2022 was a year of historically high cyber risk: in Q3, Checkpoint Research found that global attacks had increased by 28% over the previous year. Meanwhile, the average cost of a data breach is approaching $10 million dollars. With the global cost of cybercrime projected to hit $8 trillion in 2023 - including ransomware, fraud and phishing attacks - these trends are only accelerating, and organizations need to be prepared.
In the coming year, businesses will not only face increased activity from better-organized cyber actors around the world - they will also be dealing with workplace shifts, regulatory developments, and changes in best practices. Ultimately, many of these changes should be embraced as the best way forward in today's rapidly shifting threat landscape.
Cybersecurity is increasingly cited as a top concern by executives, and for good reasons: protecting sensitive data and information technology (IT) from threat actors is key for maintaining business resilience, customer trust and revenue over the long run. In this article, we'll outline the top 8 cyber trends in 2023, and how businesses can prepare.
Drivers of Cyber Risk
Cyber actors thrive on unpredictability - but there are predictable factors behind the rise in cybercrime, and some of the most significant in 2023 will include:
- Cyber Warfare - geopolitical tensions increase the number of politically motivated and state cyber actors. Microsoft has identified a rise in the number and destructiveness of politically motivated cyberattacks in 2022, a trend which will continue into 2023.
- Rise in Hybrid Work - all professional jobs in America are expected to be remote by the end of 2022. While hybrid workplaces offer many advantages, they also introduce complexity to network environments, creating an extended perimeter, new vulnerabilities, and attack surfaces.
- Cyber Talent Gap - as the need for cyber expertise rises, qualified workers are in increasingly short supply. According to a Cybersecurity Workforce Study, the industry is suffering from a shortage of 3.4 million workers - this problem will continue to challenge organizations in 2023.
- Dark Web Growth - the Dark Web has become a significant force in global cybercrime, providing cyber actors with access to exploits, credentials, privileged insiders and more. In June 2021, a single set of credentials which led to the breach of Electronic Arts (EA) cost the attacker just $10 on the Dark Web.
8 Cyber Trends Affecting Businesses
In 2023, businesses will not only be impacted by trends in the cyber landscape, but also from changes in government and industry-specific regulation, IT trends, etc. Here are some of the most important.
- Cloud Vulnerabilities
In 2023, the global cloud market is projected to increase by 20.7% - at the same time, cloud breaches are on the rise, with nearly half of organizations reporting a cloud-based breach within the past year. But while this has created understandable hesitance around cloud adoption, it should instead create vigilance around cloud security.
Today, cloud service providers (CSPs) provide an impressive array of security controls to protect their customers' data. Most cloud breaches are caused by misconfigurations on the customer side, including exposed APIs, incompatibilities in multi-cloud environments, and bad virtual machine images (VMIs). In 2023, organizations should be vigilant about ensuring their cloud environments are configured safely.
- Ransomware-as-a-Service (RaaS)
Ransomware-as-a-service (RaaS) has revolutionized the way global cyber actors operate, bringing advanced cyber capabilities to low skilled actors who would have never had access to them in the past. In June of 2021, the Colonial Pipeline attack - which threatened gas supplies across the Eastern U.S - was orchestrated by an RaaS group.
In the first quarter of 2022, there was a 63.2% increase in RaaS and extortion groups, and this number is likely to continue to increase in 2023. Over the coming year, organizations must be vigilant against ransomware threats by adopting robust backup and recovery systems, and educating employees on the risk.
- Data Management
Remote work, Shadow IT and high turnover resulting from the "Great Resignation" are all factors behind the problem of data exfiltration: departing employees often store their data across SaaS platforms that are not centrally managed, and take that sensitive information with them when they leave their employer. In fact, nearly 75% of organizations are unaware of how much sensitive data departing employees take with them.
To address this issue in 2023, organizations will need to implement strong data governance policies. This includes defining and managing data assets, knowing where they are stored, who has access to them and how they are used. Proper data management plays an increasingly crucial role in an organization's security strategy, ensuring that sensitive data stays out of the hands of bad actors.
- Improving Post-Attack Protocols
While no cybersecurity strategy can prevent all cyberattacks, they can help businesses to maintain critical business operations in the aftermath and recover rapidly. The key lies in maintaining an incident response plan with protocols for isolating the source of an attack, removing it from your network, and analyzing the incident.
In 2023, organizations should formulate cyber incident response plans as part of a larger business continuity plan for cyber incidents, including business impact analysis, maximum tolerable downtime and recovery objections. In the midst of a cyberattack, every minute can make a difference - thinking through your strategy ahead of time gives your business a fighting chance to recover and resume operations with minimal impact to customers.
- Social Engineering
Social engineering remains a favored tactic by cyber actors. In fact, a report by Deloitte finds that 91% of all cyberattacks begin with a phishing email. Social engineers also use fake social media accounts - which number in the millions on sites like LinkedIn - to gain the trust of employees, passing themselves off as friends, colleagues, or other trusted individuals.
To defend against social engineering attacks, organizations should invest in robust cyber training programs that educate employees on how to identify and avoid common tactics such as phishing, baiting, and pretexting. By providing employees with the knowledge and tools they need to recognize and report social engineering attempts, organizations can significantly reduce their risk of falling victim to these types of attacks.
- Regulatory Developments
2023 will bring developments to both industry-specific and federal cybersecurity regulations. For instance, the Department of Defense (DoD) will start to roll out contracts under the cybersecurity maturity model certification (CMMC) in May, the Health Insurance Portability and Accountability Act (HIPAA) will undergo rule changes and a FedRAMP reform bill will be included in the 2023 National Defense Authorization Act (NDAA).
A majority of U.S defense contractors are failing basic cybersecurity requirements, leading to renewed vigilance from the federal government. Meanwhile, private sector businesses are increasingly required to pass audits under standards like SOC2. In 2023, organizations should be prepared to update their policies, implement new additional security measures and undergo regular assessments to boost customer and stakeholder confidence.
- Cyber Insurance
Cyber liability insurance protects organizations from the massive expenses that can be incurred by a data breach or other security failure. With the cost of cyberattacks at an all-time high, cyber insurance can be a wise investment for businesses of every size. But while the cost of cyber insurance is stabilizing following a rise in premiums, the barrier for entry has increased.
Today, multi-factor authentication for network access is a minimal standard for most cyber insurance plans - some carriers will also demand training, backups, and other security controls before onboarding a new client. In 2023, organizations considering a cyber insurance plan should make sure they are prepared to shoulder these requirements and consider a third-party risk assessment of their IT infrastructure.
- Managed Detection and Response (MDR) Solutions
Managed Detection and Response (MDR) solutions are critical for monitoring active cyber threats and responding to cyberattacks in real time. They include security operations centers (SOCs), who work around the clock to monitor a company’s network and systems for signs of suspicious activity and potential vulnerabilities.
In 2023, MDR solutions will help organizations to navigate the complexities of today's IT landscape, including extended network perimeters and endpoints, multi-cloud configurations, software supply chain vulnerabilities and a proliferation of cloud apps.
Don't Just be Ready - Be SingularReady™
2023 will be the most disruptive year for cybersecurity yet, and your organization can't afford to face those disruptions alone. Fortunately, you don't have to - choose a partner like Singular Security who will propel your cyber readiness to the next level.
At Singular Security™ we provide world-class cybersecurity services to small businesses and enterprises alike. Our cyber experts draw on years of expertise and a federal cybersecurity background to help you stay compliant and protect your private data from emerging cyber threats. Don't just be ready - be SingularReady™. To learn more, contact us today.