Study Reveals Top States Where Businesses Are at Most Risk for Cybercrimes
Ranked in the top three are South Dakota, Alabama and New York, according to security compliance firm Sprinto.
South Dakota, Alabama and New York may not have a lot in common, but they do have one: Their businesses are at most risk for cybercrimes, according to a new study released by Sprinto, a security compliance automation platform provider based in San Francisco.
Organizations are losing an average of 5% of their revenue to fraud each year, and the estimated cost of fraud for U.S. financial institutions in 2021 was $4.2 billion, the IT firm reported.
After analyzing the most recent data from the FBI’s Internet Criminal Complaint Center, Sprinto ranked each state and Washington, D.C., based on the average loss per fraud complaint.
South Dakota is No. 1 where the average loss was $59,960 per fraud complaint, followed by Alabama $57,477 and New York, $32,040. Ranked fourth and fifth were Delaware, $29,741 and Massachusetts, $28,778.
Ranked sixth through 10th were Georgia, $27,857, Vermont, $25,202, New Jersey, $24,838, California, $24,442 and Kansas, $23,674, according to Sprinto.
The research revealed personal data breaches are amongst the leading types of cybercrime in most states, as well as non-payment/non-delivery, extortion and social media fraud. In addition, business email compromise, also known as email account compromise, is the costliest type of fraud, ranking as the number one most costly across 42 states.
Ranked in the bottom 10 by Sprinto were Washington, D.C., $13,231, Kentucky, $13,004, Missouri, $12,574, Louisiana, $11,752, Mississippi, $11,684, Iowa, $11,030, South Carolina, $10,357, Alaska, $10,297, West Virginia, $8,688 and Indiana, $5,430.
“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,” a Sprinto spokesperson said in a prepared statement. “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.”