2023 Cyber Incidents: A Record-Breaking Year for Financial Loss and Frequency

Record-Breaking Financial Losses and Incidents

The latest reports from the FBI and ITRC reveal that cyber incidents in 2023 have broken records for both financial loss and frequency. The FBI’s Internet Crime Complaint Center (IC3) reported 880,418 cyber incidents in 2023, resulting in a staggering $12.5 billion in losses, marking a five-year high. Investment scams accounted for $4.57 billion of these losses, making them the most costly type of cybercrime tracked. Phishing, with 298,878 incidents reported, remains the top method of cybercrime, although it has decreased from its peak in 2021.

Trends in Cybercrime Methodology and Targets

The report highlights several trends in cybercrime methodology and targets. Cryptocurrency fraud within investment scams rose by 53 percent, from $2.57 billion in 2022 to $3.94 billion in 2023. Victims aged 30 to 49 were the most likely to report losses. Ransomware incidents increased by 18%, with 42 percent of reported attacks targeting critical infrastructure sectors. The healthcare and public health sector was the most targeted, followed by critical manufacturing, government facilities, information technology, and financial services.

Recommendations and Future Outlook

The FBI recommends ramping up cybersecurity protocols, implementing more robust payment verification practices, and avoiding engagement with unsolicited texts and emails to minimize risk. The ITRC notes that the surge in breaches in 2023 is 72 percent higher than the previous record set in 2021. The report forecasts a bleak outlook for 2024, with an unprecedented number of data breaches expected to drive new levels of identity crimes, especially impersonation and synthetic identity fraud. The ITRC also outlines its forthcoming uniform breach notification service to enable swift action and coordination with business and regulatory authorities.