The rise of identity-related cyberattacks: costs, challenges and the role of AI
Identity-related cyberattacks are the stealthy predators of the cybersecurity landscape, posing an unprecedented threat to organizations worldwide. According to a recent report, “2024 State of Passwordless Identity”, 78% of organizations were targeted by such attacks in the past 12 months. This alarming statistic underscores the urgent need for effective identity management security measures.
The financial devastation wrought by identity-related breaches is a global crisis, reaching billions of dollars in losses each year. The alarming cost of authentication-related attacks varies worldwide—an average of $5.58 million globally ($6.4 million in the U.S. and $4.99 million in EMEA) in the past year. The toll of identity fraud alone has inflicted an average annual cost of $2.78 million on businesses ($4.34 million in the US, $2.52 million in EMEA), further underscoring the urgent need for robust identity security measures. These figures paint a grim picture of the economic havoc wreaked by cybercriminals exploiting vulnerabilities in identity systems.
What factors contribute to these breaches? The persistent trend of credential misuse and authentication weaknesses are the primary cause of the majority of breached organizations. Despite the prevalence of these attacks, only half of organizations globally lack sufficient confidence in their ability to detect a breach thus making organizations vulnerable to ongoing and subsequent attacks.
The complexity of authentication processes is also a significant challenge. On average, employees in the US and EMEA use four distinct types of authentication methods daily. This complexity can cause frustration and inefficiency. This is exacerbated by the reality that most employees in the US and EMEA wait for up to three hours for service desks to verify their identity. However, password-related issues account for about a third of IT help desk spending. These pain points affect productivity and highlight the need for more efficient and user-friendly authentication solutions.
Co-founder and CEO, HYPR.
The AI and Cybersecurity Paradox and Need for Deterministic Identity Controls
In recent years, the surge in IT security attacks has left organizations scrambling to revamp their identity security systems. Companies are employing AI tools to prevent adversaries from exploiting flawed defenses. While AI can enhance security measures, it is not a panacea. Identity assurance remains a crucial priority. Without it, companies are prone to breaches, efficiency losses and doubt from both customers and internal parties. To address evolving threats and improve security, organizations must adopt a fundamental shift towards deterministic identity controls.
Generative AI is a double-edged sword in identity security. While 60% of organizations worldwide see it as a major threat, 75% of companies believe it offers a strategic advantage against cybercriminals. This paradox highlights AI’s dual role in cybersecurity: both a significant threat and a powerful defense tool.
The Shift Towards Passwordless Adoption and Frictionless Identity Verification
Credential misuse or authentication weakness is often cited as the most common cause of a breach—up from 82% in 2022. This alarming statistic underscores the continued need for robust identity protection measures. Traditional authentication methods, such as passwords, are increasingly vulnerable to sophisticated attacks. Cybercriminals exploit these weaknesses, resulting in significant financial and reputational harm for organizations.
Passwordless adoption is becoming a critical strategy in the fight against cyber threats. By removing the use of passwords, organizations can significantly reduce the likelihood of credential-based attacks. Passwordless authentication methods, such as biometrics and hardware tokens, provide a higher level of security and a more secure user experience.
Additionally, frictionless identity verification is essential for maintaining security without compromising user experience. Traditional verification methods often introduce friction, leading to user frustration and potential security gaps. Frictionless identity verification uses advanced technologies, such as AI and machine learning, to prove that someone is who they claim to be. This approach enhances security and improves user satisfaction and trust.
The Role of Deterministic Identity Controls and Cost of Inaction
Organizations must implement deterministic identity controls to address the evolving threat situation. Unlike probabilistic methods that depend on statistical models and predictions, deterministic controls provide a higher level of accuracy. It is possible to reduce the likelihood of unauthorized users accessing sensitive data using these controls.
The cost of inaction in addressing identity security is considerable. Breaches resulting from credential misuse and authentication weaknesses can cost organizations millions of dollars annually. Beyond financial losses, breaches erode stakeholder trust and damage an organization’s reputation. It is clear there is an urgent need for organizations to take action to enhance their identity security frameworks.
As the cybersecurity landscape continues to evolve, so must identity security strategies as well. One cannot overstate the importance of staying ahead of emerging threats and adopting innovative solutions. While AI will undoubtedly play a significant role in the future of identity security, robust deterministic controls and a focus on identity assurance are key complements.
In conclusion, the surge in IT security attacks has highlighted the need for organizations to revamp their identity security frameworks. While AI offers considerable potential, it is not a silver bullet. Identity assurance is essential, and organizations must prioritize deterministic identity controls to address evolving threats and improve security. By adopting identity-first security strategies, prioritizing passwordless adoption, and implementing frictionless identity verification, organizations can enhance their security posture and protect against the ever-evolving threat landscape.
We list the best cloud antivirus.
This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro
Identity-related cyberattacks are the stealthy predators of the cybersecurity landscape, posing an unprecedented threat to organizations worldwide. According to a recent report, “2024 State of Passwordless Identity”, 78% of organizations were targeted by such attacks in the past 12 months. This alarming statistic underscores the urgent need for effective identity…
