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Average cost of cyberattack ‘now exceeds $1.6m’ – report

Security heads say operational/productivity loss, negative customer experience and data theft now primary impacts of cyber attacks – 86% looking at AI/ML to aid fightback.

The average cost of a cyberattack has climbed to $1.1m, according to new research from Radware, and for those organisations that calculate (versus estimate) the cost of an attack, that number increases to $1.67M.

Radware’s 2018-2019 Global Application and Network Security Report says the ‘top impact’ of cyber attacks, as reported by respondents, is operational/productivity loss rated at 54%, followed by negative customer experience, rated at 43%. What’s more, almost half – 45% – reported that the goal of the attacks they suffered was ‘service disruption’. Another 35% said the goal was ‘data theft’.

The report’s other key findings include:

  • 86% of surveyed businesses indicated they explored Artificial Intelligence and Machine Learning solutions: 48% point at quicker response times and better security as primary drivers to explore Machine Learning-based solutions.
  • 43% of respondents reported negative customer experiences and reputation loss following a successful attack.
  • Data leakage and information loss remain the biggest concern to 35% of businesses polled, followed by service outages.

“This year we’ve seen a shift in the impact an attack has on a company financially – and it’s especially interesting that more companies are taking the time to calculate the loss not just estimate it,” says Jeff Curley, Head of Online & Digital at Radware UK, Ireland & Nordics. “That’s not so surprising, given how volatile economies are at the moment. Understanding the impact of downtime on productivity, as well as sales and consumer trust, is essential to justify spending money on protecting the business in the future – and staying competitive.”

Curley adds: “It’s no surprise then that AI and ML have grown in popularity. They are a way to provide defences that are effective 100% of the time”. Companies that fail to invest in these new technologies, “will suffer the consequences”, Curley warns.

More information at:
https://www.radware.com/ert-report-2018/