Why Cybercrime is a Growing Problem - and How Companies Can Protect Themselves

Europe is benefiting from advancing digitalization. However, criminals are increasingly exploiting the vulnerabilities of digital structures - even in Germany. AI technology, blockchain and awareness-raising could be used to counter this development. In this blog, we show what solutions are available for companies and authorities and the importance of digital hubs when it comes to cyber security in Germany.

Germany is becoming more digital. In recent years, the digital transformation has rapidly gained momentum and worked its way into almost every area of our everyday lives: from the business world to the public sector and private households. Digitalization has long been regarded as the driving force behind progress, democratization and competitiveness in Germany. But as networking increases, so does the danger. This is because authorities, companies and individuals in Germany and throughout Europe are increasingly becoming victims of cybercrime.

Cybercrime in Germany: Networking with a risk

While the economy and society are increasingly benefiting from the advantages of digitalization, criminals are also increasingly using digital structures to commit crimes. In the 2022 situation report, the Federal Criminal Police Office (BKA) recorded 146,000 cybercrimes - i.e. crimes that take place within information technology structures. The consequences are drastic: the BKA puts the damage caused by cyber attacks at around 203 billion euros, citing the economic protection report from the industry association Bitkom.
The range of crimes is broad. It still includes traditional fraud and identity theft, but increasingly also large-scale attacks on company and user data, as well as on critical infrastructure. In October 2022, for example, a district administration in Rhineland-Palatinate was the target of a serious hacker attack. The district had to respond by shutting down the entire system, which briefly paralyzed public administration in the region. After not responding to the hackers' ransom demand, they published some of the personal data on the darknet. The consequences: around 1.7 million euros in losses for the district. And lasting uncertainty.

The number of such and similar incidents is increasing - and with it the need for long-term solutions to reconcile digitalization with stability and security.

Artificial Intelligence against real dangers

One answer to the growing threat of cybercrime in the future could be the increased use of artificial intelligence (AI) and machine learning within the security architecture of authorities and companies. AI technologies are now able to detect acute threats and potential security risks at an early stage and respond to them proactively. The systems' ability to learn enables the efficient analysis of patterns and anomalies and - even more importantly - the adaptation to new threats and the continuous improvement of detection rates. In the long term, this could reduce the risk of large-scale cyber attacks, among other things.
In Germany, numerous start-ups and established companies are now working on AI-supported solutions for the growing security problem on the internet. These include the development of intelligent algorithms that continuously monitor networks and systems in order to detect suspicious activities such as the exfiltration of data.

Error source human: Companies need to raise awareness

However, cyber attacks are not only aimed at technological vulnerabilities - but also at human ones. Negligence or misplaced trust pose just as much of a threat to companies as outdated IT architecture. The increasing risk of cybercrime due to digitalization therefore calls for greater awareness at company level.

This problem has been addressed by the IT-Seal team, among others: The Darmstadt-based start-up develops individual security awareness training for companies. Employees are trained based on key figures and in line with requirements. In the long term, this enables companies to create a sustainable security culture to complement measures at a technical level.

Digital integrity through blockchain

There are also promising approaches in the field of blockchain technologies to make data transmission and identity management more secure - both for companies and private users. This is because traditional data transfer protocols are susceptible to manipulation. The keyword is integrity. Blockchain enables the creation of decentralized data records that are difficult to manipulate. When data is transferred between different parties, it is divided into blocks and stored in a distributed and cryptographically secured structure. This allows events, transactions and activities to be reliably recorded.

Digital Hub Darmstadt: Cybersecurity meets innovation
The issue of digital security is also one of innovation. At various Digital Hub Initiative locations, start-ups are working on solutions for stronger IT security in companies and the public sector. The Cybersecurity Hub Darmstadt has a special role to play here: as a project of the ATHENE Center, the National Research Center for Applied Cybersecurity, the hub has formed one of the leading communities for start-ups in Germany when it comes to IT security. In addition to IT-Seal, the team behind Blockchain HELIX can also be found here. The Frankfurt-based start-up develops sustainable and digital solutions for identity management for companies and private individuals. The helix id enables the management of digital identities either through a blockchain-based app or an integrated solution. The long-term goal: a digital city-wide ID ecosystem.

Outlook

Successful digitalization is essential for the future of Germany as a location for business and innovation - and this includes strong protection against cyber threats. In addition to the administration, SMEs must also be made aware of the risks associated with the digital transformation and invest more in secure IT structures. German start-ups are already providing support today, for example with innovative AI and blockchain solutions. The keyword remains networking: the Digital Hub Initiative will continue to facilitate exchange and cooperation between business and politics, companies and start-ups, science and administration when it comes to cybersecurity.