Recently, the sophistication of cyber-attacks has grown significantly. Cybercriminals are specializing and sharing intelligence so as to steal sensitive data and disrupt critical business functions. Consequently, the topic of cybercrime has been kept top of mind as the repercussions of a cyberattack are costly and potentially very damaging.
The study, 2013 Cost of Cyber Crime Study: United States, was conducted by the Ponemon Institute and sponsored by HP Enterprise Security Products.
1. Cybercrimes are Still Costly for Organizations
The average annual cost of cybercrime per organization was $11.6 million, an increase of 26% over the average cost reported in 2012. Considering this increase in cost, IT security should be a top priority for all organizations, as there is no single failsafe solution to protect against cybercrime.
2. All Industries are Susceptible to Cybercrime
The average annual cost of cybercrime appears to differ according to industry segment; organizations in financial services, defense, and energy and utilities experience markedly higher crime costs than organizations in retail, hospitality and consumer products. The organizations facing higher security threats are not only at risk for financial loss due to cyber-attack, but are also more vulnerable to phishing attacks that could compromise sensitive customer data such as credit card, bank account and social security numbers.
3. Denial of Service Attacks, Malicious Code and Web-based Attacks are the Most Costly Cybercrimes
These are responsible for more than 55% of all cybercrime costs to organizations. Denial of Service (DoS) is an attack which renders information or data unavailable to its intended recipients. Organizations using VPNs can mitigate such risks by configuring access control lists, a method of defining access rights according to user (such as a file directory or individual file).
Malicious code is a piece of executable code designed to harm a computer or its information, or prevent normal computer operations. Malicious code can come from various sources, such as the Internet, infected diskettes, files received via electronic mail, and worms that exploit several system vulnerabilities. It could also be introduced via a disgruntled insider, who has physical access to a computer or network.
A multilevel strategy is required to effectively defend against malicious code, including physical security, password management, product selection, configuration and maintenance, user awareness and education, up-to-date anti-virus software for servers, clients, and electronic mail and adequate system backups. Web-based attacks focus on an application itself, as application vulnerabilities could provide the means for malicious end users to breach a system's protection mechanisms. Generally, such attacks take advantage or gain access to private information or system resources. To mitigate Web-based attacks, firewalls, reverse proxies, and intrusion detection and prevention systems (IDPS) should be used, which actively monitor for attacks and attempt to block or change the environment, thus preventing further attacks from reaching the protected application or system.
4. Cyber-attacks Can Be Costly if Not Resolved Rapidly
The results show a direct and positive relationship between the time required to contain an attack and the organizational cost. The results also demonstrate that both the cost and the time taken to resolve an attack increased from the previous year. Failure to resolve the problem quickly leads to prolonged business disruption and gives competitors a distinct advantage.
The results of the study reveal that no one is immune cyber-attacks, which have the potential to inflict significant financial and reputational damage to the targeted organization. Stay tuned for Part 2 where we shall further discuss the findings of this data breach study and how organizations should protect themselves from becoming a victim of cyber-attacks.
Author: Hazel Farrugia
You must be registered in order to write comments. To register as a new user click here.
If you're already registered, please leave a comment here