German companies suffer $296B loss from cyberattacks

Cyberattacks have cost German companies approximately €267 billion ($296 billion) over the past 12 months, according to a recent survey by Bitkom, the Federal Association for Information Technology, Telecommunications, and New Media.

The survey, which included 1,000 companies, highlights the increasing threat of cybercrime to the German economy.

Organized crime behind most attacks

The survey, conducted between April and June with around 1,000 companies, revealed that 70% of the attacks – both digital and analog – were attributed to organized criminal gangs. The involvement of foreign security services in these attacks rose significantly, with 20% of companies identifying them as perpetrators, up from 7% the previous year.

Presenting the survey results in Berlin, Bitkom Chairman Ralf Wintergerst warned of the deteriorating cybersecurity landscape for German businesses. “The situation regarding cyber threats to the German economy has worsened. Companies must further strengthen their protective measures,” Wintergerst stated.

The survey also revealed that 81% of German companies have recently experienced data theft, espionage, or sabotage, up from 72% in 2023.

Impact of geopolitical tensions

Sinan Selen, Vice President of the Federal Office for the Protection of the Constitution, emphasized that nearly every company has been affected by cyberattacks.

“International conflicts and systemic competitions are shaping the security situation in cyberspace, just as they do in geopolitics. The trend toward the formation of blocs is reflected in both political and operational stances,” he noted.

Selen also pointed out a growing connection between digital and analog attacks, explaining: “We see an increasingly close link between digital and analog attacks. Attackers are using personalized social engineering to open doors for classic espionage activities. “

“At the same time, the threat of digital and physical sabotage continues to grow. We are concerned about the sharp increase in analog attacks, including sabotage against operational processes and facilities.”

China tops Russia as leading source of cyberattacks

China has now overtaken Russia as the most frequent origin of cyberattacks targeting German companies. The report also noted an increase in attacks originating from non-European Union countries in Eastern Europe.

The financial impact of these cyberattacks is staggering, amounting to over 6% of Germany’s gross domestic product (GDP) in 2023.

The survey also revealed that nearly two-thirds of companies perceive their assets as being under threat from cyberattacks.

Despite the growing risk, only 37% of German companies have an emergency plan in place to address security incidents in their supply chains, which are becoming increasingly complex and vulnerable to cyber threats.