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CITY FRAUD

Expert says city fraud ‘no easy fix’, cyberattacks on the rise in 2020

Nov 26, 2020 | 3:44 PM

PRINCE GEORGE – Cybersecurity expert and author Mark Sangster tells CKPG News cyberattacks are getting more complex, and are on the rise.

The most recent attack on the City of Prince George which saw over $700,000 in taxpayer money missing at one point, is part of a much bigger issue.

Sangster says events like those at City Hall are common, saying he’s seen a 216% increase in cyberattacks in 2020, and nearly double the money involved than years past.

“These are not the older types of phishing schemes we saw,” says Sangster. “They’re a lot more elegant, they do a much better job of faking and mimicking whatever party they’re pretending to be.”

Sangster also says falling victim to fraud comes with a stigma, but in the new reality the frauds are extremely complex, and nobody should feel ashamed for being a victim.

In 2019, Stats Canada reported that about 10% of businesses in Canada reported that they lost revenue as a result of cybersecurity incidents and fewer (6%) businesses reported that the incidents damaged the reputation of their business.

Sangster says potential locations where the money may have been directed include China, North Korea, and destabilized parts of Eastern Europe or Iran.

Why this problem continues to worsen Sangster says is because there aren’t public inquiries into frauds like there are into train derailments, or airlines to identify solutions.

One broad solution isn’t possible, as the landscape of how the criminals defraud businesses and corporations is constantly changing, something Sangster says that makes solving crimes like these incredibly complex.

The RCMP say they are still investigating and continue to find the over $300,000 of taxpayer money that is still missing.