Our world is entirely dependent on technology which are prone to attacks. Only a few people understand such complex infrastructure. The internet is built to be easy, and this makes it vulnerable. The first big cyberattack happened in 1988. That time, not many people knew about it.
The more we rely on networked computer technology, the more we become exposed to attacks and ransomware extortion.
There are various ways of hacking or disrupting a network. Threat actors get direct access through software bugs, they can access unprotected systems and leverage them as a zombie army called "botnet," to disrupt a network.
Currently, we are experiencing a wave of ransomware attacks. First, threat actors hack into a network, they may pretend to be an employee. They do this via phishing emails or social engineering attacks. After this, they increase their access and steal sensitive data for extortion reasons. By this, hackers gain control and assert dominance.
These days, "hypervisor" has become a favourite target. It is a server computer that lets many remote systems to use just one system (like work from home). Hackers then use ransomware to encode data, which makes the entire system unstable and it becomes impossible to restore the data without paying the ransom for a decoding key.
A major reason is a sudden rise in cryptocurrencies. It has made money laundering easier. In 2023, a record $1.1 billion was paid out across the world. Crypto also makes it easier to buy illegal things on the dark web. Another reason is the rise of ransomware as a service (RaaS) groups. This business model has made cyberattacks easier for beginner hackers
RaaS groups market on dark web and go by the names like LockBit, REvil, Hive, and Darkside sell tech support services for ransomware attack. For a monthly fees, they provide a payment portal, encryption softwares, and a standalone leak site for blackmailing the victims, and also assist in ransom negotiations.
The United Kingdom’s National Cyber Security Centre (NCSC) has cautioned that hacking groups connected to China are responsible for an increasing number of cyberattacks targeting British organisations. Officials say the country has become one of the most capable and persistent sources of digital threats worldwide, with operations extending across government systems, private firms, and global institutions.
Paul Chichester, the NCSC’s Director of Operations, explained that certain nations, including China, are now using cyber intrusions as part of their broader national strategy to gain intelligence and influence. According to the NCSC’s latest annual report, China remains a “highly sophisticated” threat actor capable of conducting complex and coordinated attacks.
This warning coincides with a government initiative urging major UK companies to take stronger measures to secure their digital infrastructure. Ministers have written to hundreds of business leaders, asking them to review their cyber readiness and adopt more proactive protection strategies against ransomware, data theft, and state-sponsored attacks.
Last year, security agencies from the Five Eyes alliance, comprising the UK, the United States, Canada, Australia, and New Zealand uncovered a large-scale operation by a Chinese company that controlled a botnet of over 260,000 compromised devices. In August, officials again warned that Chinese-backed hackers were targeting telecommunications providers by exploiting vulnerabilities in routers and using infected devices to infiltrate additional networks.
The NCSC also noted that other nations, including Russia, are believed to be “pre-positioning” their cyber capabilities in critical sectors such as energy and transportation. Chichester emphasized that the war in Ukraine has demonstrated how cyber operations are now used as instruments of power, enabling states to disrupt essential services and advance strategic goals.
Artificial Intelligence: A New Tool for Attackers
The report highlights that artificial intelligence is increasingly being used by hostile actors to improve the speed and efficiency of existing attack techniques. The NCSC clarified that, while AI is not currently enabling entirely new forms of attacks, it allows adversaries to automate certain stages of hacking, such as identifying security flaws or crafting convincing phishing emails.
Ollie Whitehouse, the NCSC’s Chief Technology Officer, described AI as a “productivity enhancer” for cybercriminals. He explained that it is helping less experienced hackers conduct sophisticated campaigns and enabling organized groups to expand operations more rapidly. However, he reassured that AI does not currently pose an existential threat to national security.
Ransomware Remains the Most Severe Risk
For UK businesses, ransomware continues to be the most pressing danger. Criminals behind these attacks are financially motivated, often targeting organisations with weak security controls regardless of size or industry. The NCSC reports seeing daily incidents affecting schools, charities, and small enterprises struggling to recover from system lockouts and data loss.
