Cybersecurity is presently one of the biggest threats to corporates and institutions and has found its way quite high up the list of top business concerns of 2022. The ever-evolving threat is expected to reach financial damages of as much as $6 trillion by the end of 2022, including cybersecurity spending and financial losses. According to a report by McAfee, this amount is a 50% increase over 2018, which is a huge spike.
Accelerated by the impact of the Covid-19 pandemic, cybersecurity threats have only grown in magnitude and seriousness and have become a huge cause of business interruptions. The working of employees remotely during the pandemic- across industries and irrespective of the sizes of organizations- have led to a boom in phishing and ransomware attacks. Remote working was an opening for cybercriminals to exploit software vulnerabilities of businesses. Extortion tactics, data breaches and software exploitations have got the better of organizations.
With sophistication in technology, the way cybercriminals attack has also become increasingly sophisticated. Advancement in their tactics and technology has happened at almost the same pace as advancement in technology. In no time, new attacks are developed and implemented, not giving corporates a chance to find gaps.
THE COSTS OF CYBERCRIME
2021 saw the losses and spending on cybercrime by firms and institutions reaching a 17-year high. Studies and past reports have shown that the faster a firm responds to a threat, the lower the costs on account of cybercrime can be. IBM published a Data Breach Report, which found that firms who can identify and respond to cyberattacks within the first 200 days can reduce costs amounting to several million dollars.
The estimate of projected losses of $6 Trillion cited above includes monetary losses during an attack, other than the money spent on preventive tactics. The costs mentioned account for approximately 90% of cybercrime and 10% of prevention of cybercrime. Firms are impacted during a breach on account of dealing with security implications, investigating costs, unplanned downtime and productivity interruption. In addition, the deployment of cybersecurity measures requires an expenditure on staffing qualified professionals who can raise the alarm and strengthen the resilience of the networks within an organization.
ARE ORGANIZATIONS PREPARED FOR CYBER THREATS?
Cyberattacks damage the trust and reputation of a firm. Despite the rapid growth of cyberattacks, many firms are still unprepared when it comes to resilience against cyberattacks of any kind. According to an IT Governance Study, 48% of executive managers admitted that their employees had not received cyber security training, with even fewer firms at 32% reporting to have no cyber security function within their organization. These figures are appalling considering the spate of attacks taking place, and the gaps are enough for hackers and cybercriminals to take complete advantage of, to plan newer and more silent ways of attacking an organization.
Greater importance also needs to be given to having efficient incident response plans in place, going by the high number of interruptions seen in 2021. This ensures reduced uncertainty, minimizes the impact of breaches, and reduces the time taken to resume business as usual.
INTERNATIONAL CONFLICTS AND CYBERATTACKS
2022 has been an example of how severe cyberattacks can get when they are involved in major international events such as political conflicts. Since warnings of an imminent attack were announced, the Russian-based cyber threats increased by 800% in 48 hours. This has resulted in monitoring online activity tools and the new implementation of evolving techniques. There is a renewed focus on cybersecurity owing to anticipated financial and business implications.
As per Microsoft’s Digital Defence Report, Russia is responsible for 58% of all known nation-state cyberattacks, with the top three target countries being the US, Ukraine, and the UK. In February 2022, amid the Ukraine war, Russia’s cyber forces aimed to impose a never-seen-before wiper malware on Ukraine’s ministries and financial institutions – a cyberattack which was detected by Microsoft.
Since the beginning of this conflict, countries have been gearing up for what would be some of the biggest cyber risks known in recent times. In anticipation of cyberattacks, businesses have been compelled to assess their risk, infrastructure, and operations, and they can recover promptly with minimal damage. Expenses for securing systems and software have also gone up, adding pressure to protecting customer data.
THE FUTURE
With the progression of time, there are fewer signs of cyberattacks slowing down, and it seems like this warfare has only begun. Navigating the technological landscape is becoming increasingly difficult and expensive. Firms are giving greater attention to data protection but more needs to be done beyond simply preventing breaches. It now seems that the evolution of technology is adding to the increase of unconventional threats, and organizations need to stay on top of the curve to avoid breakdown of business operations.
About SNS
Secure Network Solutions (SNS) provides a quantifiable, risk-based approach to building a global structure of cybersecurity, based on internationally recognized frameworks and practices. We have been providing services and catering to clients across industries for the last 20 years. Write to us at [email protected].
