The impact of cybercrime on modern businesses in Europe  – Emerging Europe

Cybercrime has become such a pervasive threat to modern businesses in Europe, with far-reaching consequences that go beyond financial losses. Cybercrime was estimated to make eight trillion US dollars globally in 2023, and has the potential to reach 10.5 trillion US dollars by 2025. While not specific to Europe, this gives a sense of the enormous scale of the problem. 

As businesses increasingly rely on digital technologies, they become more vulnerable to cyber attacks, making cybersecurity a critical concern for enterprises and small businesses across Europe. Safeguarding your business from potential threats does not have to break the bank. Krishi Chowdhary from Techopedia suggests installing Antivirus Software Solutions, which provide comprehensive protection and block threats such as ransomware and spyware. 

Types of cybercrime impacting businesses 

The most prevalent cyber threats and attacks against European businesses include various forms of cybercrime that have surged in recent years: 

Ransomware attacks 

Ransomware continues to pose the biggest threat for many businesses, with an increasing number of attacks reported by the European Digital SME Alliance. The number of incidents rose from 112 in 2022 to 175 in 2023 impacting countries like France, Germany, Italy and Spain. Interestingly, 60 per cent of the organizations chose to fulfill the ransom demands. 

Phishing and social engineering 

Among the most pronounced cybercrimes, phishing attacks stand out as the most prevalent, affecting at least 86 per cent of organisations. This fraudulent tactic involves tricking individuals into disclosing information through emails. The frequency of phishing incidents has seen an increase during the pandemic when phishing attacks spiked by 220 per cent. 

Malware and data kidnapping 

There has been a serious surge in malware distribution that capitalizes on vulnerabilities found in IoT devices, including smartphones, laptops, and desktop computers. This increase of data kidnapping, where critical data is seized for ransom, has been closely tied to the increasing amount of sensitive information stored by businesses. This trend highlights the escalating risks associated with data management and the need to find security solutions to safeguard sensitive data. 

Distributed Denial of Service (DDoS) attacks 

DDoS attacks have become more frequent and severe. These attacks overwhelm a target’s online services, rendering them unavailable and causing significant operational disruptions. For example, independent news outlets in Hungary such as Media1 and Népszava have been repeatedly targeted by DDoS attacks since April 2023. The attacks intensified in May and June and have impacted over 40 media websites. The attacks were carried out by an unknown attacker going by the name “Hano”. 

Exploitation of legacy systems 

DDoS attacks have been on the rise in both frequency and severity. These attacks flood a target’s services making them inaccessible and causing disruptions in operations. For instance, independent news outlets like Media1 and Népszava in Hungary have faced repeated DDoS attacks since April 2023. The attacks escalated during May and June affecting more than 40 media websites. The perpetrator behind these attacks remains unidentified. Goes by the alias “Hano.” 

Financial impact on businesses 

Cybercrime can lead to setbacks, for businesses of all sizes. These setbacks may take shape, such as monetary losses from theft or extortion. The expenses linked to recovering from an attack like hiring cybersecurity professionals and fixing compromised systems can be overwhelming. 

For example, in March 2014 a UK-based marketing company called Epsilon experienced a data breach when hackers infiltrated the company’s email marketing database. This breach exposed the details of millions of customers from renowned brands. The repercussions of the breach were significant. Epsilon encountered hardships stemming from legal fees linked to lawsuits brought by affected parties and partners along, with expenses associated with regulatory inquiries. 

Operational disruption 

Cyberattacks can also cause significant disruptions to a business’s day-to-day operations. Ransomware attacks, for example, can encrypt critical data and systems, preventing businesses from accessing the information employees need to do their jobs. DDoS attacks, on the other hand, can overwhelm a company’s servers so severely that it causes websites and online services to become unavailable for long periods of time. 

These disruptions not only interferes with productivity but also impact projects, causing delays and missed business opportunities. In some cases, the disruption can be so severe that it takes weeks or even months for a business to fully recover, affecting the business’s bottom line and revenue sources. 

Reputational damage 

One of the biggest problems for any business is the damage to its reputation that can happen after a successful cyberattack. When confidential customer information is exposed or a company’s systems are breached, it can greatly diminish trust in the organization. This could lead to customers taking their business elsewhere and partners hesitating to collaborate with the company and the brand’s image enduring long-term harm. 

Recovering from harm can be extremely challenging since rebuilding trust and restoring a brand can take years. In situations, the reputational consequences of a cyberattack can be so serious that they result in a loss of business. 

Protecting your business from cybercrime 

As companies increasingly depend on technologies they are more susceptible to cyber threats, making cybersecurity a top priority for businesses across Europe. 

Why antivirus software matters 

Antivirus software plays a role in any cybersecurity plan. These tools are designed to spot, stop and eliminate malware, such as viruses, worms, Trojans and spyware. By using antivirus software companies can: 

• Protect against ransomware attacks: Antivirus programmes can detect and block ransomware attacks that could encrypt important files and disrupt business operations. 

• Prevent data breaches: By identifying and removing malware that hackers might use to access data, antivirus software helps prevent data breaches along with their damaging repercussions on reputation and legal matters. 

• Reduce the impact of phishing and social engineering attacks; Antivirus solutions can detect phishing attempts swiftly and stop malware installation through social engineering schemes. 

Firewalls 

It’s crucial to have a firewall in place for monitoring outgoing network traffic effectively. Firewalls act as a shield between your network and external threats, by preventing access and potential data breaches. 

Multi-Factor Authentication (MFA) 

Using MFA boosts security by asking users to provide more than one verification factor to access accounts or systems. This extra step lowers the chances of access even if passwords are compromised. Most businesses like banks and online casinos use 2FA and MFA to protect and safeguard player information and funds. 

Regular software updates and patch management 

It’s crucial to keep all software like operating systems and applications updated with patches. These updates help close security gaps that cybercriminals might exploit and using automated patch management tools can make this process smoother. 

Data encryption 

Encrypting data is key, to ensure that even if it’s intercepted or accessed without permission it remains unreadable without the right decryption keys. This is especially important for safeguarding customer information and business data. 

Regular backups 

Establishing a data backup strategy is crucial for ensuring the recovery of business information in the event of a cybersecurity incident like a ransomware attack. Scheduled backups should be securely stored both on-site and off-site. 

Intrusion Detection and Prevention Systems (IDPS) 

Investing in Intrusion Detection and Prevention Systems (IDPS) can help keep an eye on network traffic for any activity and respond swiftly to threats. These systems can alert you. Take automated actions to reduce risks. 

Secure configuration of devices and networks 

Investing in intrusion detection and prevention systems can aid in monitoring network traffic for any activities. Responding promptly to potential threats, in real time. These systems offer alerts. Can take automated measures to mitigate risks effectively. 

Conclusion 

It is crucial to have robust security protocols in place to safeguard information prevent financial losses, sustain operational stability, comply with regulations, and stay ahead of changing security risks. Implementing cybersecurity strategies and tools such, as antivirus programmes is key to ensuring the lasting success and resilience of any company. 

This content has been produced in collaboration with a partner organisation through our Global Visibility Programme. Our programme helps companies boost their digital presence and strengthen the thought leadership of their experts. Find out more here.