China, Hong Kong firms face highest level of cybersecurity risk, says PwC
Chinese companies have seen a more than 900 per cent increase in cybersecurity incidents since 2014, following the country’s rapid adoption of connected devices and a dip in regional cybersecurity budgets, according to a survey by PricewaterhouseCoopers.
In 2014, only 241 security incidents were reported, compared to 2,577 so far this year, equal to a 969 per cent increase, according to PwC’s Global State of Information Security survey.
“The level of espionage or activity relating to cybersecurity incidents, such as data leakage or data theft is a lot higher [in China and Hong Kong] than any other countries,” said Kenneth Wong, PwC China and Hong Kong team leader for cybersecurity and privacy.
The rise in the number of incidents is due to the “huge rate of adoption” of Internet of Things (IoT) devices in the region, such as wearables, webcams and home automation systems, many of which are often not equipped with adequate cybersecurity measures and are easy to hack, said Marin Ivezic, partner for risk assurance, cybersecurity and privacy at PwC.
These devices can then be turned into “zombies” that launch cyberattacks on other devices and companies.
Despite the increase in incidents, total cybersecurity budgets for the Chinese companies surveyed in 2016 had dropped 7.6 per cent from the previous year to a combined US$7.3 million.
