Cybersecurity is a topic of growing concern as more and sharper cybersecurity attacks emerge. The cybersecurity attack vector has shifted from business data to consumer data, resulting in the exposure of around 1 billion identities. These cybersecurity concerns affect international trade for various reasons:
International Trade Data Breaches
A cybersecurity breach compromises international trade-related data such as client information and financial transaction details. It is estimated that 75% of organizations using business to business platforms have experienced cybersecurity breaches that affected their supply chains.
International Cyber Attacks
International cyber attacks are becoming increasingly common among foreign governments, terrorists, organized crime rings, and corporations with malicious intent. These attacks can result in the theft of trade secrets, the disruption of critical infrastructure, and the sabotage of businesses.
The Use of Digital Trade Tools
As international trade becomes increasingly digitized, it becomes more vulnerable to cybersecurity threats. For example, electronic commerce allows for the purchase and sale of goods and services online, while supply chain management systems track the movement of goods through the production process. These digital trade tools are susceptible to cyber attacks that can disrupt or halt international trade altogether.
The Spread of Malware
Malware is a type of virus or worm that is designed to steal information or damage computer systems. It can be spread through cybersecurity breaches or for malicious purposes. Malware can disrupt international trade by causing a business to lose customers and revenue, as well as damage the company’s public image.
Internet outages that span entire countries or even continents have had an effect on international trade. For example, the 2015 internet outage in Liberia resulted in economic losses of around $12 million from online retailers who were unable to complete financial transactions during this period. In 2013, the cybersecurity attack against South Korean banks prevented clients from using their accounts or conducting financial transactions for around one week.
These cybersecurity threats affect international trade by compromising national security interests and digital tools used within businesses. In turn, cybersecurity concerns have forced companies to take cybersecurity more seriously and adopt stricter cybersecurity measures.
In conclusion, cybersecurity is affecting international trade by compromising client information stored on business to business platforms, causing international cyber attacks from foreign governments and terrorist organizations, the use of digital tools that facilitate international trade and cybersecurity threats such as malware and internet outages hinder international transactions. This creates a need for increased cybersecurity measures within businesses to ensure the safety of their clients and supply chains.