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

Search News

comments powered by Disqus

MORE SECURITY NEWS

The great non-divide between cyber security and geopolitics

Geopolitics, in which national security and strategy are often rooted, is just as relevant as ever in the face of threats related to cybersecurity. Read More

RSA announces RSA NetWitness Suite

RSA, The Security Division of EMC, has unveiled the RSA NetWitness Suite, an advanced threat detection and response solution that helps security teams detect and understand the full scope of a compromise like never before.  Read More

Women treasure images on connected devices more than men, yet fail to protect them

Over half (59%) of women in South Africa value the photos and videos they store on their phones more than anything else on the device -  compared to 43% of men, according to a survey by Kaspersky Lab and B2B International.  Read More

Nowhere to hide

Anton Jacobsz, MD at Networks Unlimited How cyber-security needs to move from hopeful attempts at outright prevention, to real-time detection and neutralization. Read More

Beware of the free livestream

Anton Jacobsz, MD at Networks Unlimited Not all livestreaming sites are created equal when it comes to their inherent security measures, warns Networks Unlimited. Read More

Arbor Cloud wins gold at Network Product Guide IT World Awards

Network Products Guide, the industry's leading technology research and advisory guide, has named Arbor Cloud a gold winner in the 2016 IT World Awards for Best Security Services. Read More

Networks Unlimited invests in securing Africa’s Wi-Fi connections

Anton Jacobsz, MD at Networks Unlimited Networks Unlimited is focusing its efforts on securing its customers wireless access, and has started to create awareness through hosting training and roadshows across South Africa. Read More

Cisco report predicts next generation of ransomware

Mike Weston, Vice President, Cisco Middle East Cisco’s 2016 Midyear Cybersecurity Report predicts the next generation of ransomware and new tactics emerging to maximise profit.  Read More

Arbor Networks releases global DDoS attack data for first half of 2016

Arbor Networks Inc., the security division of NETSCOUT, has released global distributed denial-of-service (DDoS) attack data for the first six months of 2016, which shows a continuing escalation in both the size and frequency of attacks.  Read More

F5 introduces standalone security products to defend against targeted attacks

F5 DDoS Hybrid Defender provides superior infrastructure protection by combining multilayered DDoS defence across network, session, and application layers. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

Financial services sees AI as both opportunity and threatFinancial services sees AI as both opportunity and threat

Banking is already a key area where technology is having an impact throughout Africa, and a new survey assesses the impact artificial intelligence will have on this sector.

IN DEPTH

Access and Use of ICT stats releasedAccess and Use of ICT stats released

Statistics Botswana has released the first results of the 2014 Information and Communication Technology Household Survey.