Cybercrime Epidemic Hits Switzerland: Country Struggles to Contain Surge in Attacks
Financial Hub Under Attack
Zurich, Switzerland - Switzerland’s financial hub has become a prime target for cybercriminals, with the country experiencing a surge in sophisticated and brazen attacks on key installations. The latest wave of assaults, which included a coordinated attack on government sites and Geneva’s airport, has raised concerns about the nation’s preparedness to deal with the growing threat.
Widespread Attacks Across Industries
According to Deloitte Switzerland, almost half (45%) of large Swiss companies have been hit by cyberattacks in 2023, with 42% experiencing disruptions to their operations. The survey, based on input from 400 board members across various industries, highlights the severity of the issue.
- Smaller businesses and institutions are also falling victim to cybercriminals.
- Recent targets include:
- Telemedicine provider in Basel
- Educational institutions
- Architecture firm
- Tourism operator
- Aircraft operator
- Museum
- Multiple hospitals
Attractiveness as a Target
Switzerland’s attractiveness as a target is attributed to its status as a global banking and commodity trading hub, with powerful pharmaceutical and electronic industries, and host to numerous international organizations. The Swiss Financial Market Supervisory Authority (FINMA) reports that out of 63 attack reports in 2022, 48 concerned banks.
Exacerbating Factors
The rise in attacks has been driven by the pandemic and exacerbated by the conflict in Ukraine, according to the Swiss government. Phishing attacks, for example, prey on employees working remotely and exploit vulnerabilities of existing IT systems.
- Hacking groups with links to China, Iran, and Russia are an ongoing concern.
- Attacks have targeted:
- Federal and cantonal authorities
- Federal Railways
- Newspapers like the NZZ
- Multinationals such as ABB
Global Impact
The global average cost of a data breach in 2023 was $4.45 million (CHF3.9 million), a 15% increase over three years, according to IBM. Medium-sized Swiss companies suffer an average damage of about CHF6 million per cyberattack, according to PwC.
Combating the Threat
To combat the threat, Switzerland’s National Cyber Security Centre will become a new federal office in 2024, reporting to the defense minister. Companies are beefing up IT security and arming themselves with insurance against cybercrimes, with those from the financial services, manufacturing/chemicals, and construction sectors most likely to be insured.
Expert Advice
Experts stress that organizations must take proactive measures to protect their digital presence, including:
- Investing in defensive technologies
- Implementing management processes
- Establishing governance structures
As Deloitte Switzerland’s Julisch notes, “The technical aspects of cybersecurity can be very complex, but they are never the real obstacle. Rather, organisations get on the wrong path when they underestimate cyber risks and use ‘hope’ as their cyber strategy.”
Conclusion
As the threat continues to grow, it remains to be seen whether Switzerland will be able to contain the epidemic of cybercrime and prevent further attacks.