New response tool to counter the growing threat of cybercrime
A new cyber fraud legal response tool has been launched to counter the growing threat of cyber crime to businesses.
Allen & Overy’s litigation team in Hong Kong has launched the Hong Kong Cyber Fraud First Response Tool, a free web-based tool that guides victims of cyber fraud (or their representatives) through the Immediate steps to take upon discovery of fraud. .
The firms said the tool was brought to market at a time when cyber fraud is a growing concern for businesses and individuals around the world, amid the additional challenges posed by the COVID-19 pandemic and the increasing sophistication of cybercriminals.
“If an Australian business realizes it has been the victim of cyber fraud and the money has been sent to Hong Kong, a common destination for fraudulently obtained funds, the Hong Kong Cyber Fraud First Response Tool will allow that Australian company to respond quickly and confidently within the Hong Kong regulatory framework,” said Jason Gray, litigation partner at Allen & Overy.
“With the incidence of sophisticated cyber fraud increasing rapidly in Australia and around the world, it is imperative that businesses are able to respond quickly, even in foreign jurisdictions they are not familiar with.”
Matt Bower, partner at A&O, said the incidence of cyber fraud is increasing and he expects this trend to continue, particularly in light of the recent change in work patterns resulting from COVID-19 and the increasing sophistication of cybercriminals.
“We are seeing cybercriminals increasingly using innovative methods as they take advantage of the current turmoil caused by the pandemic: businesses, individuals and financial institutions in particular must be aware of the risks and act quickly upon discovering fraud “. said.
The volume of cyber fraud attacks around the world is higher than ever according to Allen & Overy and Hong Kong is one of the main destinations to which cyber fraud profits are transferred, before the funds are dissipated into accounts elsewhere parts of the world. .
An estimated 6.4 billion fake emails are sent worldwide every day, resulting in $26 billion in global losses, according to FBI international statistics on reported cases.
However, the FBI estimates that only 10 to 12 percent of cyber frauds are reported, so the true number is likely much higher.
This trend has been exacerbated due to the COVID-19 pandemic, which has resulted in an increased risk of cyber fraud attacks by fraudsters seeking to exploit vulnerabilities in IT systems and take advantage of the physical distance created by work. remote.
Allen & Overy said they have responded to this growing risk by developing a tool to help victims with initial steps that, if taken quickly, could increase the prospects for recovery of misappropriated funds.
“While companies and individuals located anywhere in the world can fall victim to cyber fraud, Hong Kong is one of the main destinations to which cyber fraud profits are transferred before being dissipated to accounts in other parts of the world “said A&O lawyer Emily. Tillett added.
“Many victims will not be aware of the steps they need to take and often too much time passes between discovering the fraud and taking action.
“The goal of the Hong Kong Cyber Fraud First Response Tool is to assist victims with those initial steps to maximize the chances of recovery of stolen funds. Initial feedback on the tool has been very positive, with several (non-legal) professionals operating in the cyber fraud and investigation space in Hong Kong praising its uniqueness and usefulness.”
A&O’s tool is designed to guide victims through the critical first 24 to 48 hours after discovering fraud.
The response tool works by taking the victim through a series of questions about the specific fraud and results in the creation of a set of documents that can be downloaded and sent to the relevant authorities in Hong Kong, as well as the bank that received the fraud. stolen funds requesting that the money in the account be frozen.
