Saudi Arabia's Strategic Role in Cybersecurity Threats: Insights and Countermeasures

Saudi Arabia's rapid ascent to the highest position in cyber security, as per the IMD's 2024 World Competitiveness Yearbook, can be attributed to a combination of efforts, initiatives, and leadership, recognized by the National Cybersecurity Authority (NCA) nationally and internationally. Dr. Musaed Al-Aiban, Chairman of the NCA Board of Directors, viewed this achievement as a validation of the Kingdom's significant role in international cybersecurity, highlighting the strategic growth of the cybersecurity sector, and spotlighting both security and industry development through domestic and international collaboration. Al-Aiban noted that this "Saudi model" has positioned the Kingdom as a leader in the field, garnering global recognition.

The NCA's dedication to international collaboration is further emphasized by its engagement in cybersecurity exercises with more than 40 countries.

Cybercrime Landscape and Challenges

On a worldwide scale, cybercrime damages were expected to reach $6 trillion in 2021 and rise to $10.5 trillion annually by 2025, with financial services being a primary target. As part of Saudi Arabia’s Vision 2030 and National Transformation Program 2020, the Kingdom has made significant strides in digital transformation, investing in vital infrastructure to support economic development.

HKA points out that many businesses, especially financial institutions, need more expertise to maintain robust cybersecurity, prompting them to outsource to third-party providers. However, sustaining an effective internal cybersecurity framework is essential for protecting operations. The demand for skilled cybersecurity professionals is high, yet supply remains limited.

The NCA Recommendations

To support Vision 2030, the NCA mandates all sectors adopt strong cybersecurity measures, as Saudi Arabia’s growing digital landscape increases its exposure to cyberattacks. These measures will help mitigate risks, safeguarding both financial and reputational assets. Over 60% of Saudi CIOs consider security their toughest tech challenge, driving a significant increase in cybersecurity investments, which are now crucial for digital transformation. Cyberattacks increasingly target critical infrastructure and industrial control systems, moving beyond traditional IT systems to pose threats to physical operations and smart cities. Saudi Arabia is enhancing cybersecurity by establishing new authorities, frameworks, and laws to secure national infrastructure and protect against rising cybercrime.

Data Breach Costs and Cybersecurity Effectiveness

The key findings described in the Cost of a Data Breach Report 2024 are based on IBM Security analysis of the research data compiled by the Ponemon Institute. Notably, the average data breach cost spiked nearly 10% from $4.45 million to$4.88 million in 2023, marking the highest increase since the pandemic, with breaches involving stolen credentials taking the longest to identify and contain. Nearly half of all breaches involved customer personal identifiable information (PII), including tax identification (ID) numbers, emails, phone numbers, and home addresses, moreover, 35% of breaches involved shadow data correlated with higher costs and longer resolution times.

The report indicates that two out of three organizations are deploying security AI and automation across their security operations centres, a 10% increase from the previous year. Furthermore, organizations using AI in prevention workflows reported an average of $2.2 million less in breach costs than those not using AI, representing the largest cost savings identified in the study.

The industrial sector faced the highest average cost increase per breach, rising by USD 830,000, likely due to the need for quick response to reduce costly downtime. Malicious insider attacks were the most expensive overall, averaging $4.99 million. Involving law enforcement in ransomware attacks reduced costs by nearly $1 million and shortened containment times. This suggests that timely and coordinated intervention can significantly impact breach costs.

Research, Innovation, and Market Growth

This year, NCA launched the Cybersecurity Research and Innovation Pioneers Grants Initiative to support ground breaking research and innovation in cybersecurity, in collaboration with the Saudi Information Technology Company (SITE). The initiative offers grants for scientific research, postgraduate theses, and graduation projects in various cybersecurity areas.

The program aims to drive the development of the cybersecurity industry, strengthening Saudi Arabia's position as a secure global economic leader through innovation and cybersecurity excellence.

The NCA has released a Report on key economic indicators in the cybersecurity sector of 2024, efforts of local and international experts collaborated for over two years to accentuate the sector's growth, including over 100 categories of cybersecurity products and services. Saudi Arabia's cybersecurity market reached SAR 13.3 billion, with the private sector contributing 69% of the spending, reflecting strong public-private collaboration. The sector's contribution to the Kingdom's GDP totalled SAR 15.6 billion, with 19.6K cybersecurity professionals, including over 32% women, surpassing global averages for gender diversity.

Case Study

One recent incident underscores data breaches in today's digital arena, where Orion, a Luxembourg-based supplier of carbon products, fell victim to a business email compromise scam, resulting in a staggering $60 million theft. An employee was tricked into making multiple wire transfers to cybercriminals, who remain unknown, demonstrating that even established companies are not immune to cyber threats. This case is a stark reminder of the existing vulnerabilities and the urgent need for robust cybersecurity measures to safeguard against such attacks.

In May 2024, Dell experienced a significant cyberattack that potentially affected 49 million customers. The threat actor, Menelik, openly disclosed that he accessed data by creating partner accounts within Dell’s company portal. After gaining authorization for these accounts, he executed brute-force attacks, sending over 5,000 requests per minute for nearly three weeks, during which Dell remained unaware of the ongoing activities. Following this extensive data extraction, Menelik alerted Dell via multiple emails about the security flaw. While Dell confirmed that no financial information was breached, sensitive data, including customer addresses and order details, may have been compromised. Reports show that the stolen data is now being sold on various hacker forums, impacting around 49 million customers.

In light of the unpredictable nature of cyber threats, these incidents indicate attackers' ability to exploit vulnerabilities, often eluding detection and prediction until significant damage is done. This case study highlights the pressing need for entities to adopt proactive and robust strategies to safeguard sensitive data and ensure immediate responses to emerging threats.

AIGC in action: Cybersecurity Solutions

Our IT and cybersecurity services at AIGC are designed to protect digital assets and ensure compliance through strategic and tactical solutions. We take a holistic approach to addressing IT challenges, including business disputes and cybersecurity threats, seamlessly integrating with your existing governance structures. Our specialized team utilizes proven methodologies to tackle fraud and business disputes. We offer a range of services, including IT and cybersecurity risk assessments, tailored cybersecurity evaluations, and comprehensive compliance reviews to meet industry standards. Our Expert Witness Advisory and Data Forensic services involve state-of-the-art software tools in forensics and analytics.

AIGC offers rapid incident response plans to minimize the impact of cybersecurity incidents on your business and prepare you for various disruptions. Additionally, we provide awareness sessions on cybersecurity best practices for employees and stakeholders, fostering a culture of security within your organization.

Our dedicated team is ready to help you navigate today’s complex cybersecurity arena, feel free to contact us for assistance or more information about how our IT and cybersecurity services can benefit your organization.

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