Cybercrime costs New Zealanders $6.6 million in Q1

Cybercrime has slammed New Zealanders in the first quarter of 2024, with total financial losses amounting to NZD $6.6 million, according to the latest Cyber Security Insights report released by CERT NZ.

While the frequency of incidents involving smaller financial losses has been diminishing, major incidents have kept the aggregate losses at a high level.

During the first quarter of this year, only 56% of incidents reporting financial losses involved losses below NZD $500. This figure has been on a downtrend over the past three quarters, a decrease from the 63.5% reported in the same period last year. Conversely, the first quarter of 2024 saw ten incidents where losses exceeded NZD $100,000, contributing to nearly 70% of the overall financial damage reported.

“We hope that New Zealanders who might normally be caught out by less costly scams are getting better at spotting them,” remarked CERT NZ Acting Director Sue Critchlow. “Creating a more cyber resilient nation requires us to keep alert for incidents and scams of all sizes and categories. CERT NZ is working hard to raise everyone’s awareness.”

Despite the rising financial losses, there has been a noticeable decline in the number of incident reports made to CERT NZ.

The organisation relies on these reports from the public to identify and counteract online threats, which range from large-scale incidents to persistent scam emails aimed at stealing personal information.

Even reports of phishing provide vital information about scammer websites.

CERT NZ's Phishing Disruption Service, which benefits thousands of organisations nationwide, relies on these submissions to block access to malicious websites. However, for this preventive measure to be effective, such websites must first be reported.

This quarter's Insight Report delves into what transpires behind the scenes when CERT NZ receives a report and explains how reporting contributes to the cyber resilience of Aotearoa. “We understand that it can seem futile to report, with new scam messages cropping up almost every week,” Critchlow noted. “But we can't overstate the importance of gathering that information, as it gives us an advantage over the cyber criminals.”

Key data highlights from 1 January to 31 March 2024 were also presented in the report. A total of 1,530 incident reports were received in the first quarter, a 20% decline from the fourth quarter of 2023. Despite this drop in reports, the direct financial losses reported saw a significant surge, increasing by 84% from the previous quarter. Notably, 27% of all incidents reported involved financial losses.

While the volume of reports pertaining to scams and fraud remained consistent when compared to the fourth quarter, the number of phishing reports dropped by 36%, tallying 699 incidents for the first quarter. The Scams and Fraud category remains the most prolific in terms of incidents involving financial loss, including the ten high-value loss reports mentioned earlier.

All statistics referenced in the Cyber Security Insights report are based on submissions to CERT NZ from individuals and businesses. The organisation assures that all reports are kept strictly confidential, with no identifiable information being shared.