To strengthen national resilience, the upcoming Cyber Security and Resilience Bill will require critical service providers, including data centres and managed service firms, to report cyber incidents within 24 hours. By increasing transparency and response speed, the government hopes to limit the impact of future attacks.
The NCSC urges business leaders to treat cyber risk as a priority at the executive level. Understanding the urgency of action, maintaining up-to-date systems, and investing in employee awareness are essential steps to prevent further damage. As cyber activity grows “more intense, frequent, and intricate,” the agency stresses that a united effort between the government and private sector is crucial to protecting the UK’s digital ecosystem.
Global auction house Sotheby’s has disclosed that it recently suffered a data breach in which cybercriminals accessed and extracted files containing sensitive information. The company confirmed that the security incident, detected on July 24, 2025, led to unauthorized access to certain internal data systems.
According to a notification filed with the Maine Attorney General’s Office, the compromised records included details such as full names, Social Security Numbers (SSNs), and financial account information. While the filing listed only a few individuals from the states of Maine and Rhode Island, the overall number of people affected by the breach has not been publicly confirmed.
Sotheby’s stated that once the intrusion was identified, its cybersecurity team immediately launched a detailed investigation, working alongside external security experts and law enforcement authorities. The process reportedly took nearly two months as the company conducted a comprehensive audit to determine what type of information was taken and whose data was affected.
In its notice to those impacted, the company wrote that certain Sotheby’s data “appeared to have been removed from our environment by an unknown actor.” It added that an “extensive review of the data” was carried out to identify the affected records and confirm the individuals connected to them.
As a precautionary measure, Sotheby’s is offering affected individuals 12 months of free identity protection and credit monitoring services through TransUnion, encouraging them to register within 90 days of receiving the notification letter.
Initially, it was unclear whether the compromised data involved employees or clients. However, in an update on October 17, 2025, Sotheby’s clarified in a statement to BleepingComputer that the breach involved employee information, not customer data. The company emphasized that it took the incident seriously and immediately involved external cybersecurity experts to support the response and remediation process.
“Sotheby’s discovered a cybersecurity incident that may have involved certain employee information,” a company spokesperson said in an official statement. “Upon discovery, we promptly began an investigation with leading data protection specialists and law enforcement. The company is notifying all impacted individuals as required and remains committed to protecting the integrity of its systems and data.”
Sotheby’s is among the world’s most recognized auction houses, dealing in high-value art and luxury assets. In 2024, the firm recorded total annual sales of nearly $6 billion, highlighting the scale and sensitivity of the data it manages, including financial and transactional records.
Although no ransomware groups have claimed responsibility for this breach so far, similar attacks have previously targeted high-end auction platforms. In 2024, the RansomHub gang allegedly breached Christie’s, stealing personal data belonging to an estimated 500,000 clients. Such incidents indicate that cybercriminals increasingly view global art institutions as lucrative targets due to the financial and personal data they store.
This is not the first time Sotheby’s has dealt with cybersecurity issues. Between March 2017 and October 2018, the company’s website was compromised by a malicious web skimmer designed to collect customer payment information. A comparable supply-chain attack in 2021 also led to unauthorized access to sensitive data.
The latest breach reinforces the growing risks faced by major cultural and financial institutions that handle valuable client and employee data. As investigations continue, Sotheby’s has urged affected individuals to remain vigilant, review their financial statements regularly, and immediately report any suspicious activity to their bank or credit institution.
Salesforce has confirmed it will not pay a ransom to an extortion group that claims to have stolen close to one billion records belonging to several of its customers. The company stated that it will not enter negotiations or make payments to any threat actor, reaffirming its policy of non-engagement with cybercriminals.
