German firms report rising cyber threat from foreign intelligence services, study shows

China and Russia were the main suspected e

The workspace of a cybersecurity agent is pictured during the opening of Germany’s new IT Security Centre the national cyber defence body BSI in Bonn, Germany, February 6, 2024. REUTERS

German companies are increasingly being targeted by cyberattacks that they suspect are linked to foreign intelligence services, a study by digital industry association Bitkom showed on Wednesday

More than one in three companies hit by cyberattacks, or 37%, said they ‌had attributed at least one incident in the past 12 months to a foreign intelligence service. That was up from 28% a year earlier and more than five times the 7% recorded in 2023

China and Russia were the main suspected f the affected companies, 52% traced ⁠at least one attack to China and 49% to Russia, while 9% attributed an attack to Iran. All three countries have denied conducting cyberattacks abroad

German officials have warned in recent weeks of a growing threat from cyber and hybrid attacks

Bitkom said organised crime remained the leading es between criminal groups and state intelligence services are often blurred, Bitkom President Ralf Wintergerst said

“Intelligence agencies make use of criminal structures; conversely, criminals are given free rein as long as they choose their targets in ‌line ⁠with political directives,” he said

Annual total damage from data theft, industrial espionage and sabotage amounts to at least €211 billion, said Bitkom, which represents more than 2,200 companies in the digital economy and supports moves to strengthen cybersecurity

The study also pointed to a growing use of AI, with traditional methods such as ⁠ransomware declining and AI-enabled attacks including robocalls and deepfakes causing greater damage

Eight in 10 companies expect attackers to increase their use of AI. “Artificial intelligence is fundamentally changing the nature of attacks,” Wintergerst said

The share ⁠of companies that feel very well prepared for cyberattacks fell to 43% from 50% a year earlier. Still, fewer companies said a successful cyberattack could threaten their survival, down to ⁠45% from 59% a year earlier

Cybersecurity spending was unchanged, with IT security accounting for an average 18% of companies’ overall IT budgets. More than 1,000 companies were surveyed for the representative study

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