HP has published the results from a study conducted by the Ponemon Institute, indicating that the cost, frequency and time to resolve cyber-attacks continue to rise for the fourth consecutive year.
Conducted by the Ponemon Institute and sponsored by HP Enterprise Security Products, the 2013 Cost of Cyber Crime Study found that the average annualized cost of cybercrime incurred by a benchmark sample of US organizations was $11.56 million, representing a 78 percent increase since the initial study was conducted four years ago.
The results also revealed that the time it takes to resolve a cyber-attack has increased by nearly 130 percent during this same period, with the average cost incurred to resolve a single attack totalling more than $1 million.
Key findings from the 2013 study include:
- The average annualized cost of cybercrime incurred per organization was $11.56 million, with a range of $1.3 million to $58 million. This is an increase of 26 percent, or $2.6 million, over the average cost reported in 2012.
- Organizations experienced an average of 122 successful attacks per week, up from 102 attacks per week in 2012.
- The average time to resolve a cyberattack was 32 days, with an average cost incurred during this period of $1,035,769, or $32,469 per day — a 55 percent increase over last year’s estimated average cost of $591,780 for a 24-day period.
- The most costly cybercrimes are caused by denial-of-service, malicious-insider and web-based attacks, together accounting for more than 55 percent of all cybercrime costs per organization on an annual basis.
- Information theft continues to represent the highest external costs, with business disruption a close second. On an annual basis, information loss accounts for 43 percent of total external costs, down 2 percent from 2012. Business disruption or lost productivity accounts for 36 percent of external costs, an increase of 18 percent from 2012.
- Recovery and detection are the most costly internal activities. For the past year, recovery and detection combined accounted for 49 percent of the total internal activity cost, with cash outlays and labor representing the majority of these costs.
- Cybercrime cost varies by company size, but smaller organizations incur a significantly higher per-capita cost than larger organizations.
- Organizations in financial services, defense, and energy and utilities experience substantially higher cybercrime costs than those in retail, hospitality and consumer products. Security intelligence solutions and governance practices make the difference.
- Organizations using security intelligence technologies were more efficient in detecting and containing cyberattacks, experiencing an average cost savings of nearly $4 million per year, and a 21 percent return on investment (ROI) over other technology categories.
- Deployment of enterprise security governance practices including investing in adequate resources, appointing a high-level security leader, and employing certified or expert staff can reduce cybercrime costs and enable organizations to save an estimated average of $1.5 million per year.
Findings from the study will be presented at a webcast on October 29th. More details: https://www.brighttalk.com/r/ghs
•Date: 9th October 2013 • US •Type: Article • Topic: ISM