According to the Los Angeles Times, a study conducted by the Ponemon Institute, a research group that studies Internet security, found that cyber crimes are becoming more frequent and in turn, are costing businesses more money. The study, which looked at 50 large companies in the U.S., is conducted each year to determine the economic cost of cyber attacks. The median cost of cyber crimes rose to $5.9 million, up from $3.8 million in 2010. In addition, the number of attacks rose by 44% with at least one successful attack on each of the companies in the study each week.
Costs to targets include spending on security experts and investigations, loss of productivity, system software upgrades, and the value of stolen intellectual property. “The fact that costs have increased so substantially suggests that cyber crime issues are getting worse,” said Larry Ponemon, chairman of the institute.
The study found that the most expensive cyber crimes were denial of service, Web-based attacks, malicious code and malicious insiders. Attacks are also taking longer to resolve on average and are costing more, more than $415,000 per attack, up from more than $247,000 in 2010. “The bad guys are getting stealthier, and their attacks are getting harder to detect,” Ponemon said.
“We believe a better understanding of the cost of cyber crime will assist organizations in determining the appropriate amount of investment and resources needed to prevent or mitigate the devastating consequences of an attack,” the study said.
This world isn’t perfect, especially not in the virtual world. Viruses and cyber attacks can occur at any moment. However, physical destruction to your own company is unpredictable as well and can be dangerous. This is why PTL Insurance Brokers Inc. offers California business insurance that will protect you every step of the way!
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