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It will not enter into force until ratified or acceded to by 15 countries and has only been signed by 14 countries and ratified by 8. Meanwhile, six African countries have joined the Budapest Convention. A 2020 survey of 3,500 workers in Australia, France, Germany, Japan, Spain, the United Kingdom, and the United States found that many were still unaware of fundamental best practices. Governments and enterprises also have good reasons to increase consumer awareness and education on cybersecurity. Available at https://www.enisa.europa.eu/publications/cyber-security-strategies-paper. Available at https://www.enisa.europa.eu/topics/cybersecurity-education/european-cybersecurity-skills-framework. Industry experts believe this contributed to a 311% increase in ransomware payments from 2019 to 2020.. Available at https://asean.org/storage/2018/04/ASEAN-Leaders-Statement-on-Cybersecurity-Cooperation.pdf. Available at https://www.investopedia.com/terms/d/distributed-ledger-technology-dlt.asp. Available at https://www.sans.org/blog/navigating-the-phishy-social-engineering-ocean/. See US Cybersecurity and Infrastructure Security Agency, Security Tip (ST04-015): Understanding Denial-of-Service Attacks (updated 20 Nov 2019). Updated substantive criminal laws are needed when legacy criminal laws do not cover acts committed in the digital ecosystem. Many governments have begun to analyse and update national laws to close gaps. Directors and officers have a duty to creditors and shareholders to preserve and protect business assets and to exercise due care in securing information and technology assets. See, e.g., the OCTAVE Allegro Technical Report, supra, 2.4.2.2 at 12 & Appendix A, Step 2 at 34. Many enterprises now have a chief information security officer (CISO).. The running list of significant cyber incidents since 2006 compiled by the Center for Strategic & International Studies reveals multiple cyberattacks believed to have been carried out by state-sponsored threat actors. Available at https://us-cert.cisa.gov/ncas/tips/ST04-015. The incident occurred before introduction of the worldwide web when the Internet was still dominated by military and academic users. Human scrutiny blocked some payments, but USD 81 million was sent to fraudulent accounts and laundered through the Filipino casino system. (2) Factor analysis of information risk (FAIR) cyber risk framework developed by the Open Group. The Council of Europe Convention on Cybercrime, which promotes international harmonization in the investigation and enforcement of cybercrimes, has been joined by 45 member states and 22 states in Africa, the Americas, and the Asia-Pacific. For example, the 2017 WannaCry ransomware attack impacted 200,000 computers in 150 countries. A harmonized approach to cybercrime legislation and enforcement can facilitate investigative and enforcement efforts across jurisdictions. The threat actor then commandeers the compromised systems, using them as zombies or bots, to launch an attack on the targeted network resource. As economies shift to digital and online models, threats can quickly outpace traditional approaches to data security. By releasing a flood of incoming messages or connection requests to the targeted system, the threat actor forces it to slow down or crash, denying service to legitimate users or systems. DDoS attacks often have non-financial motivations. Available at https://www.cybsafe.com/press-releases/human-error-to-blame-for-9-in-10-uk-cyber-data-breaches-in-2019/. See, US Federal Bureau of Investigation, The Morris Worm: 30 Years Since First Major Attack on the Internet, News (2 Nov 2018) (FBI Morris Worm Article]. The US Federal Bureau of Investigation reported the number of cyberattack complaints in 2020 increased by 400% from pre-COVID rates, reaching as many as 4,000 per day. The global direct monetary losses from cybercrime in 2020 were estimated to have nearly doubled to USD 945 billion from USD 522.5 billion in 2018, while spending on cybersecurity in 2020 was expected to exceed USD 145 billion, together comprising 1.3% of global GDP.In 2017, cybercrime cost Africa an estimated USD 3.5 billion in direct losses., These estimates exclude indirect costs to victims such as opportunity cost, downtime, lost efficiency, brand disparagement, loss of trust, intellectual property infringement, and damage to employee morale. Available at https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nbsspecialpublication500-19.pdf. Legal and policy reforms and implementing activities are required in every country to meet ever-growing cybersecurity challenges. In both high-income and developing countries, individuals are embracing digital technologies. The percentage of developing country households with a home computer grew from 15.6% in 2005 to 36.1% in 2019, while mobile phone subscriptions per 100 people grew three-fold globally and four-fold in low- and middle-income countries between 2005 and 2020. Moreover, in 2020, the number of registered mobile money