How AI is Impacting Cybercrime

By Edwin Concepcion 

AI is expected to transform work spaces sooner rather than later, but as organisations exploit the benefits of the technology, another issue lies ahead - cybercrime. Due to the escalating sophistication of AI technology, cybercrime is likely to evolve over the next five years. This will reshape the modus operandi of cybercriminals, necessitating heightened cybersecurity measures across various sectors. 

The Philippines has come under scrutiny for weaknesses in its cybersecurity in light of a surge in breaches. President Ferdinand R. Marcos Jr. recently ordered the Philippine National Police to improve its anti-cybercrime efforts after noting an increasing number of cybercrime cases. The number grew from 13,890 in 2022 to 21,300 in 2023. Then, in Q1 of 2024, malicious cyber activity targeting the Philippines more than tripled, compared to the same period in 2023, consisting of a combination of hack and leak, distributed denial-of-service, as well as misinformation and influence campaigns. The main targets of these attacks have been government and educational institutions.

It is no coincidence that this coincides with the widespread proliferation and adoption of generative AI, which has the capability to create highly convincing text, images and video, making it easier for threat actors to spread misinformation and access sensitive systems. However, the key to navigating this complex and seemingly hostile cyberscape is not by shying away from innovation, but by understanding its dangers so that we may tread carefully and leverage its power responsibly.

The Influence of AI on Cybercrime

We know that AI can now be used to crack passwords, but it doesn’t end there. While traditional cybercrimes such as phishing and identity theft persist, they are also evolving, leveraging AI capabilities to deceive targets. Ransomware-as-a-service, and off-the-shelf deepfake apps for audio and video are becoming more accessible, and only take a matter of minutes to produce. While individuals may be targeted, it is financial institutions, healthcare organisations, and government agencies that are prime targets due to the sensitive nature of their data and the potential for financial gain. High-profile individuals and government officials are also increasingly targeted for spoofing attacks, leveraging AI-generated content to deceive unsuspecting victims. Earlier this year, the Philippines averted attempts by China-based hackers who were looking to break into websites and emails associated with the President of the Philippines as well as Government agencies, such as the Department of Information and Communications Technology (DICT) and the Philippine Coast Guard.  Similarly, Singapore’s outgoing Prime Minister Lee Hsien Loong, was also famously deepfaked in a bogus video where he appeared to be advocating a cryptocurrency scheme purportedly approved by the Singapore government. The video was altered from an interview in March 2023 with Chinese news network CGTN.

The proliferation of connected devices and the advent of 5G technology renders traditional perimeter-based defences alone ineffective. Supply chain risks are also magnified as interconnected capabilities create vulnerabilities. To address these challenges, organisations must adopt a holistic approach to cybersecurity, encompassing proactive threat intelligence, robust third-party due diligence, and strong data protection protocols. While organisations of all sizes could be the target of a cyber crime, SMEs are particularly vulnerable due to their limited resources and lack of cybersecurity awareness. 

Educating the Workforce

According to a recent study published by consulting firm Cyfirma, other factors contributing to cyber vulnerability include “widespread internet usage, a lack of cybersecurity awareness, and underdeveloped cybersecurity infrastructure”. All this is further compounded by a shortage of skilled professionals.  As AI adoption gains momentum in organisations, the cybersecurity industry has to keep pace with the security risks that will be introduced with the technology. 

Effective cybersecurity education has always been paramount in mitigating cyber threats. However, with the emergence of AI in workplaces, it becomes more essential than ever to face the challenge it brings head-on. Today, organisations must implement comprehensive training programs for Data Protection Professionals, Business Process Owners and all stakeholders using technology,  and  with a focus on AI, to keep new threats at bay more effectively. If possible, the training programs should incorporate realistic simulations and tests to enhance employees' ability to identify and respond to potential threats effectively. Training programs should provide participants with practical, hands-on experiences that enable them to gain the necessary awareness and knowledge that is critical when dealing with AI. 

Regulatory Measures and Preparedness

Legislation and investment in cybersecurity infrastructure are also crucial. Collaborative efforts involving government agencies, cybersecurity firms, and individuals can significantly enhance cybersecurity preparedness. In the Philippines, proactive steps are being taken, exemplified by the recent adoption of the National Cyber Security Plan (NCSP) 2023-2028 led by the DICT, which is aimed at establishing regulations to ensure a safe cyberspace and protect critical information infrastructure. It addresses the cybersecurity objectives of the national Philippine Development Plan (PDP) 2023-2028, including improving e-Commerce and digital trade with strengthened legal frameworks in the areas of transparency, privacy, and cybersecurity. Additionally, as has been well documented, the Armed Forces of the Philippines (AFP) has also introduced a “cyber command” and is recruiting cyber experts to strengthen the country’s defences in light of recent attacks targeting government and private sector entities. 

The convergence of AI and cybercrime is poised to usher in a new era of challenges and opportunities in the cybersecurity landscape. However, by adopting proactive measures, investing in cybersecurity infrastructure, and fostering a culture of vigilance, organisations can mitigate the risks posed by AI-powered cyber threats and safeguard their digital assets effectively.

This article was first published on The Manila Times on 16 June 2024.