Extortion Group Claims to Have Breached Dozens of Salesforce Customers
The group behind the alleged theft calls itself “Scattered LAPSUS$ Hunters”, a name that appears to blend identities from three notorious cyber-extortion collectives: Scattered Spider, LAPSUS$, and ShinyHunters. Cybersecurity firm Mandiant, owned by Google, has been tracking this activity under the identifier UNC6040, though analysts say the group’s exact origins and membership remain unconfirmed.
According to Mandiant’s June report, the campaign began in May, when attackers used voice-based social engineering, or “vishing,” to trick employees at several organizations using Salesforce’s platform. Pretending to represent technical support teams, the callers persuaded employees to connect an attacker-controlled application to their company’s Salesforce environment. Once integrated, the app provided unauthorized access to stored customer data.
Security researchers described the tactic as simple but highly effective, since it relies on human trust rather than exploiting software vulnerabilities. Several organizations unknowingly granted the attackers access, enabling them to exfiltrate vast amounts of data.
Earlier this month, the extortionists created a leak site listing approximately 40 affected Salesforce customers, including large global firms. The site claimed that 989.45 million records had been compromised and demanded that Salesforce begin ransom negotiations “or all your customers’ data will be leaked.” The attackers added that if Salesforce agreed to pay, other victim companies would not be required to do so individually.
Salesforce, however, made its position clear. In a statement to media outlets, a company spokesperson said, “Salesforce will not engage, negotiate with, or pay any extortion demand.” The company also informed customers via email that it had received credible intelligence about plans by ShinyHunters to release the stolen data publicly, but it would still not yield to any ransom demand.
Broader Concerns Over Ransomware Economics
The incident adds to a growing global debate over ransom payments. Analysts say extortion and ransomware attacks persist largely because organizations continue to pay. According to Deepstrike Security, global ransom payments in 2024 reached $813 million, a decline from $1.1 billion in 2023 but still a major incentive for criminal groups.
Experts such as independent security researcher Kevin Beaumont have repeatedly criticized the practice of paying ransoms, arguing that it directly funds organized crime and perpetuates the cycle of attacks. Beaumont noted that while law enforcement agencies like the UK’s National Crime Agency (NCA) publicly discourage payments, some companies still proceed with negotiations, sometimes even with NCA representatives present.
Risks and Lessons for Organizations
Data stolen from cloud-based platforms like Salesforce may include customer identifiers, contact details, transaction histories, and other business records. Even without financial information, such data can be weaponized in phishing, identity theft, or fraud campaigns.
Security professionals advise all organizations using cloud platforms to implement multi-factor authentication, enforce least-privilege access controls, and review all third-party applications connected to their systems. Employees should be trained to verify unexpected support calls or administrative requests through official channels before granting access.
The Salesforce case underscores the growing sophistication of social engineering attacks targeting major enterprise platforms. As digital ecosystems expand, cybercriminals are increasingly exploiting human error rather than software flaws. Salesforce’s refusal to pay marks a firm stance in an era when ransom-driven extortion continues to dominate the threat landscape, sending a strong message to both the cybersecurity community and the attackers themselves.
The cybersecurity breach at enterprise software provider Red Hat has intensified after the hacking collective known as ShinyHunters joined an ongoing extortion attempt initially launched by another group called Crimson Collective.
Last week, Crimson Collective claimed responsibility for infiltrating Red Hat’s internal GitLab environment, alleging the theft of nearly 570GB of compressed data from around 28,000 repositories. The stolen files reportedly include over 800 Customer Engagement Reports (CERs), which often contain detailed insights into client systems, networks, and infrastructures.
Red Hat later confirmed that the affected system was a GitLab instance used exclusively by Red Hat Consulting for managing client engagements. The company stated that the breach did not impact its broader product or enterprise environments and that it has isolated the compromised system while continuing its investigation.
The situation escalated when the ShinyHunters group appeared to collaborate with Crimson Collective. A new listing targeting Red Hat was published on the recently launched ShinyHunters data leak portal, threatening to publicly release the stolen data if the company failed to negotiate a ransom by October 10.
