Financial Crime World

Cybersecurity and Financial Crime: A Growing Concern for New Zealand Businesses

As technology continues to evolve at a rapid pace, companies in New Zealand are facing unprecedented threats from cybercriminals. The National Cyber Security Centre’s 2022-2023 Cyber Threat Report revealed a staggering surge in financially-motivated cyber activity, with cybercriminals adapting new techniques and technologies to evade detection.

Artificial Intelligence: A Double-Edged Sword

While artificial intelligence (AI) holds immense potential for businesses, it can also be exploited by criminals. AI-powered malware can evade detection software, while AI applications can launch cyber attacks or steal sensitive data to commit credit card fraud and identity theft.

  • To mitigate these risks, organizations must strike a balance between leveraging AI and protecting against its misuse.
  • Be vigilant about phishing and hacking internal systems.

Investment Scams: A Growing Concern

Investment scams are another major concern in New Zealand, often targeting vulnerable individuals with promises of high financial returns. These schemes have become increasingly sophisticated, making it essential for Kiwis to be cautious when considering investment opportunities.

Cryptocurrencies: An Unregulated Frontier

Cryptocurrencies have also added a new dimension to financial crime, offering anonymity that can be exploited by fraudsters and money launderers. Regulators must quickly establish oversight in this space to prevent cyber risks and money laundering.

The Consequences of Cybercrime and Financial Fraud

The impacts of fraud and cybercrime can be far- reaching, including:

  • Financial damage
  • Business interruptions
  • Reputational damage
  • Sensitive environmental, social, and governance (ESG) information is particularly vulnerable to data breaches and other fraud

Staying Ahead of the Threats

To stay ahead of these threats, business leaders must be proactive in preparing for a breach or fraud event. This includes:

  • Staying on top of AI risks
  • Making fraud prevention a company-wide concern
  • Utilizing technology to detect anomalies
  • Assessing internal controls
  • Seeking external advice

For more information on how to protect your organization from cybercrime and financial fraud, contact your BDO adviser or learn about BDO’s Risk Advisory service.