Technology

Visualizing the Massive Cost of Cybercrime

Published

4 years ago

October 28, 2019

Iman Ghosh

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Visualizing the Massive Cost of Cybercrime

View the high resolution of this infographic by clicking here.

What do Equifax, Yahoo, and the U.S. military have in common? They’ve all fallen victim to a cyberattack at some point in the last decade—and they’re just the tip of the iceberg.

Today’s infographic from Raconteur delves into the average damage caused by cyberattacks at the organizational level, sorted by type of attack, industry, and country.

Rising Cybercrime Costs Across the Board

The infographic focuses on data from the latest Accenture “Cost of Cybercrime” study, which details how cyber threats are evolving in a fast-paced digital landscape.

Overall, the average annual cost to organizations has been ballooning for all types of cyberattacks. For example, a single malware attack in 2018 costed more than $2.6 million, while ransomware costs rose the most between 2017–2018, from $533,000 to $646,000 (a 21% increase).

Both information loss and business disruption occurring from attacks have been found to be the major cost drivers, regardless of the type of attack:

Malware
Major consequence: Information Loss
Average cost: $1.4M (54% of total losses)
Web-based attacks
Major consequence: Information Loss
Average cost: $1.4M (61% of total losses)
Denial-of-Service (DOS)
Major consequence: Business Disruption
Average cost: $1.1M (65% of total losses)
Malicious insiders
Major consequences: Business Disruption and Information Loss
Average cost: $1.2M ($0.6M each, 75% of total losses)

In 2018, information loss and business disruption combined for over 75% of total business losses from cybercrime.

Cybercrime Casts a Wide Net

No industry is untouched by the growing cost of cybercrime—the report notes that organizations have seen security breaches grow by 67% in the past five years alone. Banking is the most affected, with annual costs crossing $18 million in 2018. This probably comes as no surprise, considering that financial motives are consistently a major incentive for hackers.

Here is the average cost of cyberattacks (per organization) across 15 different industries:

Industry	2017 Cost	2018 Cost	% Change
Banking	$16.6M	$18.4M	+11%
Utilities	$15.1M	$17.8M	+18%
Software	$14.5M	$16M	+11%
Automotive	$10.7M	$15.8M	+47%
Insurance	$12.9M	$15.8M	+22%
High tech	$12.9M	$14.7M	+14%
Capital markets	$10.6M	$13.9M	+32%
Energy	$13.2M	$13.8M	+4%
U.S. Federal	$10.4M	$13.7M	+32%
Consumer goods	$8.1M	$11.9M	+47%
Health	$12.9M	$11.8M	-8%
Retail	$9M	$11.4M	+26%
Life sciences	$5.9M	$10.9M	+86%
Media	$7.6M	$9.2M	+22%
Travel	$4.6M	$8.2M	+77%
Public sector	$6.6M	$7.9M	+20%

Interestingly, the impact on life sciences companies rose the most in a year (up by 86% to $10.9 million per organization), followed by the travel industry (up 77% to $8.2 million per organization). This is likely due to an increase in sensitive and valuable data being shared online, such as clinical trial details or credit card information.

So What Can Companies Do?

Accenture analyzed nine cutting-edge technologies that are helping mitigate cybercrime, and calculated their net savings: the total potential savings minus the required investment in each type of technology or tool.

With almost $2.3 million in net savings, many companies recognize the high payoff that comes with security intelligence. On the other hand, leveraging automation, artificial intelligence, and machine learning can potentially save over $2 million—however, only 38% of businesses have adopted this solution so far.

Cybercrime will remain a large-scale concern for years to come. From 2019–2023E, approximately $5.2 trillion in global value will be at risk from cyberattacks, creating an ongoing challenge for corporations and investors alike.

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Technology

Nvidia Joins the Trillion Dollar Club

America’s biggest chipmaker Nvidia has joined the trillion dollar club as advancements in AI move at lightning speed.

Published

6 days ago

May 30, 2023

Dorothy Neufeld

Nvidia Joins the Trillion Dollar Club

Chipmaker Nvidia is now worth nearly as much as Amazon.

