UK GENERAL

Perspectives on:
Personal Cyber
Protection

What is cybercrime and how are

insurers targeting the growing
personal cyber insurance appetite?

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Introduction
How much of a threat is Cybercrime?
Deirdre Donovan, UK Generals Head of Products looks at how crime is changing and how
UK General look to tackle the growing issue of cybercrime.

Cybercrime:
Cybercrime is an umbrella term used to describe cyber-dependant crimes
(crimes committed through ICT devices) and cyber-enabled crimes (traditional
crimes increased in scale by the use of computers)1

It’s no secret that cybercrime is on the According to the Office of National Statistics
increase. The threat of attack is rising with (ONS), latest figures reveal there were an
latest figures revealing the substantial estimated 2 million cybercrime attacks
growth of this type of criminal activity. It’s compared to 686,000 domestic burglary
now one of the fastest growing crimes in the offenses in 2016. These figures illustrate the
UK. With an abundance of figures, statistics shift from traditional, domestic crime, to the
and data on cybercrime, a majority of virtual online hacking environment carried
crimes are reported to authorities however, out to breach the security of public and
some still slip through the net. With many consumer cyber safety.
cybercrimes continuing to go unnoticed, are
we only now beginning to scratch the cyber The origins of cybercrime can be traced
security surface? back to 1981 when the first hacker Ian
Murphy, was convicted of breaking into
The term ‘cybercrime’ includes a dangerous AT&T’s computers where he changed
concoction of activities including hacking, the internal clocks that metered billing
computer misuse, viruses and cyber bullying. rates2. This acted as a catalyst, firing ‘The
 UK GENERAL

Computer Misuse Act 1990’ into action.
Still in use today, the Act criminalises any
unauthorised access to computer systems.
Other examples of historical cybercrimes
include ‘The Morris Worm’ in 1998, which
brought down one-tenth of the internet
crippling more than 6000 computer systems.
Similarly, in 2000 teenage cyber-hacker
Jonathan James became the first juvenile to
serve jail time for hacking2.
Although the threat of cybercrime is
prominent, it seems Britons are not applying
the same amount of caution as they
would do with traditional crimes. Research
conducted by the Office of National
Statistics (ONS) shows while 82% of the
public have double locks on their doors,
only 32% follow the latest advice on using
3 random words to generate a strong
password3. The Government’s flagship cyber
awareness campaign Cyber Aware, provides
a wealth of online advice to SME’s and
individual consumers encouraging simple
steps to prevent cybercrime occurring.
An initiative delivered by the home office,
Cyber Aware offers hints and tips to
promote staying safe online and reducing
the risk of detrimental cybercrime. Cyber
Aware urges Britons to take cyber security
as seriously as home security with active
partners including ‘ActionFraud’ and ‘Cyber
Aware’ helping to spread the message.

Trends in Crime Survey for England and Wales and police recorded crime, year ending
December 1981 to year ending March 2016

Number of offences (thousands)

20,000

19,000

18,000
Police recorded crime - old counting rules
17,000 Police recorded crime - new counting rules

16,000 Police recorded crime - post NGRS

Crime Survey for England and Wales
15,000

14,000

13,000

12,000

11,000

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0
1981 1983 1985 1987 1989 1991 1993 1995 1997 2000 2002 2004 2006 2008 2010 2012 2014 2016

Year ending December Year ending March

Figures taken from ONS website

https://www.ons.gov.uk/peoplepopulationandcommunity/crimeandjustice/bulletins/crimeinenglandandwales/yearendingmar2016
Cyberbullying
Cyberbullying:
Cyberbullying is bullying that takes place using electronic technology including
phones, computers including social media sites, texts and websites9.

Another increasing form of cybercrime is
cyberbullying. According to DitchtheLabel,
an estimated 1.5 million young people have
experienced cyberbullying within 2015 and
19% are bullied daily10. This type of crime
is a personal attack on an individual often
delivered on social media or via direct texts.
Popular across the younger generation, a
recent survey conducted by Bullying.co.uk
suggested 56% of young people have seen
others being bullied online with a further
42% admitted they have felt unsafe online.
According to NSPCC over the past 3 years,
there has been an 87% increase in the
number of ChildLine counseling sessions
because of online bullying. The statistics
suggest that cyberbullying is a growing
epidemic increasing at an alarming rate and
becoming a serious problem for children of
all ages across the UK.

Cyberstalking
Repeatedly sending messages of threat
and harm, harassment and intimidating
messages threatening a person’s safety.

Exclusion
The act of intentionally leaving someone
out of a group including group messages
and online apps.

