UN's upcoming vote on cybercrime treaty offers hope amid rising cybersecurity threats

According to Moody's, if approved, the treaty will help strengthen international efforts to fight cybercrime, bringing some hope in the face of growing cybersecurity challenges.

This move comes at a time when businesses around the world are dealing with increasing risks from cybercriminals, highlighting the need for stronger global cooperation. The rise in credit risks is due to cybercriminals targeting larger organizations.

Moody's Vice President Leroy Terrelonge, said, "Ransomware perpetrators are now targeting larger organizations in search of higher ransom demands, leading to greater credit impact. This shift is likely to increase the cyber risk for entities rated by Moody's and could lead to increased loss ratios for cyber insurers, impacting premium rates in the US,"

Larger companies, despite having advanced cybersecurity measures, are not immune to risks. Data from Bitsight, Moody's affiliate, shows that these organizations often have lower cybersecurity performance scores.

Their vast and complex networks can hide vulnerabilities, while older systems, inherited through growth over time, are harder to secure. This combination of factors makes them attractive targets for increasingly sophisticated cyber threats.

Generative AI (GenAI) is expected to exacerbate cyber risks by enhancing phishing attacks. Cybercriminals can now craft highly personalized and convincing messages that mimic legitimate communications, increasing the likelihood of users falling for such scams.

This evolution in phishing tactics poses a significant challenge to organizations, requiring them to strengthen their defences.

Another growing concern is the vulnerability of supply chains. Attackers often exploit third-party software suppliers, which are typically less secure than large companies. By compromising one supplier, cybercriminals can access the systems of multiple connected businesses, amplifying the damage.

The use of stolen credentials also remains a top method for unauthorized system access. IBM researchers have reported a 71 per cent rise in attacks using stolen credentials between 2022 and 2023.

While passkeys offer a safer alternative to traditional passwords, their widespread adoption by enterprises is hindered by implementation challenges.

Policy changes could further influence the cybersecurity landscape. Moody's predicts that a new Republican administration in the U.S. might roll back existing cybersecurity regulations and reduce the scope of the Cybersecurity and Infrastructure Security Agency (CISA). Such moves could increase the vulnerability of organizations to cyberattacks.

On a more positive note, the United Nations is set to vote on a new cybercrime treaty that aims to boost global cooperation in combating cyber threats. If passed, this treaty could enhance international efforts to curb cybercrime, offering some relief in an otherwise challenging outlook.