Financial Crime World

Cybercrime Soars in Switzerland: A Growing Threat to Key Installations

===========================================================

Switzerland has become a prime target for cybercriminals, with attacks claiming victims across various sectors. The country’s defenses are not strong enough relative to its peers in Europe, making it an attractive environment for hackers.

Rising Number of Attacks

According to the Swiss Financial Market Supervisory Authority (FINMA), out of the 63 attack reports received in 2022:

  • 48 concerned banks, highlighting the financial industry’s vulnerability.
  • The increasing professionalization of criminals and shorter times between security vulnerability announcements and exploitation are keeping the financial industry on its toes.

Notable Attacks

  • 34,000+ attacks documented by the National Cyber Security Center in 2022 alone, tripling since 2020.
  • Hacking groups linked to China, Iran, and Russia pose an ongoing concern for Switzerland.
  • Pro-Russian hacker group NoName claimed responsibility for targeted distributed-denial-of-service (DDoS) attacks that knocked several Swiss government sites offline.

Impact on Businesses

  • Almost half of large Swiss companies have been victims of a cyberattack, with 42% experiencing disruptions to their operations.
  • The global average cost of a data breach in 2023 was $4.45 million, a 15% increase over three years, according to IBM.

Increasing Costs and Risks

  • Companies often underestimate cyber risks and rely on hope as their cyber strategy, rather than investing in defensive technologies and management processes.
  • The cost of cyberattacks continues to grow, making it increasingly difficult for organizations to recover from these incidents.

Government Response

  • Switzerland’s National Cyber Security Centre will become a new federal office in 2024, reporting to the defense minister and increasing its budget from CHF13.7 million to CHF14.5 million ($16.2 million).
  • Companies are beefing up IT security and arming themselves with insurance against cybercrimes.

Experts’ Warnings

  • The increasing sophistication of cybercrime has led some experts to predict that cyber attacks will become “uninsurable” in the near future.
  • In December 2022, Zurich Insurance Group’s CEO Mike Wells warned that cyber attacks, rather than natural catastrophes, would soon become uninsurable due to the growing disruption caused by hacks.

Conclusion

As Switzerland continues to face a high risk of cybercrime, it is essential for organizations to prioritize their digital security and invest in robust defense systems. The government must also take proactive measures to strengthen its cybersecurity capabilities and provide support to companies that have fallen victim to cyberattacks.