As part of their extortion campaign, the attackers published samples of the stolen CERs that allegedly reference organizations such as banks, technology firms, and government agencies. However, these claims remain unverified, and Red Hat has not yet issued a response regarding this new development.
Cybersecurity researchers note that ShinyHunters has increasingly been linked to what they describe as an extortion-as-a-service model. In such operations, the group partners with other cybercriminals to manage extortion campaigns in exchange for a percentage of the ransom. The same tactic has reportedly been seen in recent incidents involving multiple corporations, where different attackers used the ShinyHunters name to pressure victims.
Experts warn that if the leaked CERs are genuine, they could expose critical technical data, potentially increasing risks for Red Hat’s clients. Organizations mentioned in the samples are advised to review their system configurations, reset credentials, and closely monitor for unusual activity until further confirmation is available.
This incident underscores the growing trend of collaborative cyber extortion, where data brokers, ransomware operators, and leak-site administrators coordinate efforts to maximize pressure on corporate victims. Investigations into the Red Hat breach remain ongoing, and updates will depend on official statements from the company and law enforcement agencies.
Financial losses were a major factor; most organizations reported operational failures, reputation damage, and staff losses. “Outdated operating systems and applications often contain security vulnerabilities that cyber attackers can exploit. Even with robust defenses, there is always a risk of data loss or ransomware attacks,” the report said.
Ransomware is the topmost problem; the survey suggests that around 27% of respondents suffered damage, and 80% agreed to pay ransom.
Despite the payments, recovery was not confirmed as only 60% could restore their data, while hackers asked for repayments again. The reports highlight that paying the ransom to hackers doesn’t ensure data recovery and can even lead to further extortion.
There is an urgent need for transparency, as 71% respondents agreed that companies should disclose ransom payments and the money paid. Hiscox found that gangs are targeting sensitive data like executive emails, financial information, and contracts.
The report notes that criminal groups are increasingly targeting sensitive business data such as contracts, executive emails, and financial information. "Cyber criminals are now much more focused on stealing sensitive business data. Once stolen, they demand payment…pricing threats based on reputational damage,” the report said. This shift has exposed gaps in businesses’ data loss prevention measures that criminals exploit easily.
Respondents also said they experienced AI-related incidents, where threat actors exploited AI flaws such as deepfakes and vulnerabilities in third-party AI apps. Around 65% still perceive AI as an opportunity rather than a threat. The report highlights new risks that business leaders may not fully understand yet.
According to the report, “Even with robust defenses, there is always a risk of data loss or ransomware attacks. Frequent, secure back-ups – stored either offline or in the cloud – ensure that businesses can recover quickly if the worst happens.”
Police forces in the United Kingdom are alerting the public to a surge in online fraud cases, warning that criminals are now exploiting artificial intelligence and deepfake technology to impersonate relatives, friends, and even public figures. The warning, issued by West Mercia Police, stresses upon how technology is being used to deceive people into sharing sensitive information or transferring money.
According to the force’s Economic Crime Unit, criminals are constantly developing new strategies to exploit internet users. With the rapid evolution of AI, scams are becoming more convincing and harder to detect. To help people stay informed, officers have shared a list of common fraud-related terms and explained how each method works.
One of the most alarming developments is the use of AI-generated deepfakes, realistic videos or voice clips that make it appear as if a known person is speaking. These are often used in romance scams, investment frauds, or emotional blackmail schemes to gain a victim’s trust before asking for money.
Another growing threat is keylogging, where fraudsters trick victims into downloading malicious software that secretly records every keystroke. This allows criminals to steal passwords, banking details, and other private information. The software is often installed through fake links or phishing emails that look legitimate.
Account takeover, or ATO, remains one of the most common types of identity theft. Once scammers access an individual’s online account, they can change login credentials, reset security settings, and impersonate the victim to access bank or credit card information.
Police also warned about SIM swapping, a method in which criminals gather personal details from social media or scam calls and use them to convince mobile providers to transfer a victim’s number to a new SIM card. This gives the fraudster control over the victim’s messages and verification codes, making it easier to access online accounts.
