Illustrative Image (Source: VNA)

Jakarta (VNA) – Cyber-attacks targeted at Indonesian firms in 2017 are likely to cost them 34 billion USD due to direct financial losses and long-term reputation damage, Jakarta Globe reported.

According to a survey carried out by research consultancy firm Frost & Sullivan under the global technology giant Microsoft, half of Indonesian companies may be affected by cyber-attacks last year.

The study found 22 percent of surveyed companies reported they had a security breach while 27 percent were unsecure if they had one due to a lack of data forensics assessments.

Notably, 61 percent of Indonesian enterprises did not think of cyber-security at all or pay attention to the issue after they were attacked.

Haris Izmee, President of Microsoft Indonesia, stressed that high-profile breaches will make companies face the risk of financial losses or even experience deteriorating reputation.

Experts of Frost & Sullivan noted that a big company, one that has more than 500 employees, can possibly incur economic losses of 16.3 million USD due to cyber-attacks. Only 1 million USD of which is likely to be a direct cost to the company itself. Around 5.7 million USD is predicted to come from indirect costs, and 9.6 million USD from the induced costs.

More than 90 percent of the cyber-attacks can be prevented through basic practices such as strong passwords, use of multi-factor authentications for suspicious log-in attempts or keeping all software up to date.

Statistics from the Ministry of Communication and Information Technology showed that Indonesia saw over 200 million cyber-attacks last year, including the ransomware WannaCry that attacked the country’s major hospitals. The attacks left critical losses to Indonesian companies.-VNA