Cost of Cyber Crime Set to Top $5-Trillion by 2024
Tech researchers have released a new report projecting the cost of cyber breaches to organisations hit will be more than $5 trillion by 2024 in the wake of “regulatory fines tak[ing] hold and firms becoming more dependent on digital systems,” according to Juniper Research.
The statistics come as part of Juniper’s latest report: The Future of Cybercrime & Security: Threat Analysis, Impact Assessment and Mitigation Strategies 2019-2024 which can be accessed here.
As it stands, in 2019, the costs of data breaches to organisations stands at around $3-trillion globally. However, according to Juniper’s projections, this is set to rise by as much as 11% annually.
“All businesses need to be aware of the holistic nature of cybercrime and, in turn, act holistically in their mitigation attempts,” said Susan Morrow, author of the Juniper report. “As social engineering continues unabated, the use of human-centric security tactics needs to take hold in enterprise security,” she said.
“However,” as Phil Muncaster explains, “it argued that although mega-breaches of large volumes of data may make headlines they won’t necessarily impact costs directly, as fines and lost business aren’t closely linked to the size of a breach.”
Franklyn Jones from Cequence Security told InfoSecurity Magazine that there might also be secondary costs to organisations impacted by a breach on top of that $5 trillion figure already mentioned.
“I’m referring to the growing number of malicious, automated bot attacks that are fuelled by the billions of credentials stolen from these initial breaches,” he said.
“Those secondary attacks, which are even harder to detect than the initial data breaches, tend to focus on business logic abuse, stolen IP and financial fraud. The cost of these types of attacks are often under-reported, but are likely in the billions of dollars,” Jones concluded.
The average cost of a data breach is now set at around $3.9-million, according to statistics from IMB’s Cost of Data Breach reporting.
Those estimates show that if an organisation has over one million records in house, this figure shoots up to $42 million, while organisations hit by a cyber attack hosting more than 50 million records could face up to $388-million in damages following a breach.
While the statistics vary, reports from a variety of outlets confirm that cyber breaches are both more common in 2019 and are only set to increase in terms of the frequency of attacks and the cost in the aftermath.