Not convinced that you need to protect your data from cybercriminals? Take a look at these statistics on Australian cybercrime in 2019.
Cyber crime in Australia is a serious risk to businesses and organisations that cannot be ignored. However, many organisations still don’t have adequate protection against hackers, scammers, malware and phishing. To help you understand the serious nature of cybercrime in 2019, here are some statistics for you to review. While up-to-date technology can transform companies and improve productivity and efficiency, if you don’t have proper cyber security, it’s only a matter of time before you are attacked.
Is Cyber Insurance Protecting Your Business?
Just like other factors that can cause damage to your organisation, cybercrime is a serious risk. Have you insured your organisation against cybercrime?
- Chris MacKinnon, a representative of Lloyd’s in Australia, stated, “In 2017, we wrote about $30 million worth of premium on cyber, and we would expect to see that continue obviously in the new environment we are trading in here.” (Insurance Business Mag, 2019)
- Stand-alone cyber insurance costs range from $900 to $2500, dependent on the valuation of small business and risk factors. (AB Cyber Pro, 2018)
- Only 37% of survey respondents had any cyber insurance coverage. (BDO, 2018)
- One cyber attack can put you out of business
Are You Willing to Risk Data Breaches?
Notable data breaches are announced in the news in Australia and around the globe. Ransomware has been troublesome for both businesses and municipalities. Have you had a risk assessment by a cybersecurity expert? Here are just a few recent examples:
- Ransomware caused data breaches at Cabrini Hospital, and locked 15,000 patient files while demanding a ransom payment. (The Age, 2019)
- Approximately 137,500 unique valuation records, and approximately 1,680 supporting documents and approximately 250,000 individual records in total (with many duplicate records) were accessed in the Landmark White data breach. (Landmark White, 2019)
- The Bunnings Warehouse data breach involved 1,194 customer records and staff names and logins. (Yahoo Finance, 2019)
Are You at Risk of Losing Customer Trust?
Customers are wary of giving a business their trust, and while trust can be earned, it can also be lost through negligence or inadequate cybersecurity. Once lost, customer trust is much more difficult to win back.
- Gemalto’s Customer Loyalty 2018 Report found Australian consumers are more likely than their global counterparts to walk away from a company (retail, financial, healthcare) that experiences a data breach, with over two-thirds (70%) admitting they would look elsewhere if financial and sensitive information such as card details and bank accounts were stolen. Over half (55%) admitted they would also walk if passwords alone were stolen. (CMO, 2019)
- 2/3 of Australian consumers worry that their online personal information will be stolen. (CMO, 2019)
Which Industries are the Most Affected by Cyber Crime?
Although all industries are at risk of cybercrime, there are specific industries that are attacked more regularly, likely because they are more apt to have data that can easily be sold on the Dark Web.
- Retailers (62%), social media sites (57%) and banks (53%) are most at risk of suffering the consequences of a data breach. (CMO, 2019)
- The NDB quarterly data-breaches report showed that the healthcare provider industry reported the most breaches, a total of 163 in 12 months. The finance industry was second with a total of 119 reports in 12 months. The legal industry followed with 87 and education with 62. (www.arnnet.com.au, 2019)
How Much Time and Money is Lost due to Cyber Crime?
Corrupted business data, loss of productivity, and loss of clients are the top potential impacts from cybercrime. It all comes down to time and money lost that could have been used for investments to build your organisation. Here are just some costs for Australian companies.
- The average cost of a data breach is $1.99 million. (Ponemon Institute, 2018)
- The average cost per record stolen is $108. (Ponemon Institute, 2018)
- The average time to identify a breach is 185 days. (Ponemon Institute, 2018)
- The average time to contain a breach is 75 days. (Ponemon Institute, 2018)
- Almost 18 percent of SMEs were impacted by a cyber incident. (BDO, 2018)
- 30% of survey respondents were affected by a cyber incident, and they weren’t confined to large corporations. (BDO, 2018)
- One year after the NDB scheme was initiated, human error has been responsible for the unauthorised disclosure of data of more than 270,000 people. (www.arnnet.com.au, 2019)
- 84% of Australian organisations report that budgets for cyber and electronic security will increase within the next 12 to 24 months. (Telstra Security Report, 2019)
- 33% of Australian organisations are increasing the number of executive and board meetings to discuss cybersecurity due to regulatory and compliance requirements. (Telstra Security Report, 2019)
- 65% of Australian organisations have experienced business interruptions due to a data breach in the past 12 months, up 5% from 2018. (Telstra Security Report, 2019)
How Can You Begin to Protect Your Sensitive Data?
Don’t assume that your cybersecurity is infallible just because you haven’t encountered a data breach yet — have Steadfast Solutions conduct a risk assessment so you can be sure.
Published on 2nd November 2019 by Ian Brady.