Cybersecurity threats have evolved into a major source of financial risk for businesses of all sizes. IBM revealed that in 2024, the average cost of a data breach reached a record high - almost 5 million USD, a 10% increase over 2023.
From data breaches and ransomware attacks to phishing scams and insider threats, cybercriminals are constantly devising new ways to exploit vulnerabilities. And with a fast-evolving cyber landscape, financial risk is ever-increasing and harder to track.
In this instance, proactive financial risk management becomes essential. In this blog article, we cover the following:
Ransomware in your system encrypts critical data, with responsible parties then demanding a ransom for its release. This leads to crippling financial losses - not to mention weeks of lost productivity.
Currently, ransomware attacks are one of the biggest emerging threats. From 2023 to 2024, there was an alarming 81% increase in these attacks, upping financial risk significantly going into 2025.
Phishing and social engineering attacks aim to deceive employees. They trick them into revealing sensitive information like login credentials and financial data. This can lead to fraudulent transactions, account takeovers, and devastating data breaches.
As a rule, organisations should aim to hold regular training sessions on how to spot phishing emails. This will significantly reduce financial risk.
According to a recent study in which 500 UK SMBs were surveyed, 30% of businesses were affected by account takeover fraud.
Account takeovers may occur when companies fail to conduct adequate Know-Your-Customer or KYC checks. What looks like a merger or partnership may open a backdoor for criminals to create fraudulent accounts using stolen identities.
Company Watch offers a comprehensive solution for businesses seeking to conduct thorough KYC checks during onboarding processes. By providing detailed company reports, director information, tax filings, and other vital financial and legal data, Company Watch provides a holistic report that can empower businesses to make informed decisions and mitigate financial risk.
A data breach consists of any kind of unauthorised access to sensitive data. This may include customer information, financial records, or intellectual property.
The financial risk associated with data breaches is high. Not only do they lead to big fines and legal costs, they can also cause significant reputational damage.
Cyber attacks can result in substantial financial losses for businesses. The global cost of cybercrime is expected to surge dramatically, escalating from $9.22 trillion in 2024 to a staggering $13.82 trillion by 2028.
These losses can stem from various sources:
Cyber attacks can severely disrupt business operations, leading to:
A cyber attack can harm a company's reputation in many ways:
Businesses face risks related to data security:
The interconnected nature of modern business creates additional risks:
Beyond immediate impacts, cyber attacks can have lasting effects:
Financial risk management is all about taking proactive steps to ensure that your business is never in a position of insecurity. Company Watch provides tools that assess and predict different types of financial risk. This allows businesses to allocate resources effectively, including investments in cybersecurity measures.
Company Watch also offers detailed risk scores and insights into business relationships. This allows you to identify vulnerable partners or suppliers that could potentially cause account takeover fraud.
Our dedicated fraud detection tool, Vigilance™, provides real-time insights into company information, director details, and financial filings. By analysing vast amounts of data, Vigilance™ helps you uncover hidden risks before you are able to manually pick up on them, giving you a proactive edge against business fraud.