Understanding Cybercriminals: Motivations, Methods and Protection Strategies

Cyberattacks can impact a company in numerous ways. They can create significant financial losses through fines, lawsuits, and business interruptions, and they can cause reputational damage as clients and stakeholders lose trust in the organization. As technology evolves, cybercriminals can conduct more sophisticated attacks. However, understanding different types of cybercriminals’ motives and methods of attack can inform the protective measures employers may take to prevent damage to their businesses.

Cybercriminal Motivations

There are many types of cybercriminals, and their motivations vary. The following are examples of these threat actors:

• Hackers seek to infiltrate computer systems and networks by exploiting vulnerabilities and moving through networks once they gain unauthorized access. They may do so for financial gain, recognition, or the challenge.
• “Script kiddies” is a term for inexperienced individuals who use prewritten scripts or other tools without understanding their underlying technology. They often engage in cybercrimes for the thrill or recognition.
• Insiders, such as employees or contractors, have access to sensitive information. They misuse their privileges to steal data or sabotage computer systems. Their motives may include financial gain, revenge, and coercion through blackmail, and their malicious activity may be difficult to detect.
• “Hacktivists” are individuals who use hacking to further political or social agendas. They often deface websites, leak sensitive information, and disrupt services to draw attention to their cause.
• State-sponsored hackers are cybercriminals backed by governments. They may use advanced persistent threats, espionage, and sabotage to procure classified information and pursue their geopolitical goals.
• Identity thieves steal personal information for financial gain by impermissibly accessing client information.
• Cyber terrorists are individuals or groups who seek to advance political or ideological goals. They may target critical infrastructure, looking to spread fear and chaos and create financial damage.

Cybercriminal Methods

Threat actors utilize different methods to carry out their cybercrimes. Tactics they use include:

• Phishing: This type of cyberattack involves using fraudulent communications (e.g., emails) to trick users into revealing confidential information after they click on a malicious link or open a harmful attachment. Threat actors such as hackers, script kiddies, identity thieves and state-sponsored actors use this technique because it is relatively low cost and exploits psychology rather than technical vulnerabilities. It can also be more easily deployed on a large scale.
• Social engineering: These attacks are manipulative techniques where individuals are tricked into divulging confidential information. Phishing is a type of social engineering tactic, as is baiting, where a threat actor tempts users with an offer (e.g., a free prize) to lure them into giving up sensitive data. Social engineering exploits human trust and curiosity. Insiders might use this technique for sabotage or data theft, while hackers and identity thieves use it to bypass technical defenses by preying on human error.
• Malware deployment: Cybercriminals deploy malware, or malicious software (e.g., viruses and ransomware), designed to provide access to a computer system or disrupt it in several ways, such as phishing emails, compromised websites, or infected downloads. Once loaded, malware can spread within networks. It can provide long-term access to the compromised system, be used to steal data, and be leveraged to extort businesses. Malware is versatile; hackers may use ransomware for financial gain, while state-sponsored actors could use it for espionage or sabotage. Cyber terrorists might deploy malware to disrupt critical infrastructure, and identity thieves could use it to steal personal information.
• Denial-of-service (DoS) attacks: Threat actors carry out a DoS attack to overwhelm systems or networks with traffic. This can cause significant business disruption and serve as a distraction from other attacks. Hacktivists might use them to protest, cyber terrorists for disruption and hackers for extortion, demanding ransom to stop the attack or restore services.
• Credential stuffing: This occurs when threat actors use stolen credentials to try to gain access to multiple services. This tactic exploits password reuse and can be automated for large-scale attacks to allow cybercriminals access to accounts. This straightforward and automated approach makes it a popular choice for identity thieves and hackers looking to maximize return on their efforts.

Protecting Businesses

With knowledge of the motivations and methods of various cybercriminals, businesses can design their cybersecurity systems and strategies to thwart them. Measures to consider include the following:

• Implement strong cybersecurity measures with multiple layers, including firewalls, antivirus software and intrusion detection systems. Businesses should also have strong patch management and software update procedures critical for closing vulnerabilities.
• Educate employees and develop a culture of security awareness. This can be accomplished by providing training on proper cyber hygiene and common cybercriminal tactics such as phishing and social engineering.
• Utilize multifactor authentication to strengthen access controls. It adds a layer of security beyond passwords, making it more difficult for cybercriminals to gain access through stolen credentials. Employees should also be trained to strengthen passwords, keep them private and not reuse them.
• Back up data in secure places to prevent data loss. Businesses should consider storing their backup data offsite or in a cloud. This is critical for protecting against data loss from ransomware as well as other threats like hardware failure and natural disasters.
• Conduct vulnerability tests to identify weaknesses in cyber defenses. These vulnerabilities can then be strengthened to make networks and systems more secure.
• Create and maintain incident response plans to quickly and efficiently respond to a cybersecurity incident. Organizations should establish a crisis response team and regularly test their incident response plans.
• Purchase cyber insurance to cover losses from a cyberattack or data breach. Cyber insurance can fill gaps left by other insurance policies, and many policies include benefits such as access to vendor panels with public relations firms and legal counsel with experience handling cybersecurity issues.

With the many types of cybercriminals, there are various methods of attack and motivations that drive these attacks. However, by understanding this, businesses can position their cybersecurity defenses to prevent cyber incidents from occurring and mitigate their impacts if they do.

Being in the know is the first step to protecting yourself and your business from cyber fraud. Choice Bank is committed to providing you with up-to-date resources and tips to help you stay informed. Learn more at bankwithchoice.com/cybersecurity.

This Cyber Risks & Liabilities document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2024 Zywave, Inc. All rights reserved.