The new law requires content to be published on servers found within China. (Photo : Getty Images)
An average of 1,245 security-related incidents have been reported in the Chinese mainland and Hong Kong this year, surging by 517 percent over the previous 12 months compared to the average of 241 recorded in 2014, according to a survey published Tuesday.
Of the detected cybersecurity incidents, half were either caused by current or former employees in companies operating in mainland China and Hong Kong, PricewaterhouseCoopers (PwC) said in its latest Global State of Information Security Survey.
The average financial loss due to cybercrimes in both regions rose by 10 percent to $2.63 million compared to the previous year, as opposed to a 5-percent decline worldwide, the report said.
"We are witnessing attacks from all angles, but industries facing the most impact include those engaged in consumer [data], retail and technology," said Samuel Sinn, PwC China Cyber Security Service Partner.
Survey participants reported a 64-percent increase in security incidents that compromised customer records, which is a sharp contrast to the average global increase of 35 percent. Many of the threats originate from within mainland China and Hong Kong.
Both regions have been struck by a string of prominent cyberattacks this year. Most recently, Hong Kong-based toy manufacturer VTech was hacked, compromising personal information of more than six million users.
In September, several popular Chinese iOS apps were discovered to have been infected by malicious software, highlighting vulnerabilities in Apple's operating platform.
In response to the rise in cybercrimes, companies have been investing more in security measures. According to the survey, companies have invested an additional 16 percent from their 2015 budgets to information security compared from the past year. Spending on cybersecurity in both the Chinese mainland and Hong Kong reached an average of $7.9 million, exceeding the global average of $5.1 million.
However, many companies are still unprepared for security risks that accompany the latest technology, such as the Internet of Things (IoT). "Companies must continue improving their security strategies to stay prepared for ever-growing cyber risks," Sinn said.
