Cybercrime grows 151% in 2021, costs $3.6 million per hack: WEF study

admin January 20, 2022
Updated 2022/01/20 at 2:19 PM

According to a new study released on Tuesday, the accelerated speed of digitalisation, fueled by the COVID-19 pandemic, has resulted in a record-breaking year for cybercrime, with ransomware attacks climbing 151% in 2021 and an average of 270 cyberattacks per organisation.

The “Global Cybersecurity Outlook 2022”, released during the World Economic Forum’s online Davos Agenda summit, also stated that each successful cyber breach cost a company $3.6 million (nearly Rs 27 crore) last year and that the average share price of the hacked company underperformed NASDAQ by nearly 3% even six months after the event, in case the breach became public.

According to the World Economic Forum, the global digital economy grew as a result of the COVID-19 pandemic, but so did cybercrime, with over 80% of cyber leaders now considering ransomware a “danger” and a “threat” to public safety.

Simultaneously, there is a significant perception gap between business executives who believe their organisations are safe and security leaders who disagree.

Although 92% of business executives were polled, only 55% of cyber leaders agreed.According to the paper, this leadership gap may expose companies to attacks as a consequence of incompatible security priorities and policies.

Even when a threat has been identified, over two-thirds of respondents in the WEF survey conducted in cooperation with Accenture said it would be difficult to react to a cybersecurity event owing to a lack of expertise within their team.

Even more concerning is the rising tendency of firms to take an average of 280 days to detect and react to a cyberattack. To put this in context, a January 1 event may not be entirely controlled until October 8.

Companies must now embrace cyber resilience, “said WEF Managing Director Jeremy Jurgens, “not simply protecting against cyberattacks but also planning for rapid and prompt incident response and recovery when an assault does occur.”

Accenture Chair and CEO Julie Sweet said that businesses must collaborate more closely with ecosystem partners and other third parties to make cybersecurity a part of their ecosystem DNA in order to be resilient and build consumer confidence.

According to the report, less than a quarter of cyber executives believe their organisations are cyber resilient.

They also do not feel consulted on business choices, and they struggle to win decision-makers

support for addressing cyber risks, despite the fact that recruiting and maintaining the appropriate personnel is their top priority.

Furthermore, approximately nine out of ten people believe that SMEs are the weakest link in the supply chain.


Source: The Economic Times

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