Kasada's 2023 State of Bot Mitigation Report: 96% of Businesses Lost Revenue to Malicious Bot Attacks
New survey results by Kasada, the pioneers transcending bot management by countering the human minds behind automated threats, show companies are losing revenue in the fight against malicious bot attacks. In fact, 96% of organizations lost revenue to bots in the last 12 months.
Despite spending millions of dollars on traditional bot management solutions, companies are still financially impacted by bot attacks. According to the survey, 38% of respondents estimate that a single bot attack costs their organization $500,000 or more, up from 25% in last year's survey. Plus, half (50%) of organizations lost 10% or more of revenue due to bot-driven account fraud within the last year, up from 40% of organizations last year.
"The rising costs of automated attacks are due to the fact that adversaries are getting more advanced while organizations are still relying on outdated solutions that are slow to evolve, easy to evade, and difficult to manage," said Sam Crowther, founder and CEO of Kasada. "In fact, only 19% of this year's respondents said their anti-bot solutions remained effective a year after initial deployment."
Kasada's third annual report surveyed security and technology professionals at companies that are already using bot management. The results further revealed the following trends:
CAPTCHAs are detrimental to the customer experience and likely cause lost sales.
- 77% believe the customer experience on websites would be improved by the elimination of CAPTCHAs.
- Around 4 in 5 (81%) agree that their customers would have an improved and more fair user experience if they weren't competing against bots.
Bots are becoming smarter and more frequent.
- Nearly 4 in 5 (79%) say that bots are becoming more sophisticated and difficult for their security tools to detect.
- Nearly two-thirds (63%) say their companies experienced a bot attack within the last 12 months.
As AI-enabled bots can now complete CAPTCHAs more quickly than humans and make it easier to launch automated attacks, AI driven-fraud is a top concern.
- 90% say their executive team is concerned about bot attacks and AI-driven fraud.
- 89% believe AI-driven fraud will present a threat to their organization over the next 12 months.
"Bots are continuously evolving to evade traditional bot management solutions, making defense a difficult, expensive effort for companies," said Crowther. "So much money and time are wasted on static defenses that don't protect companies against these threats; so Kasada has taken a different approach. Our proactive, dynamic platform continually protects against new threats, detering adversaries and providing a frictionless experience for consumers."
Download the full report here.
Methodology
Kasada commissioned Atomik Research to conduct an online survey of 206 U.S. security and technology professionals responsible for mitigating bots. Sample participants work within IT departments of organizations that employ 250 or more people. All organizations surveyed currently have bot mitigation solutions in place. The survey was conducted in August and September 2023. Atomik Research, a part of 4media group, is an independent market research agency.
About Kasada
Kasada has developed a radical approach to defeating automated cyber threats based on its unmatched understanding of the human minds behind them. The Kasada platform overcomes the shortcomings of traditional bot management to provide immediate and enduring protection for web, mobile, and API channels. Its invisible, dynamic defenses provide a seamless user experience and eliminate the need for ineffective, annoying CAPTCHAs. Our team handles the bots so clients have freedom to focus on growing their businesses, not defending it. Kasada is based in New York and Sydney, with hubs in Melbourne, Boston, San Francisco, and London. For more information, please visit https://www.kasada.io and follow on Twitter, LinkedIn, and Facebook.
News published on and distributed by:
