Increasing incidences of data theft, espionage, and sabotage pose a growing threat to German businesses.

German businesses are grappling with an escalating threat of data theft, espionage, and sabotage. These malicious activities have reached an unprecedented level, causing a record-breaking 266 billion euros in damages as of late. This alarming figure surpasses the total damage inflicted in 2021, which stood at 223.5 billion euros.

According to research, a majority of these incidents can be traced back to the companies themselves. However, foreign intelligence agencies have also been implicated, with their involvement acknowledged by 20% of businesses – a significant leap from just 7% in 2023.

China emerges as the primary origin of these attacks, accounting for 45% of the total damage suffered by German companies, as reported by Bitkom. Russia follows closely with 39%. Interestingly, attacks originating from nations outside the EU and Russia in Eastern Europe have also seen a notable rise, reaching 32%.

Insights

The surge in cyberattacks against German businesses can be linked to several factors:

1. Enhanced cyber capabilities and ambitions: China is aggressively developing and deploying cyberattack capabilities to bolster its position as a global cyber power by 2035. This ambition has resulted in a significant increase in cyberattacks against German firms.
2. State-sponsored cyber espionage: Groups like APT10, responsible for the Cloud Hopper campaign, are stealing sensitive data and intellectual property from Managed Service Providers (MSPs) sponsored by China.
3. Hybrid threats and psychological tactics: The combination of technical and psychological tactics in hybrid attacks has increased the complexity and impact of cyber threats. These attacks not only aim to exfiltrate intellectual property but also cause indirect damage by disrupting critical infrastructure operated by corporations.
4. Heightened geopolitical tensions: U.S.-China relations, particularly over Taiwan, contribute to the escalation of cyber threats. Disruptions in trade flows in sectors like automotive and electronics could significantly impact German industries.
5. Russian GRU activities: The Russian military intelligence agency (GRU) focuses on espionage, sabotage, and reputational harm, posing a significant threat to global critical infrastructure.
6. Cybercrime democratization: The proliferation of advanced technologies has democratized cybercrime, allowing even unsophisticated individuals to orchestrate impactful attacks.
7. Economic and political sanctions: The extensive sanctions imposed on Russia in response to the Russia-Ukraine war have led to a rise in cyberattacks as a form of retaliation, increasing the risk for German businesses.

These factors, among others, contribute to the escalation of cyberattacks targeting German businesses, making it essential for companies to strengthen their cybersecurity measures to protect themselves against these threats.