The risk of cyber attacks and cybercrime is present for all companies from small mom-and-pop shops to large, multinational organizations. With so much information available about the latest ransomware attacks, data breaches, and information hacks, it can be hard for business owners to keep up. Here are some of the latest facts about cybersecurity and cybercrime that business owners and leaders should consider when making their cybersecurity plans and budgets.
Cybercrime is bigger than the illicit drug trade
Global cybercrime damages totaled more than $6 trillion in 2021 — a number that’s expected to grow to $10.5 trillion by 2025 making it larger (and more lucrative for criminals) than the entirety of the global drug trade.
If cybercrime was its own economy, it would have the 3rd largest annual GDP — behind the U.S and China.
Cybercrime has a $6 trillion global impact as of 2021 making it larger than the GDP of every country except the United States and China.
99.8% of UK businesses 99.6% of US businesses are prime targets for cybercrime
Small and medium-sized enterprises are ideal targets for cybercriminals for a variety of reasons. While not as valuable as a large enterprise in terms of a single payday, SMEs often have less cybersecurity measures in place making them easier to attack and infiltrate.
Data breaches can start from unexpected sources including HVAC systems and aquariums
The massive 2013 Target breach which led to the compromising of 50 million debit and credit cards was caused by the HVAC system while a casino was hacked in 2017 with access gained through a fish tank thermometer.
Approximately 1 million people go online for the first time every day
The world is getting connected at a speed never seen before. Nearly one million people (approximately the population of Austin, Texas) are connected to the internet for the first time each day according to the World Economic Forum. While this increased connectivity is helping to provide new opportunities, it also is increasing the risk of cyber threats.
9-out-of-10 data breaches are caused by human error
Phishing attacks account for 90% of all data breaches while brute force, vulnerability exploitation, and other cyberhacking methods account for the remaining 10%.
More than 4000 ransomware attacks happen each day
Ransomware attacks have grown significantly — nearly 300x since 2015. Ransomware attacks are now 2x more common than motor vehicle thefts.
The average cost of a ransomware attack is $1.85 million across all industries
This cost considers downtime, people time, device cost, network cost, lost opportunity, ransom paid, and more. The education sector had the highest average cost with $2.73 million per attack while healthcare was the lowest at an average of $1.27 million per attack.
Fully deployed security automation can save companies an average of $3.58 million during a breach
When it comes to cyberattacks, time is money. The faster a cyber threat can be identified and mitigated, the less economic impact it is likely to have. Companies with no security automation deployed saw an average total cost of a breach just over $6 million while those with fully deployed security automation had an average cost of around $2.45 million.
Bigger breaches mean bigger costs to businesses
While every company can be a target of cybercrime, those with large-scale breaches saw a much higher financial impact. Breaches of 1 million to 10 million records cost businesses an average of $50 million — 25x the average cost of a cyber-attack for a breach of less than 100,000 records. Those with a breach of more than 50 million records were hit with an average cost of $392 million — more than 100x the average.
Microsoft spends nearly $1 billion on cybersecurity each year
Cybersecurity spending varies a lot by organization and industry. It’s not surprising that enterprise organizations dedicate a hefty sum to their cybersecurity budgets, but that doesn’t mean that small businesses should forgo cybersecurity measures or rely solely on those provided standard with the technology they use. The average small business spends less than $500 annually on cybersecurity which can often leave them vulnerable to attack.
Discover how much it costs to improve your cybersecurity
Financial loss is not the only risk during a cyber attack
While the direct cost of a cybersecurity attack is often discussed, there are several other impacts that can be felt by a business including loss of reputation, increase cybersecurity premiums, and even real-world life-or-death consequences. The first known death due to a cyberattack was recorded by a German hospital in 2020.
Cyberattacks happen in every industry and sector to businesses and organizations of all sizes. For most, it’s not a question of if but when. Having a strong cybersecurity partner and solution in place can help to minimize the impact of a cyber incident helping you to save time, money, and reputation. Contact us today to learn more about Foresite can help your business stay cybersecure.
Tristin Zeman is the Digital Marketing Manager at Foresite. For the past 10 years, she has helped organizations of all sizes create and scale marketing programs through digital and traditional marketing channels and efficient marketing operations.