Cybercrime has been a major concern for businesses globally in recent years. The increasing reliance on technology has resulted in an increased number of cyber-attacks, causing widespread business interruption and resulting in significant losses. Cybercrime is a broad term that encompasses a range of illegal activities carried out using technology. Some of the most common types of cybercrime include:
- Phishing scams
- Ransomware attacks
- Data breaches
- Malware infections
- DDoS attacks
In this article, we will explore the current state of international cybercrime activity, its impact on businesses, and the measures that organisations can take to mitigate the risk of cyber-attacks.
International cybercrime activity
According to Cybersecurity Ventures, the global annual cost of cybercrime is predicted to reach $8 trillion USD in 2023. Compounding this is the rising cost of damages resulting from cybercrime, which is expected to reach $10.5 trillion by 2025. The same report also predicts that a business will fall victim to a ransomware attack every 11 seconds.
The COVID-19 pandemic has also fueled the growth of cybercrime. With millions of people working from home, there has been a significant increase in the number of cyber-attacks targeting remote workers. Additionally, the shift to online commerce has also led to an increase in e-commerce fraud.
“The current challenges with international cybercrime activity are having a significant effect on the operations of industry and business in general, but the significant move towards global online cloud-based and blockchain systems, has led to significant risk to operations when these attacks take place.” – Richard Blow FRICS FAP (P&M), MD and Head of Valuation Advisory
Impact of cybercrime on business interruption
Cybercrime can have far-reaching impacts on businesses, including financial losses, reputational damage, and business interruption. Some of the key impacts of cybercrime on business interruption include:
- Downtime: A cyber-attack can result in significant downtime for businesses, preventing employees from accessing the systems and data they need to do their jobs.
- Loss of revenue: Business interruption can result in a loss of revenue, particularly for organisations that rely on technology to generate income.
- Reputational damage: Cybercrime can also result in significant reputational damage, as customers may lose trust in the affected organisation.
- Data loss: Cybercrime can result in the loss of sensitive and confidential data, which can have serious consequences for both the affected organisation and its customers.
“There have been several well publicised cases in Australia and around the world where cyber-attacks have caused entire operations to be shut-down. An example is the 2022 HBF Health Insurance data breach after private medical records were published onto the dark web, and the 2021 US Colonial pipeline shut-down due to a ransomware attack, causing a significant effect to businesses and consumers for critical supplies of oil.” – Richard Blow FRICS FAP (P&M), MD and Head of Valuation Advisory
What measures can be taken to mitigate cybercrime risks?
To minimise the risk of cybercrime and its impact on business interruption, organisations can implement a number of measures.
- Employee training: Regular employee training can help to raise awareness of cyber threats and reduce the risk of cybercrime.
- Strong passwords: Implementing strong password policies and using multi-factor authentication can help to prevent unauthorised access to systems and data.
- Regular software updates: Regularly updating software can help to prevent cyber-attacks by fixing vulnerabilities.
- Backup and disaster recovery plans: Having a robust backup and disaster recovery plan in place can help to minimise the impact of a cyber-attack.
- Cyber insurance: Many organisations are now turning to cyber insurance to help mitigate the financial impact of cybercrime.
In conclusion, cybercrime is a growing concern for businesses globally. By taking appropriate steps, and innovating with the evolution of the cyber-space, organisations can reduce the risk of cybercrime and its impact on business interruption. If you are interested to learn more, please get in touch with Griffin Valuation Advisory.