Other scams include courier fraud, where offenders pose as police officers or bank representatives and instruct victims to withdraw money or purchase expensive goods. A “courier” then collects the items directly from the victim’s home. In many cases, scammers even ask for bank cards and PIN numbers.
The force’s notice also included reminders about malware and ransomware, malicious programs that can steal or lock files. Criminals may also encourage victims to install legitimate-looking remote access tools such as AnyDesk, allowing them full control of a victim’s device.
Additionally, spoofing — the act of disguising phone numbers, email addresses, or website links to appear genuine, continues to deceive users. Fraudsters often combine spoofing with AI to make fake communication appear even more authentic.
Police advise the public to remain vigilant, verify any unusual requests, and avoid clicking on suspicious links. Anyone seeking more information or help can visit trusted resources such as Action Fraud or Get Safe Online, which provide updates on current scams and guidance on reporting cybercrime.
The New York Blood Center Enterprises (NYBCe) has reported a major cybersecurity incident that compromised the personal information of nearly 194,000 people. The breach occurred between January 20 and January 26, 2025, when an unauthorized party gained access to the organization’s network and extracted copies of certain files.
What information was taken
The investigation confirmed that sensitive details were involved in the leak. These included names, Social Security numbers, driver’s license and other state-issued identification numbers, as well as bank account information for individuals who received payments by direct deposit. In some cases, health data and medical test results were also exposed.
NYBCe has not disclosed how the attackers infiltrated its systems, whether ransomware was used, or if any ransom demand was made. No known criminal group has claimed responsibility for the breach so far.
Why affected individuals may not receive notices
Unlike many healthcare providers, NYBCe does not maintain contact information for all of its patients and service users. As a result, it cannot directly notify every individual whose records were accessed. Instead, the organization has urged anyone who has received services to call a dedicated helpline at 877-250-2848 to confirm whether their data was compromised.
To support those impacted, NYBCe is offering complimentary access to Experian’s identity protection and credit monitoring services for one year. Additional details are available through a filing with the Vermont Attorney General’s office.
Scale of the incident
Cybersecurity researchers note that this is among the largest healthcare-related breaches of 2025. Data compiled by Comparitech shows that the incident ranks as the fourth-largest ransomware-related exposure this year in terms of records affected, with healthcare organizations remaining frequent targets. By mid-2025, more than 60 attacks on hospitals, clinics, and direct care providers had been recorded, exposing over 5 million patient records.
Steps individuals should take
Experts emphasize that people potentially affected by this breach should take immediate precautions:
1. Contact NYBCe: Call the helpline to verify if your records were involved.
2. Use identity protection tools: Enroll in the free Experian services being offered, and consider placing a credit freeze or fraud alert with the credit bureaus.
3. Stay alert for scams: Watch for phishing emails or phone calls pretending to be official messages. Avoid clicking links, opening attachments, or sharing personal information unless you can confirm the source.
4. Monitor financial accounts: Check bank statements and health insurance records regularly for unusual charges or activity.
5. Adopt cybersecurity practices like second nature: Use strong passwords, enable two-factor authentication, and keep antivirus software updated.
The breach at NYBCe is a testament to the growing threat facing healthcare organizations, which often hold large amounts of sensitive data but face challenges in securing complex IT systems. Security experts warn that similar incidents are likely to continue, making it critical for organizations to improve defenses and for individuals to remain vigilant about protecting their personal information.
According to Vietnam’s state news outlet, the Cyber Emergency Response Team (VNCERT) confirmed reports of a breach targeting the National Credit Information Center (CIC) that manages credit information for businesses and people, an organization run by the State Bank of Vietnam.
Earlier reports suggested that personal information was exposed due to the attack. VNCERT is now investigating and working with various agencies and Viettel, a state-owned telecom. It said, “Initial verification results show signs of cybercrime attacks and intrusions to steal personal data. The amount of illegally acquired data is still being counted and clarified.”
