New Report Says Cybercrime Costs Skyrocketing

Over the last three years, cybercrime affecting U.S. companies has more than doubled, and its financial impact has increased by almost 40 percent. Those are among the findings in a new report on the Cost of Cybercrime in 2012, with regard to the U.S. market.

CybercrimeEUs financial cost for a company is, on average, about $8.9 million. That's a six percent increase over the average cost in the previous year, and a 38 percent since 2010.

The number of attacks has grown by 42 percent, with an average of 102 successful attacks weekly. This compares to an average of 72 attacks weekly in 2011, and 50 attacks weekly in 2010.

These alarming results were summarized in the Cost of Cybercrime 2012 report, which marks the third annual study conducted by the Ponemon Institute and sponsored by computer-maker and services-provider HP. The U.S. study looked at 60 businesses, whose cybercrime costs ranged from $1.3 million to more than $58 million.

The Ponemon Institute also conducted similar studies in Australia, Germany, Japan and the U.K. Average costs connected to cybercrime were highest in the U.S. and Germany, and the lowest in the U.K. and Australia.

Security Intelligence

The amount of time, money and energy organizations are spending to respond to cyberattacks EUwill soon become unsustainable,EU Michael Callahan, vice president of Worldwide Product and Solution Marketing for Enterprise Security Products at HP, said in a statement. He added that there is evidence EUthe deployment of advanced security intelligence solutions helps to substantially reduce the cost, frequency and impactEU of the attacks.

Advanced security intelligence solutions have enabled organizations to save an average of nearly $1.6 million annually, due to lower costs of recovery, detection and containment, according to the study. These can include inclusion prevention systems, application security testing, enterprise governance, and risk management.

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