The Financial & Reputational Impact of Malware on Businesses
Malicious software, a.k.a. malware, is geared toward disrupting computer infrastructure. Malware invariably poses as an innocuous link or file. Unbeknownst to victims, the malicious code within these files, documents, images, links, and redirects is destructive.
Malware typically allows the cybercriminal to commandeer operations on the unsuspecting victim’s computer. Statistics reveal that malware’s financial and reputational impact on businesses is staggering. In 2023, over 6 billion malware attacks were recorded, primarily across Asia.
Antivirus programs are geared toward protecting users from these attacks. Backdoor attacks, trojans, ransomware, worms, and viruses rank among the most frequent malware attacks. As for phishing attacks, websites and email feature prominently.
Studies suggest that the most frequently attacked industries vary according to several factors, notably databases and information vulnerability. Incredibly, previously safe and secure sectors, such as the education sector and insurance enterprises, are now the targets of cybercriminal activity.
In Q3 2023, 440K malware packages were detected worldwide across mobile smartphones and tablets. Adware remains one of the most commonly detected mobile malware culprits. Phishing attacks are increasingly dominant across Mexico, the United States, and Canada.
Over the past several years, ransomware attacks have declined somewhat, but they still pose a threat. Regarding cybersecurity, detection, mitigation, and protection against these threats require a comprehensive approach.
Foremost among the challenges for companies today are implementing software solutions, employee vigilance and training, and investment in cybersecurity software protections. It is imperative to guard against malicious code; many of the problems we see from malware are preventable.
AppSec (Application Security) is one such area that companies can guard against with maximum efficacy. Signature-based detection systems are highly effective source code scans against malware. Integrated solutions comprising SAST, SCA and AI can help to identify malware threats before they infiltrate networks and production environments.
For example, countries like Japan and Brazil have invested heavily in cybersecurity protections. These countries understand the reputational and financial risks of inadequate protection.
Source: https://www.statista.com/topics/8338/malware/#topicOverview
The estimated cost of cybercrime globally paints a worrying picture. Starting in 2020, projecting through 2029, we see trillions of dollars in cybercrime-related costs worldwide.
Consider the following cybercrime costs data published by Ani Petrosyan (July 30, 2024):
- 2020 – $2.95 trillion
- 2021 – $5.49 trillion
- 2022 – $7.08 trillion
- 2023 – $8.15 trillion
- 2024 – $9.22 trillion
- 2025 – $10.29 trillion
- 2026 – $11.36 trillion
- 2027 – $12.43 trillion
- 2028 – $13.82 trillion
- 2029 – $15.63 trillion
Source: https://www.statista.com/forecasts/1280009/cost-cybercrime-worldwide
Cybercrime will remain a focal point of SMBs worldwide. It is particularly prevalent in insurance, finance, and manufacturing. These rank among the most targeted sectors for cybercrime activity.
The most commonly detected cyber threat was ransomware, accounting for 70% of all attacks reported. In terms of the sheer number of cyberattacks, the manufacturing sector dominated.
Over the reported period in question, many individuals and companies became aware of the dangers of cybercrime. It is no longer an abstract concept to individuals and organizations. It is an everyday reality to guard against. In 2024, IT security budgets grew by an average of 5.7%. Similar growth trajectories are expected for 2025 and beyond.
Stunning Malware Statistics Plaguing the Global Community
| Malware Type | Malware Fact |
|---|---|
| 61% of SMBs were targeted by cyberattacks in 2021, with malware being the top threat at 18%. |
| 82% of ransomware attacks targeted companies with fewer than 1,000 employees. |
| Small business employees face 350% more social engineering attacks than larger enterprises. |
| SMBs receive malicious emails at a rate of 1 in 323, the highest among all business sizes. |
| 40% of small businesses reported losing crucial data through cyberattacks. |
| 51% of SMBs hit by ransomware paid the ransom, often without cyber insurance coverage. |
| Only 17% of small businesses have cyber insurance, exposing them to financial and reputational ruin after attacks. |
| 51% of SMBs experienced website downtime for 8-24 hours after an attack, impacting revenue. |
| 87% of SMBs hold sensitive customer data, making them lucrative targets for hackers. |
| 76% of SMBs increased cybersecurity spending due to fear of emerging threats. |
| 75% of SMBs said they could not survive a ransomware attack. |
| Only 17% of small businesses encrypt their data, leaving them vulnerable to breaches. |
Source: https://www.strongdm.com/blog/small-business-cyber-security-statistics
Summary
Malicious code is a significant security concern for applications. Threats like viruses, worms, trojans, ransomware, and spyware exploit system vulnerabilities to cause harm.
- Viruses attach to legitimate files and spread through user actions. Worms autonomously replicate across networks and wreak havoc that way.
- Trojans deceive users into installing harmful code, often leading to data theft and system control.
- Ransomware encrypts data and demands payment, causing financial loss and operational disruption.
- Spyware silently collects sensitive information, compromising privacy.
Preventing malicious code requires an all-encompassing IT security approach. This includes robust code scanning, employee security training, and the adoption of zero-trust frameworks.
Together, these systems ensure early detection, guided remediation, and resilient AppSec without impeding development workflows.
