Cyber Losses Snowballing Despite an Increase in Cyber Security Spending

[InfoSec News <alerts () infosecnews org>]

https://www.cpomagazine.com/cyber-security/cyber-losses-snowballing-despite-an-increase-in-cyber-security-spending/

By Alicia Hope
CPO Magazine
July 6, 2020

Hiscox report shows increasing cyber losses for businesses targeted by 
various cyber risks. The study found losses stemming from cyber security 
threats had grown almost six-fold, jumping from a median cost of $10,000 
to $57,000 per company within the reported period. However, firms also 
stepped up their cyber security spending by 39% to keep up with the 
increasing threats. Contrarily, the number of businesses targeted fell 
from 61% to 39% during the same period. The study analyzed 5,569 companies 
from both the private and public sectors in the U.S., UK, Germany, France, 
Belgium, Spain, Ireland, and the Netherlands.


Key findings of the Hiscox report

The report ranked each firm based on its security strategy and execution. 
Results showed that companies’ readiness increased from 10% to 18% with 
some firms achieving expert status. The rise in cyber security expenditure 
was contrary to the previous two years, where cyber security spending was 
falling.

The report also showed that one in six firms attacked paid a ransom. The 
most expensive loss by a single company, which involved ransomware and 
other cyber events, amounted to $50 million.

Higher spending was associated with increased expertise, according to the 
Hiscox study. Higher ranking firms had an average cyber security 
expenditure of $4.2 million within 12 months. In contrast, poorly 
performing firms spent an average of $1.3 million over the same period.

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