Verizon, Okta, SolarWinds, Microsoft, Citi, Maersk, AMD, Amazon AWS, Nvidia, Sony, Samsung, Qualcomm, Facebook, LinkedIn, Twitter, MGM, GM, Coca-Cola...
What do they all have in common? Besides being some of the most valuable companies on the planet, each recently experienced a cybersecurity breach resulting in substantial data loss and business exposure. Because it is a complex topic, this month's newsletter will be broken up into five parts and shared across five consecutive weeks. In each segment, we'll briefly review emerging risks in the online business world and what we can do about them. We've embedded links where appropriate as informational aids.
Subjects will include:
- What's happening, and what are the impacts?
- Who is doing this?
- What is driving this trend?
- What can we learn?
- What can we do about it?
As your partner, we encourage you to use the messages in this series to generate discussion within your organization. Cybersecurity is an 'Everyone' job, not just an IT job. Your business is only as strong as your weakest link, and you can start making your organization stronger simply by talking about it. If you need guidance on how to begin assessing your security practices, we recommend conducting a Data Security Essentials Evaluation.
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What is happening?
Cyber risk is growing exponentially. The total volume of successful data breaches against US companies during the 1st quarter of 2022 was double the volume from all of 2021. The FTC published data in February that showed consumer-reported fraud losses increased 70% over 2020, totals to $5.8B in 2021. Industry experts, including the CyberAlliance and CISA, expect the trend to continue. The other worrying data point is the number of companies that experienced a significant data breach and couldn't recover. A study conducted by US Bank showed that 60% of small to medium businesses that experienced a cyber security incident had become insolvent within six months.
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What are the impacts?
- Ransomware incidents are becoming more expensive. A company's average cost to recover from a cybersec breach in 2019 was $141k, increasing to $238k in 2020, and $1.85M in 2021.
- The total cost of cybercrime loss to the US economy has increased 57x since 2015 and is predicted to climb from the $20B we saw in 2021 to $265B in 2031.
- Companies who experience a cybersecurity event can expect substantial monetary losses related to reputational impact, depressed share price, decreased future revenue, stunted customer growth, shrinking market share, less desirability as an acquisition, loss of cyber insurance, civil and criminal litigation, and steep legal fees. CEOs and CFOs can expect drastically increased future scrutiny from lenders, partners, service providers, customers, insurers, and investors.
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Next Week...
In our next segment, we will continue our analysis of emerging threats by discussing the 'Who" of cybercrime. In the meantime, feel free to check out some of our source links below.
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About Fortis
Fortis is the only partner dedicated to transforming payments into your competitive advantage. We’re here to guide you through your unique journey and equip you with the right tools and capabilities for your industry.
Our unique “Platform-to-Platform” model allows us to create personalized experiences based on your software’s industry-specific needs. As we work with you and integrate into your software, your business will reach uncharted scale while experiencing strengthened relationships between your software and users.
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© 2022 Fortis Payment Systems, LLC (“Fortis”). All rights reserved. All other trademarks and brand names are the property of their respective owner(s).
Fortis is an Elavon Payments Partner and registered ISO/MSP of Elavon, INC., Georgia [A wholly owned subsidiary of U.S. Bancorp, Minneapolis, MN]. Fortis is a registered ISO of Compass Bank, an Alabama State Chartered Bank. Fortis is a registered ISO/MSP of Citizens Bank, N.A., Providence RI. Fortis is a registered ISO/MSP of Woodforest National Bank, The Woodlands, TX. Fortis is a registered ISO of Fifth Third Bank, N.A., Cincinnati, OH. Fortis is a registered ISO of Wells Fargo Bank, N.A., Concord, CA.
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