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Cost of Cyber Crimes

The costs of cybercrime are extremely high in recent years. As cybercriminals are leveraging multiple tactics (for example ransomware-as-a-service), cybercrime is going to remain undiminished and unlikely to stop.

The major costs that are associated with cybercrime basically include the destruction of data, stolen money, theft of intellectual property, theft of personal or financial data, fraud, forensic investigation, restoration and deletion of hacked data and systems, and reputational harm.

Unfortunately, cyberattacks are growing at an unprecedented speed around the globe, and they are increasing both in size and cost. Worse yet, no industry is untouched by the increasing cost of cybercrime. To put it into perspective, banking was the most affected sector with yearly costs crossing 18 million US dollars in 2018.

The software industry was the third most affected with 16 million US dollars (up by 11%). Capital markets were the seventh most attacked sector with nearly 14 million US dollars, which is up by 32% compared to the previous year. Besides, Gartner Inc. stated that global information security spending reached approximately 87 billion US dollars in 2017.

In a continuously changing digital environment, it is critical to keep pace with the effect of cyber trends. In spite of massive investments, cybercriminals are testing companies’ resilience by layering attacks, and this makes businesses to re-consider their cyber postures, to ensure they are not creating new security gaps.

The average cost of cybercrime for an organization increased to 13 million US dollars, and total value at risk will hit 5 billion US dollars during the next 5 years.

Smaller organizations face a higher proportion of cybercrime costs relating to malware, phishing, and social engineering attacks, whereas larger organizations encounter a higher proportion of costs relating to denial of services and malicious insiders.

Cybercrime is likely to remain a large-scale concern for years to come, and without a bigger effort to execute essential security controls, there will be more attacks using an ever-expanding range of strategies.