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July 2018 www.intellinews.com I Page 4
Cybercrime a growing challenge as Russian firms embrace digital technology International Economic Forum a year ago.
Major state-run lenders, such as Sberbank
and VTB, are at the forefront of digital economy development in Russia, investing huge amounts of cash in technological development.
However, cybercrime is apparently keeping pace with technology, presenting a major challenge for companies eager to embrace cutting-edge digital technologies.
Damage from cybercrimes in Russia in 2018 could amount to RUB1.1 trillion ($17.4bn), Stanislav Kuznetsov, deputy head of Russia's largest state- run lender Sberbank, was quoted as saying by TASS, adding that the global economic cybercrime damage is estimated at $1.5 trillion.
The estimate has increased as compared to 2017, when Sberbank put the cybercrime losses of the economy at RUB600bn-650bn.
The number will keep on growing, Kuznetsov warned, suggesting that legislation needs to catch up with cybercrime realities, forces combatting cybercrime need more staff, and outdated tech- nologies must be replaced.
As digital technologies become more widely adopted on a mass level, perpetrators' focus is shifting from attacks on lenders to targeting indi- vidual and corporate users, Artyom Sychev, deputy head of the division for security and information protection at Russia's central bank, was quoted as saying by RIA Novosti.
"We can say with all certainty that the higher the number of people using new technologies, the bigger the interest in them from criminals," he said.
Russian law enforcers have been unable to prop- erly crack down on cyber criminals, Sberbank's Kuznetsov charged in a column run by the daily Izvestia.
"The number of cybercrimes in Russia has been on the rise, causing the national economy damag- es that run into billion of rubles, but the number of convicted criminals has been no higher than a few dozen," he wrote.
"In 2012, new types of fraud involving payment cards and computer information were added to the criminal code but this has hardly had any im- pact," he added.
"It is only possible to defeat cybercrime with a systemic approach that should encompass close interaction between law enforcers, business and citizens in our country," Kuznetsov observed.
"There is a need to analyse all attempts at cyber attacks and thoroughly investigate all instances of cyber fraud, to show the government institutions' uncompromising position in cracking down on that evil, and to unite the efforts of all interested state agencies," he concluded
Russia's central bank has recently made a move aimed at curbing cyber crime. As of July 1, 2018 the regulator required all Russian banks and payment service operators to mandatorily report all cyber attacks to its Centre for Monitoring and Reaction to Cyber Attacks. Previously, reporting to the centre was done on a voluntary basis.
The central bank said it will use the information to prepare recommendations for financial institutions on protection against cyber crimes, including unauthorised transfers of funds, unauthorised access to payment devices, exploitation of vulnerability, malicious code, DDoS attacks and phishing.
In addition, as of July 1, cyber security requirements were introduced for financial institutions. Among the requirements are