accounts grew by 12.7 per cent globally to 1.21 billion accounts double the forecasted growth rate.. https://www.itu.int/en/ITU-D/Cybersecurity/Pages/global-cybersecurity-index.aspx. The European Agency for Cybersecurity (ENISA) reported that malware was Europes top cybersecurity threat from January 2019 through April 2020. One study found that malware was employed to locate, access, and capture data in a majority of 2020 data breaches. The same study found that denial of service hacking was involved in almost 60% of all security incidents.. Available at https://www.cybsafe.com/community/blog/7-reasons-why-security-awareness-training-is-important/. See, e.g., Chris Matthews, Bitcoin extortion: How cryptocurrency has enabled a massive surge in ransomware attacks, MarketWatch (15 May 2021). Available at https://www.cisecurity.org/spotlight/ei-isac-cybersecurity-spotlight-cia-triad/. Because of the security and reliability of the underlying DLT, CBDCs could reduce the cost and increase the efficiency of transactions, allowing immediate settlement of transactions that previously took days. See Carnegie Mellon University Software Engineering Institute, The Sector CSIRT Framework: Developing Sector-Based Incident Response Capabilities, Technical Report (Jun 2021). https://data.worldbank.org/indicator/IT.CEL.SETS.P2. One cybersecurity vendor reported more attacks on corporate networks in the first half of 2020 than in all of 2019. The use of ransomware increased significantly. These new vulnerabilities will require enterprises and other organizations to adapt and to educate employees on how to avoid and minimize threats while working remotely.. In April 2018, the heads of state issued a statement on cybersecurity cooperation. One ASEAN member, the Philippines, has joined the Budapest Convention. Individual enterprises are also increasingly establishing their own internal CSIRTs to provide services and support to the enterprise in assessing, managing, and preventing cyberattacks and coordinating incident responses. Available at https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/851001p.pdf?ver=qEE2HGN_HE4Blu7161t1TQ%3D%3D. Available at https://www.oic-cert.org/en/allmembers.html#.YMy0K75KiUk. Which challenges related to cybersecurity and the digital economy are most prominent in your market, both a) in general and b) for underserved groups such as women and low-income people? Available at https://enterprise.verizon.com/resources/reports/2021-data-breach-investigations-report.pdf. Private enterprises increasingly consider educating consumers as good business., Capacity building is also vital. Find out more about the other areas ofUNCDF's work. R. Ackerman, Companies need to enhance cybersecurity amid the continuation of COVID-19 in 2021, Security Magazine (7 Jan 2021). See OIC-CERT, List of Members > All Members (2021). United Nations, Group of Governmental Experts on Developments in the Field of Information and Telecommunications in the Context of International Security, Report 17(c) & (d) (23 Jul 2015), adopted by the General Assembly in Resolution A/RES/70/237 (2015). Developed countries are investing to close the global cybersecurity skills gap of needed workers. Enterprises are also increasingly establishing their own internal CSIRTs. See, e.g. D. Nagel, K12 Has Become the Most Targeted Segment for Ransomware, The Journal (11 Dec 2020). Available at https://resources.sei.cmu.edu/asset_files/TechnicalReport/2007_005_001_14885.pdf. Available at https://insights.sei.cmu.edu/blog/structuring-chief-information-security-officer-ciso-organization/. Available at https://www.first.org/members/map. See Alexander Ntoko, Corporate Strategy Division, ITU, Global Cybersecurity Agenda: a framework for international cooperation, (Open-ended Intergovernmental Expert Group on Cybercrime, Vienna, 17-21 Jan 2011). Digitized supervisory control and data acquisition (SCADA) systems are used in all but the smallest developing countries to monitor and manage electricity grids. Available at https://www.nist.gov/itl/applied-cybersecurity/nice. Many have set up cybersecurity agencies and some have established sector CSIRTs to protect critical infrastructure. Cryptocurrency is a form of digital currency that relies on blockchain technology to track value and record transactions without any clearing authority. Center for Strategic & International Studies, Significant Cyber Incidents (May 2021). No estimate was provided for Africa or the Middle East (ISC)2, Strategies for Building and Growing Strong Cybersecurity Teams: (ISC)2 Cybersecurity Workforce Study, 2019 at 8 (2019). Available at https://www.itu.int/en/ITU-D/Cybersecurity/Pages/National-Strategies-repository.aspx. Available at https://openknowledge.worldbank.org/handle/10986/24717; and Tal Avrahami, SCADA for Remote Utilities Monitoring: 4 Layers to Grasp, IIoT World (23 Mar 2017). By January 2021, Facebook had over 2.6 billion active monthly users, with 80% accessing their accounts exclusively from mobile devices. Cheryl Conley, Navigating the Phishy Social