Cyber crime costs corporate America billions

Posted by STARR KESHET

A study conducted by the Ponemon Institute has concluded that cyber crime costs American corporations billions of dollars per year.

Examples of cyber-criminal activity highlighted by the extensive survey includes stealing an organization's intellectual property, confiscating online bank accounts, creating or distributing viruses, posting confidential business information and disrupting critical national infrastructure.

Cybercrime costs corporate America billions"[Our] study - which involved interviews with the data protection and IT security practitioners in 45 US organizations - [found that] cyber crime is common, intrusive, and can have a significant impact on an organization's bottom line," explained
Larry Ponemon.

"Over a four-week period, the 45 organizations surveyed in the study experienced 50 successful attacks per week, or more than one successful attack per organization per week. This resulted in a median annualized cost of $3.8 million per organization per year, with costs for the complete benchmark sample ranging from $1 million to nearly $52 million."


Ponemon emphasized that nearly "every" corporation remains vulnerable to devastating cyber-attacks responsible for information theft, disruption to business operations and serious financial loss.

"[However], companies are able to reduce the financial impact of cyber crime [by] appointing a chief information security officer (CISO), [rolling out] an enterprise security strategy and investing in technologies capable of addressing sophisticated threats."