Cyber crime costs up nearly 40%
SECURITY| Oct. 9, 2012, 7:47 a.m.
HP has unveiled new research indicating that the cost and frequency of cybercrime have both continued to rise for the third straight year.
According to the third annual study of U.S. companies, the occurrence of cyber attacks has more than doubled over a three-year period, while the financial impact has increased by nearly 40%.
Conducted by the Ponemon Institute and sponsored by HP, the 2012 Cost of Cyber Crime Study found that the average annualised cost of cyber crime incurred by a benchmark sample of U.S. organisations was USD8.9 million.
This represents a 6% increase over the average cost reported in 2011, and a 38% increase over 2010. The 2012 study also revealed a 42% increase in the number of cyber attacks, with organisations experiencing an average of 102 successful attacks per week, compared to 72 attacks per week in 2011 and 50 attacks per week in 2010.
“Organisations are spending increasing amounts of time, money and energy responding to cyberattacks at levels that will soon become unsustainable,” said Cassie Liddle, Solution Pre-Sales Architect, South Africa and MEMA, HP. “There is clear evidence to show that the deployment of advanced security intelligence solutions helps to substantially reduce the cost, frequency and impact of these attacks.”
The most costly cybercrimes continue to be those caused by malicious code, denial of service, stolen or hijacked devices, and malevolent insiders. When combined, these account for more than 78% of annual cybercrime costs per organisation. Additional key findings include:
- Information theft and business disruption continue to represent the highest external costs. On an annual basis, information theft accounts for 44% of total external costs, up 4% from 2011. Disruption to business or lost productivity accounted for 30% of external costs, up 1% from 2011.
- Deploying advanced security intelligence solutions can mitigate the impact of cyberattacks. Organisations that deployed security information and event management (SIEM) solutions realised a cost savings of nearly USD1.6 million per year. As a result, these organisations experienced a substantially lower cost of recovery, detection and containment than organisations that had not deployed SIEM solutions.
- Cyber attacks can be costly if not resolved quickly. The average time to resolve a cyber attack is 24 days, but it can take up to 50 days according to this year’s study. The average cost incurred during this 24-day period was USD591,780, representing a 42% increase over last year’s estimated average cost of USD415,748 during an 18-day average resolution period.
- Recovery and detection remain the most costly internal activities associated with cyber crime. On an annual basis, these activities account for almost half of the total internal cost, with operating expenses and labour representing the majority of the total.
“The purpose of this benchmark research is to quantify the economic impact of cyber attacks and observe cost trends over time,” said Dr. Larry Ponemon, chairman and founder, Ponemon Institute. “We believe a better understanding of the cost of cybercrime will assist organisations in determining the appropriate amount of investment and resources needed to prevent or mitigate the devastating consequences of an attack.”
In conjunction with this third annual study of U.S. companies, cybercrime cost studies also were conducted in Australia, Germany, Japan and the United Kingdom. HP is hosting a series of webinars highlighting the findings from these studies, with the U.S.-focused webinar taking place Nov. 7. Additional information about this webinar, and those taking place in other regions, is available at www.hpenterprisesecurity.com/ponemon-cost-of-cyber-crime/.
MORE SECURITY NEWS
Chams urges insurers to embrace IT to grow businessIndigenous IT firm Chams Plc has urged Chief Executive Officers of risk-bearing companies struggling to make appreciable inroads into the rural communities of Nigeria to look in the direction of deploying IT tools. Read More
2nd Cyber conference set for OctoberThe African Cyber Risk Institute (ACRI) will host its 2nd Annual African Cyber Conference on Thursday, October 8, 2015 at Cresta Lodge Hotel in Gaborone. Read More
Consumers suffering from ‘digital amnesia’Kaspersky Lab says growing numbers of consumers struggle to recall memories trusted to connected devices. Read More
Information Security: The biggest barrier to the Internet of ThingsTrust is critical for IoT to achieve its potential, especially in terms of its adoption by the mass market, says Gemalto. Read More
Kaspersky Lab, Gabonese Government to Cooperate on IT SecurityKaspersky Lab has signed a memorandum of understanding with the National Agency of Digital Infrastructures and Frequencies (ANINF) in Libreville, Gabon. Read More
The importance of password securityMany users assume their passwords are of no value to cyber criminals, says Kaspersky Lab. Read More
MTN Business expands partnership with Samsung to offer enterprise customers increased securitySamsung Electronics South Africa has announced that MTN Business has been appointed as a reseller of Samsung’s KNOX licenses to its customers. Read More
Ghanaian to moderate Council of Europe Conference on CybercrimeA Ghanaian cyber security expert, Albert Antwi-Boasiako, has been selected by the Council of Europe to moderate a session at its Cooperation against Cybercrime - Octopus Conference in Strasbourg, France. Read More
Be on the lookout for new cyber threats, warns KasperskyKaspersky Lab has urged Kenyan companies to put the right security and strategies in place against cybercrime to avid losses and reputational damage. Read More
Threat of cyberattacks on the rise for African companiesDeloitte says cyber criminals are getting smarter and know no boundaries, so companies in Africa need to raise their preparedness. Read More
FEATURED STORYYoung innovators shine during pitch sessions
Botswana saw an array of upcoming tech wizards selling their ideas during the Vendors’ Day pitch sessions this week.
BEST READ NEWS
IN DEPTHHigh tech homes: Just press play
High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.