Cost of Cybercrime to Cost Trillions by 2025
Cybercrime is a major concern for organizations. Cybercrime statistics vary based on the source on data, but all are concerning, which is why we advise our clients to use multi-factor authentication (MFA) and other methods to keep cybercriminals out of their networks.
What are the primary methods used by cybercriminals?
Cybercriminals look for vulnerabilities at the entry points to your network, which is known as your attack surface. Verizon’s 2022 Data Breach Investigations Report found there are four main paths cybercriminals use to access your systems: credentials, phishing, exploiting vulnerabilities, and botnets.
People who are distracted or lack cybersecurity training, including staff, partners and supply chain vendors, are at high risk. It only takes a second for a distracted employee to click on a link sent by a fraudster pretending to be the IT help desk, a vendor, bank or other trusted source. Some criminals are looking for account login information, sensitive data, money or other resources, while others want to install ransomware on your system.
What is the cost of cybercrime?
In 2020, Cybersecurity Ventures predicted global cybercrime costs would grow by 15 percent per year over the next five years, reaching $10.5 trillion annually by 2025, up from $3 trillion in 2015.
According to the FBI’s Internet Crime Report, based on complaints in 2021, Business Email Compromise (BEC)/ Email Account Compromise (EAC) cost businesses nearly $2.4 billion. BEC/EAC targets both businesses and individuals with the authority to transfer funds. A fraudster often pretends to be a legitimate vendor and requests payment of a fake invoice or wire transfer, tricking the recipient into making a payment to the fraudster’s account.
In the same FBI report, ransomware led to losses of more than $49.2 million. Ransomware attacks can be carried out by nation-state actors, organized crime or even rogue insiders. They can target organizations ranging from critical infrastructure and hospitals to small businesses.
Companies also have to be aware of the costs associated with not fixing security vulnerabilities. For example, in January 2022, the FTC warned companies to remediate Log4j security vulnerabilities to reduce harm to consumers and avoid legal action by the FTC.
Damage to reputations for failing to have strong cybersecurity practices also hurts the bottom line. People who were victims of account takeover fraud or identity theft will blame the businesses who failed to protect them.
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Contact us now to keep your organization safe from cybercrime.