19 Mar, 2018 (Updated 23 Mar, 2018)
Nordea On Your Mind
Cybercrime: Growing along with human connectivity. Corporates in crosshairs: A look at the big cyberattacks of 2017
Cybercrime: Growing along with human connectivity
Humans are increasingly interacting and transacting online, with the share of internet users set to grow from 50% of the total global population last year up to 90% by 2030. Crime will continue to migrate online, targeting a potential 7.5 billion internet users. Perpetrators of cybercrime include organised crime (aiming to make money), hacktivists (who typically have an ideological agenda) and state-sponsored players (aiming for intelligence, sabotage or money). There are industry estimates that total global cybercrime damage costs could double to USD 6 trillion by 2021.
Corporates in crosshairs: A look at the big cyberattacks of 2017
Cyber threats now faced by corporates include Distributed Denial of Service (DDS) attacks that overwhelm websites to make them crash, ransomware (malware that encrypts the target’s data and demands a ransom payment to release it) and sabotage. An example of sabotage was the NotPetya malware released in the Ukraine during June 2017, which destroyed targets’ data, making global corporates such as A.P. Møller-Mærsk, Mondelez, FedEx and Renckitt Benckiser suffer collateral damage and associated costs of USD 100-300m; ie 4-10% of EBIT. The WannaCry ransomware attack in May 2017 affected over 230,000 computers, disrupted the UK National Health Service and led to estimated global costs of up to USD 4bn. The hack and individually targeted data theft from US consumer credit reporting agency Equifax in July 2017 has so far led to the departure of its CEO, costs of USD 439m (~40% of EBIT), a share price drop of 30% at the lowest point and pending civil and criminal litigation against the company.
Corporates now consider cybercrime a key concern
According to a 2017 global survey by Marsh and Microsoft, large corporates now consider cybercrime a key risk. Around 70% of board members surveyed said it was top-five risk, double the share seen in a similar survey from 2016. Tellingly, only 14% of board members are highly confident in their company’s ability to respond to a cyberattack.
Cybersecurity: Emergence of a USD 100bn industry
The rising corporate sense of urgency is set to drive ~40% growth in global cybersecurity spending, up to USD 100bn by 2020. Of the top 50 listed players in the industry, two-thirds are from the US, three are Nordic (F-Secure in Finland, Fingerprint Cards and Precise Biometrics in Sweden) and four are European (Gemalto and INSIDE Secure in France; Sophos and NCC in the UK).
Interviews with a corporate victim and cybercrime defenders
In addition to an introduction by Nordea’s Global Co-Head of Corporate & Investment Banking Mathias Leijon, we interview A.P. Møller-Mærsk’s VP and Head of Risk Management Lars Henneberg; F-Secure’s CEO Samu Konttinen; Nordea’s Group Chief Information Security Officer, Tapio Saarelainen; Nordea’s Head of Technology Information Security Stefan Jäschke; and Benjamin Särkkä, Head of NITSIRT (Nordea IT Security Incident Response Team) at Nordea’s Cyber Defence Centre.
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