Cybercrime on the Rise in UAE Financial Sector as Pandemic Spurs Increased Attacks

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A surge in cybercriminal activity has been reported in the United Arab Emirates (UAE) amid the COVID-19 pandemic, with a significant increase in phishing scams, email spamming, online scams, security breaches and ransomware attacks expected over the next 12 months.

Rising Concerns

According to a recent survey by KPMG, a staggering 98% of UAE respondents anticipate an uptick in cybercrime, highlighting the need for businesses and individuals alike to stay vigilant. The UAE’s financial sector has been particularly hard hit, with banks and financial institutions facing a rising tide of fraudulent activity.

National Fraud Awareness Campaign

In response to these threats, the UAE Banks Federation, the Central Bank of the UAE, Abu Dhabi Police, and Dubai Police have launched the country’s first national fraud awareness campaign to educate consumers on how to protect themselves from financial cybercrime. The campaign aims to raise awareness about the risks and consequences of falling victim to fraudulent activities.

The pandemic has brought new challenges to the fight against cybercrime, with cybercriminals exploiting vulnerabilities in digital banking systems and using social engineering tactics to deceive employees. The average cost of a cybercrime incident has increased by 72% over the past five years, according to the Ponemon Institute’s 2019 ‘Cost of Cybercrime Study’, with the global total reaching a record high of USD 13 million in 2019.

Predicted Increase in Attacks

In the UAE, businesses are bracing themselves for a significant increase in:

Phishing scams (61%)
Email spamming (54%)
Online scams (49%)
Security breaches (44%)
Ransomware attacks (42%)

The Coveware report revealed that the average ransom paid by victims increased by 60% in the first half of 2020, highlighting the growing sophistication of cybercriminals.

Importance of Cybersecurity

Despite these alarming figures, only 78% of respondents to the KPMG survey have made changes to their cybercrime prevention measures, underscoring the need for businesses and individuals to prioritize cybersecurity. Experts warn that failure to do so could result in significant financial losses, reputational damage, and compromised business operations.

Best Practices

To stay ahead of the curve, organizations should invest in robust cybercrime prevention measures, including:

Staff education and security awareness programs
Regular software updates and patching
Secure password management practices
Multi-factor authentication
Network segmentation
Incident response planning

By staying ahead of the curve, organizations can reduce their risk exposure, minimize financial losses, and protect their reputation. As the UAE continues to navigate the challenges posed by COVID-19, a concerted effort is required to combat the growing threat of cybercrime in the financial sector.