The world has undergone a profound digital transformation, revolutionising how individuals and businesses operate. At the heart of this change lies data – a resource so valuable that it has been dubbed “the new oil.” The exponential growth of cybercrime highlights just how much data is worth. Experts estimate that if cybercrime were an economy, its revenue would rank as the third-largest in the world, trailing only the USA and China. But is data now really the world’s most valuable commodity? Let’s take a look and see.
A digital world filled with valuable data
Hackers, data brokers and corporations alike understand the incredible potential of data. It fuels industries, drives innovation and enables targeted advertising, making it indispensable to modern economies. However, this immense value also attracts cybercriminals, who deploy an array of sophisticated tools to steal, sell and exploit information. With so much at stake, it’s clear that data has become a prized commodity.
Why is data so valuable?
Data has become central to decision-making, innovation and competition. For hackers, gaining access to sensitive data offers opportunities for financial gain, extortion or even political manipulation. Below are the key reasons why data has skyrocketed in value:
1. Monetisation through targeted advertising
- Companies collect and analyse user data to create highly targeted advertisements.
- Platforms like Facebook and Google generate billions of pounds annually by selling ad space based on user behaviour.
2. Extortion via ransomware
- Hackers use ransomware to encrypt valuable files, demanding payment in exchange for their release.
- Corporate and individual victims often pay ransoms to avoid downtime or reputational damage.
3. Identity theft
- Stolen personal data is sold on the dark web and used to commit identity theft.
- Criminals can open bank accounts, apply for loans or commit fraud in someone else’s name.
4. Industrial espionage
- Competitors may buy stolen data to gain insights into proprietary technology or business strategies.
- This can give an unethical edge in competitive industries like tech or pharmaceuticals.
5. Data reselling
- Personal and corporate data is sold to third-party brokers who use it for marketing, research or other purposes.
- Brokers aggregate data to create detailed user profiles, which are immensely valuable.
6. Political influence
- Data is used to manipulate public opinion during elections or to spread misinformation.
- Cambridge Analytica’s role in the Brexit referendum is a high-profile example of this.
7. Legal and compliance risks
- Businesses that mishandle or lose sensitive data risk legal penalties under regulations like GDPR.
- Hackers exploit these vulnerabilities to demand ransom or tarnish reputations.
8. Customer insights for business
- Data helps businesses understand customer preferences and optimise products or services.
- The insights derived from data analytics are critical for remaining competitive.
9. Critical infrastructure attacks
- In some cases, hackers target infrastructure data such as power grids or water supplies.
- These attacks can lead to widespread disruption and public safety concerns.
Your data is valuable
The true value of stolen data often far exceeds the physical worth of the devices it’s stored on. For example, the resale value of a stolen smartphone pales in comparison to the profit hackers can make by accessing its stored passwords, financial details or personal photos.
For businesses, the stakes are even higher. A data breach involving sensitive corporate or customer information can lead to severe financial penalties, reputational damage and costly lawsuits. Furthermore, organisations that handle third-party data have a legal obligation to protect it, with non-compliance potentially leading to massive fines under regulations like GDPR or HIPAA.
The importance of backups
One of the most effective ways to safeguard against data loss is by maintaining regular backups. Cloud services are particularly robust in this regard, offering secure storage options and rapid recovery capabilities in the event of a breach. By adopting a “3-2-1” backup strategy – keeping three copies of data, stored on two different mediums, with one copy offsite – businesses can minimise their exposure to ransomware attacks and other threats. Read more about why your company needs cloud services.
Reputation and trust
For companies, the fallout from stolen data extends beyond financial losses. Trust is an invaluable asset in any business relationship, and a major breach can shatter customer confidence. Consumers are increasingly mindful of how their data is handled and businesses that fail to prioritise security risk losing loyal customers to competitors with stronger data protection measures.
In a world where data is king, protecting it is no longer optional – rather, it’s a necessity. Whether you’re an individual safeguarding personal files or a multinational corporation managing sensitive customer information, investing in cybersecurity is essential to staying one step ahead of cybercriminals. By taking proactive measures, you can ensure that your most valuable asset – your data – remains safe.
