As the world has shifted from the physical to the digital, security threats have also changed from physical to cyber. The cyber risks are numerous, and the landscape evolves quickly. Juniper research states that cyber crimes accounted for $2 trillion in losses in 2019, and with hackers developing sneaky new approaches to infiltrate your business, that number is poised to rise.
With vulnerabilities increasing, businesses are investing heavily in cyber security and employee training, particularly regarding online scams and ransomware attacks. However, your business does not exist in a vacuum, and therefore is only as safe as your partners.
You may feel confident in your internal security processes, but can you say the same for every third party you work with? Here are five cyber security facts that may make you think twice about how safe your business really is.
- An estimated $6 trillion in damages by 2021
According to Cybersecurity Ventures, in 2021 the global damages related to cyber crime will reach $6 trillion. The estimate includes the cost to restore and mitigate following a ransomware attack, and is not limited to actual ransom payments. The recovery cost from a ransomware attack is substantial, and companies would be wise to consider these costs when budgeting over the next few years. - Only 10% of cyber crimes are reported in the U.S. each year
The United States has greatly undercounted the rate of reported cyber crimes, likely because they are often difficult to prove. According to the unit chief at FBI’s Internet Crime Complaint Center (IC3), the total number of cyber crimes reported only represent 10-12% of the actual number. - Ransomware attacks happen every 14 seconds
The 2019 Official Annual Cybercrime Report (ACR) predicts that businesses will fall for ransomware attacks every 14 seconds and as little as every 11 seconds by 2021. To put that in perspective, by the time you finish this article, nearly 10 businesses have been victimized by ransomware. Are you sure none of your third-party partners was one of them? - Half of all cyber attacks are targeted at small businesses
Small business owners often do not pay attention to cyber security, thinking they’re not worth being attacked. This is what makes them the perfect target. According to Juniper research, small businesses make up to 13% of the entire cyber security market and invest less than $500 in cyber security. - Bigger company doesn’t always equal better protection
That being said, some of the greatest data breaches have happened to large, well-known companies that have both the budget and the resources to dedicate to protecting their network against attacks.
| Company | Accounts Hacked | Date of Hack |
|---|---|---|
| Yahoo! | 3 billion | Aug 2013 |
| Marriott | 500 million | 2014-2018 |
| Under Armor | 150 million | Feb 2018 |
| Equifax | 145.5 million | Jul 2017 |
| Ebay | 145 million | May 2014 |
| Target | 110 million | Nov 2013 |
| 100 million | Jun 2012 | |
| AOL | 92 million | 2004 |
| Sony PlayStation Network | 77 million | Apr 2011 |
| JP Morgan Chase | 83 million | Jul 2014 |
| Uber | 57 million | Late 2016 |
| Home Depot | 53 million | Apr 2014 |
| 50 million | Jul 2017 |
Conclusion
Cyber crime is a real threat to businesses of every size. And the more third parties your organization interfaces with, the more vulnerable you are. The best defense is remaining educated on these threats coupled with comprehensive monitoring of all aspects of your third parties, including systems, processes and personnel. By having a next generation cyber risk management platform that continually assesses your multidimensional risks, you can quickly fix issues as they arise.
