A few years ago, only one in every four companies did business on the internet. Today, 100% of companies rely on the internet for their business operations. Unfortunately, with this increased digital adoption comes the risk of cyberattacks.
Around 70% of business leaders accept that they are now more vulnerable to cyber attacks, as they increase by 10% every year, resulting in a significant revenue loss.
To put things into perspective, cyberattacks and data theft are amongst the top five risks faced by CEOs, according to the World Economic Forum report on global risks.
This post will discuss why organizations are shifting to more robust digital infrastructure and the effects of this adoption.
Why Is Cybersecurity Awareness Increasing Among Business Leaders?
1. More Sophisticated Cyber Attacks
Cyberattacks are growing at an average rate of over 10% every year.
On top of this, hackers are constantly adapting to new ways to bypass the security systems. For example, cybercriminals are now launching attacks on industrial control systems rather than just focusing on data theft. Further, data is not only being copied or sold by malicious attackers. Instead, data is being destroyed and altered, causing distrust among every stakeholder. As for techniques, hackers heavily launch people-based attacks such as insider attacks, phishing, social engineering attacks, etc.
2. Media Coverage Resulting In Loss of Trust
Customer trust is at the center of every business.
A cyberattack makes the company a headline. There will be media reports everywhere citing the amount of user data leaked. Honestly, no customer will do business with such a company if they cannot promise data integrity.
On the other hand, if a business succeeds in inducing more trust among their customers as compared to their competitors, the business will enjoy a wider customer base. It is no wonder why higher security standards are becoming a marketing tool.
3. Increasing Losses
Globally, it is estimated that around $5.2 trillion is at risk due to cybercrimes.
The average cost of a malware attack for an organization is around $2.1 million per annum. On the other hand, malicious insider attacks cost organizations $1.6 million every year.
If we consider each type of cyber attack, the annual cost of a cyber attack for an organization stands at $13 million.
4. Regulatory Fines
Regulations like General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) hold organizations accountable for not using customer data responsibly. In case of consumer data leaks, companies are heavily fined. GDPR has fines up to $23 million or four percent of annual global revenues. On the other hand, CCPA imposes small fines of up to $7,500.
There is no denying that such economic disincentive inspires more accountability. However, it also increases the financial burden of companies in case of cyberattacks.
All these factors push organizations to invest more in their cybersecurity infrastructure. Companies are investing in technologies like blockchain, cloud services, AI, ML, as well as security intelligence threat sharing applications like SIEM, DLP, NGFW, and IPS to name a few.
These investments save significant costs for companies. For instance, security intelligence and threat sharing save around $2.26 million, whereas AI and automation save around $2.09 million.
A More Secure Digital World
The increasing cybersecurity adoption will slowly create a more secure place for digital interactions.
One of the major benefits of strengthening cybersecurity infrastructure is data integrity. Data is the lifeblood of this rapidly digitizing world. Cyber attacks not only harm business, instead, everyone is at risk. When hospitals are targeted, millions of patients are at risk. Cyber attacks on the country’s defense system compromise national security. When cybercriminals attack large industrial systems, they put a dent in the entire economy. Considering all this, strengthening digital security will play a major role in the nation’s economy, and security.
Improving cybersecurity infrastructure will also promote responsible digital behavior. Let’s be honest, people are the weakest link in cyber attacks. Insider hacks, phishing, and social engineering attacks are amongst the most popular ways to intrude an organization’s security firewall. Companies are thus providing extensive training to their employees against such risks to build a digitally robust workforce. Further, they are also helping customers to adopt more robust security measures.
Cyberattacks are indeed the biggest challenge for digitization. However, organizations are attempting to improve their cybersecurity infrastructure to provide their customers a secure digital environment.