Retired FBI agent: Vigilance crucial in curbing cybercrime

Scott Augenbaum

The vast majority of cyberattacks can easily be prevented by bank employees and customers adopting more stringent security measures, said retired FBI Special Agent Scott Augenbaum on April 14 during the Iowa Division of Banking’s Day with the Superintendent.

Speaking before approximately 240 bankers, Augenbaum said the most important step to prevent cyber crime is adopting multi-factor password authentication. He called on bankers to form separate, strong passwords — at least 15 characters, mixing upper and lower-case letters with a special symbol and at least one number — for all critical, online business platforms. To Augenbaum, combating cybercrime also requires potential victims to more closely scrutinize emails purporting to be from someone they know and trust urging them to take immediate action. According to the Federal Trade Commission, such phishing attempts usually include claims that the victim has suspicious activity or log-in attempts; must confirm certain personal information; needs to click on a link to make a payment; is eligible for a coupon for free items; and other lies.

Augenbaum noted that global cybercrime, already estimated at $6 trillion a year, is expected to cost businesses and private individuals $10 trillion by 2025. Cybercriminals will steal 33 billion records next year, according to the cyber security firm PurpleSec.

 In some instances, banks have taken all of the necessary steps to prevent being victimized but are still impacted because of a security lapse by a third-party vendor or customer. 

Banks must educate their customers that law enforcement will likely not be able to return the money lost in a scam, Augenbaum said, nor apprehend any suspects because they often reside overseas in areas not under the jurisdiction of U.S. authorities.

Augenbaum urged bankers not to pay ransom demands, because doing so does not ensure that financial institutions will receive their information back and opens them up to more attacks. The Nashville-based public speaker and cybersecurity author said the most prolific initiator of cyberattacks is Russia-affiliated organizations, which he said continue today as part of the cyber war Russian President Vladimir Putin is waging against the United States.