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Cybersecurity Under Siege: Cyprus Confronts Unprecedented DDoS Threats

Escalating Global Threats

Cybersecurity challenges are intensifying on the international stage as Distributed Denial of Service (DDoS) attacks surge, placing renewed pressure on critical digital infrastructure. A recent report from Qrator Labs indicates that the volume of application-layer DDoS attacks increased by 74 percent globally during the second quarter of 2025 compared to the same period in 2024. These sophisticated attacks mimic legitimate user requests to infiltrate web applications, making mitigation notably complex.

Implications For Cyprus

The escalating global threat comes at a time when Cyprus faces its own cybersecurity challenges. Recent alerts from groups such as the “Tunisian Maskers Cyber Force” have underscored the vulnerability of critical national infrastructure, suggesting that geopolitical or ideological motives may be at play. Historical incidents—including cyberattacks targeting the University of Cyprus, the Land Registry, and the Open University of Cyprus in early 2023—highlight the potential for significant operational and data disruptions.

Government Response And Strategic Investments

In response to these rising threats, the Cypriot government has recently allocated €8.5 million to enhance national digital defenses. Deputy Minister of Research Nicodemos Damianou has acknowledged that while considerable progress has been made, government entities still operate with fragmented security systems. Notable improvements include cyber defence updates for eleven critical infrastructures following the October 2024 attacks, and the strategic relocation of government servers after the 2023 flooding incident at the finance ministry.

The Rise Of Mega Botnets

Further compounding the threat landscape, Qrator Labs has identified what is being described as the largest-ever DDoS botnet, which now comprises 4.6 million infected devices—a scale nearly 20 times larger than observed in 2024. Andrey Leskin, Chief Technology Officer at Qrator Labs, warns that the sheer volume of malicious requests generated by such botnets can cripple online services, causing severe economic disruptions. He noted that many current DDoS protection solutions may be inadequate to counter an assault of this magnitude.

Preparing For Future Cyber Threats

To mitigate these escalating risks, industry experts advise organisations to refine their incident response strategies, invest in state-of-the-art DDoS mitigation solutions, and frequently test infrastructure resilience against cyber stress. As the digital landscape continues to evolve, proactive and coordinated defenses will be crucial in safeguarding both public and private sectors from the growing tide of cyber threats.

EU E-Commerce VAT Systems Generate €257.9 Million Revenue for Cyprus in 2024

Robust Revenue Growth Through Streamlined VAT Collection

Cyprus has demonstrated a significant fiscal boost in 2024 with €257.9 million generated from the European Union’s e-commerce VAT systems, according to Tax Commissioner Sotiris Markides. This impressive performance underscores the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) frameworks in simplifying cross-border tax compliance.

Simplified Procedures for EU and Non-EU Businesses

The OSS system allows Cyprus-registered businesses to streamline VAT declaration and payment on sales to consumers in other EU countries. Companies simply register on the local OSS platform, apply the consumer’s VAT rate, aggregate their submissions quarterly or monthly, and remit a single consolidated payment. Subsequently, Cyprus allocates the appropriate share to each respective EU country. This efficient process extends to non-EU sellers as well, who can have their intra-EU distance sales managed under the Union Scheme.

Breakdown of VAT Revenue Streams

Last year’s declarations under the various schemes illustrate the system’s broad reach: €217.9 million was collected via the Union Scheme, €36.9 million through the Non-Union Scheme, and €3.1 million via the Import Scheme. While the Union Scheme caters to both EU and non-EU sellers engaging in distance sales, the Non-Union Scheme specifically accommodates non-EU firms delivering services to EU consumers. Furthermore, the Import Scheme targets goods valued at less than €150 that are imported from outside the EU.

Implications and Broader Impact

Implemented in July 2021 as an evolution from the more limited MOSS system, these reforms have not only consolidated tax collection through an expansive OSS but also integrated the IOSS for low-value imports. By designating certain online marketplaces as “deemed suppliers,” the new framework ensures that VAT collection is both efficient and equitable. Across the EU, these mechanisms have generated over €33 billion in VAT revenues in 2024, reflecting a successful effort to simplify tax compliance, reduce administrative burdens, and promote fair taxation across the bloc.

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