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

How to beat cyber criminals – Kaspersky

Cyber criminals are getting more daring every day and everyone on the Internet should be wary and take precautions, warns Internet security solutions firm, Kaspersky. Read More

Kaspersky Lab reveals latest cyberespionage tactics: complexity and modularity VS functionality

Nation-state sponsored cyberespionage attacks are becoming more sophisticated, targeting carefully defined users with complex, modular tools, and keeping well under the radar of increasingly effective detection systems, Kaspersky Lab experts have discovered. Read More

Safe Deposit: Defeating cyber-attacks against banks

With online heists once again hitting the headlines, how should banks and their customers protect themselves against similar attacks?  Read More

Large organisations gear up to address aggressive cyber-security business disruption attacks

Although the frequency of a cyber-security attack on a large scale is low, by 2018, 40 per cent of large organisations will have formal plans to address aggressive cyber-security business disruption attacks, up from none this year, says Gartner. Read More

Identity and access management trends for 2015

CA Technologies has identified five key trends for security and identity and access management (IAM) that will impact organisations and security professionals in 2015 as they compete in the application economy.  Read More

Leading newspaper site hacked

Botswana is seeing unprecedented cases of internet hacking with one of the latest attacks targeting one of the country’s leading private newspapers, Mmegi. Read More

Senegal hit by wave of cyber attacks

Senegal has been hit by a wave of hackings in the past two weeks, two of which hit the popular news website Seneweb.com and ADIE. Read More

Cyber attacks may get more virulent, Cisco, Kaspersky warn

Cyber attackers are using more subtle methods to infiltrate corporate networks with the aim of stealing vital information or simply causing mayhem. This is according Kaspersky Lab and Cisco, who say IT security experts should up their game in educating users how to ward off potential attackers. Read More

SIM box task team steps up successes with help from ICT firm

Ghana’s efforts to crack down on SIM boxing fraud have been given a boost by the efforts of Subah Infosolutions Ghana Limited, which now partners with the authorities in the fight against this crime. Read More

Software vulnerability led to Ghana govt site hack

A software vulnerability and failure to update software led to the hacking of some websites on the government of Ghana’s official portal. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

2bn priced out of internet access2bn priced out of internet access

A new report from the Alliance for Affordable Internet shows that the price of broadband remains prohibitive for billions in developing and emerging countries, with women and rural dwellers hardest hit.

IN DEPTH

Villagers get solar training at Barefoot College Villagers get solar training at Barefoot College

The Botswana Human Resource Development Council (HRDC) has seconded seven semi-illiterate mostly Ngwatle villagers for a six month solar electrification training course at the famed Barefoot College in India. 

COMPANY NEWS

MTN Group Sustainability Report released

MTN Group’s efforts to advance social development in its markets through the integration of sustainable business practices into day-to-day activities, is yielding positive outcomes, the company’s Sustainability ...