Companies Facing Soaring Financial Losses due to Cyber Threats
The financial struggle for companies is escalating: Data presented by Bitkom reveals that German businesses incurred an unprecedented loss of €266.6 billion in 2023, surpassing earlier years' financial setbacks. This astounding figure signifies an increase in cyber-related attacks on businesses.
Almost 8 in 10 firms reported experiencing a cyber attack in the past year, with an additional 10% suspecting they fell victim, according to Bitkom's report. These numbers reveal a 1% increase in reported attacks and a 2% rise in suspected cases for 2023. The figures for non-reported attacks remained constant. Over a thousand companies across various sectors participated in this study.
Ransomware attacks and cybercrime have caused significant financial harm to businesses, with total losses reaching €266.6 billion in 2023. The previous highest losses of €223.5 billion were reported in 2021. Organized crime is responsible for the majority of these attacks, as reported by over half of the participating companies.
Foreign intelligence agencies have increasingly targeted German businesses, with a 13% increase in reported incidents since 2023. China and Russia are the primary sources of these cyberattacks. Around 45% of businesses acknowledged tracing back at least one attack to China. Russia follows closely at 39%, with attacks from Eastern European states outside of the EU and Russia also on the rise at 32%.
Cyber Threat Landscape
The cyber threat landscape is growing ever more complex, with potential risks to companies escalating. In response, Bitkom President Ralf Wintergerst urged companies to fortify their digital and physical security measures. Sinan Selen, vice president of the Federal Office for the Protection of the Constitution, expressed concerns about how international conflicts and systemic rivalries are influencing the cybersecurity landscape.
The boundary between cyber espionage and cybercrime is becoming blurred. The roles of state and non-state actors are becoming increasingly intermingled. Stakeholders must remain vigilant amidst ever-present cyber threats.
Companies' Fears and Readiness
According to Bitkom's survey, 6 in 10 companies now fear for their survival due to cyberattacks. Conversely, only half of the companies believe that they are extremely well-prepared to face cyberattacks. Bitkom emphasized the vital role of IT security in our digital world, urging for companies to prioritize IT security and strengthen cooperation with government agencies, ensuring a collective approach to protection and law enforcement.
Business interruptions and operating losses due to cybercrime are becoming more prevalent. Countries beyond Germany are also reporting similar issues, leading many companies to worry about their existence.
Additional Insights
- The estimated daily operating losses from a 21-day ransomware attack are €800,000.
- Only 1 in 10 small and medium-sized enterprises (SMEs) in Germany were insured against cyber risk in 2022.
- The financial losses from cybercrime in Germany have been substantial since 2024, with 46% of companies experiencing data theft and 30% suspecting data theft.
- Ransomware attacks, government impersonation, and business email compromise (BEC) are among the cybersecurity threats faced by German businesses.
- The German domestic intelligence agency has issued a public warning about the activities of a Russian cybergroup within Russia's GRU military intelligence agency.
- Russia is a primary country responsible for cyber attacks impacting German businesses.
- Recent incidents involving Russian cyber activities include suspected military intelligence cyber attacks on Ukraine and a disruption of a Russian internet provider.
