Cyber attacks can cost Aussie economy $29bn per year

Cybersecurity incidents have the potential to cost Australian businesses $29 billion per year, the equivalent of almost 2% of Australia’s GDP, according to a new study commissioned by Microsoft.

The study, conducted by Frost & Sullivan, finds that a large-size Australian organisation can incur an economic loss of $35.9 million if a breach incurs.

These costs include direct costs, indirect costs such as customer churn and reputation damage, as well as induced costs such as the impact of a breach on the broader economy.

More than half (55%) of Australian organisations surveyed have experienced a cybersecurity incident in the last five months, while 20% of companies are not sure if they have had a breach as they have not performed a proper data breach assessment.

“The number of organisations that have experienced a cybersecurity incident, although large, is not particularly surprising given the increased rate of cybersecurity attacks we’re seeing annually,” Microsoft Director of Corporate, Legal and External Affairs Tom Daemen said.

“However, the finding that 1 in 5 Australian businesses are not performing regular forensics and data breach assessments is surprising given the frequency of attacks and suggests a need for greater awareness and a cultural shift in how we manage and think about data.”

The survey meanwhile found that 84% of Australian organisations have either adopted or are looking to adopt an AI approach towards boosting cybersecurity. AI-driven cybersecurity architecture has the potential to be more intelligent and be equipped with predictive abilities to allow organisations to fix or strengthen their security posture before problems emerge.

Image credit: ©iStockphoto.com/Brian Jackson

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