How Much Does Cybercrime Cost?

How Much Does Cybercrime Cost?

By the Year 2021, Losses from Cyber Crimes May Reach Up to $6 Trillion. Just in case you are shocked as indeed you should be, the title you just read is very true. According to a report by Aon, interestingly titled “Prepare for the Expected: Safeguarding Value in the Era of Cyber Risk”, the cumulative losses that will be chucked down to cyber-crimes by the year 2021 is expected to be up to $6 trillion. You can get the full report here.

These losses are a combination of both direct financial loses and those that come as a result of a combination of other factors. When a company is the victim of a cyber-attack, there are hundreds of issues that come up including loss in reputation, loss in customer confidence, drop in stock prices and of course loss of the business itself.

How much Does Cybercrime Cost?

All of these in addition to the direct financial losses are expected to make up the $6 trillion. Interestingly enough, in an attempt to avoid this, in the five years that will lead up to this year, companies will spend about $1 trillion in cybersecurity all in a bid to avoid this and improve their cybersecurity.

What Can be Done?
Thankfully, the report doesn’t just proclaim doom without proffering some solutions. Obviously it’s not just about spending money. There has to be some strategy to it. Here are some of the tips that Aon shared in the report:

Start from the Top
It is important that the very top echelons of any organization understand the real risks associated with cyber-attacks and take the threat seriously. Whatever policies and actions that will be taken must start from the top and spread to every section of the organization. Everyone must see that the top takes the issue seriously.

Treat it as a Common Enemy
Most organizations consider cyber-attacks an IT problem. Though this may appear to be true, it is a problem that can take down the entire organization. Given this, it should be tackled from every angle and treated as a common enemy.

Be Proactive
A reactionary approach will not cut it in this new reality. Organizations should not only go into high gear after they have been attacked. They should rather stay in high gear to ensure no attack takes place. This will require some level of investment and effort, while never losing sight of the threat.

Think Insurance
There are times when regardless of how careful an organization is, it could still get hit. A possibility such as this warrants the need for some insurance. Getting cyber insurance can help mitigate any loses that may arise from a cyber-attack.
In conclusion, it is clear that cyber-attacks will continue to be on the rise. Hopefully, applying the tips shared above will make the money, time and effort spent on cybersecurity more productive.

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