Cyber Attacks Now More Costly than Natural Disasters
We all know earthquakes and hurricanes are a threat. But when did a cyber attack become as catastrophically damaging to our economy? Welcome to 2017 and the year US businesses will spend more money protecting themselves from virtual upheavals than physical threats.
Lucinda Shen at Fortune writes: “With an uptick in cyberattacks across the world, from WannaCry to Petya ransomware, a new report from banking heavyweight Lloyds of London warns just how vulnerable the U.S. economy could be in the event of an extreme attack.
The report, when partnered with cybersecurity analysis firm Cyence, suggests that the U.S. could potentially lose as much as $121.4 billion, which far exceeds the $108 billion in damages suffered from Hurricane Katrina.
If a detrimental cyberattack strain were to reach Lloyds’ extreme scenario of $121.4 billion, it would not only surpass the damages caused by Hurricane Katrina, but it would also exceed the cost of the 2010 Deepwater Horizon spill in the Gulf of Mexico of $61.6 billion, according to BP’s 2016 estimates.
“Cyber risk is a growing global threat,” the report stated. “While digitization is revolutionizing business models and transforming daily lives, it is also making the global economy more vulnerable to cyberattacks.”
According to Lloyds and Cyence, average economic losses from a major attack on cloud services could be about $53 billion. But those losses could also go as high as $121.4 billion or as low as $15.6 billion depending on the organization and its response.
In 2016, cyberattacks cost the world an estimated $450 billion, according to the Hiscox Cyber Readiness Report.
Samantha Keller
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