Bahrain suffers $30 million in damages as cyberattacks surge in Gulf

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Email: editor@Newsofbahrain.com

Cybersecurity experts have warned that businesses in Bahrain and the wider Gulf region are facing a surge in cyberattacks, resulting in significant financial losses.

In 2023, Bahrain alone incurred an estimated $30 million in damages due to cyberattacks, while the Gulf region saw losses ranging from $1.5 to $3 billion.

Globally, the estimated cost of cyberattacks is between $6 and $10 trillion.

Hamza Al Ghatam, CEO of FACEKI, an anti-fraud company, highlighted that Bahrain was among the most targeted countries for malware attacks in the first quarter of 2024, according to a cyber threat report by Acronis, which tracks cyberattacks worldwide, including the Middle East.

Al Ghatam pointed out that financial institutions were particularly vulnerable to cyberattacks, raising concerns about cybersecurity.

Data breach

“The International Monetary Fund (IMF) reported that approximately 20% of reported cyber incidents globally have targeted the global financial sector, resulting in direct losses of $12 billion since 2020,” he stated, adding: “The average cost of a data breach in the GCC region is $6.93 million per incident, significantly higher than the global average.”

Al Ghatam emphasised the urgent need for robust cybersecurity measures, explaining: “Bahrain continues to face significant challenges, particularly from phishing and social engineering attacks, which remain prominent fraud tactics.”

He further pointed out: “The rise of artificial intelligence (AI) has introduced new complexities, with fraudsters exploiting the technology to launch attacks using deepfake and creating fake identities.

This has led to a staggering 2137% increase in AI-powered fraud attempts over the past three years,” “However, organisations are not defenseless.

They are increasingly relying on AI to combat fraud. AI-powered tools enable real-time activity monitoring, predictive analytics, and machine learning algorithms to detect and prevent fraudulent activities.

This empowers businesses to enhance their fraud detection capabilities and protect their operations and customers from growing cyber threats,” he underscored.

Meanwhile, Mahmoud Al Adraj, a businessman, highlighted the significant impact of cyberattacks on businesses. “These attacks create major challenges, significantly impacting overall performance. Key challenges include financial losses incurred due to fraud or theft of financial data, and costs from data recovery and system repairs,” he said.