New technology has enabled cyber-crime on an industrial scale

Nobody likes a call from the taxman. Donald Rumsfeld, who as America’s defence secretary oversaw a budget bigger than the economy of a typical country, nonetheless finds the rules so confusing that he writes to the Internal Revenue Service each year complaining that he has “no idea” whether he has filed his taxes correctly. So it is hardly surprising that, when the phone rings and an official-sounding voice says you have underpaid your taxes and will be connected to an adviser to pay the balance, ordinary folk tremble.

It is, however, invariably a scam. Few tax authorities call individuals about their taxes. If you are lucky, they will send you a letter a year later, to the wrong address. They will certainly not menace you, as bogus calls often do, with the threat of arrest if you do not stump up the cash right now.

It is, however, invariably a scam. Few tax authorities call individuals about their taxes. If you are lucky, they will send you a letter a year later, to the wrong address. They will certainly not menace you, as bogus calls often do, with the threat of arrest if you do not stump up the cash right now.

Such scams have become vastly more common. Phone calls from tricksters claiming to be taxmen almost doubled in number last year, according to uk Finance, a trade association of banks. Other countries show increases at least as dramatic.

Even as rates of most crimes remain low in rich countries, the spectacular growth of cyber-crime—crime committed mostly or entirely by digital means—stands out. According to the Crime Survey of England and Wales, the best indicator of long-term trends in Britain, in 2019 there were 3.8m incidents of fraud, mostly online, representing a third of all crimes committed. That figure has increased every year since 2017 when the government started collecting data. Around 7% of all adults were victims. Three-quarters lost money, and 15% lost more than £1,000 ($1,390). In America the number of reported cases of internet fraud increased by 69% last year. Reported losses there (excluding bank or credit-card fraud) reached $4.2bn, three times higher than in 2017…

May 26, 2018

“I AM not the kingpin of robocalling that is alleged.” So Adrian Abramovich, a telemarketer from Florida, assured American senators in April. Accused of making nearly 100m illegal “robocalls” in 2016 as part of a campaign to sell discounted holidays, Mr Abramovich has denied criminal wrongdoing. Nonetheless, on May 10th the Federal Communications Commission (FCC), America’s telecoms regulator, fined him $120m, the largest penalty in the agency’s history.

The skirmish over Mr Abramovich is part of America’s long, mostly unsuccessful war against robocalls, the pre-recorded phone messages peddling debt-reduction and timeshares that have irritated consumers for over a decade. According to YouMail, a call-blocking service, 3.4bn robocalls were blasted out in April, equivalent to nearly 1,300 every second. The Federal Trade Commission receives 500,000 complaints about such calls every month (see chart). Ajit Pai, the FCC chairman, says Americans are “mad as hell”. Robocalls are consistently the agency’s top consumer complaint. Can anything be done?..