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Cybercrime is costing top countries billions, research reveals

By Puja Sharma

June 21, 2022

  • Cyber - Attacks
  • Cyber Risks
  • Cyber Security Solution
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cybercrime, cybersecurity

As we enter a global economic downturn, rates of cybercrime will naturally increase, including online fraud. In fact, in 2021 it was reported that consumers lost $5.9b to fraud, which was an increase of over 70% from the previous year.

In the research, SEON has investigated the most common types of fraud faced by countries around the world, ranks each country in terms of cybercrime budget, and outlines how an economic recession could impact the risk of cybercrime overall.

The company has discovered that the top three countries that lose the most money to cybercrime are South Korea, the USA, and Germany respectively, with the United Kingdom coming in at number 15.

With an economic downturn advancing, other findings in this report showcase fraud levels after the 2008 recession, with 55.4% of survey respondents noticing an increase in the number of fraudulent transactions during March 2009 compared to the previous year.

Anyone can fall victim to hackers, fraudsters, scammers, and other online criminals, from employees to small businesses and even large corporations, and cybersecurity awareness and prevention are essential for any company, especially in a time of economic uncertainty.

Around 55.4% of survey respondents noticed an increase in the number of fraudulent transactions during March 2009 compared to the previous year. Over 48.9% of the respondents also noticed an increase in the dollar amount of the fraud perpetrated, indicating an economic recession could provide a climate that makes online fraud more likely. While 27.1% of survey respondents cited the increased opportunity for fraud as a motivating factor for the increase, 49.1% explained the rise was due to increased pressure in the workplace.

The incipient economic recession is different from that of 2008 because of the technology that has developed on both sides of the fraud battlefield. Our reliance on cloud technology and digital services today could create an environment where cybercrime is more likely to arise.

South Korea – Cost of Cybercrime: $72bn – GCI Score: 98.52

South Korea is one of the countries most affected by cybercrime in terms of monetary loss. The South Korean economy lost an estimated $72b in one year, according to Microsoft Korea.

The study revealed that the move towards using cloud technology and mobile computing could create more opportunities for cybersecurity threats. As a global leader in electronics and technical advancements, South Korean businesses risk falling victim to fraud, although many are implementing AI to combat security breaches.

South Korea has the third highest Global Cybersecurity Index Score of all the countries on our list, meaning that they have one of the highest commitments to raising awareness of the importance of cybersecurity protection on a global scale.

United States – Cost of Cybercrime: $4.1b – GCI Score: 100

The FBI’s Internet Crime Report details the US economy lost a reported $4.1b to cybercrime in 2020. With 791,790 businesses affected by online fraud, the US is one of the countries most experiencing cybercrime.

These figures are estimated to be just the tip of the iceberg of the threat to US businesses, as they were collected only from reports of cybercrime made by the public. The risk of online fraud could also be increasing, with the Internet Crime Report identifying a 69% increase in the number of cybercrime reports compared to the previous year.

The US has the highest Global Cybersecurity Index Score of all the countries on our list, demonstrating its commitment to raising awareness of cybersecurity protection on a global scale.

Germany – Cost of Cybercrime: $2,610,520,217 – GCI Score: 97.41

German businesses spent around $2,610,520,217 on combating cybercrime, with 53% spent on security and the remainder put toward hardware and software. Germany is also in the top 10 on our list for its Global Cybersecurity Index Score, which is 97.41, assessing aspects like legal and technical measures, capacity development, and cooperation.

Key findings

  • In the UK the most common type of fraud was reputational damage due to third-party relationships, with high causes being the lack of in-house checks in security.
  • The US loses $4,100,000,000 to cybercrime per annum.
  • Disruptions due to sanctions and changes in a trade agreement are the most common type of fraud in the US and Italy.

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