Extensive harm inflicted upon commercial enterprises due to assaults
Financial setbacks are on the rise: Due to increased attacks, German businesses experienced a record-breaking loss of 266.6 billion euros in 2023, exceeding losses from previous years, according to data presented by Bitkom.
In the past year, about 81% of all companies reported experiencing cyber attacks, with an additional 10% suspecting they had fallen victim, according to the digital association's report. The numbers for 2023 were 72% and 8%, respectively. Over 1000 companies across various sectors participated in the study.
The cyber attacks led to a record financial setback for businesses, with a staggering 266.6 billion euros in losses in 2023. The previous highest loss of 223.5 billion euros was recorded in 2021. The majority of these attacks, according to the survey, can be linked to organized crime. Foreign intelligence agencies were reported by 20% of the companies, a significant increase from 2023 when only 7% of companies reported such incidents.
According to the survey, China is the primary source of these cyber attacks on the German economy. Around 45% of the affected companies could trace back at least one attack to China, with Russia trailing behind at 39%. Attacks from Eastern European states outside the EU and Russia have also seen a significant increase to 32%.
Escalating Risks
"The risks to the German economy are escalating. Companies need to strengthen their protective measures, both in the digital and physical realms," said Bitkom President Ralf Wintergerst.
The vice president of the Federal Office for the Protection of the Constitution, Sinan Selen, stated during the presentation of the study that international conflicts and systemic rivalries are influencing the cybersecurity landscape. The boundary between cyber espionage and cybercrime is becoming increasingly blurred, with the roles of state and non-state actors becoming muddled.
Cyber Attacks Pose Unique Threats
According to Bitkom, cyber attacks pose a unique threat to companies. Six out of ten companies now fear for their existence due to cyber attacks, up from 52% the previous year and 9% in 2021.
Simultaneously, only half of the companies (53%) believe that they are extremely well-prepared to face cyber attacks. "In our digital, interconnected world, IT security assumes a special role. IT security should be a top priority for all companies. At the same time, we must strengthen cooperation between businesses and government agencies to coordinate protective measures and law enforcement," said the association.
Businesses should enhance their digital and physical security measures due to the escalating risks from cyber attacks. These attacks, mainly originating from China and Russia, have resulted in substantial financial losses for over 1000 companies in Germany, with other countries also contributing to the increase. Other sectors beyond the tech industry are also experiencing these unique threats, leading many companies to fear for their existence.
