HP Research Reveals 56 Percent Rise in Cost of Cybercrime
Contributed by: Email on 08/03/2011 10:06 AM [ Comments ]
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 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.
The study found that recovery and detection are the most costly internal activities, highlighting a significant cost-reduction opportunity for organizations 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 organizations financial health becoming more substantial, said Tom Reilly, vice president and general manager, Enterprise Security, HP. Organizations 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.
Cyberattacks have become common occurrences. 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 cybercrime costs were caused by malicious code, denial of service, stolen devices and web-based attacks.
The Second Annual Cost of Cyber Crime Study provides insight into the level of investment and resources needed to prevent or mitigate the consequences of a cyberattack. Key findings include:
As the sophistication and frequency of cyberattacks increases, so too will the economic consequences, said Dr. Larry Ponemon, chairman and founder, Ponemon Institute. Figuring out how much to invest in security starts with understanding the real cost of cybercrime.
HP enables risk management through the Security Intelligence and Risk Management Framework, which helps businesses and governments in their pursuit of an Instant-On Enterprise. In a world of continuous connectivity, the Instant-On Enterprise embeds technology in everything it does to serve customers, employees, partners, and citizens with whatever they need, instantly.
On Aug. 3, HP will host a webinar highlighting findings from the Second Annual Cost of Cyber Crime Study. Additional details are available at www.arcsight.com/webinars/watch/2nd-annual-cost-of-cyber-crime-findings/.
About HP
HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The worlds largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure at the convergence of the cloud and connectivity, creating seamless, secure, context-aware experiences for a connected world. More information about HP (NYSE: HPQ) is available at http://www.hp.com.
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