The proposal aims to curb cybercrime, which cost the global economy an estimated \u20ac5.5 trillion in 2021<\/p>\n
Lawmakers are seeking to strengthen cybersecurity requirements across the European Union, advancing new legislation to bolster security requirements for all digital hardware and software products. The proposed law, titled the Cyber Resilience Act, would cover everything from computers and mobile phones to smart kitchen appliances and digital children\u2019s toys.<\/p>\n
“When it comes to cybersecurity, Europe is only as strong as its weakest link: be it a vulnerable Member State or an unsafe product along the supply chain,\u201d said Thierry Breton, the EU\u2019s commissioner for the internal market.<\/p>\n
The proposed legislation, which was unveiled by the European Commission earlier this month, mandates that products are designed, developed and produced in ways that mitigate cybersecurity risks. This includes, for example, requirements to sell products in a secure default configuration, to maintain a thorough product identification system and to ensure that exploitable vulnerabilities can be addressed through security updates, among other cybercrime disclosure rules.<\/p>\n
In recent years, the number of personal devices that are connected to the internet has grown significantly.<\/p>\n
Yet many of these so-called Internet of Things products are highly vulnerable to hacks and cybercrimes. In fact, ransomware attacks occur worldwide every 11 seconds and cost the global economy an estimated \u20ac20 billion last year, according to the EU. Meanwhile, DDoS attacks\u2014malicious efforts to disrupt or cut off access to internet services or websites\u2014cost just the EU economy roughly \u20ac65 billion in 2020.<\/p>\n
In Belgium, for example, nearly 1,000 businesses were hit by cybercrimes in 2021\u2014a 300% increase compared to the year prior, according to an analysis by Mastercard. The majority of cyber attacks entailed malware and ransomware strikes.<\/p>\n
\u201cWe deserve to feel safe with the products we buy in the single market,\u201d said Margrethe Vestager, executive vice president of the European Commission for A Europe Fit for the Digital Age. \u201cThe Cyber Resilience Act will ensure the connected objects and software we buy comply with strong cybersecurity safeguards.\u201d<\/p>\n
Reinforced cybersecurity protocols are also expected to help companies and manufacturers\u2014especially smaller businesses that may not have the technical resources or financial means to survive a cyberattack.<\/p>\n
Earlier this year, the World Economic Forum\u2019s Global Cybersecurity Outlook reported that the average cost of a cyber breach for a company was $3.6 million. Moreover, targeted companies saw stock prices fall and spent on average 280 days identifying and responding to a cyberattack.<\/p>\n
\u201cTechnology leaders, companies and their boards of directors would do well to pay attention to these developments and recognize that cyber strategy is a business strategy and understanding cyber risk is part of good governance in the digital age,\u201d said Daniel Dobrygowski, the head of governance and trust at the Forum\u2019s Centre for Cybersecurity.<\/p>\n
The proposed Cyber Resilience Act was welcomed by industry groups such as the TIC Council, a global organisation covering the independent testing, inspection and certification sectors. \u201cThe proposal constitutes a good first step towards a more cyber-resilient single market,\u201d said Martin Michelot, the TIC Council\u2019s executive director for Europe.<\/p>\n
The legislation was first put forth by European Commission President Ursula von der Leyen in November 2021. If the act is approved by the European Parliament and the European Council, EU countries will have two years to adapt the new rules.<\/p>\n
\u201cDigital trust is a necessity in a global economy reliant on ever-increasing connectivity, data use and new innovative technologies,\u201d said Akshay Joshi, the head of industry and partnerships at the Forum\u2019s Centre for Cybersecurity. \u201cAs common citizens increasingly become wary of the technologies they interact with, this regulation will further enhance transparency and allow end users to make informed choices.\u201d<\/p>\n
The EU\u2019s Cyber Resilience Act joins several other pieces of legislation proposed around the world that aim to curb cybercrime, which cost the global economy \u20ac5.5 trillion in 2021. By 2025, cybercrime damages are expected to surpass \u20ac10 trillion.<\/p>\n
Earlier this year, the United States enacted a new law bolstering cybercrime disclosure requirements for companies working in critical infrastructure sectors. The policy followed a major ransomware attack in May 2021 against Colonial Pipeline, which operates the country’s largest pipeline system for jet fuel, gasoline and diesel. The attack, which was reportedly launched through an old corporate virtual private network, paralysed pipelines across the US East Coast and resulted in Colonial Pipeline paying roughly $5 million worth of Bitcoin to the hackers. The US Justice Department later recovered nearly half of the ransom payment.<\/p>\n
The US Securities and Exchange Commission and the US Congress are also pursuing new regulations to strengthen and standardise cybersecurity benchmarks and cybercrime disclosure requirements.<\/p>\n
\u201cRegulation has an important role to play in incentivizing cyber resilience,\u201d Dobrygowski added.<\/p>\n
Source: Spencer Feingold Digital Editor, Public Engagement, World Economic Forum<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The proposal aims to curb cybercrime, which cost the global economy an estimated \u20ac5.5 trillion in 2021 Lawmakers are seeking to strengthen cybersecurity requirements across the European Union, advancing new legislation to bolster security requirements for all digital hardware and software products. The proposed law, titled the Cyber Resilience Act, would cover everything from computers\u2026<\/p>\n","protected":false},"author":2,"featured_media":13341,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_scj_primary_category_id":58,"_scj_featured":false,"_scj_featured_from":"","_scj_featured_until":"","_scj_featured_order":0,"_scj_visibility_class":"current","_scj_layout_family":"standard","_scj_article_style":"","_scj_display_overrides":[],"_scj_intro_image_id":13341,"_scj_intro_alt":"New European Union cybersecurity proposal takes an aim at cybercrime","_scj_intro_caption":"","_scj_intro_class":"","_scj_intro_float":"","_scj_full_image_id":13341,"_scj_full_alt":"New European Union cybersecurity proposal takes an aim at cybercrime","_scj_full_caption":"","_scj_full_class":"","_scj_full_float":"","_scj_media_type":"","_scj_media_provider":"","_scj_media_external_id":"","_scj_media_url":"","_scj_media_poster_id":0,"_scj_media_width":0,"_scj_media_height":0,"_scj_media_aspect_ratio":"","_scj_media_description":"","_scj_gallery_items":[],"_scj_related_post_ids":[],"_scj_additional_authors":[],"scj_layout_family":"standard","scj_media_provider":"","scj_media_url":"","scj_full_caption":"","footnotes":""},"categories":[58],"tags":[],"class_list":["post-13342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cybersecurity"],"yoast_head":"\n