Cyber crime costs up nearly 40%

SECURITY

|
Image: By BiztechAfrica
Cyber crime costs up nearly 40%

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/.

 



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE SECURITY NEWS

Don’t get hacked this holiday

Public Wi-Fi isn’t as safe as you might think, warns Eset. Read More

Regin: a malicious platform capable of spying on GSM networks

Kaspersky Lab’s Global Research and Analysis Team has published its research on Regin – the first cyber-attack platform known to penetrate and monitor GSM networks in addition to other “standard” spying tasks.  Read More

Security a top priority as Africa moves to LTE

Securing the network is a top priority for telcos and carriers as LTE becomes increasingly mainstream across Africa, says Fortinet. Read More

Barclays ropes in ICT taskforce in anti-fraud war

Barclays Bank of Botswana (BBB) has roped in experts in the field of Information Technology and cybercrime to give weight to its annual fraud awareness month. Read More

Kaspersky Lab: Most businesses use third-party services to manage virtualisation

Less than one-third of businesses keep their virtualisation servers on-premises and managed entirely by their own internal IT staff, according to a Kaspersky Lab survey of 3,900 IT professionals worldwide.  Read More

Cisco: Employee complacency increases risk

Kian Ellens Research released by Cisco shows that critical company data is at risk in South Africa as a result of organisations focusing IT security policies and resources more on external threats and not enough on the threat from within.    Read More

Cyber security workshop set for Wednesday

The African Cyber Risk institute (ACRI) will host a cyber security conference in Gaborone on the 29th of October.  Read More

Kaspersky Lab: Ebola hook in “Nigerian” spam

In September spammers produced topical new versions of the old “Nigerian Letter” scam, this time based on the Ebola virus.  Read More

Cisco warns of unprecedented growth of malicious traffic

Threats designed to take advantage of users’ trust in systems, applications and personal networks have reached startling levels, a new report by Cisco reveals. Read More

Users cover webcams due to spying fears

Kaspersky Lab research has found a large proportion of computer users cover up their webcams for fear of being spied on. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

GSMA: half a billion mobile subscribers in SSA by 2020GSMA: half a billion mobile subscribers in SSA by 2020

The number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020, says a new GSMA report.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.  

COMPANY NEWS

Leading through volatility in Africa

For the businesses that are prepared to face the storm and manage the volatility afflicting the continent, there are still huge rewards to be had from doing business ...