Look around at headlines these days and it’s fairly common to find a sea of news surrounding breaches in security, identity theft, computer data loss, credit card theft, and other financial losses to individuals and businesses.

Authorities now agree that cyber crimes are the new Wild, Wild, West of criminal activity in the 21st Century. These days, cyber criminals don’t need guns or outlaw gangs to run rampant, create chaos, loot our data and pick our pockets.

Worse, cyber crimes are increasing at “a frequency and sophistication” and using “anonymous means” that add up to a list of threats including terrorism, according to a recent report and survey, Cyber crime: A clear and present danger, from Deloitte & Touche, LLP.

Can’t happen to me

According to Cable News Network, “The past 12 months have been a banner year for cyber crime. And that could be bad news for the future of e-commerce.” Given that our personal and business lives are so dependent on computers, e-mail and automation systems, we are continually bombarded by potential threats — many times without ever realizing what’s happening.

Not so you say? Consider these startling statistics:

The number of cyber crime complaints to the U.S. Department of Justice rose from 16,838 in 2000 to 275,284 in 2008, and the associated annual dollar losses from $17.8 million to $264.6 million.

These are only complaints filed via the DOJ online system IC3. A look at www.ic3.gov/default.aspx shows that cyber crime cases and financial losses far exceed justice system complaints.

For example, Symantec, an international antivirus software maker, recently reported that 87 percent of e-mail traffic in 2009 was spam. That accounts for more than “40 trillion spam messages or about 5,000 spam messages for every person on the planet,” according to Symantec.

The FBI reports cyber crimes in various categories including schemes involving areas such as:

Auction fraud, counterfeit checks, credit card fraud, debt elimination, shipping services, identity theft, Internet extortion, investment fraud, lotteries, phishing/spoofing, ponzi schemes, reshipping, spam and many more e-commerce-related transactions.

“When you consider how often many of us use or are connected with technology, the opportunity for loss is huge,” said Keith Riley, consultant and risk manager for Peel & Holland. “Clients are constantly under siege for cyber crimes and must take the steps to analyze the threat and align themselves with the right combination of technology experts, knowledge of the risks, the right risk advisor, and insurance coverage.”

Fed not immune

July 4, 2009, was a significant day in cyber crime history. Federal government sites around the country — like the White House, New York Stock Exchange and NASDAQ — came under attack from a cyber threat known as a botnet. Cyber security sources reported that more than 50,000 computers from various places spammed federal computers with e-mails so fast that they overloaded the system and eventually knocked out the Web sites temporarily.

“The paradox between Internet security and cyber crime is due to the fact that both the researchers in the area of Internet security and the cyber criminals have access to and benefit from technological advances,” Ali and Mehdi Peivari wrote in Internet Security — Cyber Crime Paradox in the Journal of American Science. “Even in some cases, cyber criminals hide behind the very cyber security tools that Internet users believe are in place to protect them.”

Cyber crime trends

Government officials worldwide are watching for threats where computers are used to jeopardize national security. Because malware is changing every few hours, and the Internet has millions of new users, particularly through social networking, a target-rich environment exists to be exploited.

Social networks like Twitter and Facebook, along with mobile phones, wireless systems and e-mail, are likely to continue to be areas for cyber crimes. Criminals are probing and trolling for information and data everywhere and anywhere they can find it.

Trend Micro 2010 reports that as long as the money is good for cyber crimes, they won’t go away. Further, some authorities feel that newer computer operating systems may be less secure. Cyber crime perpetrators are using regular, everyday events to propagate malware, data breaches and spyware. Some infections won’t even be detected for months, and by the time you know you have a problem, it’s too late.

Safety, security tips

Given the complexity and enormity of cyber crimes worldwide, here are some commonly accepted tips:

• Keep your computer current with antivirus and malware protection.
• Use strong passwords and different passwords for different systems.
• Ask your technology advisors about security software.
• Protect personal information.
• Be careful how you navigate e-mails, Web site and clickable links on the Internet.
• Check your credit every year; watch bank and credits card statements.
• Consider identity theft professional services.
• Ask your insurance agent about coverage your homeowner’s plan may provide.
• Discuss with your risk manager or insurance broker commercial coverage for cyber crime.
• Use common sense and be wary of your surroundings, offers and scams.

If you think you have been scammed or defrauded or are the victim of a cyber crime, seek professional help and contact law enforcement authorities. Be sure to record as much information about the person, firm, computer program, e-mail, Web site or situation you are in. That can help move your case ahead with investigators. Contact the Internet Crime Complaint Center at www.ic3.gov to file a complaint.

Greg Carlton, a principal of Peel & Holland Financial Group, is a Chartered Life Underwriter, Chartered Financial Consultant, and Licensed Life & Health Consultant. He may be contacted at gcarlton@peelholland.com or 270-527-6141.