Data Breaches Will Cost Over $2 Trillion by 2019
A new report predicts that data breaches will cost the global economy $2.1 trillion by 2019, almost four times more than this year. The research from market analytics firm Juniper Research indicates that sophisticated hacking tools will play a major role in this growth.
The report, entitled The Future of Cybercrime & Security, estimates a decline in the number of casual hacks experienced globally. The firm believes that upcoming malware creation and the “increasing professionalism of cybercrime” will result in more successful attacks, even if limited in number.
Currently, the average cost of data breach is estimated to be $3.5 million per company. Juniper predicts that average to exceed $150 million per breach by 2020, which is just shy of the $162 million Target data breach in 2013.
Even though there has been an increase in threats targeting mobile devices, Juniper believes the data breaches will primarily come from the existing IT infrastructure.
“The kind of threats we will see on these devices will be either ransomware, with consumers’ devices locked down until they pay the hackers to use their devices, or as part of botnets, where processing power is harnessed as part of a more lucrative hack,” said James Moar, lead author on the report. “With the absence of a direct payout from IoT hacks, there is little motive for criminals to develop the required tools.”
Juniper Research predicts 60% of the data breaches in 2015 will come from North America, but that percentage will decline as other countries become more financially distinguished. Many of the major data breaches of 2014 originated in North America, but the shift to EMV standards in the United States may minimize the country’s vulnerability in the future.