6/15/23, 4:09 PM Cybersecurity Trends & Statistics For 2023; What You Need To Know

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Cybersecurity Trends & Statistics

For 2023; What You Need To Know

Chuck Brooks Contributor

Global Thought Leader in Cybersecurity and Follow
Emerging Tech

0 Mar 5, 2023, 07:49pm EST

Listen to article 27 minutes

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More Treachery And Risk Ahead As Attack Surface

And Hacker Capabilities Grow

Every year I peruse emerging statistics and trends in cybersecurity and provide
some perspective and analysis on the potential implications for industry and
government from the data. While cybersecurity capabilities and awareness seem
to be improving, unfortunately the threat and sophistication of cyber-attacks are
matching that progress.

The 2023 Digital Ecosystem

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The emerging digital ecosystem is treacherous. In our current digital

environment, every company is now a reachable target, and every company, large
or small, has operations, brand, reputation, and revenue pipelines that are
potentially at risk from a breach.

For 2023 and beyond the focus needs to be on the cyber-attack surface and
vectors to determine what can be done to mitigate threats and enhance resiliency
and recovery. As the interest greatly expands in users, so do the threats, As the
Metaverse comes more online it will serve as a new vector for exploitation.
Artificial intelligence and machine learning, while great for research & analytics
(i.e. ChatGPT). However, AI tools can also be used by hackers for advanced
attacks. Deep fakes are already being deployed and bots are continuing to run
rampant. and the geopolitics of the Russian invasion of Ukraine has highlighted
the vulnerabilities of critical infrastructure (CISA Shields Up) by nation-state
threats, including more DDSs attacks on websites and infrastructure. Most
ominous was the hacking of a Ukrainian satellite.

Here are some initial digital ecosystem statistics to consider: According to a

Deloitte Center for Controllership poll. “During the past 12 months, 34.5% of
polled executives report that their organizations' accounting and financial data
were targeted by cyber adversaries. Within that group, 22% experienced at least
one such cyber event and 12.5% experienced more than one.” And “nearly half
(48.8%) of C-suite and other executives expect the number and size of cyber
events targeting their organizations' accounting and financial data to increase in
the year ahead. And yet just 20.3% of those polled say their organizations'
accounting and finance teams work closely and consistently with their peers in
cybersecurity.” Nearly half of executives expect cyber-attacks targeting
accounting, other systems Nearly half of executives expect cyber attacks
targeting accounting, other systems (northbaybusinessjournal.com)

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AI and ML Making Impacting the Cyber-Ecosystem in a big Way in

2023 and Beyond

International Data Corporation (IDC) says AI in the cybersecurity market is

growing at a CAGR of 23.6% and will reach a market value of $46.3 billion in
2027 Please see: Experts predict how AI will energize cybersecurity in 2023 and
beyond | VentureBeat

My Take: AI and ML can be valuable tools to help us navigate the cybersecurity

landscape. Specifically it can (and is being) used to help protect against
increasingly sophisticated and malicious malware, ransomware, and social

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engineering attacks. AI’s capabilities in contextual reasoning can be used for

synthesizing data and predicting threats.

They enable predictive analytics to draw statistical inferences to mitigate threats

with less resources. In a cybersecurity context, AI and ML can provide a faster
means to identify new attacks, draw statistical inferences and push that
information to endpoint security platforms.

While AI and ML can be important tools for cyber-defense, they can also be a two
edged sword. While it can be used to rapidly identify threat anomalies and
enhance cyber defense capabilities, it can also be used by threat actors.
Adversarial Nations and criminal hackers are already using AI and MI as tools to
find and exploit vulnerabilities in threat detection models.

Cyber criminals are already using AI and machine learning tools to attack and
explore victims’ networks. Small business, organizations, and especially
healthcare institutions who cannot afford significant investments in defensive
emerging cybersecurity tech such as AI are the most vulnerable. Extortion by
hackers using ransomware and demanding payment by cryptocurrencies may
become and more persistent and evolving threat. The growth of the Internet of
Things will create many new targets for the bad guys to exploit. There is an
urgency for both industry and government to understand the implications of the
emerging morphing cyber threat tools that include AI and ML and fortify against
attacks.

