Accenture: Canadian companies lost over $12 million due to cybercrime

Accenture’s latest report has revealed that cybercrime has cost Canadian companies an average of US$9.25 million (approximately more than CA$12 million).

The “Cost of Cybercrime Study” report, prepared together with the Ponemon Institute, was based on interviews with over 2,600 security and information technology experts at 355 organizations worldwide – this included 179 senior leaders from 25 companies in Canada.

The report found that the two most common forms of cyberattacks plaguing companies around the globe in 2018 were malware and “people-based” attacks.

According to Accenture, the cost to companies due to malware increased 11%, to more than US$2.6 million (about CA$3.47 million) per company, on average. Meanwhile, the cost to companies due to malicious insiders – defined by the study as employees, temporary staff, contractors and business partners – surged 15%, to US$1.6 million (approximately CA$2.13 million) per organization on average.

From a global point of view, malware and malicious insiders accounted for a third of the total US$13.0 million (approximately CA$17.36 million) cost to companies, on average, from cybercrime in 2018. This represents an increase of US$1.3 million (about CA$1.73 million) in the past year, the report noted.

Similarly, the cost to companies from phishing and social engineering rose to US$1.4 million (over CA$1.86 million) per organization, on average.

Other findings of the report, which are specific to Canada, include:

• In 2018, 25 Canadian companies recorded an average of 75 cyberattacks – about 1.5 attacks per week.
• In 2018, the cost of business disruption was US$2.96 million (nearly CA$4 million) to Canadian organizations, and US$3.8 million (over CA$5 million) in information loss.
• 81% of Canadian business leaders say new business models introduced technology vulnerabilities faster than they can be secured.
• Malicious insiders and malware are the most expensive types of attacks, even for Canadian organizations. The attacks cost companies in Canada US$3.3 million (CA$4.4 million) on average. The attacks also take the longest to resolve – twice as long as ransomware and social engineering attacks, the report noted.
• Automation, AI, and machine-learning technologies provide the “highest cost savings” when fully deployed, Accenture said.

“As business innovation propels forward, so too does the expanding threat landscape, leading to an increase in cyberattacks,” commented Accenture Canada managing director of security Ahmed Etman.

Etman also suggested several ways Canadian companies could mitigate the risk of cybercrime.

“Canadian organizations must prioritize protecting people, take a data-centric approach to security to limit information loss and business disruption, and implement AI technology and analytics to reduce the rising cost of attacks,” he said.