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

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

Growing African focus on data security

Beachhead Solutions’ new SA and Mauritius country manager explains the challenges and solutions around securing customer data and compliance with new personal information legislation. Read More

Costly kids: families lose money or data due to children on the net

According to joint research by Kaspersky Lab and B2B International, 18% of users in South Africa have lost either money or important information as a result of their children’s online activity.  Read More

No silver bullet for security

For too many businesses, the idea of a security ‘quick fix’ is tempting, and they learn the hard way that there is no such thing, says Intact Security. Read More

Every fifth Android user faces cyber attacks

According to the results of the “Mobile cyber-threats” survey carried out by Kaspersky Lab and INTERPOL between August 2013 and July 2014, every fifth Android-based device protected by Kaspersky Lab security solutions was a target of malware at least once during the reporting period.  Read More

Risks of cyber attacks hard to define

It is extremely hard to apply to the risks caused by the myriad cyber threats out there, as they are hard to define, harder to prevent, and it is almost impossible to accurately assess the cost and damage of a breach once it has taken place, says Intact Software Distribution. Read More

Cyber Security Africa set for Ethiopia

The 2nd Annual Ethiopia Banking & ICT Summit will take place in November 21st, 2014 at Sheraton Hotel, Addis Ababa, Ethiopia. Read More

EFCC searches for $38m bank e-fraudster

Nigeria's Economic and Financial Crimes Commission (EFCC)  has started a manhunt for a 38-year-old bank worker over the alleged theft of $38 million from his employers by hacking into computer systems. Read More

Financial phishing skyrockets

Kaspersky Lab’s experts have reported a substantial increase in the amount of financial phishing in spam globally. Read More

Fortinet: JP Morgan hack has the hallmarks of an APT

The coordinated hacks of JPMorgan Chase and a number of other banks, which was revealed in the global media yesterday, bear all the hallmarks of an APT attack, says Fortinet South Africa. Read More

PRESS OFFICES

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

FEATURED STORY

Growing African focus on data securityGrowing African focus on data security

Beachhead Solutions’ new SA and Mauritius country manager explains the challenges and solutions around securing customer data and compliance with new personal information legislation.

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

VMware reports third quarter 2014 results

VMware, the global leader in virtualization and cloud infrastructure, today announced Year-over-Year Revenue Growth of 18% to $1.52 Billion in its financial results for the third quarter ...

CNN, MultiChoice name top African Journalist 2014

Kenyan journalist Joseph Mathenge has been awarded the top prize at this year’s CNN MultiChoice African Journalist 2014 Awards Ceremony.