Engineering Ocean, SANS Institute Blog (27 Jun 2019). Available at https://enterprise.verizon.com/resources/reports/2021-data-breach-investigations-report.pdf. See, e.g., ITU, Understanding Cybercrime: Phenomena, Challenges and Legal Response at 3 (Sep 2012). ITU, National Cybersecurity Strategies Repository (2021). Available at https://www.enisa.europa.eu/topics/cross-cooperation-for-csirts. Based on data for 198 economies, the World Bank recently found that standalone cybersecurity agencies had been established in 86% of high-income countries, 65% of upper-middle-income countries, 66% of lower-middle-income countries, and 24% of low-income countries.. Equifax was initially hacked through a consumer complaint web portal. Zhanna Malekos Smith & Eugenia Lostri, McAfee and the Center for Strategic and International Studies & McAfee, The Hidden Costs of Cybercrime, Report (7 Dec 2020) [the 2020 McAfee Report]. Available at https://www.oas.org/juridico/PDFs/cyb9_coe_cyb_oas_Dec16_v1.pdf. See R. Ackerman, supra; U.S. Chamber of Commerce, Special Report on Cybersecure Working During COVID-19; M. Castelo, How School Districts Should Respond to Ransomware Attacks, EdTech Magazine (30 Sep 2020). Available at https://blogs.worldbank.org/voices/expanding-digital-financial-services-can-help-developing-economies-cope-crisis-now-and-boost-growth-later. (20 Oct 2020) [ENISA 2020 Review]. The ITU has a cybersecurity capacity building programme for developing countries. At least 114 national governments have adopted cybersecurity strategies and 118 have established national Computer Security Incident Response Teams (CSIRTs). Data security and cybersecurity each seek to maintain the confidentiality, integrity and availability of information assets. The World Energy Council found an increase from 87 attacks in 2014 to 150 in 2019, with 80% of energy sector enterprises unprepared to manage cyberattacks. GSMA, State of the Industry Report on Mobile Money 2021 (2021). The cost of cyber-crime, The Economist (22 Jun 2018). The Bangladesh central bank held its currency reserves at the Federal Reserve Bank of New York. See, e.g., OCTAVE Allegro Technical Report, supra, at 34-35. 185, Convention on Cybercrime (entered into force 1 Jul 2004). For example, human error has been attributed to 90% of 2019 cyber breaches in the UK. Most have a strong self-interest and contractual and legal duties to adopt and implement reasonable security procedures and practices. Thomas Alsop, Computer penetration rate among households in developing countries 2005-2019, Statistica (18 Feb 2021). It addresses cybersecurity in the Americas through the Inter-American Committee against Terrorism (CICTE), a Cyber Security Program, and through technical assistance and training, policy roundtables, crisis management exercises, and exchange of best practices. Ten OAS members have joined the Budapest Convention. Within 24 hours, 6,000 of the 60,000 computers on the Internet were disabled. Available at https://www.unodc.org/documents/treaties/organized_crime/EGM_cybercrime_2011/Presentations/ITU_Cybercrime_EGMJan2011.pdf, See ITU, Cybersecurity > Mandate (2021). The Council of Europes Convention on Cybercrime, which entered into force in 2004 and is known as the Budapest Convention, is the only binding international treaty on crimes committed via the Internet and other computer networks. Its main objective is to pursue a common criminal policy against cybercrime by adopting appropriate legislation and fostering international cooperation. In this context, confidentiality means ensuring access to information assets is limited to authorized persons and systems; integrity means ensuring information assets remain in the condition intended by the owner; and availability means ensuring reliable access to information assets by authorized persons and systems. These three security pillars are known as the CIA triad., A security incident is an event that compromises the integrity, confidentiality or availability of information assets, a data breach is a security incident that results in disclosure of confidential data to an unauthorized person, and a cyberattack is an unauthorized attempt by a threat actor to compromise information or technology assets. Security threats to information and technology assets today are wide-ranging and evolving., Public and private enterprises are amassing massive and growing volumes of information assets as individuals are also increasingly creating, collecting, sharing and consuming data. Enterprises and individuals rely increasingly on information and technology assets to provide or procure goods, services and information. Enterprises and individuals are also entrusting their information to other enterprises or individuals at growing rates. As developing country enterprises become increasingly reliant on information and technology assets, they face similar security threats to their counterparts in developed countries. See, e.g., United Nations, Department of Economic and Social Affairs, Public Institutions, World Summit on Information