The Costs and Frequency of cybercrime are on the Rise

A recent report by Cybersecurity Ventures estimates the global costs associated with cybercrime will double from the $3 trillion in 2015 to $6 trillion annually by 2021. This growth in cybercrime will force global increased spending on defenses that will exceed $1 trillion cumulative over the next 5 years (2017 – 2021).

Amplifying the impact of threats from a growing cybercriminal industry is the severe shortage of cybersecurity professionals. There are 1 million un-filled cybersecurity jobs in 2016 – which is expected to grow to 1.5 million by 2019.

Stories of large corporations and government agencies appear in the news frequently however, last year (2015) nearly half of all cybercrime targets were small (250 employees or less) businesses. One reason that small businesses are more enticing targets is that larger businesses have the funding to implement sophisticated and complex solutions and constantly improve their security systems to thwart attackers.

Ponemon Institutes 2015 Cost of Cyber Crime Study” shows:

  • A 19% increase in cybercrime costs between 2014 and 2015
  • The average cost of an attack was up from $7.6 million in 2014 to $7.7 million in 2015
  • The costs range from $310,000 to $65 million
  • Cost vary by organizational size with smaller organization incurring significantly higher per capita costs than larger organizations. ($1,388 versus $431). Measured by the number of direct connections (desktops/laptops/mobile devices) to the networks and enterprise systems.
  • Cyberattacks become more costly the longer they take to resolve – the mean number of days to resolve a cyberattack is 46 with an average cost of $21,155 per day – or a total cost of $973,130 over the 46 day remediation period
  • All industries fall victim to cybercrime but to different degrees. Financial services and utilities & energy experience the substantially higher cybercrime costs that organizations in the healthcare, automotive and agriculture
  • Business disruption represents the highest external cost (39%), followed by the costs associated with information loss
  • Malicious insiders are still the greatest threat followed by DoS, Web based, and Phishing attacks.

Resolving attacks more quickly, minimizing the damage and reducing the number of attacks directly impacts costs to the business.

This is where IT Strategic Partners excels. Our seasoned professionals will partner with your organization to analyze your current security posture, recommend enhancements and provide guidance to your existing IT organization.