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|Annual Study Reveals Average Cost of Cyber Crime Escalates 96 Percent to $12.7 Million per Organization|
|Posted: Thu Oct 16, 2014 08:51:26 AM|
HP Partners with Ponemon Institute for fifth annual study; reconfirms security intelligence solutions mitigate impact, saving on average $5.3 million annually per organization
PALO ALTO, Calif., October 15, 2014 — HP today unveiled the results from its fifth annual study in partnership with the Ponemon Institute detailing the rising cost, frequency and time to resolve cyber attacks.
Conducted by the Ponemon Institute and sponsored by HP Enterprise Security, the 2014 Cost of Cyber Crime Study found the average annualized cost of cyber crime incurred by a benchmark sample of U.S. organizations was $12.7 million,(1) representing a 96 percent increase since the study was initiated five years ago.(2)The results also revealed the time it takes to resolve a cyber attack has increased by 33 percent during this same period, with the average cost incurred to resolve a single attack totaling more than $1.6 million.
During the study period, significant cyber crimes occurred in the U.S. involving the theft of millions of payment cards, Internet credentials, intellectual property and online bank accounts. According to the 2014 Cost of Cyber Crime Study, advanced security intelligence tools such as Security Information and Event Management (SIEM) solutions, Intrusion Prevention Systems (IPS) with reputation feeds, network intelligence systems and big data analytics help organizations detect and contain cyber attacks resulting in significant reductions in the annualized cost of cyber crime.(1)
“Adversaries only need to be successful once to gain access to your data, while their targets must be successful every time to stop the barrage of attacks their organizations face each day,” said Art Gilliland, Senior Vice President and general manager, Enterprise Security Products, HP. “No amount of investment can completely protect organizations from highly sophisticated cyber attacks, but improving and prioritizing your organization’s ability to disrupt the adversary with actionable intelligence solutions such as SIEM, can significantly improve attack containment and reduce the overall financial impact.”
Key findings from the 2014 Cost of Cyber Crime Study
The most costly cyber crimes
Deployment of security intelligence solutions makes a difference
Organizations using security intelligence technologies were more efficient in detecting and containing cyber attacks. For those having deployed a SIEM solution, the average cost savings was $5.3 million per year, a 32 percent increase in savings from last year. Organizations with technologies such as an Intrusion Prevention System (IPS) and Next-generation Firewall (NGFW) boasted a 15 percent ROI result.
“Business disruption, information loss and the time it takes to detect a breach collectively represented the highest cost to organizations experiencing a breach,” said Dr. Larry Ponemon, chairman and founder, Ponemon Institute. “Based on more than 2,000 interviews, the annual Cost of Cyber Crime research continues to provide valuable insights into the rising cost of cyber attacks to help organizations across all industries understand the serious financial impact that can result if measures are not taken to put solutions, process and expertise in place to minimize risk.”
In addition to the fifth annual study of U.S. organizations, Ponemon conducted cyber cost studies for organizations in Australia, Germany, Japan, France and the United Kingdom. A study of Russian companies was conducted for the first time this year. Of the countries surveyed, the U.S. sample reported the highest total average cost of cyber crime at $12.7 million, while the Russian sample reported the lowest, at $3.3 million.1 The global results are available in a separate report entitled, 2014 Global Report on the Cost of Cyber Crime.