. Costs may reach $23.84trn by 2027
A new report yesterday warns that if left unchecked, the cost of cyberattacks will continue to rise, threatening a fragile global economy.
In particular, the escalating cost to the global economy caused by cyberattacks is projected to rise from $8.44 trillion in 2022 to $23.84 trillion by 2027.
The report, State of the Connected World 2023, launched at the on-going World Economic Forum (WEF) Annual Meeting Davos-Klosters, Switzerland, notes that adoption of connected devices during the COVID-19 pandemic led to a dramatic increase in cyberattacks.
Indeed, only 4% of experts worldwide are “confident” that connected devices are properly secure, as rapid adoption of connected devices became critical for work, education and healthcare during the pandemic
The report, a collaboration of the WEF with the Council on the Connected World, says the immediate threats can be mitigated through robust security protocols and governance through public-private cooperation.
The State of the Connected World is the only global report that tracks and quantifies governance gaps for the universe of connected devices, known as the internet of things (IoT).
Technology governance
The report surveyed 270 experts around the world to understand the state of play and establish clear priorities for technology governance.
Commenting, Head of Urban Transformation, at WEF, Jeff Merritt, said: “At a time when the global economy is fragile, we have the necessary tools to reduce at least one of the major threats to the global economy – cyberattacks.
“The State of the Connected World report is a call to action for protecting against cybercrimes, which would also improve individual security and protect small and medium-sized business, transit systems, utilities – everything that relies on connected devices.”
Similarly, Head of Industry and Partnerships, Centre for Cybersecurity, at the WEF, Akshay Joshi, said: “Our increasingly connected existence brings with it vulnerabilities that can be exploited by malicious actors.
“Despite calls for embedding cybersecurity by design, the low level of confidence in the security of connected devices expressed by experts in this report is a testament to the fact that we still have a long way to go in terms of realizing trust in the technology we use.”
The report also calls for increased consumer education through digital literacy campaigns, standardization practices of cybersecurity measures, prioritizing security by design and default (as opposed to reacting after the fact) and developing more agile policies to better address the quick-changing landscape of cybersecurity.
“We find ourselves at an inflection point this year with a number of global forces putting downward pressure on the economy,” said Madeline Carr, Professor of Global Politics and Cyber Security, Department of Computer Science, University College London.
“It is essential that cybersecurity challenges are not left unchecked to further exacerbate this but are taken seriously as an integrated element of a thriving global economy,” he added.
The report is a call to action for protecting against cybercrimes, which would also improve individual security and protect small and medium-sized business, transit systems, utilities – everything that relies on connected devices.
Other experts speak
Many experts from other leading organisations also aired their views.
- President and CEO, Connectivity Standards Alliance, Tobin Richardson – We’re very pleased to see the focus on privacy and security as a key priority. Solving for these ensures the greatest adoption of IoT, and the greatest likelihood of landing on valuable solutions for consumers in the ever-growing connected world.
- Field Chief Information Security Officer of the Americas, Check Point Software Technologies, Peter Nicoletti – The year 2023 is predicted to deliver a perfect storm – from expected challenging economic conditions, ransomware up over 30% from last year, cyber insurance rates dramatically rising, coverage lowering, a severe skill and staff shortage, massive growth in vulnerable IoT connected devices and security products becoming the breach vector. Now is the time to redouble your focus on your security posture.
- Chief Technology Officer, Innovation, Schneider Electric, Scott Harden – “At Schneider Electric, we envision a fully connected, net-zero world which is more electrified, digitized and sustainable for future generations. To realize this future, businesses, organizations and governments must work together to address challenges such as cybersecurity, open standards and accessibility.
- Chief Digital and Strategy Officer, ABB Electrification, ABB, Anton Kotov – As the world gets more connected, complex and at times unpredictable, it is critical to drive and govern the change in a way that we not only address and mitigate risks but also emphasize the positive impact that connected technology brings.
- Vice-President, Economies of the Future Sector, King Abdulaziz City for Science and Technology (KACST), Mariam Nouh – Security, privacy, trust and interoperability among IoT devices are serious issues that need to be addressed to accelerate IoT adoption and embrace a connected world. This can be achieved through collective action from the international community and by establishment of public-private partnerships. The 2023 report on the state of the connected world highlights the current gaps in governance and paves the path to address the associated risks for the benefit of humankind.”
- CEO, Fluxus, Fanyu Lin – In order to ensure that connected devices and related technologies are accessible and beneficial for all members of society, adaptive and sustainable governance is needed for multi-stakeholders to expand the boundaries of their respective scope of works, to share risk and co-invest in the digital infrastructure together.
