Overview

The National Cyber Security Centre (NCSC) has released its Cyber Security Insights report for the fourth quarter of 2024, revealing concerning trends in cyber security incidents across New Zealand. The NCSC report, covering the period from October 1 to December 31, 2024, highlights a notable increase in financial losses, with New Zealanders losing a total of $6.8 million to cybercrime. This represents a 24% increase from the previous quarter, where losses amounted to $5.5 million.

One of the report’s most interesting findings is the rise in incidents involving substantial financial losses. There were 17 reports of incidents with losses exceeding $100,000, accounting for $4.7 million of the total $6.8 million reported to the NCSC. According to Tom Roberts, lead of the NCSC’s Threat and Incident Response team, this is the largest number of high-loss incidents recorded in a single quarter.

Roberts stated, “These incidents are quite varied—ranging from cyber attacks on computers and accounts to cyber-enabled scams.” He also pointed out an emerging trend: many of these high-loss incidents began with a phone call from an individual impersonating a well-known organization. These calls ultimately led to the compromise of computers and accounts, showcasing the new tactics employed by cybercriminals.

The Changing Landscape of Cybercrime

While the overall financial losses have risen, there has been a noticeable drop in the number of incidents reported via the NCSC’s online tool. Reports through the NCSC online tool decreased by 34%, with 1,258 incidents reported in Q4 compared to 1,905 in Q3. In particular, the number of phishing and credential harvesting incidents saw a dramatic 54% decline.

Despite this decrease in reported incidents, Roberts emphasized that fewer reports do not indicate a reduction in cybercrime activity. “We know cybercrime is underreported, and we need your reports to better understand and respond to the threats New Zealand faces,” he said. He encouraged individuals and businesses to continue using the NCSC’s online tool to report any suspicious activity, noting that timely reports help the NCSC alert the public and prevent further harm.

Breakdown of Cyber Incidents in Q4 2024

The NCSC triaged a total of 1,358 cyber security incidents in Q4 2024. These incidents were categorized into different levels of importance, with 100 being classified as incidents of potential national importance. This is a slight increase from Q3, where 98 incidents were considered nationally important. The remaining incidents, totaling 1,258, were handled through the general triage process.

The categories of incidents reported this quarter are diverse, but the most commonly reported were scams and fraud, which accounted for 506 cases. Phishing and credential harvesting came in second, with 382 incidents. Other notable incidents included unauthorized access (205 cases), website compromises (46), and malware attacks (16). Interestingly, distributed denial-of-service (DDoS) attacks saw increase, with five reports, a 400% rise compared to the previous quarter.

Financial Losses and Trends

The total financial loss reported in Q4 2024 was $6.8 million, up from $5.5 million in Q3. Notably, 32% of all incidents reported through the NCSC’s general triage process involved financial losses. This marks a concerning trend in the growing impact of cybercrime on the economy. Over the past eight quarters, New Zealand has reported $44 million in financial losses due to cybercrime, with an average loss of $5.5 million per quarter.

One of the most troubling aspects of the report is the rise in high-value cybercrime incidents, particularly those beginning with scam phone calls. These scams often lead to unauthorized financial transfers or trick individuals into sending money. The NCSC is working to educate the public on how to identify such scams and how to avoid falling victim to them.

National Incidents and State-Sponsored Actors

The NCSC also responded to 100 incidents that were considered to have the potential for national harm. These incidents were categorized using a scale that includes several levels of significance. Of the 100 incidents, 20 were categorized as minor (C6), 59 as routine (C5), 17 as moderate (C4), and 4 as (C3). There were no incidents classified as (C2) or national cyber emergencies (C1).

Interestingly, there was a 30% decrease in incidents linked to state-sponsored actors compared to the average for a typical quarter. Of the 36 incidents believed to be the work of cybercriminal groups, most involved reconnaissance activity, such as the theft of credentials or infrastructure development. The NCSC continues to monitor these activities closely and work with organizations to prevent these threats from escalating.

Key Services and Tools to Combat Cybercrime

To assist in the fight against cybercrime, the NCSC offers several valuable services. Among them is the Phishing Disruption Service (PDS), which provides a verified list of phishing indicators specific to New Zealand. This service helps organizations block phishing attempts before they can impact users. In Q4 2024, the NCSC processed 11,252 phishing indicators, with 995 published to the PDS. The financial services sector was the most commonly targeted industry by phishing scammers during this period.

Another essential service is the Malware Free Networks® (MFN®) program, which disrupts malicious threats in near real-time. In Q4 2024, the MFN program successfully disrupted over 162 million malicious threats and identified 5,071 unique indicators of compromise.

The NCSC also encourages the use of its online incident reporting tool. By submitting reports, individuals and businesses help the NCSC respond more effectively to emerging threats and alert others in the community. The tool allows users to report incidents, both big and small, confidentially and ensures that the information will not be shared without consent.

Conclusion

As the NCSC’s Cyber Security Insights report for Q4 2024 reveals, cybercrime continues to be a growing threat in New Zealand, with both financial losses and the number of high-impact incidents on the rise. Despite the decrease in reported incidents, the NCSC stresses the importance of vigilance and timely reporting to help mitigate the risks of online criminals.

With cybercrime multiplying and becoming more complex, individuals and businesses must remain proactive in securing their systems. As Tom Roberts stated, “When you report to us, we can alert other New Zealanders and help protect them from cyber attacks and scams.” Through collective efforts, the NCSC aims to make New Zealand’s digital environment safer for everyone.

References:

• https://www.cert.govt.nz/insights-and-research/quarterly-report/quarter-four-cyber-security-insights-2024/
• https://www.ncsc.govt.nz/news/quarter-four-cyber-security-insights-2024

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