What is actually lost when a cybercrime occurs? Besides a company’s reputation, which if not lost completely, is certainly damaged, companies lose millions of dollars to cybercrimes. Cyber loss can be the loss of funds from a company or an individual, in addition to a loss of data, trust, and security.
SEE ALSO: What is Cyber Fraud?
When a credit card number is stolen online, (either individually or on a large scale from a company’s database) the individual who owns the credit card faces losses due to identity theft. The criminal may make fraudulent purchases on the credit card or sell the card number to a third party who will make fraudulent charges. The individual is potentially out thousands of dollars to pay for those purchases. Most credit card companies will handle the theft, in which case they absorb the loss. The store or point of sale may also be responsible for some or all of the loss because of the recent shift by the credit card companies to Chip and Pin technology.
Hackers may also breach the security systems of a company or bank and deplete money from accounts. In general, this type of loss increases by the size of the company being attacked. It is estimated that the global economy, both private citizens and corporations combined, lose $400 billion annually to cybercrime. This number is startling. Over 40 million Americans are affected by cybercrime each year.
Cybercrime is on the rise and has increased by 780% in the last decade. With this increase, comes an increase in the amount of cyber loss. Cybersecurity teams are constantly evolving to develop new and improved ways to protect data from cyber loss, but in the meantime, the cyber loss risk continues to increase and impact people and companies across the globe.
To protect themselves from the financial impact of cyber loss, many corporations purchase cyber risk insurance. This is where HSNO’s forensic accounting skills are leveraged. We can quickly and accurately assess and compute the economic damages suffered from a data breach incident. For more information, visit our Cyber Fraud service page and sign up for our Cyber Fraud Newsletter.