Society (WSIS), Available at https://publicadministration.un.org/en/Themes/ICT-for-Development/World-Summit-on-Information-Society. See ReportLinker, Enterprise File Synchronization and Sharing (EFSS) Market - Growth, Trends, Forecasts (2020 - 2025) (May 2020). See United States Government, The National Strategy to Secure Cyberspace (Feb 2003). Cryptocurrency exchanges face potential regulation to prevent money laundering and other illegal activities and to ensure traders report profits and pay taxes to authorities. If not, how could this be improved? Direct costs globally in 2020 were up from USD 522.5 billion in 2018, USD 475 billion in 2014, and USD 300 billion in 2013. Global GDP in 2020 was estimated at USD 84.54 trillion. Firms that use third-party vendors to monitor and address cyber threats may find that these solutions do not extend seamlessly to remote work. On 4 February 2016, timed to coincide with bank closings, they issued 70 payment instructions to transfer USD 1 billion of the banks funds to fake accounts in the Philippines and Sri Lanka. US Cybersecurity & Infrastructure Security Agency, Critical Infrastructure Sectors. Home computers often lack the security protocols found in the office. This followed similar earlier incidents in Ecuador, India, Poland, Russia, Taiwan and Vietnam., It has been estimated that 70% of security incidents in 2020 were financially motivated and organized crime was behind 80% of data breaches. However, some threat actors, known as hacktivists, are motivated by political, socio-cultural or religious ideology. The annual volume of data created, captured, copied and consumed globally grew over 3,000% from 2 zettabytes in 2010 to 64.2 zettabytes in 2020. Available at https://www.mimecast.com/blog/all-you-need-to-know-about-wannacry-ransomware/. Its mandate was to help other organizations establish CSIRTs. Security controls include management, operational, and technical measures to protect the confidentiality, availability, and integrity of information and technology assets. They may also serve as the official government voice and point of contact in case of cybersecurity incidents. See Global CSIRT Maturity Framework, supra. See NIST, National Initiative for Cybersecurity Education (2021). In the market-based systems of many national economies, significant responsibility for cybersecurity falls on public and private enterprises. CybSafe, 7 reasons why security awareness training is important (26 Jan 2021). The Organization of American States (OAS) has not adopted a cybersecurity treaty. https://csrc.nist.gov/glossary/term/cybersecurity. Kshetri, Nir, Cybercrime and Cybersecurity in Africa, Journal of Global Information Technology Management, Vol. The terms data security and cybersecurity are often used interchangeably because both seek to protect information assets (valuable data and information) and secure technology assets (hardware, software, systems, servers, networks and other electronic containers that collect, process, transport, store and retrieve information assets). The distinction is subtle, with data security emphasizing direct protection of information assets themselves and cybersecurity emphasizing securing technology assets as a means to protect information assets. See Global Forum on Cyber Expertise, Global CSIRT Maturity Framework: Stimulating the development and maturity enhancement of national CSIRTs at 6 (Version 1.0, Jun 2019) [Global CSIRT Maturity Framework]. See ASEAN Leaders Statement on Cybersecurity Cooperation, 32nd ASEA Summit (18 Apr 2018). But so far, the law has not kept up and cryptocurrencies and transactions in those currencies are largely unregulated. The UNCDF Policy Accelerator is a pillar of UNCDF's Inclusive Digital Economies and Financial Inclusion practice area. Available at https://www.nist.gov/cyberframework. Available at https://www.reportlinker.com/p05865744/Enterprise-File-Synchronization-and-Sharing-Market-EFSS-Growth-Trends-and-Forecast.html. It addresses network security violations, computer-related fraud, copyright infringement, and child pornography. Cryptography enables transaction participants to remain anonymous. Available at https://undocs.org/A/70/174. Available at https://www.forbes.com/sites/theyec/2021/03/30/eight-ways-companies-can-educate-customers-about-cybersecurity-threats/?sh=5898bc384077. Available at https://documents1.worldbank.org/curated/en/355401535144740611/pdf/129637-WP-PUBLIC-worldbank-combating-cybercrime-toolkit.pdf. See African Union, List of countries which have signed, ratified or acceded to the African Union Convention on Cyber Security and Personal Data Protection (status at 18 Jun 2020). Available at https://www.businessghana.com/site/news/business/175019/Bank-of-Ghana-launches-Cyber-Security-Directive-for-Financial-Institutions. Available at https://www.itu.int/net/wsis/docs2/tunis/off/6rev1.html. See, e.g., Nader Mehravari & Julia Allen, Structuring the Chief Information Security Officer (CISO) Organization, Carnegie Mellon Software Engineering Institute Blog (22 Feb 