The average cost of cybercrime has increased by around 200% in the past few years and is likely to keep growing, a report by Hamilton Place Strategies (HPS) reveals.
According to the ‘Cybercrime Costs More Than You Think’ paper, cybercrime costs the global economy up to $450bn (£325bn) each year. The introduction explains: ‘In an increasingly interconnected world fuelled by the expansion of digital technology, cybercrime has become a big business.’
The paper puts cybercrime into perspective: if it was a genuine economy it would be the 23rd largest in the world; if it was a US industry, it would be greater than the entire oil and gas or farming industries.
The reputational risk of cybercrime far surpasses the monetary damages associated with breaches, argues the consulting firm. Moreover, this type of crime has a ‘ricochet effect,’ meaning businesses sharing an industry with a victim could be impacted by an attack even if it wasn’t directly aimed at them.
HPS warns that all businesses are likely to endure a cyberattack over the next couple of years. Whilst they can’t be prevented altogether, preparing for a breach will help businesses respond in a timely and effective manner. There are a number of things all companies should do, says HPS, including:
- Identify how the business is likely to be attacked and create a list of measures the business currently implements to prevent cyberattacks.
- Train a technological expert on how to communicate with the media in the event of an attack.
- Understand which employees need to be involved in communications following an attack and identify where the cyber expertise is within the business.
- Develop a comprehensive response plan.
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