America’s largest semiconductor company has vaulted past the $1 trillion market capitalization mark, a milestone reached by just a handful of companies including Apple, Amazon, and Microsoft. While many of these are household names, Nvidia has only recently gained widespread attention amid the AI boom.

The above graphic compares Nvidia to the seven companies that have reached the trillion dollar club.

Riding the AI Wave

Nvidia’s market cap has more than doubled in 2023 to over $1 trillion.

The company designs semiconductor chips that are made of silicon slices that contain specific patterns. Just like you flip an electrical switch by turning on a light at home, these chips have billions of switches that process complex information simultaneously.

Today, they are integral to many AI functions—from OpenAI’s ChatGPT to image generation. Here’s how Nvidia stands up against companies that have achieved the trillion dollar milestone:

	Joined Club	Market Cap in trillions	Peak Market Cap in trillions
Apple	Aug 2018	$2.78	$2.94
Microsoft	Apr 2019	$2.47	$2.58
Aramco	Dec 2019	$2.06	$2.45
Alphabet	Jul 2020	$1.58	$1.98
Amazon	Apr 2020	$1.25	$1.88
Meta	Jun 2021	$0.68	$1.07
Tesla	Oct 2021	$0.63	$1.23
Nvidia	May 2023	$1.02	$1.02

Note: Market caps as of May 30th, 2023

After posting record sales, the company added $184 billion to its market value in one day. Only two other companies have exceeded this number: Amazon ($191 billion), and Apple ($191 billion).

As Nvidia’s market cap reaches new heights, many are wondering if its explosive growth will continue—or if the AI craze is merely temporary. There are cases to be made on both sides.

Bull Case Scenario

Big tech companies are racing to develop capabilities like OpenAI. These types of generative AI require vastly higher amounts of computing power, especially as they become more sophisticated.

Many tech giants, including Google and Microsoft use Nvidia chips to power their AI operations. Consider how Google plans to use generative AI in six products in the future. Each of these have over 2 billion users.

Nvidia has also launched new products days since its stratospheric rise, spanning from robotics to gaming. Leading the way is the A100, a powerful graphics processing unit (GPU) well-suited for machine learning. Additionally, it announced a new supercomputer platform that Google, Microsoft, and Meta are first in line for. Overall, 65,000 companies globally use the company’s chips for a wide range of functions.

Bear Case Scenario

While extreme investor optimism has launched Nvidia to record highs, how do some of its fundamental valuations stack up to other giants?

As the table below shows, its price to earnings (P/E) ratio is second-only to Amazon, at 214.4. This shows how much a shareholder pays compared to the earnings of a company. Here, the company’s share price is over 200 times its earnings on a per share basis.

	P/E Ratio	Net Profit Margin (Annual)
Apple	30.2	25.3%
Microsoft	36.1	36.7%
Aramco	13.5	26.4%
Alphabet	28.2	21.2%
Amazon	294.2	-0.5%
Meta	33.9	19.9%
Tesla	59.0	15.4%
Nvidia	214.4	16.19%

Consider how this looks for revenue of Nvidia compared to other big tech names:

$NVDA $963 billion market cap, 38x Revenue
$MSFT $2.5 trillion market cap, 12x Revenue$TSLA $612 billion market cap, 7.8x Revenue$AAPL $2.75 trillion market cap, 7.3x Revenue$GOOG $1.6 trillion market cap, 6.1x Revenue$META $672 billion market cap, 6x Revenue pic.twitter.com/VgkKAfiydx

— Martin Pelletier (@MPelletierCIO) May 29, 2023

For some, Nvidia’s valuation seems unrealistic even in spite of the prospects of AI. While Nvidia has $11 billion in projected revenue for the next quarter, it would still mean significantly higher multiples than its big tech peers. This suggests the company is overvalued at current prices.

Nvidia’s Growth: Will it Last?

This is not the first time Nvidia’s market cap has rocketed up.

During the crypto rally of 2021, its share price skyrocketed over 100% as demand for its GPUs increased. These specialist chips help mine cryptocurrency, and a jump in demand led to a shortage of chips at the time.

As cryptocurrencies lost their lustre, Nvidia’s share price sank over 46% the following year.

By comparison, AI advancements could have more transformative power. Big tech is rushing to partner with Nvidia, potentially reshaping everything from search to advertising.