New Report On Growing Cybersecurity Costs

New Report On Growing Cybersecurity Costs

March 8, 2019 Business Insurance and Risk Management, The Beacon Blog 0 Comments

The latest report on the cost of cybercrime by Accenture and the Ponemon Institute shows increases across the board in 2018. As summarized in https://www.telecompetitor.com/growing-malware-malicious-insider-attacks-contributing-to-13m-avg-company-cybersecurity-costs/?, the average cost to a company is $13 million, 10% more than 2017. (Caution: the post did not include a breakdown by company size; some statistics are for the United States but the survey was worldwide.)

  • By type of attack, increases ranged from 8% for phishing and social engineering to 21% for ransomware.
  • Malware and malicious insider attacks combined for almost one third of average costs ($4.2 million).
  • Phishing and social engineering attacks cost an average of $1.4 million. (Social engineering fraud coverage on Crime or Cyber policies frequently has a sub-limit of $1 million or less.)
  • Average number of cyberattacks per company was 145 in 2018, a 67% increase in five years. The number of ransomware attacks has more than tripled in two years.
  • 85% of companies experienced phishing and social engineering attacks, and 76% suffered web-based attacks.

The report was based on input from over 2,600 security and IT professionals at 355 organizations worldwide.




About the Author

Harry Cylinder

Harry Cylinder, CPCU, ARM has spent nearly fifty years in the insurance industry, the majority of the time as a consultant. He has been employed by The Beacon Group of Companies since 2008, specializing in the review and analysis of property and casualty coverage forms. Mr. Cylinder has been reviewing policy forms as they have evolved over the past decades. In 2008 he published an article in the CPCU Journal which was the first description of cyber insurance coverage for a general insurance audience. Since that time he has regularly written on cyber and other topics for The Beacon Companies’ blog.