Businesses around the world will increase their cyber security investment by a third over the next four years, reaching a collective annual spend of $134bn (£95bn) by 2022.
That is according to a new report by Juniper Research, which predicts that 70% of this spending will come from medium-sized businesses, with cyber criminals increasingly seeing these firms as “low-hanging fruit”.
It also forecasts that the cumulative cost of data breaches between 2017 and 2022 will reach $8trn, urging companies to plan in terms of risk mitigation rather than prevention.
This is expected to involve service providers in high-risk environments restructuring their networks to avoid potential compliance breaches, data theft or service outage.
“Once a single endpoint is breached, the big danger is lateral movement across the network,” report author, Steffen Sorrell, said. “Layered networks, proper lifecycle management and user ‘least privilege’ approaches will prove key to containing serious breaches.”
The report states that the Internet of Things (IoT) will be a key catalyst for the increase in cyber security spending for financial services firms over the next few years.
It anticipates that 46 billion units will be connected by 2021, and argues it is essential that firms develop cyber strategies that are flexible enough to react to future demands.
This comes after a report by Scrutinise Research and Analytics last year warned that the rising number of IoT products made it increasingly necessary for international standards and regulations to be agreed.
It states that manufacturers are rushing products to the market with little thought for security, leaving devices more and more open to malware and cyber attacks.
“Given that the proliferation of connected devices includes medical equipment, connected cars and power plants, urgent action is needed to improve the security of these devices,” Scrutinise Research and Analysis, senior analyst, Sacha Kavanagh, said.
“Doing this will help ensure we are not vulnerable to those who might seek to exploit current weaknesses. Everyone in the IoT ecosystem shares a responsibility to improve security.”
There were a record 66 InsurTech investment deals recorded in the first quarter of this year as insurers continued to look to start-ups to improve their claims handling and underwriting excellence.
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