Cybercrime is costing businesses, on average, $11.7 million a year, a 23 percent increase from $9.5 million in cybercrime-related spending last year. The accelerating cost of cybercrime over the past five years also means that the cost of cybercrime has increased 62 percent since 2013, according to the Ponemon Institute’s Cost of Cybercrime Study.
For the report, Ponemon Institute surveyed 2,182 security and IT professionals from 254 organizations about cybercrime spending, including costs associated with IT infrastructure, economic espionage, business disruption, ex-filtration of intellectual property and revenue losses. The Ponemon Institute developed the report with Accenture, and the report aims to quantify the economic impact of cyber attacks and observe cost trends over time.
“Whether managing incidents themselves or spending to recover from the disruption to the business and customers, organizations are investing on an unprecedented scale—but current spending priorities show that much of this is misdirected toward security capabilities that fail to deliver the greatest efficiency and effectiveness,” the report authors wrote.
Looking at 15 different industry sectors, the study found that financial services has the highest cost of cybercrime, at $18.3 million, on average, a year, followed by utilities and energy, costing $17.2 million a year. For organizations in the healthcare sector, the average annualized cost of cybercrime is $12.5 million a year, making healthcare the fifth most costly industry.
With cyber attacks on the rise, successful breaches per company each year has risen more than 27 percent, from an average of 102 to 130. Ransomware attacks alone have doubled in frequency, from 13 percent to 27 percent, with incidents like WannaCry and Petya affecting thousands of targets and disrupting public services and large corporations across the world, the study authors wrote.
Source: Healthcare Informatics