You can’t solve a problem if you don’t know the problem exists. Cybercrime affects manufacturers small and large, public and private. Without clarity of your cyber exposure and the risk to your business, how can you implement the essential security solutions to prevent and detect cyber threats, and respond to events to minimize business disruption and financial losses?
The Ponemon Institute presented findings in the 2020 Cost of Insider Threats: global study. This benchmark study was conducted to understand the direct and indirect costs that result from insider threats. One of the key takeaways from this study was the most expensive insider threat, per incident, is theft of credentials. These incidents have increased significantly in frequency and cost. In fact, the frequency of incidents per company has tripled since 2016 from an average of 1 to 3.2 and the average cost has increased from USD $493,093 to USD $871,686 in 2019. On an annual basis, organizations are spending more to deal with insider negligence, but the per incident cost is much lower than theft of credentials.
In addition to the Ponemon findings, Beazley Breach Response Services released a briefing outlining the reported incidents of their policyholders in 2019. They recorded an increasing number of ransomware incidents that resulted from attacks on IT managed service providers (MSPs) and other service companies providing organizations with infrastructure and support services. In some cases, these attacks halted the operations of hundreds of customers downstream from the attacked IT provider or vendor.
Beazley reported other disturbing facts from policyholders:
· 78% of manufacturing losses were caused by hack or malware
· 39% of all reported incidents in manufacturing were caused by ransomware
· 131% increase of ransomware incidents in 2019 over 2018
· 38% of middle market companies were impacted by ransomware events
· 62% of small and medium businesses were impacted by ransomware