Mobile net boom will boost cyber-crimes

By CNN's Grant Holloway

SYDNEY, Australia (CNN) -- Cyber-crimes are likely to become far more common and disruptive in the next few years as greater numbers of people begin using internet-enabled mobile phones.

It is expected that by 2003 every new mobile phone made will be internet enabled, meaning there will be more mobile phone internet connections than PC-based connections.

"This will create a bottleneck for service providers and create greater opportunities for security breaches," Nokia Internet Communications general manager Vic Whitely told CNN.

The security issue would become so intense, insurance companies were likely to insist companies install improved internet security systems, much as they insisted businesses adequately prepared for potential Y2K problems.

Internet security experts told a Sydney briefing Thursday that the rise and rise of this cyber-crime was having major negative effect on the growth of electronic commerce.

Financial services companies in particular were battling to persuade customers to use online services with security concerns a key issue for their reluctance.

This concern was being made worse daily by reports of internet viruses and worms such as Code Red and the increasing sophistication and complexity of tools and techniques used by hackers to disrupt the internet.

Cable connections a concern

David Britt, of security firm Top Layer Networks, said a recent University of California study showed businesses were reporting up to 4000 "denial of service" attacks each week.

Fears about lack of security and concerns about availability and performance of financial services sites were "real barriers to driving business online," Britt said.

The increase in home-based cable connections -- which enable home PCs to be continuously connected to the internet -- was making it easier for hackers to access so-called "zombie" machines to perpetrate their crimes.

The growing trend for people to work from home offices and offsite and the increased use of contractors and consultants within corporations and businesses was also exacerbating security risks.