January 17, 2016
‘Crime wave’ is an understatement when you consider the costs that businesses are suffering as a result of cyber crime. ‘Epidemic’ is more like it. IBM Corp.’s Chairman, CEO and President, Ginni Rometty, recently said that cyber crime may be the greatest threat to every company in the world.
Three years ago, the The Wall Street Journal estimated that the cost of cyber crime in the U.S. was approximately $100 billion. The estimate disputed other reports which pegged the numbers by as much as ten times higher.
In 2015, the British insurance company Lloyd’s estimated that cyber attacks cost businesses as much as $400 billion a year, which includes direct damage plus post-attack disruption to the normal course of business. Some vendor and media forecasts over the past year put the cybercrime figure as high as $500 billion and more.
From 2013 to 2015 the cyber crime costs quadrupled, and it looks like there will be another quadrupling from 2015 to 2019. Juniper research recently predicted that the rapid digitization of consumers’ lives and enterprise records will increase the cost of data breaches to $2.1 trillion globally by 2019, increasing to almost four times the estimated cost of breaches in 2015.