Financial Crime World

Cybercrime on the Rise: Financial Institutions in UAE at Risk

The Growing Threat of Cybercrime in the UAE

Cybercriminals are taking advantage of the COVID-19 pandemic, launching a wave of attacks on financial institutions in the United Arab Emirates (UAE). With its large economy and growing digital landscape, the country has become an attractive target for hackers.

The Impact of COVID-19 on Cybercrime

According to recent reports, cybercrime has increased significantly in the UAE. A KPMG survey revealed that:

  • 73% of respondents expect their business to invest in changes to their cybercrime prevention initiatives.
  • 88% of respondents have seen a slight or significant change in cybercrime as a result of COVID-19.

Financial Motives Behind Cybercrime

The pandemic has created an opportunity for cybercriminals to take advantage of unsuspecting businesses across the region. Sectors such as:

  • Healthcare
  • Financial services
  • Retail
  • Oil and gas

are all stressed, leading to riskier behavior from businesses that are struggling to stay on top of the current situation.

The Cost of Cybercrime in the UAE

The cost of cybercrime in the UAE is estimated to be around USD1.4 billion per year, with 3.72 million people affected at some point.

The Verizon Data Breach Report 2020 states that:

  • Web applications security breaches are a significant threat to businesses in the EMEA region.
  • Hacking using stolen credentials is responsible for around 42% of data breaches, with phishing and malware being common methods used by hackers.

A recent study by CSIS and McAfee reported that the UAE is:

  • The second most targeted nation globally for cybercrime.
  • The country’s growing digital landscape, including high smartphone adoption rates and social media usage, makes it an attractive target for hackers.

Call to Action

As the situation continues to evolve, it is essential for financial institutions in the UAE to take proactive steps to protect themselves against cybercrime. This includes:

  • Investing in robust fraud and cybercrime prevention measures
  • Enhancing their capabilities
  • Building effective response plans
  • Improving regulation
  • Educating those most at risk

By working together, the UAE can prepare itself for the future and reduce the impact of cybercrime on its economy and people.