$1 trillion spent globally in 2020 to deal with cybercrime

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Last year, more than $1 trillion was spent on cybersecurity or to pay for damages caused by cyberattacks. This amount represents about 1% of the world’s GDP. The report comes from Atlas VPN, which says that a majority of the money ($945 billion) was spent on Cybersecurity incidents. The remaining $145 billion was spent to put up protections.

It seems that even though the cost is adding up, many companies remain oblivious to the threat. Since 2018, when businesses spent over $600 billion on response and security implementation, the costs have risen by more than half.

The state of cybersecurity

At the same time since 2018, losses increased by 81%. The figures paint a dire picture, which is why Atlas VPN was surprised to discover that many organizations aren’t too aware of the dangers these threats bring.

A fifth of organizations globally don’t have plans in place to defend themselves in case of an attack. Many businesses (around 44%) seem to be prepared, which could offer some hope. Canadian firms lead the way in preparation.

55% of all Canadian organizations have protections in place to defend against and respond to cybersecurity attacks.

A dire situation

Rachel Welch, the COO at Atlas VPN, says that no organization is completely invulnerable to hacking. The consequences can be devastating, making prevention and reactive cybersecurity strategies very essential.

Having action plans when attacks happen can be very important, according to Welch.

In recent times, cyberattacks have become more frequent and effective. It is not uncommon to hear of companies under attack by ransomware gangs, giving in to the demands and paying up.

Not only has this led to an increase in gangs using ransomware to attack, but also mounting costs related to the spike in activity.