Big Surprise: A New Study Shows the Cost of Cyber Crime is Going Up

Paula Musich
Paula Musich

Summary Bullets:

  • With the cost of cyber crime going up along with the amount of time it takes to contain an attack, organizations should rethink their security spending priorities to focus more on incident detection and response.
  • Assessing your security posture and making appropriate adjustments can help lower cyber crime costs.

The 2014 Global Cost of Cyber Crime Report came out this week, and the news is not good. But that shouldn’t be a surprise, given that about once a week now there is yet another headline announcing the latest big breach. And they seem to get bigger: 40 million customers affected in the Target breach in late 2013, 56 million in the Home Depot breach in mid-2014. The study, conducted by Ponemon Institute and sponsored by HP Enterprise Security, found that the annual cost of cybercrime increased nearly 100% over the five years it has been conducted. The study looked at 257 large companies (with 1,000 or more endpoints) in seven countries, and it found that the average annual cost of a breach is $7.6 million, with a range of between $0.5 million up to $60.5 million. But what’s interesting is that the cost of cybercrime is higher for U.S. companies. A benchmark sample of U.S. companies found that the average cost per organization now stands at $12.7 million. Russian companies were added to the study this year, and they incurred the least cost – $3.3 million on average. Continue reading “Big Surprise: A New Study Shows the Cost of Cyber Crime is Going Up”