As the world relies more on technology, the threat of cybercrime grows ever larger. From costly ransomware attacks to catastrophic data loss, cybercrime has the potential to wreak havoc on people, businesses, and entire countries. Though backup and disaster recovery services can protect you, many modern business owners fail to adequately prepare for worst-case scenarios. For this reason, the following problems are already causing concerns in 2023.
- $8 trillion in damage
According to Cybersecurity Ventures, cybercrime is expected to cause up to $8 trillion in damage in 2023. To put that number in perspective, it helps to compare it to national economies, natural disasters, and illicit trade. If that number represented a country’s economy (rather than stolen wealth), it would be the third-largest on earth. When compared to natural disasters, cybercrime inflicts far more financial damage. Lastly, $8 trillion is larger than the entire illegal drug trade.
In short, it’s a lot. Furthermore, it’s unlikely to stop in 2023. Based on historical trends, experts predict it to reach $10.5 trillion by 2025. Alongside financial damage, cybercrime causes a whole host of other issues ranging from lost productivity to reputational harm.
- $52 billion in identity fraud
A lot of sensitive customer information is spread across the world in a variety of different databases. Unfortunately, these databases are highly vulnerable. When cybercriminals access them, they can steal personal information to use in identity fraud. In the US, losses from identity fraud totaled $52 billion in 2021 alone.
Roughly $28 billion of that comes from cyber criminals tricking people into revealing personal information they can use to inflict damage. They also regularly deploy bots and malware and then carefully cover their tracks. In total, these tactics affected 42 million Americans. Alongside taking hundreds of thousands of dollars, they caused victims to spend hours trying to resolve the matter.
- 43% of attacks aimed at SMBs
Although many assume that cybercriminals only target large organizations, that’s far from the truth. Roughly 43% of all cyberattacks are aimed at small to medium-sized businesses. To compound the problem, only about 14% of these SMBs are prepared to handle the attacks. All this adds up to a troubling picture: SMBs without adequate security suffer from frequent and targeted attacks.
The most common types of attacks involve phishing and social engineering. Next in line are attacks from stolen or compromised devices and then the theft of credentials. Not only do they disrupt daily operations, but they may cause irreparable damage.
- $4.35 million average cost for data breaches
In 2022—and it’s bound to rise in 2023—the global average cost of data breaches was $4.35 million. That number varies widely from country to country, with the US having the (unlucky) title of highest average cost for a data breach: a whopping $9.44 million. Just as costs vary between countries, it varies between industries as well. At $10.10 million, healthcare has the highest average cost.
- 62% of organizations understaffed
Despite the significant threats that cybercrime poses, 62% of organizations don’t have enough cybersecurity professionals on their side. Unfortunately, this is part of a worldwide trend. Experts estimate that there’s a workforce gap of about 3.4 million jobs in the cybersecurity industry. Alongside having trouble finding qualified help, up to 60% of organizations say they have trouble retaining that help. This dire situation makes all too many organizations vulnerable to attack.
The above cybercrime statistics are highly concerning. However, being proactive, staying vigilant, and hiring the right tech support can help mitigate those risks.
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