Please also see the recent FORBES article discussing three key applications of
artificial intelligence for cybersecurity including, Network Vulnerability
Surveillance and Threat Detection, Incident Diagnosis and Response,
and applications for Cyber Threat Intelligence Reports: Three Key
Artificial Intelligence Applications For Cybersecurity by Chuck Brooks
and Dr. Frederic Lemieux Three Key Artificial Intelligence Applications For
Cybersecurity by Chuck Brooks and Dr. Frederic Lemieux (forbes.com)

Cyber-Crime and the Cyber Statistics to Explore so Far in 2023

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Cyber-crime is growing exponentially. According to Cybersecurity Ventures, the

cost of cybercrime is predicted to hit $8 trillion in 2023 and will grow to $10.5
trillion by 2025. Please see: eSentire | 2022 Official Cybercrime Report There are
many factors for such growth and some of them will be explored in more detail
below.

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Open Source Vulnerabilities Found in 84% of Code Bases

It starts with open source code. Unfortunately, according to Synopsys researchers,

at least one open source vulnerability was found in 84% of code bases. The
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vulnerability data was included in Synopsys' 2023 Open Source Security and Risk
Analysis (OSSRA) report on 2022 data. Since most software applications rely on
open source code, this is still a significant cybersecurity issue to address.

The report noted: “open source was in nearly everything we examined this year; it
made up the majority of the code bases across industries,” the report said, adding
that the code bases contained troublingly high numbers of known vulnerabilities
that organizations had failed to patch, leaving them vulnerable to exploits. All
code bases examined from companies in the aerospace, aviation, automotive,
transportation, and logistics sectors contained some open source code, with open
source code making up 73% of total code. “

As significant as the risks from the open source code are, they can be detected by
penetration testing and especially by patching. The report found that patches
clearly are not being appplied. It cited that “of the 1,481 code bases examined by
the researchers that included risk assessments, 91% contained outdated versions
of open-source components, which means an update or patch was available but
had not been applied.”

Please see: At least one open source vulnerability found in 84% of code
bases: Report At least one open source vulnerability found in 84% of code
bases: Report | CSO Online

On way that hackers take advantage of code vulnerabilities and open source flaws
is via zero-day exploits. Recently a ransomware gang used a new zero-day flaw to
steal data on 1 million hospital patients. “Community Health Systems (CHS), one
of the largest healthcare providers in the United States with close to 80 hospitals
in 16 states, confirmed this week that criminal hackers accessed the personal and
protected health information of up to 1 million patients. The Tennessee-based
healthcare giant said in a filing with government regulators that the data breach
stems from its use of a popular file-transfer software called GoAnywhere MFT.”
Clop claims it mass-hacked 130 organizations, including a US hospital network

My Take: as a remedy to avoid vulnerability exploits and keep open source code
updated, the report suggested that organizations should use a Software Bill of
Materials (SBOMS) . I agree, in addition to Pen testing, SBOMS are an important
way to map systems and organize to be more cyber secure. An SBOM is basically a
list of ingredients that make up software components and serves as a formal
record containing the details and supply chain relationships of various
components used in building the software. I wrote about this extensively in a
previous FORBES article.

In the article, Dmitry Raidman. CTO, of a company called Cybeats offered insights
into l specific use cases for SBOMS. They include transparency into software
provenance and pedigrees, continuous security risk assessment, access control

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and sharing with customer who can access and what data can be seen, threat
intelligence data correlation, software composition license analysis and policy
enforcement, software component end of life monitoring, SCRM - Supply Chain
Risk Management and supply chain screening, SBOM documents repository and
orchestration, efficiency in data query and retrieval.

Clearly, SBOMS are a good path forward in discovering and correcting open
source vulnerabilities in code. Please see: Bolstering Cybersecurity Risk
Management With SBOMS Bolstering Cybersecurity Risk Management With
SBOMS (forbes.com)

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Phishing Continues to be a preferred Method of Hackers in 2023

Phishing is still the tool of choice for many hackers. Phishing is commonly defined
as a technique of hackers to exfiltrate your valuable data, or to spread malware.
Anyone can be fooled by a targeted phish, especially when it appears to be coming
as a personal email from someone higher up the work chain, or from a bank,
organization, or a website you may frequent.

Advances in technology have made it easier for hackers to phish. They can use
readily available digital graphics, apply social engineering data, and a vast array of
phishing tools, including some automated by machine learning. Phishing is often
accompanied by ransomware and a tactic for hackers is to target leadership at
companies or organizations (spear-phishing) because they usually have better
access to valuable data and make ready targets because of lack of training.

