Cybercrime study names 200 billion euros in damage

09/04/2023

Source: Energy & Management Powernews

The latest study by the digital association Bitkom puts the annual damage caused by cyber attacks on companies at 206 billion euros. At the same time, precautions are being improved.

According to a study commissioned by the digital association Bitkom, the German economy is likely to suffer annual damage of 206 billion euros from cybercrime. This included theft of IT equipment and data as well as digital and analog industrial espionage and sabotage. At the same time, companies were investing more in their IT security: on average, 14 percent of a company's IT budget currently goes toward IT security, up from nine percent last year. Around one-third of the companies have a share of 20 percent or more, thus fulfilling the recommendation of Bitkom and the German Federal Office for Information Security (BSI).

The study was presented by Bitkom President Ralf Wintergerst in Berlin on September 1. Compared to the 2021 and 2022 surveys, the estimated damage continues to rise and remains above 200 billion euros, Wintergerst said. "Every second company feels existentially threatened by cyber attacks," he summarized. The boundaries between organized crime and state-controlled actors are blurred, he said. "The slight decrease in the number of companies affected is a positive sign and indicates that the protective measures are having an effect," Wintergerst concluded.

At the presentation of the study, Sinan Selen, vice president of the Federal Office for the Protection of the Constitution (BfV) represented the authorities. He said the results of the latest Bitkom study fit seamlessly into the agency's assessment of the situation. "We are confronted with a persistently high threat from state and non-state cyber actors," Selen said. Attacks ranged from political institutions to business - from specialized small tech companies to large corporations. Research institutions have also been affected,

Affecting all industries

Adversaries have staying power and are becoming more aggressive, professional and agile, he said. "Our response to this perpetuated threat is to significantly strengthen cooperation with our partners, quickly detect and respond to detected attacks, and continuously adapt our defenses," Selen explained. 46 percent of the affected companies were able to trace attacks back to Russia (2021: 23 percent), 42 percent were attacked from China (2021: 30 percent).

According to the survey of more than 1,000 companies across all industries, around three quarters (72 percent) were affected by analog and digital attacks in the past twelve months, while a further eight percent suspect this without being able to prove corresponding attacks beyond doubt. Compared to the previous year with 84 and 9 percent respectively, the number of attacks thus decreased slightly.

For the first time, a majority of 52 percent of companies also feel that their existence is threatened by cyberattacks. A year ago it was 45 percent, two years ago even only 9 percent. All companies must increase their IT security, Wintergerst warned. "At the same time, we need to further expand cooperation between business and security authorities to prevent attacks and identify perpetrators," he added.

Attacks increasingly digital

According to the survey, attacks on business are increasingly digital and cyberattacks account for the majority of the damage. Last year, 70 percent of companies were affected or suspected of being affected by theft of sensitive data, an increase of seven percentage points over the previous year, according to the survey. Sixty-one percent complained about the spying on digital communications and the digital sabotage of systems or operational processes. On the other hand, analog attacks are trending downward.

Updated warning from the Federal Office for the Protection of the Constitution

Just the day before, the Federal Office for the Protection of the Constitution warned of cyber attacks by Chinese hacker groups targeting small and medium-sized businesses and home networks in private households. In the current "cyber letter", the Federal Office for the Protection of the Constitution names the groups APT 15 and APT 31, which are also mentioned in the 2022 report on the protection of the constitution.

In the attacks, end devices such as routers and printers or smart home devices would be taken over in growing numbers by cyber attackers and used by the groups against government and political bodies. The Federal Office advises to always install the latest security updates - and to replace older devices that are no longer supported by manufacturers.

Author: Susanne Harmsen