Cybercrime conference tackles digital threats, crypto fraud | #cybercrime | #infosec


Key Highlights

  • Idaho hosted its second annual and Digital Innovation Conference to address rising cyber threats.
  • Experts warned of increasing crypto-related crimes, including money laundering and fraud.
  • in Idaho tripled to $50.6 million in four years, reflecting a national upward trend.

Within the global economy, the ever-evolving world of technology has been referred to as the “age of innovation.” The downside is that these technological advancements are accompanied by a steady rise in cybercrime.

“Technology is evolving rapidly and is changing the way the financial ecosystem and services are happening,” said John Yaros, who serves as the securities bureau chief for the Idaho Department of Finance (IDOF). “It is moving quicker than our ability to oversee it.”

In its ongoing fight against cyber thieves, the agency recently hosted its second annual Cybercrime and Digital Innovation Conference, a gathering aimed to help promote the importance of battling cybercrime, one of the most prevalent threats impacting corporations, small businesses and everyday citizens.

Through a video statement, Gov. Brad Little called cybercrime “one of the most important issues nationwide,” and shared that Idaho is no different than any other state when faced with the task of warding off critical threats and infrastructure attacks.

“These crimes are costly, they erode public trust, disrupt economies and pose huge national security risks,” Little said. “Idaho, like every state, must be proactive, not reactive.”

Serving as the main financial regulator for the state, IDOF focuses on protecting three key areas: Financial institutions, consumers and securities. When it comes to protecting Idahoans, Yaros believes it all comes down to educating the public, while fostering sensible innovation to keep pace with technology.

“Digital innovation and technology is touching each of these areas and so is cybercrime,” he said. “We need to understand cybercrime in order to protect people.”

However, as technology continues to evolve, so do the sophisticated methods used by digital criminals, especially those focused on illegally obtaining cryptocurrencies, which have expanded the global economy by opening new markets.

An array of panelists shared their insights on how to fight digital thieves targeting both citizens and the business community. (PHOTO: STEVE LOMBARD, IBR)

But with the help of many private companies, government agencies and financial institutions are fighting back. One company assisting in the fight is Chainalysis, a blockchain data platform that provides data software, services and research to government agencies, exchanges and insurance and institutions in more than 70 countries worldwide.

Gurvais Grigg, a retired FBI agent who served 23 years in the bureau, now works as the chief technology officer for the company. He compares battling cybercrime to spotting potholes on a road, emphasizing the diligence necessary to identify criminal activity within the digital space.

“Driving around town you can see potholes, the infrastructure that needs repairs,” Grigg said. “But we don’t get to see this in the cyber world until there is an incident. We need to invest so that we can see where the vulnerabilities are.”

According to Grigg, Crypto trading volume across exchanges worldwide totaled $18.8 trillion in U.S. dollars in 2024. Additionally, the U.S. leads the world in total volume of Crypto currency exchange, making America a prime target for .

“The rise of crypto-related attacks pose significant threats to global peace and security,” he said. “Criminals are looking for ways to enrich themselves and take advantage of the public that may not appreciate the technology they’ve been empowered with.”

Tens of billions of dollars are being stolen yearly, he said, with Crypto being used to facilitate a number of crimes many people might not associate with it, such as terrorism, murder for hire, theft and robbery, assaults, child exploitation and in the movement and distribution of narcotics.

Congressman Russ Fulcher warned attendees of the many bad actors globally looking to harm the nation through the use of technology. (PHOTO: STEVE LOMBARD, IBR)
Congressman Russ Fulcher warned attendees of the many bad actors globally looking to harm the nation through the use of technology. (PHOTO: STEVE LOMBARD, IBR)

“The simple reason is because that is where the money is,” Grigg said. “Sometimes people get careless on social media and go bragging about how much crypto they own. It’s not a good idea.”

In addition to the long list of crimes being perpetrated involving Crypto, the currency is also being used by criminals and sophisticated crime organizations to launder money. Statistics provided by Grigg revealed that, since 2019, nearly $100 billion in funds have been sent from known illicit wallets to monetary conversion services.

