Analytics
8/2/2011
10:31 AM
Connect Directly
RSS
E-Mail
50%
50%

Study: Cybercrime Becoming More Costly, More Frequent For Enterprises

In survey of 50 companies, Ponemon finds average annual cost of cybercrime is $5.9 million

Cybercrime is not only becoming more frequent -- it's becoming more expensive for the victims, according to a study published today.

In its Second Annual Cost of Cybercrime study, the Ponemon Institute surveyed 50 large companies to determine the losses and expenditures caused by cybercrime. The study, sponsored by security information and event management company HP ArcSight, indicates that the cost of cybercrime has risen 56 percent since last year's report.

"We found that the median annualized cost of cybercrime for 50 organizations in our study is $5.9 million per year, with a range of $1.5 million to $36.5 million each year per company," the study says.

Some of the other findings:

>> Cybercrime cost varies by organizational size. The study results reveal a positive relationship between organizational size (as measured by enterprise seats) and annualized cost. However, smaller organizations incur a significantly higher per capita cost than larger-sized organizations ($1,088 vs. $284).

>> The companies participating in the study experienced 72 successful attacks per week -- or more than 1.4 successful attacks per organization. This figure has increased 44 percent over last year, Ponemon says.

>> The most costly cybercrimes are those caused by malicious code, denial-of-service, stolen or hijacked devices, and malicious insiders, according to the study. These account for more than 90 percent of all cybercrime costs per organization on an annual basis.

>> Cyberattacks can get costly if not resolved quickly, the study says. Results show a positive relationship between the time to contain an attack and organizational cost. The average time to resolve a cyberattack is 18 days, with an average cost of $415,748 over this 18-day period. This represents a 67 percent increase from last year’s estimated average cost of $247,744, which was compiled for a 14-day period.

>> Results show that malicious insider attacks can take more than 45 days on average to contain, Ponemon says. Information theft continues to represent the highest external cost, followed by the costs associated with business disruption. Information theft accounts for 40 percent of total external costs (down 2 percent from 2010). Costs associated with disruption to business or lost productivity account for 28 percent of external costs (up 6 percent from 2010).

>> Recovery and detection are the most costly internal activities associated with cybercrime, according to the study. Recovery and detection account for 45 percent of the total internal activity cost, most of it spent on cash outlays and labor. Having an SIEM system can help, according to Ponemon. "We found a percentage cost difference between SIEM and non-SIEM companies of 24 percent," the study says. "Findings suggest companies using SIEM were better able to quickly detect and contain cyber crimes than those companies not using SIEM."

Have a comment on this story? Please click "Comment" below. If you'd like to contact Dark Reading's editors directly, send us a message. Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Flash Poll
Current Issue
Cartoon
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-0972
Published: 2014-08-01
The kgsl graphics driver for the Linux kernel 3.x, as used in Qualcomm Innovation Center (QuIC) Android contributions for MSM devices and other products, does not properly prevent write access to IOMMU context registers, which allows local users to select a custom page table, and consequently write ...

CVE-2014-2627
Published: 2014-08-01
Unspecified vulnerability in HP NonStop NetBatch G06.14 through G06.32.01, H06 through H06.28, and J06 through J06.17.01 allows remote authenticated users to gain privileges for NetBatch job execution via unknown vectors.

CVE-2014-3009
Published: 2014-08-01
The GDS component in IBM InfoSphere Master Data Management - Collaborative Edition 10.0 through 11.0 and InfoSphere Master Data Management Server for Product Information Management 9.0 and 9.1 does not properly handle FRAME elements, which makes it easier for remote authenticated users to conduct ph...

CVE-2014-3302
Published: 2014-08-01
user.php in Cisco WebEx Meetings Server 1.5(.1.131) and earlier does not properly implement the token timer for authenticated encryption, which allows remote attackers to obtain sensitive information via a crafted URL, aka Bug ID CSCuj81708.

CVE-2014-3534
Published: 2014-08-01
arch/s390/kernel/ptrace.c in the Linux kernel before 3.15.8 on the s390 platform does not properly restrict address-space control operations in PTRACE_POKEUSR_AREA requests, which allows local users to obtain read and write access to kernel memory locations, and consequently gain privileges, via a c...

Best of the Web
Dark Reading Radio