According to the firm Lookout, the highest rate of mobile phishing in history was
observed in 2022, with half of the mobile phone owners worldwide exposed to a
phishing attack every quarter. The Lookout report was based on Lookout’s data
analytics from over 210 million devices, 175 million apps, and four million URLs
daily. The report noted that “non-email-based phishing attacks are also
proliferating, with vishing (voice phishing), smishing (SMS phishing), and

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quishing (QR code phishing) increasing sevenfold in the second quarter of 2022.
And that “the damage can be colossal for businesses that fall victim to mobile
phishing attacks: Lookout calculated that the potential annual financial impact of
mobile phishing to an organization of 5000 employees is nearly $4m.

The report also noted that “Cybercriminals mostly abused Microsoft's brand name
in phishing attacks, with more than 30 million messages using its branding or
mentioning products like Office or OneDrive. However, other companies were
also frequently impersonated by cybercriminals, including Amazon (mentioned in
6.5 million attacks); DocuSign (3.5 million); Google (2.6 million); DHL (2
million); and Adobe (1.5 million).”

Please see: Record Number of Mobile Phishing Attacks in 2022 Record Number
of Mobile Phishing Attacks in 2022 - Infosecurity Magazine (infosecurity-
magazine.com)

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Ransomware and Phishing: the current state of cyber-affairs is an especially

alarming one because ransomware attacks are growing not only in numbers, but
also in the financial and reputational costs to businesses and organizations.

Currently, ransomware, mostly via phishing activities, is the top threat to both the
public and

private sectors. Ransomware allows hackers to hold computers and even entire
networks hostage for electronic cash payments. In the recent case of Colonial
Pipeline, a ransomware attack disrupted energy supplies across the east coast of
the United States.

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“In 2022, 76% of organizations were targeted by a ransomware attack, out of

which 64% were actually infected. Only 50% of these organizations managed to
retrieve their data after paying the ransom. Additionally, a little over 66% of
respondents reported to have had multiple, isolated infections.” Please see: New
cyberattack tactics rise up as ransomware payouts increase New
cyberattack tactics rise up as ransomware payouts increase | CSO Online

My Take: Since most of us are now doing our work and personal errands on
smartphones, this is alarming data. But there are remedies. Training employees to
identify potential phishing emails is the first step in prevention, but many of the
obvious clues, such as misspelled words and poor grammar, are no longer
present. Fraudsters have grown more sophisticated, and employees need to keep
up with the new paradigm.

Human errors are inevitable, however, and some employees will make mistakes
and accidentally fall victim to phishing. The backup system at that point should
include automated systems that can silo employee access and reduce damage if a
worker’s account is compromised. The best way is to establish and monitor
administrative privileges for your company. You can limit employee access or
require two [authentication] steps before they go there. A lot of companies will
also outlaw certain sites that workers can’t go visit, so it makes it more difficult to
get phished.

My additional advice to protect against phishing and ransomware, is to make sure

you backup your valuable data (consider encrypting it too), preferably on another
device segmented from the targeted PC or phone. If you are a small business or an
individual, it is not a bad idea to invest in anti-phishing software. It adds another
barrier. I also recommend monitoring your social accounts and credit accounts to
see if there are any anomalies on a regular basis.

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Business E-mail Compromise

Often done in coordination with phishing, business email compromise is still a

serious cybersecurity issue. A research company Trellix determined 78% of
business email compromise (BEC) involved fake CEO emails using common CEO
phrases, resulting in a 64% increase from Q3 to Q4 2022. Tactics included asking
employees to confirm their direct phone number to execute a voice-phishing – or
vishing – scheme. 82% were sent using free email services, meaning threat actors
need no special infrastructure to execute their campaigns. Please see: Malicious
actors push the limits of attack vectors Malicious actors push the limits of
attack vectors - Help Net Security

“Seventy-five percent of organizations worldwide reported an attempted business

email compromise (BEC) attack last year. While English remained the most
common language employed, companies in a few non-English nations witnessed a
higher volume of attacks in their own languages, including organizations in the
Netherlands and Sweden, which reported a 92% jump in such attacks; in Spain,
with a 92% jump; Germany, with an 86% increase; and France, with an 80%
increase.” Please see: New cyberattack tactics rise up as ransomware
payouts increase New cyberattack tactics rise up as ransomware payouts
increase | CSO Online

“Business Email Compromise (BEC) attacks are no longer limited to traditional

email accounts. Attackers are finding new ways to conduct their schemes — and
organizations need to be prepared to defend themselves. Attackers are leveraging
a new scheme called Business Communication Compromise to take advantage of
large global corporations, government agencies and individuals. They are

