When it comes to cyber attacks and online fraud, it seems that big banks, major companies and tech giants can often be as vulnerable as the individual customers and investors they serve. On Sunday, Germany-based insurer Allianz Life became the latest victim of the digital underworld, suffering a security breach that compromised the data of most of its 1.4 million customers in North America.
This was not an isolated incident. Earlier this month, computer security experts said hackers had exploited a vulnerability in Microsoft's SharePoint collaboration software that potentially compromised private and public computer networks in the US. And it is not just private businesses that are at risk. In January, the International Civil Aviation Organisation – a UN agency – confirmed that it had suffered a data breach of its recruitment application records, something that affected almost 12,000 people.
The Middle East is not immune to this growing threat. Research from cyber-security company Kaspersky has found that the number of users in the region hit by mobile financial threats jumped 146 per cent in 2024 from the previous year. In a region where interest in digital assets and cryptocurrencies is flourishing, this is a cause for concern.
There is something of a cyber security arms race taking place between private and public institutions on one hand and criminal groups on the other, with each using rapidly evolving technology – especially AI – to either defend or compromise sensitive networks and databases. Banks, businesses and investment platforms have a duty of care to make sure their customer’s assets are safe; they also have the resources to protect themselves. However, in a great many cases, online fraud is not some darkly impressive feat of digital know-how – it more about tricking people and companies into giving up valuable information.
Cyber security and online safety are not new concepts, and most people are well-aware of the need to check emails, vary passwords and use common sense. Many companies spend millions on cyber security measures. But we live in a fast-paced world of distraction and as attacks grow more sophisticated, even the most astute can be caught out. Earlier this month, one Dubai resident told The National how he had lost more than Dh700,000 ($190,605) after being invited to join an online investment platform for gold mining. What makes this story truly unusual is the victim’s willingness to speak out.
The reality is that many cyber crimes go unreported. Individual victims may feel embarrassed or guilty about being tricked and giving away personal data. Businesses may fear reputational damage. There may also be a perception that given that sheer number of cyber crimes – big and small – there is little point in reporting them. Given this, it is important to dispel the embarrassment around being scammed and to improve reporting and blocking mechanisms thereby helping companies and individuals to quickly and effectively report online crimes.
This is not a problem that will go away or be solved in one fell swoop. But removing from cyber crimes the secrecy upon which digital criminals thrive and empowering people to flag up where security measures have fallen short would be valuable steps forward.
