Cybercrime losses up by 56%

The cost of cybercrime has risen by 56%, says a new study by HP.

HP has unveiled new research indicating that cyber attacks increasingly plague businesses and government organisations, resulting in significant financial impact, despite widespread awareness.
 
Conducted by the Ponemon Institute, the Second Annual Cost of Cyber Crime Study revealed that the median annualized cost of cybercrime incurred by a benchmark sample of organisations was USD5.9 million per year, with a range of USD1.5 million to USD36.5 million each year per organisation. This represents an increase of 56% from the median cost reported in the inaugural study published in July 2010.

The study found that recovery and detection are the most costly internal activities, highlighting a significant cost-reduction opportunity for organisations that are able to automate detection and recovery through enabling security technologies.

“Instances of cybercrime have continued to increase in both frequency and sophistication, with the potential impact to an organisation’s financial health becoming more substantial,” said Praveen Govender, HP Software Country Manager, South Africa.

“Organisations in the most targeted industries are reducing the impact by leveraging security and risk management technologies, which is grounds for optimism in what continues to be a fierce fight against cybercrime.”

Cyber attacks have become common occurrences. Over a four-week period, the organisations surveyed experienced 72 successful attacks per week, an increase of nearly 45% from last year. More than 90% of all cybercrime costs were caused by malicious code, denial of service, stolen devices and web-based attacks.

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