Cybercrime is big business and criminal organisations are investing heavily. We have seen ransomware gangs with dedicated customer service agents to get you back on track once the ransom has been paid. However, the truth of the matter is that the financial future of your investment could be at risk. Cybersecurity is a critical issue for organisations because it protects all categories of data inside an organisation from theft and damage. It can encompass and align a body of technologies, processes, structures, and procedures to protect networks, computers, programs, and data from unauthorized access or damage. Most importantly a strong cyber security program will protect the reputation of an organization, recent reports show that the most significant financial impact of a data breach is not the cost of the Ransome or the repair of systems but is in fact lost revenue and business due to reputational damage. Here’s everything investors should know about cyber security before investing in a new venture.
The Threat Landscape
Widespread poor configuration of cloud services and networks paired with increasingly sophisticated cybercriminals means there is a significant risk an organisation may suffer from a successful cyber-attack or data breach. Therefore, investors should add cyber security to their checklist when evaluating a new venture.
Number of cyber-attacks in 2021
With a majority of the global workforce working away from the secure confines of a corporate network, 2021 was one of the most active years for cyberattacks. According to Check Point Research, cyberattacks increased 50% year-over-year, with each organization facing 925 cyberattacks per week globally.
As the statistics show, businesses witnessed 50% more attacks per week in 2021 compared to 2020.
Increase of cyber-attacks due to the pandemic and remote working
Cybercrime, which includes everything from theft or embezzlement to data hacking and destruction, is up 600% as a result of the COVID-19 pandemic. Almost all industries have had to invest in new solutions, and companies had to adapt quickly. Before investing in a new venture, you must analyze what is the company’s approach to remote working, what software tools are they using, what are the procedures and best practices currently in place to avoid or mitigate cyber risks.
How much a cybercrime can cost?
According to IBM’s 2021 report, the average global cost of a data breach has reached over € 3,55 million. That’s a 10% increase compared to 2019 due to the drastic work operational shift caused by the COVID-19 pandemic.
How Organisations Should Approach Cyber Security
Organisational Technical Intelligence
Technical intelligence includes understanding how the technology you use works, implementing security measures to protect your systems from attack and understanding what security measures your vendors offer.
Organisational Human Intelligence
Human intelligence includes training employees on best practices for cybersecurity and understanding their roles in risk mitigation.
Organisational Social Intelligence
Social Intelligence includes understanding how your employees communicate with one another and with outside parties, as well as monitoring social media channels for any potential threats to your company.
Checklist for Investors to Protect New Ventures
The most important step to prevent a cyber attack is to be aware of the risks. When investing in a new venture, you should always verify their cyber security approach to avoid data breaches and other attacks.
- Does cyber security form part of the overall business plan?
- Do staff receive regular security awareness training?
- Do they have a designated chief information security officer?
- Do they have a cyber security program?
- Have they got pen-test reports?
- How big is the security team, and is it composed of technical staff working on the data security infrastructure or random employees filling in security questionnaires?
- Have they implemented data security internal policies and procedures? (This involves User Account Management, Data Management, IT Security and Risk Management)
- Do they have an Information Security Management System or are they working towards a certification like the ISO 27001?
- Do they have a buy-bounty program?
There are many ways that companies can protect themselves against data breaches, but they all start with being aware of the risks and knowing what could happen if they are not careful. This is done at a management level and prior to deploying the latest and greatest security product.
If you are uncertain about your next investment, contact us! We give clarity and simple steps to help protect your investments.