Cyberattacks to cost global economy $16 trillion by 2030

By Chinenye Anuforo

A new report has warned that cyberattacks could cost the global economy a staggering $10.5 trillion by 2025, rising to $12 trillion by 2026, and reaching a staggering $16 trillion by 2030. The alarming projections were cited by Adewale Obadare, Founder of Digital Encode, during his keynote address on cybersecurity & compliance in financial services.

Obadare, who was represented by Kayode Olatunji, Digital Encode’s Chief Information Security Officer, during the just concluded 2024 Nigeria ICT Impact CEO Forum, stressed the urgent need for robust cybersecurity measures to protect against these growing threats. He highlighted the increasing complexity of the cyber threat landscape, driven by the rapid advancement of technology and the rise of sophisticated cyberattacks.

Obadare emphasised the inseparable nature of cybersecurity and compliance. He explained, “Cybersecurity and compliance are like Siamese twins. They are about conformance, which creates reasonable assurance in the industry.” This means that organisations must not only protect their systems and data but also adhere to regulatory standards to mitigate risks and maintain trust.

He explained that organisations must not only protect their systems and data but also adhere to regulatory standards to mitigate risks and maintain trust.

“The financial services industry, in particular, is a prime target for cyberattacks due to the sensitive nature of the data it handles”, he stated.

The rapid advancement of technology, including artificial intelligence, blockchain, and cloud computing, is transforming the financial services industry. While these technologies offer immense potential, they also introduce new security challenges. Obadare noted that Nigeria is at the forefront of technological innovation, with a significant number of organisations adopting AI and blockchain. However, this increased reliance on technology necessitates a heightened focus on cybersecurity.

Obadare called on industry leaders to prioritise cybersecurity and invest in advanced security solutions to safeguard their systems and customer information.

He stressed the importance of a proactive approach to cybersecurity, encouraging organisations to shift from a reactive, quality control mindset to a proactive, quality assurance approach. “This involves implementing AI-driven solutions for incident response and threat hunting, as well as fostering a culture of security awareness and best practices.”

To address the growing cyber threat, Obadare outlined several key strategies: Robust data protection, employee training, incident response planning, collaboration, risk assessment, AI-powered solutions, and cloud security

By adopting these strategies, financial institutions can effectively manage risks, protect their assets, and maintain customer trust in the digital age.