Cost of cyber crime rises 56 percent: HP survey

by p b    Aug 03, 2011

A new annual study on the cost of cyber crime conducted by the Ponemon Institute has found that the expense of dealing with cyber crime is on the rise from last year.

The study, which was funded by Hewlett-Packard (HP), revealed that the median annualized cost of cyber crime incurred by a benchmark sample of organizations was $5.9 million per year, with a range of $1.5 million to $36.5 million each year per organization. This represents an increase of 56 percent from the median cost reported in the inaugural study published in July 2010.

“Instances of cyber crime have continued to increase in both frequency and sophistication, with the potential impact to an organization’s financial health becoming more substantial,” said Tom Reilly, Vice President and General Manager, Enterprise Security, HP.

Over a four-week period, the organizations surveyed experienced 72 successful attacks per week, an increase of nearly 45 percent from last year. More than 90 percent of all cyber crime costs were caused by malicious code, denial of service, stolen devices and web-based attacks.

In terms of dealing with threats, the study found that the average time to address a threat is 18 days, resulting in an average cost of $416,000. This represents a nearly 70 percent increase from the estimated cost of $250,000 over a 14-day resolution period in last year’s study. Results also showed that malicious insider attacks can take more than 45 days to contain.