Trolling
Someone who starts arguments or upsets
people, by posting distressing content with
the intention of provoking readers.

Harassment
The act of sending offensive, rude and
insulting messages to others.

Many think the solution lies with parents
to protect their children from cyberattacks,
however, an education on how to use the
internet safely and the procedures to follow
if they become a victim of cyberbullying are key
to fighting this problem.
In the event of experiencing cyberbullying,
Stopbullying recommend these three simple
steps:
1. Do not respond and do not forward
cyberbullying messages.
2. Keep evidence of the cyberbullying. Record
dates, times and descriptions of each
instance(s).
3. Immediately block the person who is cyber
bullying.
UK GENERAL
In 2014, UK schools incorporated the use of
bullying ‘slang translation’ software to monitor
their students’ online for bullying behaviour.
Approximately 1,400 schools now use the
software to help teachers identify various issues
students may be having online. Surprisingly, it is
not only school children and young people that
are prone to online abuse. There has recently
been a significant increase in cyberbullying
towards British school teachers. A survey by the
British teachers’ union suggests 60% of their
members receive some sort of online offensive
abuse in regards to their profession and of
these comments, 48% came from pupils and
40% from parents11.
Cybercrime in practice
As the world gets more computer savvy our
reliance on e-commerce and technology
grows. Technology is becoming more readily
available and our dependence on computers,
tablets and Wi-fi networks is paving a digital
way of life for modern day living. However,
this technology and instant convenience does
not always come without consequence.
Identity Fraud:
Use of stolen identity in criminal activity to obtain goods or services by deception6
Common cybercrime often surrounds
fraudulent financial activity. This includes
duplicating bank accounts, falsifying credit
cards and deceitful online shopping fraud.
The insurance industry has seen a recent
spike in “ghost brokers” selling counterfeit
motor policies.
Investigations within the industry have
explored various incidents involving the
sales of bogus motor insurance policies to
unknowing consumers. During the last 6
months of 2016, 2,070 fraudulent policies
were sold in comparison to only 20 cases
across the same period in the previous year.
In a survey ending March 2016, figures
provided by the ONS indicate 6.5% of adults
in England and Wales had been a victim of
fraud in the previous sixth months4. With the
vast bulk not reported to police, there has
been a 5% rise in frauds during 2016, with 1.9
million cases of frauds on UK issued cards
an 46% increase on the previous year5. These
figures indicate the enormity of cybercrime
both on an individual and collective basis.
Overall, these facts highlight the
increasing popularity of cybercrime
towards unassuming consumers within
the mass market. More individuals are
switching to a virtual, online lifestyle
leaving the door wide open for criminals
and hackers to access personal details.
According to research carried out by Which?
in 2017, traditional crime is slowly becoming
outdated and a new, sophisticated approach
of online hacking is occurring across
everyday devices such as wireless routers,
home CCTV systems and children’s toys7.
 UK GENERAL

Cybercrime – Dissected
The Home Office classify cybercrime into With the increased threat of crime online,
three categories: there are many suggested ways of cyber
• Online scams involving upfront payment protection which are recommended to
• Personal information or data which is stolen keep individuals safe online. Cyber Aware
• A person being tricked into sharing personal recommend using a strong password
information8 consisting of three random words ensuring
they change these words across emails and
In addition, one of the most common types various social media platforms. Users are also
of cybercrime is fraud. The various types range advised to regularly update their software
from identity fraud and theft, to online fraud when prompted to do so. Be vigilant and
and individual fraud. All of which can pose a when visiting websites, ensure they are
serious threat to your online security. genuine by looking for the padlock symbol in
the URL box.

www.ukgeneral.co.uk

Look out for the padlock symbol in the URL box!