VNCERT has requested citizens to avoid downloading and sharing stolen data and also threatened legal charges against people who do so.
The statement has come after threat actors linked to the Shiny Hunters Group and Scattered Spider cybercriminal organization took responsibility for hacking the CIC and stealing around 160 million records.
Threat actors put up stolen data for sale on the cybercriminal platforms, giving a sneak peek of a sample that included personal information. DataBreaches.net interviewed the hackers, who said they abused a bug in end-of-life software, and didn’t offer a ransom for the stolen information.
CIC told banks that the Shiny Hunters gang was behind the incident, Bloomberg News reported.
The attackers have gained the attention of law enforcement agencies globally for various high-profile attacks in 2025, including various campaigns attacking big enterprises in the insurance, retail, and airline sectors.
The Ministry of Economy and Finance in Panam was also hit by a cyber attack, government officials confirmed. “The Ministry of Economy and Finance (MEF) informs the public that today it detected an incident involving malicious software at one of the offices of the Ministry,” they said in a statement.
The INC ransomware group claimed responsibility for the incident and stole 1.5 terabytes of data, such as emails, budgets, etc., from the ministry.
A new Android malware strain called RatOn has rapidly evolved from a tool limited to NFC relay attacks into a sophisticated remote access trojan with the ability to steal banking credentials, hijack cryptocurrency wallets, and even lock users out of their phones with ransom-style screens. Researchers warn the malware is under active development and combines multiple attack methods rarely seen together in one mobile threat.
How It Spreads
RatOn is being distributed through fake websites designed to look like the Google Play Store. Some of these pages advertise an adult-themed version of TikTok called “TikTok 18+.” Once victims install the dropper app, it requests permission to install software from unknown sources, bypassing Android’s built-in safeguards. The second-stage payload then seeks administrator and accessibility permissions, along with access to contacts and system settings, giving it deep control of the device. From there, RatOn can download an additional component called NFSkate, a modified version of the NFCGate tool, enabling advanced relay attacks known as “ghost taps.”
Capabilities and Tactics
The trojan’s abilities are wide-ranging:
1. Overlays and ransomware screens: RatOn can display fake login pages to steal credentials or lock the device with alarming ransom notes. Some overlays falsely accuse users of viewing child exploitation content and demand $200 in cryptocurrency within two hours to regain access.
2. Banking and crypto theft: It specifically targets cryptocurrency wallets such as MetaMask, Trust Wallet, Blockchain.com, and Phantom. By capturing PIN codes and recovery phrases, the malware enables attackers to take over accounts and steal assets. It can also perform automated transfers inside George ÄŒesko, a Czech banking app, by simulating taps and inputs.
3. NFC relay attacks: Through NFSkate, RatOn can remotely use victims’ card data for contactless payments.
4. Remote commands: The malware can change device settings, send fake push notifications, send SMS messages, add contacts, record screens, launch apps like WhatsApp and Facebook, lock the phone, and update its target list of financial apps.
Researchers noted RatOn shares no code with other Android banking trojans and appears to have been built from scratch. A similar trend has been seen before: the HOOK trojan, another Android threat, also experimented with ransomware-style overlays.
Development and Targets
The first sample of RatOn was detected on July 5, 2025, with further versions appearing as recently as August 29, pointing to ongoing development. Current attacks focus mainly on users in the Czech Republic and Slovakia. Investigators believe the need for local bank account numbers in automated transfers suggests possible collaboration with regional money mules.
Why It Matters
RatOn’s integration of overlay fraud, ransomware intimidation, NFC relay, and automated transfers makes it unusually powerful. By combining old tactics with new automation, it raises the risk of large-scale theft from both traditional banking users and cryptocurrency holders.
Users can reduce exposure by downloading apps only from official stores, refusing risky permissions for unknown apps, keeping devices updated, and using strong multi-factor authentication on financial accounts. For cryptocurrency, hardware wallets that keep recovery phrases offline provide stronger protection. Anyone who suspects infection should immediately alert their bank and seek professional removal help.
