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With the number of cyberthreats growing in a big way, more and more people are wondering about security investing and why it’s important.
For starters, this proliferation of cyberattacks is causing increasing damage to companies, governments and individuals. Take the Equifax (NYSE:EFX) attack that happened in July 2017 as an example — the hack allowed access to the personal and financial information of almost 150 million people. There have been plenty of cyberattacks to go around in 2018 as well.
Putting it simply, organizations need to respond to these threats by adopting strict cybersecurity measures. In this article, we break down the three main answers to the question, “why is cybersecurity important?” and illustrate why this market is so crucial.
1. Why is security investing important? Increasing cyberthreats
As noted above, the number of cybersecurity attacks is increasing every year. From a total cost of $445 billion in 2014, the cost of cybercrimes reached $600 billion in 2017, according to a report by McAfee. One can imagine that 2018 numbers may be even higher. We’ll find out at the end of the year.
In a Cybersecurity Ventures report on cybercrimes, the firm projects that the cost of cyberthreats will rise to $6 trillion annually by 2021; that amount encompasses everything from damage and destruction of data, stolen money, lost productivity, theft of intellectual property, theft of personal and financial data, embezzlement, fraud, post-attack disruption to businesses, forensic investigation, restoration and deleted hacked data and systems, to name a few.
What investors might not know is that mobile devices are faced with rising cyberattacks, as are medical devices. In fact, spending on medical device cybersecurity is seen reaching $65 billion by 2021.
On that note, in an interview with INN, Dr. Alissa Johnson, CSIO of Xerox and former deputy CIO at the White House, said that in order to prevent cybersecurity attacks, it’s important to remember the basics. “Security is not just the responsibility of the security team, but as we’re learning and realizing — especially with all the spear phishing attacks — security is everyone’s responsibility,” she noted.
2. Why is security investing important? Severity of attacks
It isn’t just the number of cybersecurity attacks that is increasing. The degree of these attacks is on the rise as well. According a PwC report, these attacks are “becoming progressively destructive and target a broadening array of information and attack vectors.”
Politicians are at risk — indeed, Barack Obama’s administration proposed a $19-billion budget for cybersecurity. And Hillary Clinton’s private emails became front-page news in the midst of her presidential campaign, underscoring the importance of a strong cybersecurity policy.
In late August of last year, eight out of 28 members of the National Infrastructure Advisory Council, which oversees the country’s response to cyberthreats, resigned.
According to BNA, those that resigned said that the Trump administration was paying “insufficient attention to the growing threats to cybersecurity of critical systems.” BNA had previously reported that the “Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure” order gives the heads of federal agencies responsibility for managing cyberthreats — which still holds true.
Since then, Trump has released a defense policy bill that addresses cybersecurity and calls for stronger defenses against cyberthreats. However, he has also removed the position of national cybersecurity coordinator, which garnered much criticism. Now Trump’s own chief of homeland security has called cybersecurity the country’s biggest national threat.
3. Why is security investing important? Future outlook
Looking ahead, PwC’s Global State of Information Security Survey 2018 states that “87 percent of global CEOs say they are investing in cybersecurity to build trust with customers.” As per this report, approximately two-thirds of respondents had appointed a chief privacy officer.
As these statistics show, companies are no longer asking “why is cybersecurity important?” — they recognize that it’s an area worthy of commitment and are taking preventative action against threats.
The struggle between increased needs and limited funding is, however, characteristic of the cybersecurity industry. Hopefully more and more companies, government departments and organizations are recognizing the importance of cybersecurity, and are allocating funds accordingly.
Next time someone asks you, “why is cybersecurity important?” you’ll have more ideas to share with them. To continue learning about related topics, check out these articles below: