Cybercrime hurts

Web attacks, malware and insider threats can cost organizations millions of dollars in losses each year, according to a new study.

In a survey of 45 U.S. organizations, sponsored by security and compliance solutions provider ArcSight, the Ponemon Institute found that cybercrime costs organizations USD 3.8 million per year on average. Some of the organizations studied were surprised at the total economic impact of digital offenses.

The analysis attempted to capture the direct and indirect costs of cybercrime, including information theft or loss, business disruption and property destruction –- all of which constitute "external" costs. In addition, the cost of "internal" cybercrime mitigation activities, including detection, investigation, containment, recovery and post-incident response, were quantified.

Cybercrime detection and recovery were the most costly internal activities, while information loss was the most expensive external cost, the study found.

Companies included in the study fell victim to 50 attacks per week, or the equivalent of more than one successful attack per company each week. More than 90 percent of all cybercrime costs resulted from web-based attacks, malicious code and malicious insiders.

Organizations that were analyzed took 14 days on average to resolve cyberattacks, with the average cost per day totaling USD 17,696, according to the study. Malicious insider attacks, however, took up to 42 days or more to resolve.

Source: SC Magazine.