Dynamic Business Logo
Home Button
Bookmark Button

Australian businesses pay an average of $1.4 million for email-driven cyber attacks

Australian businesses are at high risk of email-borne attacks with devastating financial consequences. 

A report by IT security company Barracuda Networks reveals that Australian businesses are particularly susceptible to email-borne security attacks, with potentially catastrophic results.

The report found that 74 per cent of the Australian organisations surveyed had experienced at least one successful email attack in the last 12 months, resulting in an average potential cost of over $1.4 million for their most costly attack.

This highlights the importance of cyber security and the need for businesses to prioritise protection against email attacks. With the increasing reliance on email for communication, businesses are at risk of losing sensitive information, data breaches, and financial losses.

The cost of an email-borne security attack can be extensive and include direct expenses such as investigations, recovery efforts, and the deployment of new security measures. It can also lead to indirect costs such as lost productivity, damage to reputation, and legal fees.

The top consequences of these attacks include significant business disruption and downtime (affecting 42 per cent of organisations), a significant loss of employee productivity (41 per cent), and damage to the company’s brand and reputation (37 per cent). The cost of these disruptions was staggering, with the most expensive attacks averaging more than $1.4 million.

The report also revealed that many organisations in Australia feel under-prepared to deal with data loss (34 per cent), viruses and malware (33 per cent), and spam (29 per cent). This highlights the pressing need for businesses to take a proactive approach to cyber security, investing in robust technologies and protocols to protect against email-borne attacks.

Fintech most vulnerable

The report also reveals the significant differences between industries across the globe. It found that financial services organisations were particularly vulnerable, with 59 per cent of victims reporting the loss of valuable data and 51 per cent reporting losses of money to attackers.

In contrast, the top impact in the manufacturing industry was the disruption of business operations, affecting 53 per cent of organisations. For healthcare institutions, the most significant factor was the recovery costs associated with quickly getting systems up and running again (44 per cent).

The report also highlights that organizations with a significant number of employees working remotely face higher levels of risk and recovery costs. This is an increasingly common trend in today’s global workforce, underscoring the importance of ensuring remote employees have access to robust and secure systems and protocols.

Regardless of size or industry, organizations must be prepared to prevent and respond to email-borne attacks. These attacks can have far-reaching consequences, including financial losses, business operations disruptions, and reputation damage.

In another report by Mimecast State of Email Security, it was found that 89 per cent of Australian businesses anticipate the consequences of an email-borne attack. As workforces adapt to new environments, employees become more susceptible to scams and phishing attempts.

Therefore, organizations need to take a proactive approach to email security. This includes staying informed about the latest threats and trends, updating policies, and incorporating technology to protect against attacks.

Regular training and education programs are also key in helping employees recognize and avoid potential email-borne security threats. By taking these steps, organizations can ensure that they are well-equipped to protect against email-borne attacks and minimize the impact on their operations.

Dynamic Business highlights the critical importance of prioritising cybersecurity for businesses of all sizes. With the growing threat of email-borne attacks, organisations must take proactive measures to protect themselves.

There are many tools available that can help protect against email-borne security attacks. Some of the top email protection tools include:

  1. Antivirus software: This software scans incoming emails and attachments for known viruses, malware, and other malicious code.
  2. Email filters: These tools can block unwanted emails or automatically sort incoming messages into designated folders.
  3. Email firewalls: An email firewall acts as a barrier between your email server and the internet, blocking incoming messages that meet certain criteria, such as containing malware or coming from a known source of spam.
  4. Spam filters: These tools use a combination of algorithms, blacklists, and user-defined rules to identify and mark emails as spam.
  5. Encryption software: Encryption software protects emails and attachments in transit by converting them into a coded format that the intended recipient can only read.
  6. Two-factor authentication: This security measure requires users to provide two forms of identification before accessing their email accounts, such as a password and a one-time code sent to their mobile phone.
  7. Email backup and recovery: These tools create a backup of all emails and attachments, allowing organizations to recover from data loss or corruption quickly.

ALSO READ: Cybercriminals turn to email impersonation as businesses focus on security against malware

Related: SMEs vulnerable to sophisticated email scam

Keep up to date with our stories on LinkedInTwitterFacebook and Instagram.

What do you think?

    Be the first to comment

Add a new comment

Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

View all posts