- A survey by Bitkom found that cybercrime and other activity by cybercriminals have cost German businesses roughly €267 billion ($298 billion) this past year, showing a significant increase from previous years.
- The report by Germany’s digital association also highlighted that 9 in 10 German companies are expecting more cyber attacks in 2024 as cyber threats continue to escalate in the digital landscape.
A report released by the German industry association Bitkom highlights the alarming effects of cybercrime on its businesses and economy. The survey, spanning roughly 1,000 companies across diverse sectors, found that cybercrime and other activity by cybercriminals have collectively cost German businesses $298 billion in losses in 2024. The figure shows a 29% increase over 2022, putting cybercrime in the spotlight.
The report also found that 90% of surveyed businesses expect more cyber attacks in the next twelve months. The remaining 10% said they expect the rate of cyber attacks to remain the same, while none believed that such threats will reduce in the foreseeable future.
The report also presented insights into the sources of such cyber threats. Roughly 45% of surveyed businesses said they could trace at least one cyber attack to China, up from 45% last year. Cyber threats originating from Russia came in second, with 39% of German businesses being able to trace one attack to the Russian cybercriminals. Further analysis shows that organized crime groups are responsible for 70% of the cyber attacks on German businesses,
The negative effects of these attacks are not limited to money, as 81% of the surveyed companies reported data theft, including customer data, passwords, access credentials and intellectual property such as patents.
Bitkom’s President Ralf Wintergerst has urged businesses to step up their protective measures amidst the increasing cyber threats. He warned that “the threat situation for the German economy is worsening.”
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As a response to the report and Wintergest’s statement, German businesses have allocated 17% of their IT budget to digital security, a mild increase from 14% last year. However, challenges persist as only 37% of businesses have an emergency plan to react to security incidents in their supply chain.
Conclusion
The Bitkom report underscores the impact of cyber threats on German businesses and its economy as a whole. The findings highlight a critical need for the surveyed companies to bolster their defences and develop plans to tackle disruptions from cyber threats. Moreover, with most security experts expecting an increase in cyber attacks, bolstering enterprise security is the need of the hour.
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