Global Recession Could Lead to Increase in Cybercrime, Warns Economist
As economists predict a looming global recession, concerns are being raised about the potential increase in cybercrime. Historical data has shown that during economic downturns, cybercriminals tend to exploit the situation and turn to illegal activities to make money. This was evident during the 2008–2009 global financial crisis and subsequent recession when cybercrime rates soared.
Researchers studying the impact of the financial crisis on cybercrime noted a significant rise in financial cybercrimes, particularly identity theft. This surge was attributed to the widespread proliferation of new technologies that increased the number of individuals with IT skills. The alarming trend indicated that economic struggles provide fertile ground for cybercriminals to capitalize on vulnerabilities.
During times of economic hardship, businesses often feel compelled to cut spending in an effort to mitigate financial pressures. This can pose a challenge for cybersecurity budgets as security measures are often viewed as a cost center. Chief financial officers (CFOs) may scrutinize every line item in the budget, looking for potential areas of savings. As a result, non-essential cybersecurity expenditure becomes susceptible to cuts or postponements.
However, a smaller group of CFOs recognize that cybersecurity is an area where potential savings can be discovered. Despite the difficulty in quantifying cybersecurity’s return on investment, these leaders understand the consequences of cutting cybersecurity expenditures. Decreasing cybersecurity investments during economic downturns can lead to a surge in cybercrime rates, ultimately increasing costs for organizations.
Maintaining a long-term approach to cybersecurity expenditures is crucial for organizations aiming to build resilience against cyberthreats. While cutting cybersecurity budgets may offer minor short-term savings, it can leave an organization vulnerable to cyberattacks. The financial losses resulting from a breach could far surpass any budgetary savings made. Finance leaders should collaborate closely with chief information security officers (CISOs) and security teams to understand the essential tools necessary to keep up with evolving cyberthreats.
Managing and securing an organization’s systems and data becomes more challenging as complexity increases. It becomes harder to keep track of all components and ensure they are properly configured and secured. Furthermore, complexity hampers effective communication and coordination of cybersecurity efforts within organizations. In cases where multiple teams or departments are responsible for different aspects of cybersecurity, ensuring alignment and adherence to consistent processes and procedures poses a challenge.
To effectively protect systems and data, organizations must actively manage the complexity of their cybersecurity efforts. Implementing processes and technologies to reduce complexity, streamline cybersecurity management, and train employees to follow best practices are essential steps. Embracing consolidation and adopting a cybersecurity mesh architecture, as defined by Gartner, can also help organizations navigate the complexities of cybersecurity with greater efficiency. Gartner predicts that by 2024, organizations adopting a cybersecurity mesh architecture will reduce the financial impact of security incidents by an average of 90%.
It is important to emphasize that cyber resilience does not necessarily require increased expenditures. Wise allocation of cybersecurity budgets is crucial, often without incurring additional costs or targeting the most likely risks. Finance leaders and security leaders must collaborate to align on platforms and strategies that promote the overall health of their security programs.
As the world braces for potential global economic turbulence, the specter of rising cybercrime looms large. Organizations must be proactive in adapting to the evolving cybercrime landscape and resist the urge to cut cybersecurity budgets. By prioritizing cybersecurity and investing wisely, organizations can better safeguard their systems and data against relentless cyberthreats.