Economic losses from cybercrime in Germany reach record $298 billion over past year

By Oliver Towfigh Nia

BERLIN (AA) - Cybercrime surged in Germany significantly in the past year, costing the world's third-largest economy a record €266.6 billion ($298 billion), according to a study released Wednesday.

The report by the German digital industry association Bitkom revealed that the financial impact of cyberattacks had increased by approximately 29% on the year before, surpassing the previous record of €223.5 billion set in 2021.

Around 36% of the companies affected were unable to identify the region of the attackers, while 20% believed the attacks originated within Germany. A quarter of the victims suspect the attackers were from the US, 32% believe they were from Eastern Europe, and 21% think they were from other EU countries (excluding Germany).

- Criminals at work

Most companies suspect that organized crime is behind the majority of attacks (70%). Foreign intelligence services are thought to be responsible for 20% of the cases, a significant increase from 7% the previous year. Additionally, 27% of attacks are believed to be acts of revenge by current or former employees.

The survey also highlights the extent of the threat: 81% of German companies reported experiencing data theft, IT device theft, digital or physical industrial espionage, or sabotage in the past year. Another 10% suspect they have been affected.

- China, Russia lead cyberattacks in Germany

Chinese and Russian cyberattacks are the most prevalent, with a 7% increase in attacks from Eastern European countries outside the EU and Russia. In a survey of over 1,000 companies, 45% traced attacks to China (up from 42% in 2023), and 39% identified Russia as the source (down from 46% in 2023).

German Foreign Minister Annalena Baerbock recently warned about the persistence of Russian cyberattacks, particularly in response to Germany's military support for Ukraine. Baerbock emphasized the need for robust legal frameworks to counter such threats and highlighted that cyberattacks are increasingly used as tools of warfare.

Germany's support for Ukraine, including arms supplies and sanctions against Moscow, has made it a target for Russian cyberattacks. Following the onset of the Russian war on Ukraine, Germany experienced a series of attacks attributed to the hacker group Ghostwriter, believed to be linked to Russian intelligence.

Cyberattacks have particularly targeted energy providers, government, and military organizations. Earlier this year, German Interior Minister Nancy Faeser warned of heightened risks from Russian disinformation, espionage, and sabotage, noting an increase in attacks by pro-Russian hackers.

In May 2015, Germany faced one of its most significant cyberattacks when its parliament's internal computer system was hacked. The attack is believed to have been orchestrated by Russia's military intelligence agency, GRU.