Cyber crime cost and frequency on the rise

by CXOtoday News Desk    Oct 10, 2012

Cyber crimeThe cost as well as frequency of cyber crime is continuously on the rise, according to a new research conducted by the Ponemon Institute and sponsored by HP. The research noted that while the occurrence of cyber attacks has more than doubled over a three-year period, its financial impact has increased by nearly 40 percent.

The study revealed that in the US organisations alone, the annual cost of cyber crime has touched $8.9 million in 2012. This represents a 6 percent rise over the average cost reported in 2011, and a 38 percent increase over 2010. The study also noted a 42 percent increase in the number of cyber attacks globally, 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.

“Organizations are spending increasing amounts of time, money and energy responding to cyber attacks at levels that will soon become unsustainable,” said Damanjit Singh Uberoi, chief solutions architect & evangelist, South Asia HP Enterprise Security Products.

According to Singh, 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 cyber crimes 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 percent of annual cyber crime costs per organisation.

Information theft and business disruption continue to represent the highest external costs. On an annual basis, information theft accounts for 44 percent of total external costs, up 4 percent from 2011. Deploying advanced security intelligence solutions can mitigate the impact of cyber attacks.

Organisations that deployed security information and event management (SIEM) solutions noticed a cost savings of nearly $1.6 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.

“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.

He believes that a better understanding of the cost of cyber crime will help enterprises in determining the appropriate amount of investment and resources needed to prevent or mitigate the devastating consequences of an attack.