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leveraging collaboration tools beyond email that include chat and mobile
messaging — including popular cloud-based applications such as Slack,
WhatsApp, LinkedIn, Facebook, Twitter and many more — to carry out attacks.”
Please see: The evolution of business email compromise to business
communication compromise The evolution of business email compromise to
business communication compromise (betanews.com)

My Take: business emails have been a top target of hackers. Accordingly,

organizations need to create a corporate risk management strategy and
vulnerability framework that identifies digital assets and data to be protected,
including sensitive emails. Such as risk management strategy should be holistic
and include people, processes, and technologies. This includes protecting and
backing up email data, and the business enterprise systems such as financial
systems, email exchange servers, HR, and procurement systems with new security
tools (encryption, threat intel and detection, Identity Access Management,
firewalls, etc.) and policies. That risk management approach must also include
knowing your inventory and gaps, integrating cybersecurity hygiene practices,
procuring, and orchestrating an appropriate cyber-tool stack.

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Fraud is Trending Digital, Especially Identity Theft

Fraud has always been a societal problem, but it is being compounded by the
expansion of criminals in the digital realm. The cost is going higher as more
people do their banking and buying online.

Federal Trade Commission (FTC) data shows that consumers reported losing
nearly $8.8 billion to fraud in 2022, an increase of more than 30 percent over the
previous year. Much of this fraud came from fake investing scams and imposter

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scams. Perhaps most alarming in this report was that there were over 1.1 million
reports of identity theft received through the FTC’s IdentityTheft.gov website.
FTC reveals alarming increase in scam activity, costing consumers
billions - Help Net Security

My take: the reason for the increased rate of identity fraud is clear. As we become
more and more connected, the more visible and vulnerable we become to those
who want to hack our accounts and steal our identities. The surface threat
landscape has expanded exponentially with smartphones, wearables, and the
Internet of Things. Moreover, those mobile devices, social media applications,
laptops & notebooks are not easy to secure.

There are no complete remedies to identity theft but there are actions that can
enable people and companies to help deter the threats. Below is a quick list of
what you can to help protect your accounts, privacy, and reputation:

1) Use strong passwords. Hackers are quite adept at guessing passwords especially
when they have insights into where you lived in the past (street names), birthdays
and favorite phrases. Changing your password regularly can also complicate their
tasks.

2) Maintain a separate computer to do your financial transactions and use it for

nothing else.

3) Consider using encryption software for valuable data that needs to be secured.
Also set up Virtual Private Networks for an added layer of security when using
mobile smartphones.

4) Very important; monitor your credit scores, your bank statements, and your
social accounts on a regular basis. Life Lock and other reputable monitoring
organizations provide account alerts that are very helpful in that awareness quest.
The quicker you detect fraud the easier it is to handle the issues associated with
identity theft.

5) If you get breached, if it is especially serious, do contact enforcement

authorities as it might be part of a larger criminal enterprise that they should
know about. In any severe breach circumstance consider looking for legal
assistance on liability issues with creditors. Also consider hiring outside
reputation management if necessary.

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Some Additional Resources and Compilation of Cybersecurity Trends

for 2023:

There is a very good report done by the Bipartisan Policy Research Center on the
top eight macro risks to watch out for in 2023. The are stated below from the
article and I agree with them all.

1. Evolving geopolitical environment: The war launched by Russia in

Ukraine is emblematic of this first risk, encompassing the key factors of
lowered inhibition for cyberattacks, digital assaults on critical
infrastructure, misinformation, and disinformation campaigns, and
protectionist approaches to trade that can leave companies who purchased
technology products from abroad even more vulnerable.
2. Accelerating cyber arms race: As attackers step up their assaults on
beleaguered organizations, defenders must keep pace in an environment
that disproportionately favors malicious actors, who use commonly
available consumer tools and trickery to achieve their ends while also
targeting national security assets.
3. Global economic headwinds: Stock market volatility and inflation pose
risks across the cybersecurity sector, threatening supply chains, forcing
businesses to make difficult decisions about allocating resources, and
possibly harming innovation as startups face a weakened capital supply
market.
4. Overlapping, conflicting, and subjective regulations: Companies in
the US face a "complex patchwork of required cybersecurity, data security,
and privacy regulations implemented by national, state, and local
authorities, with varying prescriptive requirements," including

