By Stacker
In a startling revelation, victims of cybercrime in Massachusetts collectively suffered losses totaling $235.9 million in 2023, positioning the state at No. 12 nationwide, according to detailed FBI data.
As technology and internet usage expand at an unprecedented rate, individuals are increasingly falling prey to intricate scams. This alarming trend has led to billions being swindled from Americans, with the United States witnessing a staggering uptick in reported cybercrimes compared to the combined figures of the next 19 nations.
In a comprehensive examination of cybercrime trends in Massachusetts, Drata conducted an analysis in conjunction with a larger national report, employing data from the FBI‘s 2023 Internet Crime Report.
The FBI’s data reveals a staggering loss of $12.5 billion attributed to cybercrime across the United States in 2023, marking a continuous rise over the past five years. The Internet Crime Complaint Center (IC3) recorded over 880,000 complaints, with victims reporting average losses exceeding $14,000. However, it is critical to note that many cybercrimes go unreported, suggesting the FBI’s figures only represent a fraction of the actual problem.
Massachusetts alone reported 9,915 instances of cybercrime in 2023, equating to approximately 142 victims for every million residents. These victims experienced average losses amounting to $23,791 each, underscoring the significant financial impact of these crimes.
The total losses per resident in Massachusetts reached $34, placing the state at No. 17 nationally in terms of financial impact. Cybercrime is not limited to specific demographics; it permeates all age groups across the country.
According to a recent Ipsos poll conducted on behalf of Wells Fargo, nearly 1 in 3 Americans have fallen victim to online financial fraud or cybercrime in some capacity. The Cybersecurity and Infrastructure Security Agency (CISA) has responded by proposing new draft rules requiring critical infrastructure entities to report significant cyberattacks and ransomware payments. This initiative aims to facilitate better data collection and enhance the understanding of cyber threats that major organizations face.
Of the $2.2 billion surge in reported cybercrime losses from 2022 to 2023, a substantial portion is attributed to rampant cryptocurrency scams. These frauds predominantly impact younger, tech-savvy individuals, highlighting the evolving nature of online scams.
National look: losses high in technology and political centers
Prominent political and technological hubs in the U.S. have experienced notable cybercrime losses. In Washington D.C., victims collectively reported losses exceeding $46 million, significantly overshadowing the national per capita loss. California and Nevada also faced considerable financial impacts from cybercrime.
As the nation’s political center, Washington D.C. attracts cybercriminals notably, with government facilities becoming prime targets for ransomware assaults in 2023. D.C. endured a series of significant critical infrastructure ransomware attacks. High-profile data breaches were reported, including unauthorized access to voter records and personal details of key national security figures. Political action committees also faced incursions aimed at manipulating campaign financers.
California’s reputation as a high-tech epicenter has made it a prime target for cybercriminal activities. Residents from regions such as Silicon Valley to Los Angeles have experienced significant impacts from soaring cryptocurrency fraud, which utilizes advanced social engineering techniques. Scammers exploiting dating apps and social media to cultivate relationships often entice victims to invest in scam cryptocurrency projects via deceptive websites and applications.
In response to growing concerns around these scams, the California state government has moved to impose restrictions on withdrawals from bitcoin ATMs amidst a surge of related fraudulent activities. Earlier in the year, the FBI’s San Francisco office issued warnings about AI-driven cybercrime, raising alarms over increasingly sophisticated phishing scams and impersonations through voice and video technology.
The escalating complexity of cybercrimes is not just a financial challenge; they also threaten to disrupt entire business operations. In nearby Nevada, Las Vegas, known for its vibrant entertainment culture, experienced significant cyber assaults that impacted two major casino and hotel chains. One establishment was forced to shut down essential services following an attack while another opted to pay approximately $15 million to protect its data from being disclosed. Furthermore, in January, the Nevada Gaming Control Board fell victim to a cyber breach.
Despite considerable financial losses due to scams throughout the previous year, prompt reporting and law enforcement initiatives have been instrumental in mitigating further impacts. The FBI successfully intervened in thousands of cases, averting 71% of the projected losses. Even when funds had been siphoned from victims, reporting these incidents aids the FBI’s efforts in tracking cybercriminals, identifying patterns of crime, and informing the public about emerging fraud schemes.
This story features data reporting and writing by Paxtyn Merten and is part of a series utilizing data automation across 50 states and Washington D.C.
**Interview with Cybersecurity Expert Dr. Jane Thompson on Cybercrime Losses in Massachusetts**
**Interviewer:** Today, we’re joined by Dr. Jane Thompson, a cybersecurity expert and analyst, to discuss the recent shocking statistics regarding cybercrime losses in Massachusetts in 2023. Thank you for being here, Dr. Thompson.
**Dr. Thompson:** Thank you for having me. It’s crucial we bring attention to these issues.
**Interviewer:** The FBI reported that Massachusetts experienced cybercrime losses totaling $235.9 million, ranking No. 12 in the nation. Why do you think Massachusetts is particularly vulnerable to cybercrime?
**Dr. Thompson:** Massachusetts is home to a significant tech industry, prestigious universities, and an active population that uses technology extensively. This combination creates a fertile ground for cybercriminals who prey on unsuspecting individuals and organizations. Furthermore, as technology evolves, so do the sophistication and variety of scams, making it more challenging for residents to stay protected.
**Interviewer:** The average loss per victim was reported at $23,791. What does this figure tell us about the impact of cybercrime on individuals in the state?
**Dr. Thompson:** That figure is immensely concerning. It not only highlights the devastating financial impact on individuals but also points to the emotional toll that cybercrime can take. Victims often experience feelings of vulnerability and violation, which can lead to long-term psychological effects. The broader implications for the economy cannot be ignored either, as these losses may affect consumer confidence and spending.
**Interviewer:** Over 9,900 incidents were reported in Massachusetts alone. Do you believe this number represents the full extent of cybercrime in the state?
**Dr. Thompson:** Unfortunately, I don’t believe it does. Many cybercrimes go unreported due to stigma, lack of awareness, or confusion about how or where to report incidents. It’s likely that the actual number of victims is much higher, which can skew our understanding of the problem’s scale.
**Interviewer:** Given the rise in cryptocurrency scams predominantly affecting younger, tech-savvy individuals, what can be done to better educate potential victims?
**Dr. Thompson:** Education is key. Awareness campaigns tailored to young people can help illustrate the tactics used by scammers, especially on social media and dating apps. Schools and universities should incorporate cybersecurity awareness into their curriculums, and resources should be made available for the public to learn about safe online practices. Additionally, people should be encouraged to report incidents so we can better understand and combat these threats.
**Interviewer:** The Cybersecurity and Infrastructure Security Agency is proposing new rules for critical infrastructure entities to report cyberattacks. How do you see this affecting the cybersecurity landscape?
**Dr. Thompson:** Implementation of mandatory reporting will improve data collection, allowing for a more comprehensive understanding of the cyber threat landscape. It may enable quicker responses to emerging threats and enhance our overall defense mechanisms. However, it’s critical that such measures maintain privacy and security for individuals and organizations.
**Interviewer:** Thank you, Dr. Thompson, for your insights on this pressing issue. It’s clear that as technology continues to advance, the risks associated with cybercrime will only grow.
**Dr. Thompson:** Thank you for having me. Awareness and proactive measures are essential in protecting our communities from cyber threats. Let’s hope we can foster a safer digital environment together.
