This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cybercrime Costs Spike Higher: Research

Stocks in this article: HPQ INTC SNE

NEW YORK ( TheStreet) -- The cost of cybercrime is increasing dramatically for U.S. companies, according to the latest research from the Ponemon Institute on Monday, as firms wrestle with an increasingly aggressive threat landscape.

The Hewlett Packard (HPQ - Get Report)-sponsored study found that the average cybercrime cost incurred by U.S. firms is $8.9 million per annum, an increase of 6% on 2011 and a hike of 38% from 2010. The research, which surveyed 56 U.S. organizations, also revealed an average of 102 successful attacks per week in 2012, up from 72 in 2011 and 50 per week in 2010.

The Ponemon Institute defines a successful attack as one that infiltrates a company's network or its enterprise IT system. "I think that the attacks are more sophisticated," Larry Ponemon, founder of the Ponemon Institute, told TheStreet. "In some cases, the bad guys are getting smarter."

A number of big-name firms, such as Sony (SNE - Get Report), have already hit the headlines after suffering cyber attacks.

Ponemon cited denial-of-service (DoS) attacks and malicious code as posing big challenges to businesses, along with the threat of "malicious insiders" within their organizations. The phenomenon of employees hooking their own personal devices to the corporate network (known as Bring-Your-Own-Device, or BYOD) is also creating a security headache, he added.

Nonetheless, the expert warned that cybersecurity awareness could be better, particularly within the C-suite. "The number one issue is creating awareness in the boardroom," he said. "Even after all these stories like Sony, it's clear that most CEOs and boards are not paying attention to this issue until it's too late."

Organizations, both in the corporate realm and in government, have already noted an upswing in cyber attacks. In June, for example, the Department of Homeland Security reported that attacks against U.S. critical infrastructure, such as the power grid, are skyrocketing. The Department's Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) said that it received 198 security incident reports in 2011, a significant increase from the 41 it received in 2010.

Last month, security guru Eugene Kaspersky, CEO of Kaspersky Lab, warned that hackers could shut down power in most of the world within a matter of decades.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs