18 Section 3 STRATEGIC CONTEXT 3.4. Even when key individuals responsible for the most damaging cyber criminal activities against the UK are identified, it is often difficult for the UK and international law enforcement agencies to prosecute them when they are located in jurisdictions with limited, or no, extradition arrangements. 3.5. These OCGs are principally responsible for developing and deploying the increasingly advanced malware that infects the computers and networks of UK citizens, our industry and government. The impact is dispersed throughout the UK, but the cumulative effect is significant. These attacks are becoming increasingly aggressive and confrontational, as illustrated by the increasing use of ransomware, and threats of distributed denial of service (DDoS) for extortion. 3.6. Whilst OCGs may pose a significant threat to our collective prosperity and security, equally of concern is the continuing threat from acts of less sophisticated but widespread cyber crimes carried out against individuals or smaller organisations. Internet banking fraud, which covers fraudulent payments taken from a customer’s bank account using the internet banking channel, rose by 64% to £133.5m in 2015. The number of cases increased at a lower rate of 23%, which Financial Fraud Action UK said is evidence of the growing trend for criminals to target business and high­ net-worth customers. National Cyber Security Strategy 2016 States and state-sponsored threats 3.7. We regularly see attempts by states and state-sponsored groups to penetrate UK networks for political, diplomatic, technological, commercial and strategic advantage, with a principal focus on the government, defence, finance, energy and telecommunications sectors. 3.8. The capacity and impact of these state cyber programmes varies. The most advanced nations continue to improve their capabilities at pace, integrating encryption and anonymisation services into their tools in order to remain covert. While they have the technical capability to deploy sophisticated attacks, they can often achieve their aims using basic tools and techniques against vulnerable targets because the defences of their victims are poor. 3.9. Only a handful of states have the technical capabilities to pose a serious threat to the UK’s overall security and prosperity. But many other states are developing sophisticated cyber programmes that could pose a threat to UK interests in the near future. Many states seeking to develop cyber espionage capability can purchase computer network exploitation tools ‘off the shelf’ and repurpose these to conduct espionage. 3.10. Beyond the espionage threat, a small number of hostile foreign threat actors have developed and deployed offensive cyber capabilities, including destructive ones. These capabilities threaten the security of the UK’s critical national infrastructure and industrial control systems. Some states may use these capabilities in contravention of international law in the belief that they can do so with relative impunity, encouraging others to follow suit. Whilst destructive attacks around the world remain rare, they are rising in number and impact.