64% of firms suffer loss due to cyber incidents

The FBI reports that 9 out of 10 organizations in the country are victims of some sort of computer security incident, and one-fifth are hit more than 20 times a year.

Almost two-thirds suffer financial loss as a result of the cyber incidents.

The 2005 FBI Computer Crime Survey is based on responses from a cross-section of more than 2,000 public and private organizations. Among its findings:

Frequency of attacks. Nearly nine out of 10 organizations experienced computer security incidents in a year’s time; 20% of them indicated they had experienced 20 or more attacks.

Types of attacks. Viruses (83.7%) and spyware (79.5%) headed the list. More than one in five organizations said they experienced port scans and network/data sabotage.

Financial impact. Over 64% of the respondents incurred a loss. Viruses and worms cost the most, accounting for $12 million of the $32 million in total losses.

Sources of the attacks. They came from 36 different countries. The U.S. (26.1%) and China (23.9%) were the source of over half of the intrusion attempts, though masking technologies make it difficult to get an accurate reading.

Defenses. Most said they installed new security updates and software following incidents, but advanced security techniques such as biometrics (4%) and smart cards (7%) were used infrequently. In addition, 44% reported intrusions from within their own organizations, suggesting the need for strong internal controls.

While most companies are well aware of the threats the cyber crimes pose to their computer systems and data bases, many may be unaware of the availability of coverage to help deal with the damages caused by attacks after they’ve occurred.

“Companies spend a great deal of money on the technology to protect themselves from such attacks. But the majority are unaware of the fact that there are policies out there which are designed to cover some of the risks companies face,” noted Marcus Breese, Lloyd’s broker with Hiscox Technology. According to Lloyd’s, the type of coverage available varies from the very general to quite specific.

Topics Cyber Profit Loss