The global cybercrime cost has snowballed over the years, with companies and organizations worldwide losing head-spinning figures in cyberattacks.
According to data presented by Stocklytics.com, the annual cost of cybercrime will hit $9.2 trillion in 2024, one trillion more than last year. This figure is expected to jump by a further 70% and hit a shocking $13.8 trillion by 2028.
Cybercrime cost to grow by one trillion dollars per year
Despite the maximum efforts to prevent and minimize cybercrime damage, cyber-attacks, including ransomware attacks, data breaches, cyber espionage, phishing, and cyber espionage, are still the biggest threats in the business sector. According to the Allianz Risk Barometer survey, 40% of respondents called cybercrime their biggest potential threat in 2023, ahead of inflation, energy crises, and supply chain disruptions.
Their fear of cybercrime is quite understandable, considering the amount of money stolen in cyberattacks each year. But even more worrying is that the annual cost of cybercrime continues rising, with no signs of stopping any time soon.
According to a Statista Market Insights survey, between 2018 and 2020, the global cybercrime cost skyrocketed by 245%, rising from $860 billion to $2.95 trillion. This cost included stolen money, damage and destruction of data, lost productivity, theft of intellectual property, theft of personal or financial data, post-attack disruption to the ordinary course of business, restoration and deletion of hacked data and systems, and reputational harm.
With companies and organizations worldwide speeding up the digitalization of their business amid the pandemic, this figure almost doubled and hit $5.49 trillion in 2021. Since then, the annual cost of cybercrime has been rising by more than one trillion dollars. After jumping over $7 trillion in 2022, the annual cost of cyber attacks hit $8.15 trillion last year. Statista expects this figure to continue increasing by one trillion dollars per year, helping it to climb to shocking levels.
Statistics show cybercrime will inflict damages totaling $9.22 trillion this year, more than double the GDP of some of the world’s largest economies like Japan, Germany, India, and the United Kingdom. By 2028, this figure is forecast to skyrocket to $13.82 trillion, or 16 times more than the total cybercrime cost in 2018.
Companies to spend over $1.1 trillion on cybersecurity in the next four years
The surging cost of cyber attacks continues forcing companies to spend more and more money on cybersecurity measures. Last year, companies and organizations worldwide spent $166.2 billion on cyber solutions and security services. This figure is forecast to grow by 10% and hit $183.1 billion this year. Statista expects annual spending on cybersecurity to continue rising by an average of $20 billion per year and hit $273.5 billion in 2028. The cumulative spending figures are even more shocking. Statistics show that companies and organizations worldwide will spend over $1.1 trillion on cyber solutions and security measures in the next four years.