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balkanization of data privacy and breach disclosure laws, rapidly elevating

security control requirements, and one-size-fits-all regulation.
5. Lagging corporate governance: Although there has been significant
improvement in the priority organizations place on cybersecurity in recent
years, many firms still have not placed cybersecurity specialists in
leadership positions, excluding CISOs and CSOs from the C-suite and
boards of directors, and keep cybersecurity separate from organizational
objectives.
6. Lack of investment, preparedness, and resilience: Both public and
private sectors are still insufficiently prepared for a cybersecurity disaster
due to incomplete and imperfect data, lack of crisis preparedness, disaster
recovery, and business continuity planning, failure to conduct crisis
exercises and planning, vendor risk concentration and insufficient third-
party assurance capabilities, the escalating cost of cyber insurance, and
chronic poor cyber hygiene and security awareness among the general
public.
7. Vulnerable infrastructure: Critical infrastructure remains vulnerable
as organizations "rely heavily on state and local agencies and third- and
fourth-party vendors who may lack necessary cybersecurity controls,"
particularly in the finance, utilities, and government services sectors, which
often run on unpatched and outdated code and legacy systems.
8. Talent scarcity: The ongoing shortage of qualified security personnel
continues to expose organizations to cyber risks, made even more glaring
by insufficient automation of tasks needed to execute good cybersecurity.

Please see: Cyber arms race, economic headwinds among top macro
cybersecurity risks for 2023 Cyber arms race, economic headwinds among
top macro cybersecurity risks for 2023 | CSO Online

And for a deeper dive on cyber stats please see: 34 cybersecurity statistics to
lose sleep over in 2023 34 cybersecurity statistics to lose sleep over in 2023
(techtarget.com) The article notes upfront that that we need understand the data
and its immense volume used for cyber-attacks. “By 2025, humanity's collective
data will reach 175 zettabytes — the number 175 followed by 21 zeros. This data
includes everything from streaming videos and dating apps to healthcare
databases. Securing all this data is vital.”

Please also see Dan Lohrman’s annual analysis on cybersecurity trends: “After a
year full of data breaches, ransomware attacks and real-world cyber impacts
stemming from Russia’s invasion of Ukraine, what’s next? Here’s part 1 of your
annual roundup of security industry forecasts for 2023 and beyond.” The Top 23
Security Predictions for 2023 (Part 1) The Top 23 Security Predictions for
2023 (Part 1) (govtech.com) and The Top 23 Security Predictions for 2023
(Part 2) The Top 23 Security Predictions for 2023 (Part 2) (govtech.com)

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My Take: Of course, there are many other trends and statistics to explore as the
year unfolds. It is certainly a treacherous cyber ecosystem, and it is expanding
with risk and threats. Being cyber-aware is part of the process of risk management
and security and hopefully looking at the cyber-threat landscape will implore both
industry and government to prioritize cybersecurity from the top down and
bottom up!

About The Author

Chuck Brooks TOP CYBER NEWS MAGAZINE

Chuck Brooks is a globally recognized thought leader and subject matter expert
Cybersecurity and Emerging Technologies. Chuck is also an Adjunct Faculty at

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Georgetown University’s Graduate Cybersecurity Risk Management Program

where he teaches courses on risk management, homeland security technologies,
and cybersecurity. LinkedIn named Chuck as one of “The Top 5 Tech People to
Follow on LinkedIn.” He was named “Cybersecurity Person of the Year for 2022”
by The Cyber Express, and as one of the world’s “10 Best Cyber Security and
Technology Experts” by Best Rated, as a “Top 50 Global Influencer in Risk,
Compliance,” by Thompson Reuters, “Best of The Word in Security” by CISO
Platform, and by IFSEC, and Thinkers 360 as the “#2 Global Cybersecurity
Influencer.” He was featured in the 2020, 2021, and 2022 Onalytica "Who's Who
in Cybersecurity" He was also named one of the Top 5 Executives to Follow on
Cybersecurity by Executive Mosaic, He is also a Cybersecurity Expert for “The
Network” at the Washington Post, Visiting Editor at Homeland Security Today,
Expert for Executive Mosaic/GovCon, and a Contributor to Skytop Media, and to
FORBES. He has an MA in International relations from the University of Chicago,
a BA in Political Science from DePauw University, and a Certificate in
International Law from The Hague Academy of International Law.

Chuck Brooks - Cybersecurity Person of The Year THE CYBER EXPRESS

HELP NET SECURITY

FTC reveals alarming increase in scam activity, costing consumers billions -

Help Net Security

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TECHCRUNCH

Ransomware gang uses new zero-day to steal data on 1 million patients

Follow me on Twitter or LinkedIn. Check out my website. 

Chuck Brooks Follow

Chuck Brooks, President of Brooks Consulting International, is a globally recognized thought

leader and subject matter expert Cybersecurity and Emerging... Read More

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