Despite spending millions of dollars on bot management, a single bot attack costs 38% of companies $500,000 or more

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attacks are due to the fact that adversaries are getting more advanced while organizations are still relying on outdated solutions that are slow to evolve, easy to evade, and difficult to manage,” said Sam Crowther, founder and CEO of Kasada.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.”