The Cyber Defense eMagazine November Edition for 2023

Cyber risk nightmare
Cyber criminals are using unsecure mobile messaging tools to infiltrate and wreak havoc on enterprise
networks and systems. Bad actors are very aware that consumer-grade messaging apps and unsecure
collaboration tools were not designed for enterprise use and are tailoring attacks to take advantage of
security gaps and vulnerabilities in these tools.
Data shows that the use of unsecure messaging and collaboration apps is fueling an increase in global
cyberattacks. Findings from a Check Point Research report show that cyberattacks are increasing
worldwide, with 38% more cyberattacks per week on corporate networks in 2022, compared to 2021. The
report revealed that this increase was driven by smaller, more agile hacker and ransomware gangs, who
focused on exploiting collaboration tools used in work-from-home environments.
The use of unauthorized apps in the workplace like consumer-grade messaging apps, or what is called
shadow IT, introduces network vulnerabilities that put companies at risk of compliance violations and
data breaches. In fact, Randori’s State of Attack Surface Management 2022 report revealed that 7 in 10
organizations have been compromised by shadow IT.
Financial risk disaster
Using personal messaging apps in the workplace can also result in crippling financial losses for
enterprises. Business disruption, reputational damage, downtime, legal fees and fines for compliance
violations are all disastrous effects of data breaches that impact the bottom line.
Over the last few years, many organizations learned the hard way that using these unsecure
communication and collaboration tools exponentially increases cyber risk that can result in costly
compliance violations. For example, a massive crackdown by the SEC on the use of unapproved
communication apps led to 16 firms being fined $1.1 billion in 2022, followed by another round of
violations for 11 more firms in August of this year resulting in an additional $289 million in fines.
The bottom line damaging impact of cyberattacks was recently quantified in research by ThreatConnect
which found that cyberattacks can cost enterprises up to a whopping 30% of operating income.
That’s not surprising considering that IBM most recent cost of a data breach report showed the global
average cost of a data breach reached $4.45 million in 2023 – an all-time high for the report and a 15%
increase over the last three years.
Company stock prices also take a hit when data breaches occur. A Comparitech analysis of the impact
of data breaches on the share prices of 34 breached companies that were listed on the New York Stock
Exchange (NYSE), found that share prices of these breached companies hit a low point approximately
110 market days following a breach, falling -3.5% on average, and underperforming the NASDAQ by -
3.5%. According to the analysis, one year after the data breach the share price of breached companies
fell -8.6% on average and underperformed the NASDAQ by -8.6%. After 2 years, the average share price
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