Kroll Report Finds Fraud, Cyber-Attacks Increased in 2016

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Kroll Report Finds Fraud, Cyber-Attacks Increased in 2016

The Kroll Global Fraud and Risk Report for 2016 shows that cyber-fraud incidents increased during 2016, though not all the news was bad.

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Fraud Increased in 2016

According to the Kroll Global Fraud and Risk Report, fraud has been increasing steadily since 2012. For 2016, 82 percent of survey respondents reported experiencing fraud, up from 75 percent in 2015.

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The Impact of Fraud Varies

The majority (87 percent) of respondents indicated that fraud losses represented less than 3 percent of revenues in 2016. However, 3 percent of respondents noted that fraud losses represented 7 percent to 10 percent of revenue.

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Ransomware not as Prevalent as Viruses

While ransomware has been cited by multiple other 2016 security reports as a growing trend, the Kroll report found that only 13 percent of respondents suffered a ransomware attack in 2016. In contrast, 33 percent identified “virus/worm infestation” as a cyber-incident they experienced in the past 12 months.

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Software Vulnerabilities Enable Attacks

Cyber-attacks can be enabled by many different factors and events. The leading reason cited by the Kroll report was software vulnerabilities (26 percent).

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Insiders are a Risk

For those companies reporting being the victim of a cyber-attack or information loss incident in 2016, employees were identified as primary perpetrators. Ex-employees were identified as the main cause by 20 percent of respondents, while 14 percent cited freelance or temporary employees as being the perpetrators of a cyber-event.

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U.S. Companies Likely to Contact IT Service Vendor After a Breach

The Kroll report is a global study, with many of the statistics for the United States almost mirroring worldwide numbers. One area that differs, however, is the entity most commonly contacted following a cyber-incident. In the United States, 43 percent of respondents said they would contact an IT service vendor, while the global number is only 27 percent.

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Most Organizations Already Have Risk Mitigation Policies

Though fraud is on the rise, the report has some positive findings, including the fact that 80 percent of respondents have developed and implemented security policies and procedures at their organizations.

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Trustwave Report Shows Enterprises Can't Hire Enough Security Staff

While security challenges often seem limitless, the resources that organizations have on hand to combat them are not. Security firm Trustwave issued a new report on Jan. 18 looking at the state of IT resources and staffing challenges titled, "Money, Minds and the Masses." The report is based on a survey of 147 IT security professionals, conducted by Osterman Research. The report concluded that it is becoming increasingly difficult for organizations to find talented IT security staff. Even if an organization is able to find staff, 35 percent of survey respondents indicated that retaining IT security staff is a major challenge. The staffing issue is further complicated when existing staff lack essential skills, with 40 percent of respondents admitting their organizations have inadequate skills sets to deal with evolving and emerging security risks. When looking at potential IT staff, experience...
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