2016). Available at https://www.mcafee.com/enterprise/en-us/assets/reports/rp-hidden-costs-of-cybercrime.pdf. Verizon, 2021 Data Breach Investigations Report at 6, 12 & 14 (2021) [the Verizon 2021 DBIR]. The economic cost of information and technology asset security breaches in 2020 was a staggering USD 4-6 trillion, equivalent to about 4-6% of global GDP. (Dec2016). A 2019 study found a global skills gap of 4 million fewer cybersecurity professionals than needed. Developed countries are supporting training programs through public and private universities. By December 2016, some 132 countries were following the model of the Budapest Convention, including the 67 parties to the treaty., Government efforts to improve cybersecurity require a robust and vibrant ecosystem to succeed. Typically, a threat actor will infiltrate the target system and then employ malware to extract information assets, withdraw funds, demand a ransom, or carry out other misdeeds. Available at https://www.oas.org/en/topics/cyber_security.asp. Public and private institutions have increased the focus on awareness and education. By safeguarding their own operations, the information of people who use their services will be better protected as well. They have become a preferred payment medium for cybercriminals. See Council of Europe, Chart of signatures and ratifications of Treaty 185, Convention on Cybercrime (status at 15 Jun 2021). WikiLeaks hacktivists take down MasterCard, Finextra (28 Jun 2011). Available at https://www.csoonline.com/article/3444488/equifax-data-breach-faq-what-happened-who-was-affected-what-was-the-impact.html. Available at https://www.itu.int/ITU-D/cyb/cybersecurity/docs/Cybercrime%20legislation%20EV6.pdf. Both data security and cybersecurity seek to maintain the confidentiality, integrity and availability of an organizations information assets. The long reach and fast pace of the digital ecosystem transcends borders and enables bad actors to act anonymously and quickly, adversely impacting vast swaths of humanity. International institutions are stepping in to facilitate cooperation on cybersecurity matters. Silvia Baur-Yazbeck, Cyber Attacks Growing Problem in Developing Nations, Opinion, Inter Press Service News Agency (8 Oct 2018). See Australian Government, Department of Energy, Science, Energy and Resources, What is the government doing in cyber security? (2021). Inclusivity:The specific cybersecurity and data security challenges faced by women, low-income people, and/or other underserved groups? Equinix, Global Interconnection Index Volume 4 (2020). Protecting such information and technology assets is vital to safe and reliable power delivery. These three components are still considered the core objectives of information security. A 2021 investigation analysed 29,207 security incidents in 88 countries, including 5,258 data breaches, reported in 2020. Unlike cryptocurrencies, CBDCs are not meant to be anonymous, and the immutable record of transactions created by DLT raises potential privacy concerns. See, e.g., Lyndon Sutherland, Know Your Enemy: Understanding the Motivation Behind Cyberattacks, SecurityIntelligence (31 Mar 2016). Aaron ONeill, Statistica, Global gross domestic product (GDP) at current prices from 1985 to 2026 (1 Jun 2021). Available at https://powerafrica.medium.com/cybersecurity-for-transmission-and-distribution-in-africa-475676074534. Available at http://www.apcert.org/documents/pdf/APCERT_Annual_Report_2020.pdf. Data security is the process of maintaining the confidentiality, integrity, and availability of an organizations data in a manner consistent with the organizations risk strategy. See, e.g., Chuck Brooks, Alarming Cybersecurity Stats: What You Need to Know For 2021, Forbes (2 Mar 2021). WSIS underscored the need for effective and efficient tools and actions, at national and international levels, to promote international cooperation on cybercrime. Available at https://www.un.org/counterterrorism/cybersecurity. Most cyberattacks are financially motivated. Available at https://cybersecurityventures.com/mcafee-vastly-underestimates-the-cost-of-cybercrime/. Available at https://www.eiu.com/industry/article/1586874742/the-cost-of-cyber-crime/2018-06-22. Available at https://www.fbi.gov/news/stories/morris-worm-30-years-since-first-major-attack-on-internet-110218. Frankenfield, Jake, Investopedia, Distributed Ledger Technology (DLT), (27 August 2021). Cooperative Cyber Defence Centre of Excellence,Guide to Developing a National Cybersecurity Strategy Strategic engagement in cybersecurity(2018). Central bank digital currencies (CBDCs) are another type of digital currency that rely on DLT, but are issued by a nations central bank, similar to the issuance of paper currency. Forum of Incident Response and Security Teams, FIRST members around the world (2021). See Council of Europe, Details of Treaty No. See World Summit on the Information Society, Tunis Agenda for the Information Society at 39 and 40., WSIS-05/TUNIS/DOC/6(Rev.

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