Cybercrime Costs to Touch $2-Trillion By 2019

by CXOtoday News Desk    May 14, 2015

cost

Cybercrime will cost businesses over $2 trillion by 2019, almost four times the estimated cost of security breaches this year, according to a report by Juniper Research.

Most breaches will target existing information technology and network infrastructure, the analytics firm said.  While attacks on mobile devices and the Internet of Things are being reported at an increasing rate, the number of infected devices is minimal compared to more traditional computing devices.

“Currently, we aren’t seeing much dangerous mobile or IoT malware because it’s not profitable,” the report’s author James Moar said in a statement. “The kind of threats we will see on these devices will be either ransomware, with consumers’ devices locked down until they pay the hackers to use their devices, or as part of botnets, where processing power is harnessed as part of a more lucrative hack.”

According to a recent whitepaper, respondents at organizations already targeted by cyber extortionists are more than three times as likely to be willing to negotiate with cybercriminals and nearly twice as likely to recommend setting aside funds for that very purpose.

“While 70 percent of security professionals refuse to negotiate, 30 percent are willing to do so - a figure that rises to 55 percent among organizations that have already fallen victim to cyber-extortionists. When asked if they believe other organizations have negotiated with cybercriminals, 86 percent of all respondents said “Yes,” said the study.

From ransomware and cryptoware malware to hacktivists and organized cyber-gangs to sophisticated APT data heists and state-backed cyber-espionage campaigns, the study finds that a significant number of security professionals are willing to - or at least believe their peers are willing to - accept the terms of cybercriminals in return for their data.

The report states that nearly 60 percent of anticipated data breaches worldwide in 2015 will occur in North America, but this proportion will decrease as other nations become increasingly prosperous and digitized. The stuy further predicts the average cost of a data breach in 2020 will exceed $150 million due to the increasing interconnectedness of business infrastructure.

To access the full report, “Click here.”