Technology usage is growing by leaps and bounds. Over 90% of the world’s data has been generated over the past five years, which underlines just how fast this growth is.
With over 585,000 tech companies in the US alone and over 5 billion internet users globally, the sector’s potential is unlimited.
But with high growth come risks. The key one is cybersecurity. With trillions of dollars worth of damage caused by cybercrime every year, the number is only expected to increase as technology booms.
The risks from cybercrime
Big businesses, in particular, have much to lose if they are attacked by cybercriminals. The most obvious of these is financial loss. This is most directly understood through the financial services sector, which, unsurprisingly, is one of the most vulnerable to these attacks.
Ransomware attacks are particularly notorious in the segment. These attacks hijack sensitive data and demand a ransom in return. Banking giant JP Morgan, for example, found data for 76 million households and 7 million small businesses compromised in 2014. Since then, the challenge has only grown, with ransomware attacks having nearly doubled between 2021 and 2023.
The damage from such attacks is not just financial. A good reputation is particularly crucial for large-scale enterprises, and these crimes can cause untold damage to them. If the organization is publicly listed, these incidents can directly show up in share price data. As per an analysis of 34 companies listed on the New York Stock Exchange that suffered data breaches, a 3.5% average share price decline was seen. These stocks also underperformed the Nasdaq.
Such breaches can also result in a significant opportunity cost. By affecting everyday operations, they hold companies back from generating revenues that would otherwise have been made. This can result in a setback to financial performance, which also links back to potential damage to investors. Securities prices will likely be impacted if a company’s performance is not robust.
Enter Cybersecurity
To meet this growing challenge, cybersecurity organizations have developed products and services that effectively counter cyberattacks. The cybersecurity industry is expected to touch over USD 500 billion by 2030, reflecting the segment’s growing importance. A specialist application security developer provides these cybersecurity solutions; they offer customized services to meet clients’ needs while working with companies to develop a robust cybersecurity strategy. This can range from creating a risk assessment framework to using the appropriate security tools. Essential tools are as follows:
- Static Application Security Testing (SAST): A crucial tool for developers and organizations alike, SAST points out software vulnerabilities as the code is developed. As a result, much time, energy, and resources can be saved with far more secure software at the end of development.
- Dynamic Application Security Testing (DAST): Much like SAST, DAST also detects vulnerabilities in source code. However, unlike SAST, it relies on an active application to do so. As a result, it provides security solutions only after the code has been developed and executed. Hybrid versions of these solutions are also available, which combine the best of both SAST and DAST to offer the most robust outcomes.
- Software Composition Analysis (SCA): This measure scans through third party resources and software to assess any risks. If and when these risks are discovered, it also offers remediation. With ever increasing reliance on external softwares, the SCA is a key pillar in attaining comprehensive cybersecurity.
- Application Programming Interface (API) security: APIs are an increasingly common software tool in today’s world, as they allow applications to interact with one another. As per estimates, some 80% of web traffic is reliant on this software. For example, when a customer pays through PayPal on an ecommerce store, they use an API that forms a bridge between the two apps. Cybersecurity solutions for API allow for scanning and identifying vulnerabilities in these connections.
Undeniable significance of cybersecurity
There are plenty of other tools to ensure greater cybersecurity for large enterprises as well. These include container security, IaC security, and codebashing. It is quite likely that over time, the portfolio of solutions will only expand. For this reason, it is essential for companies to lean on cybersecurity professionals who can update them on the latest solutions available, particularly as the incidence of cybercrime is only expected to rise in the future.
Cyberattacks can cause untold damage to companies. The most direct of these is financial losses from the likes of ransomware. But there are also indirect costs. Operational efficiencies get compromised and reputational damage can also occur. This can affect a company’s financial performance as well as its stock price, neither of which is acceptable.
Luckily, the cybersecurity solutions available can provide necessary safety mechanisms at every step of technology usage. Solutions like SAST and DAST are fundamental to developing and sustaining robust code. API security provides crucial support as it scans and remedies weak links in data exchange across apps. And these are just a few examples. Companies have an advanced toolkit today to defend themselves and ensure continued progress despite the risks that exist.
