen. Nowadays this type of crime is a tiny minority of what we face, and ‘Cyber Dependant Crime’ is the majority, this being where a connected device is required.

There are many types of cyber dependant crimes, far too many to write here, however across the sector we are seeing a significant ‘triple threat’ emerging.

• Ransomware Attacks. These often target critical systems that enable charities to operate on a daily basis, think of your payment and procurement systems, your website or even phone lines in remote locations. Demands will be made for payment before systems are brought back online. Some ransomware attacks can be as simple opening an unsolicited email or clicking on a link contained within an email, documents or website.
• Denial of Service Attacks. These have become more common over recent years and happen when systems, normally on a connected network, are flooded with traffic causing a shutdown or ‘crash’. The systems take time to recover causing the ‘victim’ to lose access and thus being unable to operate. Within the charity sector this could be payment/donation services, sign-up/attendance websites and similar, causing a significant reduction in income and engagement. The National Cyber Security Centre provides guidance on these kind of attacks.
• Inside Actors. Insider threats have always been a significant risk, by their very nature those working inside our organisations have access to our most important information. This has become even more of a risk when staff are disenfranchised, feel undervalued or are even put in place deliberately to access systems, divert payments, obtain data and similar.

These threats are compounded by difficulties in conducting in-depth detailed investigations by trained investigators. International travel has just started up again, but difficulties still remain – be that long waits to obtain visas, reduced flight schedules, fully booked flights or airport delays. These all result in a reduced ability to jump on a plane and respond immediately to serious allegations.

Investigations can be conducted remotely with great success. However there are times when we need to physically be in a location at short notice. I’m sure we’ve all had that 6pm email where we need to be on a flight the next day … that’s so 2019! With delay comes the inherent risk that evidence and information with be destroyed before it can be secured.

Many businesses – not just in this sector – have experienced a decrease in their headcount. This often results in knowledge of the business and the networks that have been build up globally over many years being lost. If, like me, you have a great network of colleagues who you can use to secure evidence for you in your absence, maybe have a quick check and ask yourself ‘are they still in the organisation’ If not, who can you go to for help … without the risk of them tipping-off a suspect.

This brings me to my final point, as our charities and the sector rebuild, we need to rebuild our networks to fight the challenges ahead, criminals rebuild and change, so should we.