Cybersecurity is expensive. Ignoring cybersecurity is even more expensive. Every business, from the enterprise to the mom and pop shop, has been warned: invest in virus protection, cybersecurity services and applications because once a network is breeched – it’s a virtual feeding frenzy and cyber criminals can easily violate and exploit the confidential data of customer credit cards, employee social security numbers and other important information. All these aspects of cybersecurity might sound overwhelming at first, but it is crucial to educate yourself and take cybersecurity courses to stay up to date and understand its importance for your business. Target, St. Jude’s, Apple, Delta Airlines are just a few of the high profile companies and organizations that have wrestled with cybercrime on a very public stage.
The Cybersecurity Market Report has published a definitive study on the cost and spending of cybersecurity and the numbers are a sobering reminder of the dangerous world we live in. The report stated that from the five-year period of 2017 – 2021, worldwide cybersecurity spending will exceed one trillion. Getting to more accurate numbers is a problem as “IT analysts are unable to keep pace with the dramatic rise in cybercrime …” reported Steve Morgan, Editor-in-chief of Cybersecurity Ventures.
Morgan says that analysts predict a 12 to 17-percent year over year growth in cybersecurity spending in the next five years. Already, high-profile companies such as J.P. Morgan Chase & Co. are doubling their cybersecurity spending from $250 million to $500 million and Bank of American has publicly declared their spending on cybersecurity is “unlimited.” IBM and Cisco have also announced their increased spending in cybersecurity and “…both are … making strategic acquisitions in the space,” says Morgan. Governments are investing in cybersecurity as well: the U.S. has increased its budget on cybersecurity by 35-percent to $19 billion in 2017.
The security firm, SANS Institute, reports that “…cost line items to justify expenditures or document trends can be difficult because security activities cut across many business areas, including human resources, training and help desk.” According to a SANS report, most organizations fold their security budgets into another cost center including compliance and general operations. Therefore, predictions regarding security related spending have varied so that some figures forecasts $500-$700 billion in over the five year period versus a trillion.
Morgan points out that many analysts neglect to dive into more specific areas of security spending such as “aviation security, automotive security, IoT security, and IIoT (Industrial Internet of Things) security” continues Morgan. All of those market segments combined make up the cybersecurity market.”
Given the rampant increase in cybercrime, some companies are seeing the opportunities to offer services and products to combat cybercrime. Morgan says that that in addition to the traditional technology firms that usually are called upon for disaster recovery and malware protection, law firms and insurance companies are just a few of the industries joining the fray to offer cybersecurity services.
Consumers are also being targeted as identity theft becomes more rampant. Morgan says businesses are providing “non-covered spending” such as personal identity theft protection services, computer and mobile phone repair services specific to malware and virus removal, installation of anti-virus and malware protection software, post-breach services including data recovery and user education on best practices for personal cyber defense.