Attacks/Breaches

9/26/2017
05:30 PM
Connect Directly
Twitter
LinkedIn
Google+
RSS
E-Mail
50%
50%

Cybercrime Costs Each Business $11.7M Per Year

The most expensive attacks are malware infections, which cost global businesses $2.4 million per incident.

The average cost of cybercrime in 2017 was $11.7 million per organization, a 23% increase from $9.5 million in 2016 and a 62% increase over the past five years for global businesses.

In a new study, "The Cost of Cybercrime" by Accenture and the Ponemon Institute, researchers polled 2,182 security and IT pros across 254 organizations around the world. They found each company experiences 130 breaches per year, a 27.4% increase from 2016 and nearly double its count five years ago. And as cyber attacks increase, so too does their cost.

The study considered four key impacts of cybercrime: business disruption, data loss, revenue loss, and equipment damage. Forty-three percent of respondents said information loss is most damaging; the least is business disruption, which dropped from 39% in 2015 to 33% this year.

Malware infections are the most expensive type of cyber attack, at an average of $2.4 million per infection globally ($3.82 million in the United States). Web-based attacks, the second most expensive, cost $2 million per incident globally ($3.40 million per incident in the US).

Financial services and energy were the hardest-hit sectors in 2017, with average annual costs of $18.28 million and $17.20 million, respectively. Australia reports the lowest total average attack cost at $5.41 million, and the UK had the lowest year-over-year cost change ($7.21 million in 2016 to $8.74 in 2017). US companies spend more to address all types of cyber attacks.

Outside studies support the idea that cybercrime costs differ across businesses and industries. Forrester recently found data breach costs vary significantly by organization. Furthermore, publicly reported numbers typically represent short-term costs and don't always include regulatory fines, losses in productivity, lawsuits, brand damage, and additional security and audit requirements.

Costs may also vary depending on the type of data compromised. For example, a breach of intellectual property will have different costs than a breach of customer or employee data.

Companies investing to protect themselves may benefit from a change in strategy, experts suggest. Results indicate most spend the greatest bulk of their security budgets on advanced perimeter controls but don't see the investment pay off. Those deploying perimeter systems only see cost savings of $1 million, a sign of inefficiencies in resource allocation.

Security intelligence systems, which collect data from various sources to help identify and prioritize threats, are among the most effective tools for reducing cybercrime costs. These saved businesses about $2.8 million, more than all other technologies included in the survey.

The least popular tools are automation, orchestration, and machine learning technologies, which are deployed only among 28% of respondents. Yet these deliver the third-highest cost savings overall, at $2.2 million per organization.

Jeff Pollard, principal analyst serving security and risk professionals at Forrester, anticipates automation will become more common as security teams are overwhelmed with threat alerts from better detection tools. If you already receive 100 alerts per day and invest in a better detection tool, you'll be challenged to handle the additional alerts.

"If you were already struggling with the 100 you were dealing with … you're even further behind than you were before," he says. Vendors are starting to pop up in the orchestration space to help businesses prioritize the most critical threats and ease the burden on their teams.

Researchers advise investing in basic tools like security intelligence and advanced access management to lay the groundwork for a strong strategy. On top of that, businesses should go beyond compliance and conduct extreme pressure testing to detect vulnerabilities.

Related Content:

Join Dark Reading LIVE for two days of practical cyber defense discussions. Learn from the industry’s most knowledgeable IT security experts. Check out the INsecurity agenda here.

Kelly Sheridan is the Staff Editor at Dark Reading, where she focuses on cybersecurity news and analysis. She is a business technology journalist who previously reported for InformationWeek, where she covered Microsoft, and Insurance & Technology, where she covered financial ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
6 Security Trends for 2018/2019
Curtis Franklin Jr., Senior Editor at Dark Reading,  10/15/2018
6 Reasons Why Employees Violate Security Policies
Ericka Chickowski, Contributing Writer, Dark Reading,  10/16/2018
Getting Up to Speed with "Always-On SSL"
Tim Callan, Senior Fellow, Comodo CA,  10/18/2018
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Latest Comment: Too funny!
Current Issue
Flash Poll
The Risk Management Struggle
The Risk Management Struggle
The majority of organizations are struggling to implement a risk-based approach to security even though risk reduction has become the primary metric for measuring the effectiveness of enterprise security strategies. Read the report and get more details today!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2018-10839
PUBLISHED: 2018-10-16
Qemu emulator <= 3.0.0 built with the NE2000 NIC emulation support is vulnerable to an integer overflow, which could lead to buffer overflow issue. It could occur when receiving packets over the network. A user inside guest could use this flaw to crash the Qemu process resulting in DoS.
CVE-2018-13399
PUBLISHED: 2018-10-16
The Microsoft Windows Installer for Atlassian Fisheye and Crucible before version 4.6.1 allows local attackers to escalate privileges because of weak permissions on the installation directory.
CVE-2018-18381
PUBLISHED: 2018-10-16
Z-BlogPHP 1.5.2.1935 (Zero) has a stored XSS Vulnerability in zb_system/function/c_system_admin.php via the Content-Type header during the uploading of image attachments.
CVE-2018-18382
PUBLISHED: 2018-10-16
Advanced HRM 1.6 allows Remote Code Execution via PHP code in a .php file to the user/update-user-avatar URI, which can be accessed through an "Update Profile" "Change Picture" (aka user/edit-profile) action.
CVE-2018-18374
PUBLISHED: 2018-10-16
XSS exists in the MetInfo 6.1.2 admin/index.php page via the anyid parameter.