Financial Crime World

Estonian Financial Fraud Statistics Reveal Alarming Increase

According to the latest yearbook published by the Information System Authority (RIA), Estonia has seen a 20% increase in financial fraud reports, with victims losing a total of €2.8 million in 2021 alone.

Types of Fraud Reported

The most common types of fraud reported include:

  • Cryptocurrency fraud
  • Invoice fraud
  • Investment fraud through dating apps
  • Phishing and phone call scams

Factors Contributing to the Rise in Financial Fraud

The RIA attributes the rise in financial fraud to the increasing popularity of cryptocurrencies, which are being used as a medium for fraudulent activities. To combat this trend, a bill regulating the use of cryptocurrencies in Estonia is expected to be approved this spring.

Cybersecurity Threats and Recommendations

The yearbook also highlights the need for increased awareness among the public and private sectors regarding cybersecurity threats. The RIA recommends that individuals and businesses take precautions such as:

  • Using the latest software versions
  • Making regular backups
  • Restricting user rights
  • Training employees on cyber threats

Cyber Security Incidents in Estonia

The yearbook reports on various other cyber security incidents in Estonia, including:

  • 2,237 incidents with an impact
  • 73,826 automated security vulnerability notifications
  • 14,332 automated infection notifications

The most common types of cyber attacks reported were:

  • Denial-of-service (47 incidents)
  • Data leaks (43 incidents)
  • Ransomware-related cases (30 incidents)
  • Phishing (775 recorded cases)

Collaboration with White-Hat Hackers

The RIA is working to develop a model that would allow state agencies to collaborate with white-hat hackers to identify potential vulnerabilities and reward them for their discoveries. This approach has already been successfully implemented in several countries, including the US, UK, and Israel.

Estonia’s Cyber Security Performance

The yearbook notes that Estonia’s size, language environment, and improving cyber hygiene among its population have contributed to a relatively low number of ransomware attacks compared to other countries. However, the RIA warns that more critical vulnerabilities may be revealed in 2022 stemming from the Log4j zero-day vulnerability, and that preparation for possible incidents caused by Estonia’s legacy systems is essential.

Prevention Measures against Ransomware Attacks

The yearbook recommends prevention measures such as:

  • Using the latest software versions
  • Making regular backups
  • Restricting user rights
  • Training employees on cyber threats

In the event of a ransomware attack, the RIA advises individuals not to pay the criminals, as this can encourage them to continue their criminal activities.

Conclusion

Overall, the yearbook emphasizes the need for continued awareness and vigilance among both individuals and organizations in order to prevent and respond to financial fraud and other cyber security threats.