Cost of cyber crime rises sharply
Cyber crime inflation significantly outpaced that of the cost of living over the past year, according to a second annual survey of 50 organizations. Cyber crime cost those organizations an average of $5.9 million a year, a 56 percent increase over the first study, published a year ago.
The report, released Aug. 2, was produced by the Ponemon Institute and sponsored by ArcSight, an Hewlett-Packard company. The organizations in the survey reported 72 successful breaches per week, which comes out to 1.4 breaches per organization per week. The average time to respond to an incident was 18 days.
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Cyber crime was most costly for the defense industry, where it cost on average nearly $20 million a year per company. The cost for the public sector was slightly below average, at about $5.24 million.
The good news is that the use of tools for security information and event management cut the cost of response by 24 percent on average.
What you make of the figures is up to you. The study’s caveats point out that the results are not statistical and were produced from a small response from a small sample, and there is no way to measure how honest those responses are.
William Jackson is a senior writer of GCN and the author of the CyberEye blog.