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Want To Beat Cybercrime? Become A Bad Investment

  //stocks-investing.news-articles.net/content/202 .. -to-beat-cybercrime-become-a-bad-investment.html
  Published in Stocks and Investing on Thursday, October 30th 2025 at 10:11 GMT by Forbes

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Becoming a “Bad Investment” in Cybercrime: A 2025 Overview

In an era where every transaction, customer record, and intellectual property asset is digitized, the risk of cybercrime has escalated to unprecedented levels. The Forbes Business Council article “Want to Beat Cybercrime? Become a Bad Investment” explores the paradox that the only way to shield a company from cyber‑financial loss is to invest heavily in robust security. The piece argues that companies which neglect cybersecurity will not only suffer costly breaches but also become unattractive to investors, earning the label “bad investment.” The analysis below captures the article’s core insights, contextual statistics, and practical recommendations, along with a review of linked resources that deepen the discussion.

1. The Rising Toll of Cybercrime

The author opens with the staggering growth of cyber‑crime costs. Recent data from the Verizon Data Breach Investigations Report (DBIR) shows a 30% increase in breach incidents from 2023 to 2024, with an average cost per breach now exceeding $10 million. These figures are corroborated by IBM’s “Cost of a Data Breach” study, which reports that the average total cost in 2024 reached $9.2 million, up 4% from the previous year.

The article emphasizes that cybercrime is not just an operational problem but a financial one. Each incident can trigger regulatory fines, litigation costs, and significant drop in share price. In 2024, the U.S. Securities and Exchange Commission (SEC) fined several firms over $50 million combined for failure to protect customer data—illustrating how cybersecurity lapses translate into tangible investor losses.

2. Cybersecurity as an Investment Metric

A central thesis of the piece is that cybersecurity should be treated as a key valuation metric. The article cites a survey conducted by the National Association of Corporate Directors (NACD), which found that 87% of board directors consider a company’s cyber risk profile when evaluating investment prospects. Firms that demonstrate proactive security frameworks are more likely to attract capital and enjoy a premium valuation.

The article references a Forbes link to “The ROI of Cybersecurity: How Defensive Measures Pay Off.” That linked article, summarizing a 2024 IDC study, shows that companies implementing layered security controls see a 12% reduction in average breach costs and a 5% improvement in customer retention. It also highlights the importance of threat intelligence sharing—an area that has grown in popularity due to industry consortiums such as the Cyber Threat Alliance.

3. The Cost of Inaction

The narrative then shifts to the consequences of neglect. Using real‑world case studies, the author recounts the 2024 ransomware attack on a mid‑size logistics firm that forced a $15 million ransom and a 40% decline in revenue within six months. Another example cites a healthcare provider that faced a data breach costing $25 million in remediation and a subsequent $8 million in legal settlement.

These stories serve as cautionary tales: a single security lapse can erode market confidence, trigger investor sell‑offs, and result in long‑term brand damage. The author stresses that “bad investment” status is not a one‑off event but a persistent risk if security budgets remain stagnant.

4. Building a Strong Cybersecurity Foundation

The article offers actionable steps for companies seeking to reverse their trajectory:

1. Conduct a Comprehensive Risk Assessment
   Evaluate all digital assets, identify high‑value targets, and rank them by risk severity. Use tools like MITRE ATT&CK for mapping potential attack vectors.

2. Adopt Zero‑Trust Architecture
   Move away from perimeter‑centric models and enforce strict identity verification, least‑privilege access, and continuous monitoring.

3. Invest in Threat Intelligence
   Subscribe to industry feeds, participate in Information Sharing and Analysis Centers (ISACs), and integrate actionable intelligence into security operations.

4. Implement Continuous Security Awareness Training
   A significant portion of breaches originates from human error. Regular, role‑specific training reduces phishing success rates by up to 50%.

5. Secure Cloud and Third‑Party Environments
   With the increasing adoption of SaaS, ensure that vendor security postures are audited and that data is encrypted in transit and at rest.

6. Plan for Incident Response and Recovery
   Develop an incident response plan, conduct tabletop exercises, and maintain up‑to‑date backup solutions to minimize downtime.

The article underscores that these investments are not optional. They provide measurable financial benefits, including reduced insurance premiums (up to 20%) and improved negotiation leverage with regulators.

5. Regulatory Landscape and Investor Expectations

The piece discusses evolving regulations—such as the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA)—which impose stringent security requirements. The SEC’s recent “Cybersecurity and Investor Protection” guidance reinforces that public companies must disclose significant cyber risks. Failure to comply can result in penalties and a loss of investor confidence.

A linked article, “Understanding the SEC’s Cybersecurity Disclosure Requirements,” elaborates on the 2025 draft rule that requires quarterly updates on material cyber events and mitigations. This regulatory shift further incentivizes companies to treat cybersecurity as a core business function rather than an IT expense.

6. Conclusion: Investing in Security as a Strategic Imperative

The Forbes Business Council article concludes by framing cybersecurity investment as a strategic necessity for sustainable growth. Companies that prioritize robust defenses not only protect their assets but also demonstrate to investors that they are resilient, forward‑thinking, and prepared for a volatile cyber‑environment. Conversely, those that ignore the risk become “bad investments,” as their vulnerability invites losses, reputational damage, and diminishing shareholder value.

The overarching message is clear: in 2025, cybersecurity is no longer a peripheral concern—it is a core component of a company’s financial health and market valuation. By making informed, data‑driven security investments, businesses can turn the threat of cybercrime into a catalyst for long‑term value creation.