Cybercrime has jumped to the second most reported type of economic crime affecting 32 percent of global businesses, according to a just-released survey by PwC.
PwC’s Global Economic Crime Survey 2016 found that while traditional leaders of economic crime–asset misappropriation, bribery and corruption, procurement fraud and accounting fraud–all showed a slight decrease over 2014 statistics, cybercrime is on a steady increase.
In fact over one quarter of the 6,000 respondents to PwC’s survey said they’d been affected by cybercrime.
Despite a sharply higher incidence of reported cybercrime among PwC’s respondents, the survey found that most companies are still not adequately prepared for–or even understand the risks faced.
Only 37 percent of organizations have a cyber incident response plan in place and many boards are not sufficiently proactive regarding cyber threats.
Even though boards have a fiduciary responsibility to shareholders when it comes to cyber risk in several countries, PwC found that less than half of board members actually request information about their organization’s state of cyber-readiness.
Losses from cybercrime can be heavy, PwC reported. A handful of respondents (around 50 organizations) said they had suffered losses over $5 million. Of these, nearly one-third reported cybercrime-related losses sin excess of $100 million.
Reputational damage was considered the most damaging impact of a cyber breach among survey respondents, followed by legal investment and/or enforcement costs.
According to PwC:
This year’s results show that the incidence of economic crime has come down, for the first time since the global financial crisis of 2008-9 (albeit marginally by 1 percent).
Check out the I.I.I. white paper Cyber Risk: Threat and Opportunity for the latest on cybercrime, risks and insurance.