Cyberattacks Threaten German Businesses with Record €289 Billion Damage in 2025

German businesses face a growing cyber threat landscape in 2025, with damages estimated at €289 billion. According to the Cybersecurity Day hosted by the IHK Nordschwarzwald, 87% of companies reported successful cyberattacks, predominantly targeting small and medium-sized enterprises (SMEs). These attacks have become increasingly sophisticated, often leveraging artificial intelligence for phishing and other malicious endeavors.

A recent KPMG study echoes this alarming trend, revealing that over one-third of German companies were affected by cybercrime within the last two years. The study highlights critical risks such as data theft, system sabotage, and digital fraud. Additionally, data leaks have surged, now ranking as the third most frequent IT security incident, impacting one in seven firms.

Expert speakers at the event, including Carl Christian Hirsch and Reinhold Hepp from Baden-Württemberg’s Ministry of the Interior, underscored the role of foreign intelligence services—particularly from Russia and China—in targeting sectors like healthcare, finance, and manufacturing. The state of Baden-Württemberg is proactively responding with a dedicated cybersecurity strategy planned for 2026, aiming to solidify its leadership in this field.

Human error remains the weakest link in security. Markus Klatt of the Cybersecurity Agency pointed to ransomware and social engineering as common methods, while Philipp Leo illustrated this vulnerability through an incident involving a Swiss general compromised via social engineering. The lack of cybersecurity talent exacerbates these risks, with 58% of companies struggling to recruit or train qualified personnel, a sharp rise from previous years.

In response, 74% of companies have intensified employee training and awareness programs. However, supply chain risks persist, as 54% of organizations report cyber incidents through service providers. Experts emphasize adopting the Zero Trust security model and establishing robust emergency response plans to strengthen defenses and resilience.

The need for cyber insurance is increasingly recognized, although awareness remains limited. Overall, German businesses are urged to heighten their security culture and preparedness to mitigate the rapidly evolving cyber threats.