Some of the leading “bad actors” he referred to include China, Russia, Iran and North Korea, with Southeast Asia having become a “breeding ground” for transnational criminal networks.

“As of 2023, a conservative estimate of the annual value of funds stolen worldwide by these syndicates approached $64 billion,” he said. “This is a high-speed, low-cost way to move money, and to move it globally.”

On the issue, Grigg recalled a comment once shared by former FBI Director Christopher Wray, who was pressed about the significant number of cyber threats originating in China. Wray summed up his response by estimating that the agency, if utilizing all agents focused strictly on cybercrimes originating in China, would still be outnumbered 50 to one.

Playing “one-on-one defense” against these criminals, Grigg said, is not going to cut it. “We’ve got to educate, inform and make people aware of this critical issue. Across the board, in government and academia, we have to find more efficient ways to address this problem.”

For Austin Wolff, a senior solutions architect at Chainalysis, the issue of cybercrime comes down to understanding threats in the digital space, an “enormous challenge” for those taking up the fight against cyber thieves.

“Cybercrime runs parallel with Crypto, meaning ransomware, identity theft, data breaches, supply chain attacks, financial and bank fraud,” Wolff said. “Every operation, such as ransomware, has a unique fingerprint.”

But while citizens and businesses are constantly at risk from criminals and bad actors hiding behind computer screens in cyberspace, Wolff highlighted the importance of understanding emerging technologies as a huge step in the right direction.

“Cybercriminals are not innovators. They are simply opportunists,” he said. “They’re not creating this technology, rather they are just exploiting it sooner than we can adapt to it.”

Idaho Congressman Russ Fulcher addressed attendees, stressing that while the U.S. military has zero peers worldwide, we do have “multiple peers” within the cyber sector.

“Bad actors worldwide are leveraging AI, from home routers to water and power grids routinely being breeched,” Fulcher said. “We need experts, we need input from those who understand this issue and can come and testify to our congressional committees.”

Zeroing in on the cybercrime topic, Fulcher characterized the federal government as the “most powerful beast in the world” when it comes to protecting its citizens.

“We need that beast to be pointed outside of our borders because there are a lot of other beasts out there that want to do us harm,” he said. “Many of you play a major role in turning the economic wheels of this state and this country. I’m asking for your expertise in these areas as we move forward.”

The congressman’s call to action, Yaros said, is a big reason for holding the cybercrime conference.

“It isn’t just to hear things, it’s to put things into action,” Yaros said. “Con. Fulcher serves on some key committees that should make Idahoans excited for our future.”

Looking to the future, Yaros believes that increasing digitization in the global economy is unquestionably going to produce even more opportunities for cyber criminals. Understanding such threats is imperative to moving forward.

As of 2023, more than $8 trillion in losses were attributed to cybercrimes nationally, with projections estimating this figure could surpass $10.5 trillion by the end of next year. With what Yaros called the “digitization of society” following the COVID pandemic, cybercrimes have increased a whopping 600%.

Most prominently, (BCE) ranked as the costliest form of cybercrime, leading to the largest digital financial losses for Americans during the past decade.

Cyber thieves simply use email correspondence to induce victims to initiate wire transfers to fraudulent accounts they control. Typically, the perpetrator gains illegal control of email via social engineering, a phishing attack and/or the use of malware.

Often classified as “business killers,” BCE losses are costly, with research indicating up to 60% of small businesses are forced to close within six months following such an attack. BCE losses are typically uninsured, meaning financial institutions do not reimburse victims.

“Nine in 10 Americans now use in some way, shape or form,” Yaros said. “These cyber criminals are not going to stop.”

Since 2021, and based on known or actual reported figures, cybercrime losses have almost doubled nationally from $6.9 billion to $12.5 billion.

Yaros reiterated that this upward trend, as the governor’s message alluded to, shows that Idaho remains right in line with figures detailing the depth of digital financial crimes that are occurring nationally and globally.

Four years ago, total adjusted losses in the Gem State attributed to cyber criminals reached $17.6 million. By 2023, that total had nearly tripled to $50.6 million.

“We’re even much higher than the national average going from $17 million to $50 million in known losses, and that should terrify everyone in the room,” Yaros said.





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