Cybercrime breakdown -
How cybercrime can affect you

Stolen personal Theft of

photographs Cyber bullying personal funds

Hacked social
Online shopping fraud Online sales fraud
media accounts
Cybercrime - Real life attacks:
The scope of cyberattacks on individuals and
businesses is vastly impacting everyday life.
Research from the government suggests that
two thirds (65%) of large UK businesses have
been hit by a cyber-attack in the past year.
Interestingly, research has suggested that out
of all firms who have experienced a breach
in security, only half of these companies take
any action as a result. Further still, only 10%
have a management plan in place.
In examining cyberattacks on the general
public, there is evidence suggesting that
hackers are targeting students in their latest
attempt to commit fraud. Cyber Aware
suggests bogus university grants are being
offered to students from their prospective
universities. Unassuming victims pass over
their bank details to receive the ‘so-called’
payments however, later find themselves
Smishing:
When criminals use an SMS to trick you into providing your personal or bank
details12.
Further examples include Santander customers
losing over £36,000 in a smishing scam and 5,826
reported cases of UK holiday makers loosing £7.2
million in 2016 booking scams, an average of
£1,200 per person. The holiday booking scams
involved plane tickets, online accommodation
bookings and timeshare sales.
Interestingly with the rise of smart devices in the
average family home, consumers are becoming
more susceptible to the threat of hackers within
their households. Research conducted by Which?
a victim of fraud. Furthermore, one of the
most recent and most detrimental examples
of a cyberattack was the attack on the NHS
in May 2017. This breach disrupted national
health services across England and Scotland
with 40 NHS organisations corrupted as a
result.
Latest figures reveal cybercrime is on the rise
with criminals conjuring up more complex
and cunning ways to commit this type of
crime. The UK’s leading fraud prevention
service Cifas, have suggested fraud is up
5% from 2016 with a staggering 89,000
cases recorded within the first six months
of 2017. Fraudsters are using a mixture
of techniques including misleading Royal
Mail ‘missed delivery’ cards and fabricated
council tax rebates to steal personal banking
information.
reveals that everyday gadgets including CCTV
cameras, smart children’s toys and internet routers
all carry an increased risk of being hacked offering
criminals a gateway into your private information.

Action against cybercrime:
Police have reported an 8% rise in cybercrime
activity overall with 3.6 million cases of fraud
and 2 million computer misuse offences
recorded yearly with the need for urgent
action. As a result, the government is
investing £1.9bn into cybersecurity over
the next 5 years to combat this epidemic.
Shockingly, research suggests that identities
As the transition moves from traditional crime
towards cybercrime, a new type of crime is
evolving. It is evident that cybercrime will
continue to increase driven by a dependency
on technology in today’s society. Laptops,
tablets and smartphones all provide a platform
for criminal activity making it easier for
criminals to obtain your personal information.
For the majority, the need for cyber insurance
is becoming more of a necessity than an
optional extra, offering protection against
fraud, identity theft and even cyberbullying.
To many, the aspects of cybercrime appear
complicated and complex making people
an easy target. Overall, the cybercrime
market is thriving due to an unknowingly but
technology-rich population, unaware of the
threats that are present online.
As the transition moves from traditional crime
towards cybercrime, a new type of crime is
Deirdre
Donovan
Head of
Products
Deirdre.Donovan@ukgeneral.co.uk
UK GENERAL
are being stolen at a rate of almost 500
per day and more must be done to protect
personal information against cybercrime13.
Cyber Aware offers advice to consumers
on device and data protection including
regularly updating software and using
complex passwords.
evolving. It is evident that cybercrime will
continue to increase driven by a dependency
on technology in today’s society. Laptops,
tablets and smartphones all provide a
platform for criminal activity making it
easier for criminals to obtain your personal
information. For the majority, the need for
cyber insurance is becoming more of a
necessity than an optional extra. UK General
Insurance has identified the consumer need
of personal cyber insurance and developed
a product to answer demand. Our personal
cyber protection insurance offers cover against
cyber bullying and defamation, financial loss
associated with recovering insured data,
online sales fraud, online shopping fraud and
online theft of personal funds.
For more information on this product,
contact sayhello@ukgeneral.co.uk or
call 0370 421 4503
References

1. www.cps.gov.uk/legal/a_to_c/
cybercrime/#a03
2. www.wired.com/2001/02/the-greatest-
hacks-of-all-time/
3.  www.ons.gov.uk/peoplepopulationand
community/crimeandjustice/bulletins/
crimeinenglandandwales/yearending
sept2016
4.  www.ons.gov.uk/peoplepopulation
andcommunity/crimeandjustice/
bulletins/focusonpropertycrime/
yearendingmarch2016
5.  www.ons.gov.uk/peoplepopulation
andcommunity/crimeandjustice/
bulletins/crimeinenglandandwales/
yearendingjune2016
6. www.actionfraud.police.uk/ID
7. www.which.co.uk/news/2017/06/could-
your-smart-home-be-hacked/
8.  www.gov.uk/government/uploads/system/
uploads/attachment_data/file/502960/Gov.
uk_Serious_Organised_Crime_deck_vF.pdf
9. www.stopbullying.gov/cyberbullying/
how-to-report/index.html
10.  www.ditchthelabel.org/annual-bullying-
survey-2016/
11. www.nobullying.com/cyberbullying-in-uk/
12. www.actionfraud.police.uk/fraud-az-vishing
13.  www.theguardian.com/money/2017/
aug/23/identity-fraud-figures-cifas-theft

sayhello@ukgeneral.co.uk