Wayne Memorial Hospital in the US has informed its 163,440 people about a year old data breach in May 2024 that exposed details such as: names, social security numbers, user IDs, and passwords, financial account numbers, credit and debit card numbers, expiration dates, and CVV codes, medical history, diagnoses, treatments, prescriptions, lab test results and images, health insurance, Medicare, and Medicaid numbers, healthcare provider numbers, state-issued ID numbers, and dates of birth.
Initially, the hospital informed only 2,500 people about the attack in August 2024. Ransomware group Monti took responsibility for the attack and warned that it would leak the data by July 8, 2024.
Wayne Memorial Hospital, however, has not confirmed Monti’s claim. As of now, it is not known if the hospital paid a ransom, what amount Monti demanded, or why the hospital took more than a year to inform victims, or how the threat actors compromised the hospital infrastructure.
According to the notice sent to victims, “On June 3, 2024, WMH detected a ransomware event, whereby an unauthorized third party gained access to WMH’s network, encrypted some of WMH’s data, and left a ransom note on WMH’s network.” The forensic investigation by WMH found evidence of unauthorized access to a few WMH systems between “May 30, 2024, and June 3, 2024.”
The hospital has offered victims a one-year free credit monitoring and fraud assistance via CyberScout. The deadline to apply is three months from the date of the notice letter.
Monti is a ransomware gang that shares similarities with the Conti group. It was responsible for the first breach in February 2023. The group, however, has been working since June 2022. Monti is infamous for abusing software bugs like Log4Shell. Monti encrypts target systems and steals data as well. This pushes victims to pay ransom money in exchange for deleting stolen data and restoring the systems.
To date, Monti has claimed responsibility for 16 attacks. Out of these, two attacks hit healthcare providers.
In April 2023, Avezzano Sulmona L’Aquila (Italy) reported a ransomware attack that resulted in large-scale disruption for a month. Monti asked for $3 million ransom for the 500 GB of stolen data. ASL denies payment of the ransom.
Excelsior Othopedics informed 394,752 people about a June 2024 data compromise
Delaying these expenditures can provide short-term financial gains, but long-term repercussions can be severe, causing greater dangers and exponential costs.
Cybersecurity debt happens when organizations don’t update their systems frequently, ignoring software patches and neglecting security improvements for short-term financial gains. Slowly, this leads to a backlog of bugs that threat actors can abuse- leading to severe consequences.
Contrary to financial debt that accumulates predictable interest, cybersecurity debt compounds in uncertain and hazardous ways. Even a single ignored bug can cause a massive data breach, a regulatory fine that can cost millions, or a ransomware attack.
A 2024 IBM study about data breaches cost revealed that the average data breach cost had increased to $4.9 million, a record high. And even worse, 83% of organizations surveyed had suffered multiple breaches, suggesting that many businesses keep operating with cybersecurity debt. The more an organization avoids addressing problems, the greater the chances of cyber threats.
CEOs and CFOs are under constant pressure to give strong quarterly profits and increase revenue. As cybersecurity is a “cost center” and non-revenue-generating expenditure, it is sometimes seen as a service where costs can be cut without severe consequences.
A CEO or CFO may opt for this short-term security gain, failing to address the long-term risks involved with rising cybersecurity debt. In some cases, the consequences are only visible when a business suffers a data breach.
Philip D. Harris, Research Director, GRC Software & Services, IDC, suggests, “Executive management and the board of directors must support the strategic direction of IT and cybersecurity. Consider implementing cyber-risk quantification to accomplish this goal. When IT and cybersecurity leaders speak to executives and board members, from a financial perspective, it is easier to garner interest and support for investments to reduce cybersecurity debt.”
CEOs and leaders should consider reassessing the risks. This can be achieved by adopting a comprehensive approach that adds cybersecurity debt into an organization’s wider risk management plans.