(Editor’s note: This is the 37th installment of a monthly column on the growing number of cyberthreats facing businesses of all sizes and what they can do about them. See previous installments here.)
Cybercrime isn’t an outlier issue. It’s a worldwide force that is outpacing and outmaneuvering law enforcement. With an estimated cost to the global economy predicted to reach $10.5 trillion annually by the end of this year, it would be the world's third-largest economy if it were a country. This isn't just about financial loss, though; it's also about the erosion of trust, the crippling of our critical infrastructure, and the exposure of every connected business around the world.
The targeting of industries is incredibly strategic. Threat actors are no longer simply going after the low-hanging fruit. They're seeking maximum leverage, targeting sectors where a successful breach can cause the most pain, ensuring a higher payout and a more devastating impact.
So, today who are the primary targets in this new digital war, and how can their vulnerabilities be your downfall?
Our industrial complex, manufacturing and critical infrastructure are major targets. Why? Because the convergence of information technology and operational technology systems has created sprawling areas to attack. These companies are the lifeblood of our global supply chains and are often running legacy systems and custom-built hardware that are difficult to secure. A successful attack here doesn't just steal data, it grinds production to a halt. A recent ransomware report in the first quarter of this year showed that manufacturing made up 68% of all industrial ransomware incidents, an unsettling statistic that speaks to the direct link between digital compromise and physical world disruption.
This isn't just about big factories. It's also about the small and midsize suppliers that feed them. An attack on a single supplier can cripple a corporation's production line, causing a domino effect of delays and financial losses. This is the essence of supply chain risk, and it’s a problem that's getting worse.
It's also no surprise that the industries holding our most sensitive data, our financial and medical records, remain a top priority for cybercriminals.
Health care has paid the biggest price for data breaches for the last 14 years. In 2024, the average cost of a health care breach was almost $10 million. Hospitals, clinics and insurance companies hold a trove of personal information, from Social Security numbers and medical histories to financial data, all of which can be sold on the dark web or used for identity theft. The volume and sensitivity of the data, combined with often underfunded and understaffed security teams, make them incredibly vulnerable.
Financial services are a constant target as well, but these attacks have evolved. With the rise of fintech, new vulnerabilities are being created every day. Cybercriminals are exploiting these new avenues to steal customer data and, in some cases, directly transfer funds. Phishing remains a primary vector, accounting for nearly 30% of all global breaches in 2024. The FBI's Internet Crime Complaint Center reported that investment fraud, particularly involving cryptocurrency, resulted in over $6.5 billion in losses in 2024, demonstrating how attackers follow the money into emerging financial areas.
The greatest risk for your business might not be your own vulnerabilities, but those of your partners. Threat actors have realized that the easiest way to get into a big, well-defended company is through a smaller, less-resourced one. They don't need to break down the front door when a window is wide open.
So, what does this mean for your business? It means that your security posture is no longer just your own. It's an ecosystem. You have to extend your security diligence beyond your own four walls and into the networks of your suppliers, vendors, and partners. It requires a fundamental shift in thinking, from protecting your perimeter to securing your entire value chain.
Next month: The ascent of the cyber savvy CEO.
Jason Albuquerque is the chief operating officer of Pawtucket-based Envision Technology Advisors LLC. You can reach him at www.envisionsuccess.net.
