Businesses in South Dakota and Alabama lose as much as $59,960 every year to fraud, a new study reveals.
The experts at sprinto.com, a security compliance automation platform provider, have analyzed the most recent data from The Internet Crime Complaint Center (IC3) on the US states most at risk of cybercrime attacks to underscore how individuals and businesses across states can exercise safeguards.
Rank-wise, South Dakota is the state most at risk of cybercrime, with an average loss of $59,960 per fraud complaint.
Alabama is the second most at-risk state, with an average loss of $57,477 per complaint. The most frequent types of cybercrime are non-payment/non-delivery, personal data breaches, credit card fraud, identity theft, and social media.
New York ranks third, with an average loss of $32,040 per complaint. The most frequent types of cybercrime in New York are non-payment/non-delivery, identity theft, personal data breach, and social media.
The top ten is rounded out by Delaware, Massachusetts, Georgia, Vermont, New Jersey, California and Kansas.
At the other end of the scale, Indiana saw the lowest losses from cybercrime, with an average loss of $5,430 per fraud complaint.
The research reveals personal data breach is among the leading types of cybercrime in most states, as well as non-payment/non-delivery, extortion and social media fraud.
The research also reveals that Business email compromise (BEC)—also known as email account compromise (EAC) – is the costliest type of fraud, ranking as the number one most costly across 42 states.
Frauds have been increasing every year in the US. The FTC’s Consumer Sentinel Network data book received 5.74 million reports of fraud in 2021, up from 4.87 million in 2020, representing an 18% increase.
Organizations are losing an average of 5% of their revenue to fraud each year, and the estimated cost of fraud for US financial institutions in 2021 was $4.2 billion.
A spokesperson for sprinto.com commented on the study findings:
“Irrespective of which state one belongs to, when it comes to technology and data security, people (businesses included) should think about it in the context of risk management.”
“They should consider the potential risks associated with any technology and take steps to mitigate those risks. This means adopting a proactive approach to data security, including regularly updating all software, using strong passwords, and being vigilant against phishing and other types of cyber threats. In essence, adopting a security-first approach to technology, where you are prioritizing data security over convenience and speed, and are willing to invest time and resources in cybersecurity measures, is the surest way of reducing and even preventing cybercrimes of such scale.”
Underscoring the need for adopting a security-first mindset, Sprinto experts recommend digital businesses prioritize a ‘security-by-default‘ approach and invest in tools and programs that help keep data security in the line of sight.
“Working securely is one thing, working with the assurance of security is a whole other thing. For security-conscious businesses who want to cut their losses and operate on a strong footing, adopting compliant behaviors pays the best dividends. Compliant behaviors are universally regarded standards of security: they can be proven, objectively managed, and clearly audited. Being compliant is the easiest way to operate under the assurance of security and build trust with others. We built Sprinto with the intent to make monitoring security and compliance-related behaviors easy and effective.”
To recap, South Dakota is most at risk of cybercrime across the US; Alabama is the second most at-risk state for cybercrime; Eastern US states are predominantly most at risk of cybercrime.
Sources: The Internet Crime Complaint Center (IC3)