Report: Growing Majority of Companies Lose Revenue Due to Bots

Published On: October 22, 2022Categories: Buzz, Uncategorized

Kasada, a New York-based cybersecurity vendor specializing in bot attacks, has released its 2022 State of Bot Mitigation Report claiming that the use of bots is skyrocketing.

According to the report, 69% of companies that have a bot management solution have lost more than 6% of their revenue due to account fraud this year; up from 64% in 2021.
Forty percent of companies lost 10% of revenue or more, a major increase from 2021 when only 5% reported that level of revenue loss. Account fraud includes account takeovers (ATO) and new account fraud, where fraudsters create fake accounts to gain access to loyalty programs and take advantage of promotional discounts.

Eighty-three percent of companies say that bots are becoming more sophisticated and difficult for their security tools to detect. This amount increased from last year’s 80%.

A majority of companies (62%) have spent more than $500,000 fighting bots within the past 12 months. This is a 14-point increase from last year, when only 48% were spending more than $500K. More than 20% of companies have spent $2.5 million or more fighting bots this year, and 85% of companies expect that number to increase this year.

Companies continue to spend a majority of their bot management budget (66%) on management and remediation of their anti-bot tools vs. the anti-bot solution itself.
Nearly 40% of companies also reported a 10% or greater loss of revenue due to bot-driven web scraping. This is an increase from the 7% that indicated web scraping was a problem last year. Web scraping occurs when bots extract prices or content to obtain a competitive advantage.

“Bots continue to evolve and thrive at the expense of companies,” said CEO and founder Sam Crowther. “As this year’s research confirms, it is imperative that companies have an anti-bot solution that evolves, keeping them a step ahead of attackers.”

Kasada commissioned an independent market research agency, to conduct a survey of more than 200 technology professionals throughout the United States who said they or their teams have the responsibility of managing and/or mitigating bots. Fieldwork took place in August 2022.

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