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 * Home /
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 * Phishing attacks quadruple burden on businesses

PHISHING ATTACKS QUADRUPLE BURDEN ON BUSINESSES

By Charbel Kadib
18 August 2021 | 1 minute read

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New research has identified a four-fold increase in costs incurred from phishing
attacks over the past six years.

Cyber security firm Proofpoint and IT security research company
Ponemon Institute have released the results of a new study on the cost of
phishing attacks, which involved a survey of almost 600 IT and IT security
practitioners.

According to the research, costs almost quadrupled over the past six years, with
large US companies losing an average of $14.8 million annually ($1,500 per
employee), up from $3.8 million in 2015.

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The spike in attacks also resulted in a severe loss of productivity, with an
average sized US corporation of 9,567 wasting an estimated 63,343 hours every
year as a result of the attacks.

The research also highlights the value of enhancing the cyber security skills of
a workforce, with security awareness training reducing phishing expenses by over
50 per cent on average.

“When people learn that an organisation paid millions to resolve a ransomware
issue, they assume that fixing it cost the company just the ransom. What we
found is that ransoms alone account for less than 20 per cent of the cost of a
ransomware attack,” Larry Ponemon, chairman and founder of Ponemon Institute,
said.

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“Because phishing attacks increase the likelihood of a data breach and business
disruption, most of the costs incurred by companies come from lost productivity
and remediation of the issue rather than the actual ransom paid to the
attackers.”

Other findings identified include:

 * annual ransomware costs incurred by US organisations hit $5.66 million, of
   which $790,000 account for the paid ransoms themselves;
 * costs for resolving malware infections have more than doubled, from $338,098
   in 2015 to $807,506 in 2021; and
 * the average cost to contain phishing-based credential compromises increased
   from $381,920 in 2015 to $692,531 in 2021;

“Because threat actors now target employees instead of networks, credential
compromise has exploded in recent years, leaving the door wide-open for much
more devastating attacks like BEC and ransomware,” Ryan Kalember, executive vice
president of cyber security strategy at Proofpoint, said.

“Until organisations deploy a people-centric approach to cyber security that
includes security awareness training and integrated threat protection to stop
and remediate threats, phishing attacks will continue.”

 

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Phishing attacks quadruple burden on businesses

Charbel Kadib

Last Updated: 17 August 2021 Published: 18 August 2021

1 COMMENTS


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silver teal white yellow -size- tiny small medium large huge

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Commenting as Anonymous
Change Comment

Defence Connect encourages respectful, challenging and constructive debate. We
welcome your opinions if they are focused on the subject and ideas at hand.
Comments which are defamatory, hostile, obscene or prejudicial will not be
published.

 * Marum Katze
   Not only businesses. I am getting a dozen spam phone calls a day, plus
   numerous emails. I assume that buying anything online enables one to be
   tracked.
   0 Quote Reply · 2 weeks ago.
   





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latest comments
most read
Anonymous
And.. you need to ensure the backups themselves cannot be encrypted by Ransom
ware ... ...
2 weeks ago.
read article
Marum Katze
Not only businesses. I am getting a dozen spam phone calls a day, plus numerous
emails. I assume that buying anything online enables one to be tracked....
2 weeks ago.
read article
fred
Here is a stunning idea. How about providing staff or new hires with quality
technical training ?...
2 weeks ago.
read article
Roger S
This is not the solution to the ransomware problem. The payment to a crypto
wallet is the final step in the whole process. What is needed is increased......
2 weeks ago.
read article
Marum Katze
Unfortunately Darius, that genie cannot be put back in the bottle. All systems
can be managed (often remotely) much more efficiently, by using the......
3 weeks ago.
read article
1
Receiving weird texts lately? You’re not alone
read more
2
AustCyber, Microsoft to launch traineeship program
read more
3
Empowering employees to innovate as tech skills shortage persists
read more
4
Defence unveils new data strategy
read more
5
Phishing attacks quadruple burden on businesses
read more




 

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