Cybercrime Costs Continue to Rise

Monday, October 19, 2015 @ 04:10 PM gHale

Cyber security awareness is continuing to mount, but continuing to hold off on creating a program to ensure a secure environment is much like going into a casino and putting everything on red: A big gamble.

Sure the gamble may pay off, but over the long haul, why not create a program that will keep the business as secure as possible while also providing an increase in productivity.

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The reason why not having a security program is a gamble is because cybercrime costs are continuing their upward climb on a global basis amid a slew of high-profile breaches, a new report found.

A sixth-annual study by the Ponemon Institute found the average annual cost of cybercrime per large U.S. company at $15.4 million, an increase of 19 percent from $12.7 million a year ago.

It also represents an 82 percent jump from Ponemon’s first study six years ago.

Individually, cybercrime costs for the U.S. companies surveyed varied dramatically, ranging from $1.9 million to $65 million. And the average cost of a cyber attack on a U.S. company rose 22 percent to $1.9 million from $1.5 million.

Globally, the average annualized cost of cybercrime increased 1.9 percent from last year to $7.7 million.

The study examined the total cost of responding to cybercrime incidents, including detection, recovery, investigation and incident-response management. It also looked at after-the-fact expenses designed to prevent additional costs stemming from the potential loss of business or customers.

Recent expensive and embarrassing breaches at companies including Target, Home Depot and Sony Pictures forced companies to boost their cyber defenses.

The study looked at a sample of 58 U.S. companies with at least 1,000 connections to its computer network. Globally, the study analyzed data from 252 companies in the U.S., United Kingdom, Germany, Australia, Japan, Russia and Brazil.

Click here to register for the report.