Internet scams took a big bite out of the wallets of New Jersey last year, according to a new FBI report.
Garden State residents reported losing $434.8 million to cyber criminals in 2024 — putting the state sixth in the nation for such losses.
Cyber fraud is a big business. Nationwide, losses totaled $16.6 billion last year, an increase of 33% compared to 2023 and setting a new record for losses. California, Texas, and Florida saw the highest losses nationwide.
Officials said the FBI’s Internet Crime Complaint Center averages more than 2,000 complaints every day.
Phishing, extortion and personal data breaches were the top ways victims reported losing their money. Ransomware attacks are also on the rise in connection with threats to take down computer systems a ransom is paid.
Last year, two foreign nationals connected to one of the most prolific ransomware attacks in the world pleaded guilty to federal charges in Newark.
Ruslan Magomedeovic Astamirov, 21, a Russian national of the Chechen Republic and Mikhail Vasiliev, 34, from Bradford, Ontario, who holds dual citizenship in Canada and Russia, pleaded guilty to participating in the Lockbit ransomware group that targeted schools, hospitals, police departments and municipalities across New Jersey and the United States.
The Lockbit scheme, which first was seen in January 2020, has been estimated to have been one of the most destructive and lucrative ransomware programs in the world, attacking over 2,500 victims across 120 countries, officials said.
The attacks resulted in demands for large ransoms in exchange for unlocking encrypted computer systems and deleting stolen data, authorities said. Victims who failed to pay the ransom would have their computer systems permanently encrypted and stolen data published on a public website under Lockbit’s control.
According to federal law enforcement officials, the operation led to $500 million in ransom payments with billions more in estimated losses due to lost revenue and expenses in responding to being locked out of digital systems.
A total of 15,701 New Jersey residents filed cyber crimes complaints in 2024.
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Stories by Amira Sweilem
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Amira Sweilem may be reached at asweilem@njadvancemedia.com.