Cybercrime loss to exceed $1 trillion in 2020; up 50% since 2018

A report by McAfee Corp, in cooperation with the Center for Strategic and International Studies (CSIS) has said that cyber­crime is expected to cost the global economy more than $1 trillion this year.

The cost is almost double the monetary loss from cybercrime than the $500 billion in 2018. The report said that it 'surveyed publicly available information on national losses, and, in a few cases, used data from not-for-attribution interviews with cybersecurity officials'.

The report concluded that the cost of online criminal activity was more than one percent of global economic output.

The researchers noted a surge in a range of attacks including ransomware, spyware, cryptocurrency theft, and business email takeovers. They attributed the increase to weaker security with more people working outside their workplace.

From January to June of 2020, the victims of the 11 most significant ransomware attacks in Europe and the U.S., in both the private and public sectors, have incurred financial losses of $144.2 million connected to rebuilding infrastructure, paying ransoms, and the creation of new security structures, the report said.

“The severity and frequency of cyber attacks on businesses continues to rise as techniques evolve, new technologies broaden the threat surface, and the nature of work expands into home and remote environments,” said Steve Grobman, chief technical officer at McAfee.

He continued that there is a need for a greater understanding of the comprehensive impact of cyber risk and effective plans in place 'to respond and prevent cyber incidents given the hundreds of billions of dollars of global financial impact'.

The reality of cybersecurity is that we cannot eliminate risk. At best, we can manage it. Relatively basic measures could improve performance; better cyber hygiene and, as our survey found, better planning and greater awareness among employees of the cost of cybercrime, the report added.