Israel’s Finance Industry Hit with $3.3 Billion Annual Loss due to Cybercrime
Tel Aviv [Israel], May 9 - A New Report Reveals the Devastating Impact of Cyber Attacks on Israel’s Economy
Israel’s economy is facing an annual loss of 12 billion Shekel ($3.3 billion) due to cyber attacks, according to a recent report released by the country’s National Cyber Directorate.
The Economic Burden of Cyber Attacks
The report analyzed the costs of handling damage from cyber attacks, including short-term losses such as payments to initial response teams and direct financial losses, as well as medium-to-long term losses such as future income loss, business opportunity loss, reputation damage, lawsuits, and third-party damage. The findings highlight that investing in basic protection measures can reduce the likelihood of an attack by 30-50%.
A “Top-Down” and “Bottom-Up” Approach
The report provides a comprehensive understanding of the impact of cyber attacks using both a “top-down” and “bottom-up” approach.
- Top-Down Approach: The report examines the costs of cyber attacks from a macroeconomic perspective, analyzing their effects on the national product.
- Bottom-Up Approach: The report also looks at the costs of cyber attacks from an individual organization’s perspective, highlighting the need for businesses to invest in cybersecurity measures.
A Call to Action
“This is the first time we have seen the significant economic burden that cyber attacks have on the national product,” said Shlomo Sarfati, chief economist at the National Cyber System. “If steps are not taken to increase the level of cyber protection for individual citizens and organizations, the costs will continue to rise year after year with technological advancements in all areas of life.”
Supporting Policy Decisions
The report aims to support policy decisions in the field and provide a framework for calculating balanced investments in cybersecurity at the national level.
Conclusion
Investing in basic protection measures is crucial for organizations and individuals alike. The National Cyber Directorate’s report highlights that the cost of handling damage from cyber attacks is not only significant but also has a long-term impact on businesses. By taking steps to increase cyber protection, Israel can reduce its annual losses due to cybercrime and promote a safer digital economy.