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Cybercrime Threat Grows; Do Businesses Care?

July 19, 2023

When ransomware attacks decreased in 2022, businesses may have thought the worst was over. While there is less concern about cybercrime today, in fact the threats have increased.

According to Beazley's Risk & Resilience report "Spotlight on: Cyber & Technology Risks 2023" the cost of cybercrime is predicted to reach $10.5 trillion  by 2025- a 300% increase since 2015. Despite this, business leaders' perception of cybercrime as a top risk has decreased from 34% in 2021 to 27% today. What's worse, perceived resilience to cyber risk has fallen from 80% to 74%.

Artificial intelligence technologies and theft of intellectual property are now seen as the top technological concerns facing business today. About one quarter of all businesses feel unprepared to deal with these risks. Small and medium sized businesses are more vulnerable; 76% feel less prepared to deal with cyber risk today, compared to 70% in 2022.

Cyber criminals are continuing to improve their tactics, and businesses cannot afford to relax their security. To keep up with new threats, small and medium sized businesses must rely on their service providers and insurers to help them mitigate cyber risk.