Cyber attacks are becoming more frequent as the Internet penetration in different countries increases. These attacks not only affect individuals, but sometimes pose significant risks to governments and corporations. Forecasts show that global economic losses from these attacks will increase to USD 10.5 trillion in 2025 from an impressive USD 8 trillion in 2023.
Attacks are growing significantly and affecting several industries. In recent years, we’ve even seen some countries accuse others of cybersecurity concerns. A recent example is China accusing the US of using Huawei servers. A new report, The Cost of a Data Breach, from IBM shows that average losses in recent years have reached $4.45 million per attack. In 2023, cyberattacks were estimated at $8 trillion, and in 2024 they could reach $9.5 trillion. According to a survey by Statista, cyberattacks, in addition to business interruptions, are the most damaging to businesses around the world.
In the coming years, losses will only increase. According to Statista and Cybersecurity Ventures, losses from cybersecurity thefts will increase to $10.5 trillion in 2025. They will then rise to $11.3 trillion in 2026 and $12.4 trillion in 2027. However, these figures are projected based on the current scenario; however, they may change as the introduction of artificial intelligence will further increase losses.
Details of cyberattacks in various industries
In particular, in 2023, the healthcare industry suffered losses of about $10.93 million. Sensitive information in the healthcare sector, such as personal information, social security numbers, and other data, attracts attackers. This leads to identity theft, insurance fraud, and in rare cases, even extortion.
Meanwhile, the manufacturing industry accounted for 30% of attacks last year. The industry’s inability to cope with any downtime that halts production often results in companies paying a ransom. Chipset maker TSMC confirmed a cybersecurity and data breach incident where an attacker demanded a $70 million ransom.
The IT sector is a prime target in itself, as it is the backbone of digital work across sectors. It even has a significant impact on other services, which is another reason why cybercriminals often target IT companies.
In addition to industries, cybercriminals often target high-profile individuals. This list includes prominent politicians, industrialists, and other influential individuals.
Understanding the impact of cyberattacks on various industries
The cyber threat landscape is indeed evolving rapidly, with data breaches, ransomware, social engineering, supply chain attacks, and threats posed by artificial intelligence posing significant risks to businesses and individuals alike.
IBM research shows that in 2023, the average cost of a data breach globally increased dramatically, reaching $4.45 million, with the highest average cost recorded in the United States. The severity of data breaches is evidenced by incidents such as those affecting Real Estate Wealth Network, Comcast Cable Communications, Delta Dental of California, and Integris Health, which compromised billions of records containing personal information.
However, the Middle East countries are followed by the United States with $8.07 million in losses, and then Canada with $5.13 million in data breaches. The rest of the list includes Germany, Japan, the UK, France, Italy, Latin America, South Korea, and other countries.
Various attacks that harm the industry
To take a deeper dive into the evolution of the cyber threat landscape, including types of attacks, their consequences, and defense strategies, read on:
Phishing: cybercriminals impersonate legitimate organizations to steal confidential information via email, text messages, or other channels, focusing on human error rather than system vulnerabilities.
Ransomware: Malicious software encrypts files until a ransom is paid, with the number of such attacks increasing by 55% to 4,368 cases in 2023.
DDoS attacks: By overloading online services with traffic from various sources, DDoS attacks disrupt operations and lead to loss of revenue.
Malware: Malicious software infiltrates systems to allow unauthorized access and espionage, with Trojans accounting for 58% of all malware.
Data extortion: Cybercriminals steal sensitive data and demand ransom by threatening to publicly disclose or sell the stolen data.
Man-in-the-middle (MitM) attacks: By intercepting and possibly altering communication between two parties, MitM attacks result in the theft of personal and financial information.
The projected increase in the cost of cyberattacks underscores the urgency of addressing cybersecurity vulnerabilities and implementing reliable protection mechanisms. Both businesses and individuals should prioritize cybersecurity to reduce risks and minimize the impact of cyber threats.
There is an urgent need to invest in cybersecurity infrastructure and legislation to combat cyber threats. In a rapidly evolving digital environment, proactive measures are crucial to protect against cyberattacks and mitigate their potentially devastating effects.