Cybercrime continues to be a major threat to businesses, schools and individuals all over the United States, with more than $12.5 billion in potential losses incurred in the last year alone. But some states are bearing the brunt of the financial losses more than others. In fact, New Jersey ranks as the fifth most victimized by cybercrime state in the nation. Oliver Page, CEO of CyberNut, a security-awareness training solution firm built exclusively for schools that trains faculty, staff and students to recognize and report the phishing emails and deep fake AI scams that are targeting districts, delved into the top states that experienced the highest cybercrime losses in 2023, exploring the potential reasons behind these staggering figures.
We’ll start at home.
- New Jersey
New Jersey, in fifth place, experienced over $441 million in cybercrime losses, potentially due to its proximity to New York and its own thriving financial and pharmaceutical sectors, Page says.
Now watch as these figures balloon — including in bordering New York.
- New York
Page says: “New York, the fourth-highest state, suffered nearly $750 million in losses, reflecting its status as a global financial hub and the presence of numerous high-profile companies and organizations, all of whom are a prime target for cybercriminals.”
- Florida
New York south, Florida, ranks third, with nearly $875 million suffered in cybercrime losses.
“The state’s reliance on tourism, real estate and financial services, as well as its large elderly population, make it vulnerable to scams and data breaches,” Page says.
- Texas
Seems they really do mess with Texas.
The Lone Star States ranks second, with over $1.02 billion in cybercrime losses, likely due to its large population, diverse economy and significant presence in industries like energy, finance and healthcare, all of which are prime targets for cyberattacks.
- California
Perhaps least surprising, California tops the list as the state with the highest cybercrime losses in 2023, reaching a staggering $2.16 billion. “This can be attributed to the state’s large population (the largest in the U.S.), thriving tech industry and high concentration of affluent individuals and businesses, making it an attractive target for cybercriminals,” Page says.
Cybercrime’s devastating impact
These staggering cybercrime losses have a significant impact on the overall economy and financial system.
“The theft of sensitive data, financial fraud and disruption of critical infrastructure can lead to decreased consumer confidence, higher insurance premiums and increased costs in every area for businesses and individuals,” Page says.
To mitigate these risks, businesses, organizations and individuals in high-risk states should implement robust cybersecurity measures, such as:
- Regularly updating software and systems to address known vulnerabilities.
- Implementing strong access controls, including multi-factor authentication and password management.
- Providing comprehensive cybersecurity training for employees to recognize and respond to phishing attempts and other social engineering tactics.
- Regularly backing up data and testing incident response plans to ensure business continuity in the event of a breach.
- Cyber insurance should be considered to transfer some of the financial risk associated with cyber threats.
Learn more about the writer ...
Kevin A. Canessa Jr. is the editor of and broadcaster at The Observer, a place where he has served on and off since 2006. He is responsible for the editorial content of the newspaper and website, the production of the e-Newspaper, writing several stories per week (including the weekly editorial), conducting live broadcasts on Facebook Live, including a weekly recap of the news — and much more behind the scenes. Between 2006 and 2008, he introduced the newspaper to its first-ever blog — which included podcasts, audio and video. Originally from Jersey City, Kevin lived in Kearny until 2004, lived in Port St. Lucie. Florida, for four years until February 2016 and in March of that year, he moved back to West Hudson to return to The Observer full time. Click Here to send Kevin an email.