Should you be worried about hackers threatening to release sensitive data Opinion
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A recent report from the nonprofit Identity Theft Resource Center revealed that online attacks on small businesses surged by 28% in 2023. However, this year saw a return to targeting large organizations with significant digital assets and financial resources by hackers.
In 2024, cybercriminals from the top 10 countries globally conducted 20 major hacks, as per a study by Oxford University. The countries included in the World Cybercrime Index (WCI) based on cybercrime threat scores were Russia, Ukraine, China, the United States, Nigeria, Romania, North Korea, the United Kingdom, Brazil, and India.
In May alone, there were consecutive major hacks involving digital assets. The Russian-speaking hacker group RansomHub made headlines by hacking the prestigious auction house Christie’s, which reported $6.2 billion in global sales revenue in 2023. They also targeted Frontier Communications, a provider of internet services in 25 US states with revenues of $5.75 billion in 2023.
Christie’s, owned by French billionaire Francois Pinault, was attacked by RansomHub before the New York Auction Week, threatening to auction off sensitive information about high net-worth clients if their demands are not met. Meanwhile, ShinyHunters, a notorious cyber-criminal group, claimed responsibility for a massive hack on Banco Santander, compromising over 560 million sensitive user data, including full names, addresses, and payment card details.
The hacks pose a significant risk to digital asset owners, potentially leading to further cybercrimes and exposing sensitive information to unauthorized parties. The Australian government, part of the Joint Chiefs of Global Tax Enforcement (J5), is collaborating with authorities to investigate the incidents.
The Internal Revenue Service (IRS) warned taxpayers about the implications of tax evasion related to crypto transactions, emphasizing the need to report all income earned, including from digital assets like NFTs and token-gated event tickets. The IRS also announced plans to increase audit efforts for high-income individuals, corporations, and digital asset accounts in 2024.
In conclusion, the recent surge in cyberattacks targeting digital assets and sensitive user data underscores the importance of robust cybersecurity measures and compliance with tax regulations to protect individuals and organizations from financial and legal implications.
