What are the impacts of cyber crimes?
Posted: 1st June 2024 - Reading Time: 4 minutes
Cyber crime is a growing menace, estimated to cost the world over $10.5 trillion by 2025. This insidious threat impacts individuals, businesses, and nations alike, affecting finances, security, and even trust.
The cost of cybercrime on the UK economy is substantial, with estimates suggesting it reaches several billion pounds annually. According to a report by the Centre for Economics and Business Research (CEBR) in collaboration with cybersecurity firm Norton, the estimated cost of cybercrime to the UK economy was approximately £27 billion in 2022. This figure encompasses various aspects, including direct financial losses, the cost of recovery and mitigation, lost productivity, and the impact on businesses’ reputations.
Additionally, a 2023 report by the UK Government’s Department for Digital, Culture, Media and Sport (DCMS) highlighted that cybercrime continues to pose a significant threat to businesses of all sizes. The report found that the average cost of a cyber security breach for medium to large businesses was £19,400, while for small businesses, it averaged £4,200.
These figures underscore the significant economic burden of cybercrime and the importance of robust cybersecurity measures to protect businesses and the broader economy.
Individuals: Financial and Psychological Toll
Individuals are not immune. Cyber attacks can clear out bank accounts, damage credit ratings, and leave victims feeling depressed, embarrassed, and confused. Recovering can be time-consuming, requiring setting up new accounts and dealing with a wide range of authorities.
Businesses: Reputational Damage and Competitive Disadvantage
Organisations face financial repercussions, including a fall in share price, regulatory fines, and reduced profits. Cyber attacks can expose sensitive data, leading to a loss of competitive advantage. Additionally, reputational damage from data breaches can result in losing key staff, damaged relationships with customers, and intense media scrutiny. Customers may not feel safe shopping with the organisation and stop visiting their websites.
Charities: Increased Vulnerability
The charity sector is a growing target. One in six large charities are expected to be attacked in the next two years, with many attacks going unnoticed. Astonishingly, charities are four times more likely to discover cyber crime through internal IT controls or by staff raising concerns than through all other external sources combined.
Multi-Organisational Enterprises: High-Profile Targets
Large, complex organisations where different organisations work together collaboratively to deliver complex products or service systems are particularly vulnerable. For example, the NHS is made up of a number of different organisations (GP surgeries, hospitals, clinics, etc.) that all work together to deliver healthcare.
For large organisations such as the NHS, their size makes them a high-profile target. Digital Health Intelligence has reported that more than 50% of NHS trusts now have electronic patient record systems which hold vast amounts of sensitive personal data.
What is the impact on organisations like the NHS? It is predominantly financial loss, for example, from extortion using ransomware or theft of data such as staff or user bank account details.
International Organisations: Increased Complexity and Risk
International organisations, with branches or conducting business in different countries, face an even greater risk of cyber attack. It may be necessary to work across borders or to coordinate many different parts of the organisation to fight the attacks. International organisations may also need to adhere to different types of laws, so they may also be at risk of larger fines and legal consequences if there is a breach.
Nations: Espionage, Infrastructure Threats, and Social Engineering
As we have seen, nations are facing a huge increase in cyber espionage, including damage to infrastructure and key services. There is also evidence in some places of election interference and other types of large-scale social engineering, reducing trust in governments and making it harder for them to act.
State secrets, personal data on citizens, blueprints to military technology, and political manipulation are all key areas that cyber criminals are attempting to gain access to. The impact of cyber attacks on states can be catastrophic, and cyber criminals have attempted to gain access to nuclear power plants and vital facilities such as dams and electricity supplies.
The Need for Global Action
The ever-evolving landscape of cyber crime requires a comprehensive response. Individuals and businesses must be vigilant, employing strong passwords and security practices. Nations need to collaborate to develop international frameworks for tackling cyber crime. Only through collective action can we mitigate this growing threat and build a more secure digital future.
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