FBI worried about increased cyber crime

Published 16 October 2008

Head of the FBI cyber division says the number of victims of cyber crime, and the cost of that crime, are increasing; moreover, as many as two dozen countries have taken an “aggressive interest” in penetrating the networks of U.S. companies and government agencies

The head of the FBI’s cyber division says that citizens and nations have increasingly become victim to cyber crime in the past year, at a cost of tens of millions of dollars. FBI assistant director Shawn Henry says that organized-crime groups are drawn by the ease of reaching millions of potential victims. He also says as many as two dozen countries have taken an “aggressive interest” in penetrating the networks of U.S. companies and government agencies. U.S. intelligence agencies have previously voiced concern that Russia and China have the ability to electronically spy on the US and disrupt computer networks.

New Scientist reports that more and more governments are worried about the economic and strategic implications of cyber warfare, with the cases of Georgia and Estonia often mentioned (for the Estonia case, see 27 August 2007 HS Daily Wire; for the Georgia case, see 11 September 2008 HS Daily Wire). “Over the past year, the malicious activity has become much more prevalent,” Henry says. “The threat continues to increase.”

Earlier this year an Organisation for Economic Co-operation and Development (OECD) report said international cooperation must be stepped up to head off the economic and security consequences of cyber crime. Henry says computer crime has even invaded Wall Street. Some investment companies have lost tens of millions of dollars through “pump and dump” schemes in which criminals achieved control of multiple client accounts. The accounts are used in concert to run up the price of low-liquidity stocks. Others then make a large profit when they sell, or “dump,” shares bought at the earlier, low price.