The majority of industrial organizations estimate their financial losses caused by cyberattacks at over $1,000,000, while almost one in four report losses exceeding $5,000,000, and for some, it surpasses $10,000,000. These findings were revealed in a joint study conducted by Kaspersky and VDC Research.
A recent joint study
effort by Kaspersky and VDC Research titled "Securing OT with
Purpose-built Solutions", provides an in-depth analysis of the current
state of Operational Technology (OT) cybersecurity. Based on a survey of over
250 decision-makers from energy, utilities, manufacturing, transportation and
other sectors, the study offers valuable insights into the key business and
technical trends affecting industrial organizations, as well as the most
effective strategies being implemented to address these challenges.
The research
underscores that the financial impact of an OT cybersecurity breach is both
complex and multifaceted. Organizations must consider a wide range of costs,
including lost revenue opportunities, unplanned production downtime, scrap and
loss of work-in-progress inventory, and damage to equipment or property. Beyond
these costs, the total financial burden also encompasses direct breach-related
expenses such as incident response—whether handled internally or by third-party
providers— and ransom payments.
When accounting for
all these factors, nearly 25% of survey respondents estimated that each
cyberattack could result in damages exceeding $5 million over a two-year
period. The distribution of these costs varies significantly across
organizations and incidents but generally impacts multiple departments and
influences both revenue and profitability.
The report details
that incident response accounts for approximately 21.7% of total breach-related
expenses, followed by lost revenue at 19.4%, unplanned downtime at 16.9%,
equipment or property repair and replacement at 16.8%, ransom payments at 12%,
and scrap or loss of work-in-progress inventory at 11.9%. Notably, unplanned
downtime emerges as one of the most significant costs – 70% of respondents
reported that such outages typically last between four to 24 hours. These
disruptions can lead to substantial revenue losses, internal process
bottlenecks and diminished customer confidence—highlighting the critical
importance of robust OT cybersecurity measures.
“Unplanned downtime
can cost organizations millions of dollars, making it a critical issue for
industrial and manufacturing companies. While maintenance-driven strategies to
combat unplanned downtime help, strengthening cybersecurity is essential to
prevent breaches that lead to costly equipment failures and outages. Ignoring
cybersecurity risks undermines efforts to eliminate downtime and protect profits”,
comments Andrey Strelkov, Head of Industrial Cybersecurity Product Line at
Kaspersky.
Kaspersky offers a
distinctive ecosystem for OT customers, combining enterprise-grade
technologies, expert knowledge and extensive expertise. At the heart of this
ecosystem is Kaspersky Industrial Cybersecurity (KICS), a native XDR platform
designed for protection of critical infrastructure and industrial enterprises.
KICS provides end-to-end infrastructure coverage, safe response measures,
centralized asset management, risk assessment and auditing capabilities, while
also supporting scalable security across complex, distributed environments
through a unified platform.
To read the full
whitepaper “Securing OT with Purpose-built Solutions”’, please visit the website.
To learn more about Kaspersky Industrial Cybersecurity, please follow the link.
About VDC Research
Founded in 1971, VDC
Research provides in-depth insights to technology vendors, end users and
investors across the globe. As a market research and consulting firm, VDC's
coverage of AutoID, enterprise mobility, industrial automation and loT and
embedded technologies is among the most advanced in the industry, helping its
clients make critical decisions with confidence. Offering syndicated reports
and custom consultation, its methodologies consistently provide accurate
forecasts and unmatched thought leadership for deeply technical markets.
Located in Southborough, Massachusetts, VDC prides itself on its close personal
relationships with clients, delivering an attention to detail and a unique
perspective that is second to none.
