24 April 2014, 07:32

Internet is on the verge of cyber disruption - survey

Internet is on the verge of cyber disruption - survey

New Swiss survey claims that Internet is on the verge of cyber disruption, the one "similar to the 2008 financial crisis." According to the study of Zurich Insurance, there is a define correlation between the mortgage market problems, which led to global financial crisis seven years ago, and a failure of one of cloud providers. Zurich Insurance states that the consequences of this might be severe.

The Swiss reports states: 

"Just imagine if a major cloud service provider had a ‘Lehman moment’, with everyone’s data there on Friday and gone on Monday. If that failure cascaded to a major logistics provider or company running critical infrastructure, it could magnify a catastrophic ripple running throughout the real economy in ways difficult to understand, model or predict beforehand."

The situation on the cyber market is very similar to the one occurred 
in the US sub-prime mortgage market in 2008. Back then it resulted in a major economic crisis. It is due to the "interconnected nature of the internet" that the history might repeat this time.

Axel Lehmann, Chief Risk Officer at Zurich Insurance shared his view on the situation: "Few people truly understand their own computers or the internet, or the cloud to which they connect, just as few truly understood the financial system as a whole or the parts to which they are most directly exposed."

The new survey warns people from feeling that 

"the internet has been incredibly resilient (and generally safe) for the past few decades." According to the analysis, one of the issues back in 2008 was that "risks were assessed by financial institutions individually." The statement from Zurich Insurance urges both government and private companies not to repeat the same mistake again. The study has outlined seven major risk areas that organizations have to look out when it comes to their own internal cyber security. The threat itself might come not just from outside but also from company’s suppliers.

In 2013 alone more than seven hundred and forty million data files were stolen around the world. It was officially the worst year when it came to Internet security. The statistics on this data was presented by the Online Trust Alliance. Zurich Insurance warns people that the situation might get even worse, 

"While our society’s reliance on the internet grows exponentially, our control of it only grows linearly, limited by outdated government procedures and ineffective governance." 

The survey provides with a possible solution to the problem backing up Microsoft with its idea of creating a G20+20 group. The main concept of the project is to use 20 governments and 20 global information and communications technology firms to develop security in the cyber space.

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