Financial Crime World

Cyber Attacks Rise in Switzerland, Experts Warn of Growing Threat

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Switzerland has been facing an increasing number of high-profile cyber attacks, targeting government institutions, military, and private sector companies. The sophistication and number of attacks have raised concerns about the country’s preparedness to deal with this threat.

A Growing Problem

According to a Deloitte survey, nearly half (45%) of large Swiss companies have been victims of a cyber attack this year, with 42% experiencing disruptions to their operations. The survey highlights the significant impact of cyber attacks on businesses in Switzerland.

  • Educational institutions, including a university in Lausanne, and multiple hospitals have also been affected.
  • Hackers are targeting vulnerable victims, rather than specific companies.

Strengthening Defenses

Switzerland’s National Cyber Security Centre (NCSC) will become a new federal office in 2024, reporting to the defense minister. This move aims to strengthen the country’s defenses against cyber threats. Companies are also beefing up their IT security and arming themselves with insurance against cybercrimes.

The Cost of Cyber Attacks

The global average cost of a data breach in 2023 was $4.45 million (CHF3.9 million), with medium-sized Swiss companies suffering an average damage of about CHF6 million per cyber attack, according to IBM and PwC respectively.

  • Experts predict that cyber attacks will become “uninsurable” as disruption from hacks increases.
  • Companies are advised to get a grip on their specific vulnerabilities and take action to protect themselves against this growing threat.

Zurich Insurance Group’s Warning

Cyber attacks, rather than natural catastrophes, will become “uninsurable” as the disruption from hacks continues to grow. This warning comes from Zurich Insurance Group’s chief executive officer, who notes that the increasing frequency and severity of cyber attacks make them a major concern for businesses worldwide.

Recent Incidents

  • Hackers have published data from the federal police and customs offices on the Darknet, after an attack on the servers of the host company.
  • The incident highlights the vulnerability of sensitive information in Switzerland’s government institutions and private sector companies to cyber attacks.