Global Average Cost of Insider Threats has Reached $11.45 Million, Says New Report
- Overall, organizations are spending 60% more to recover from insider threats in comparison to what they paid three years ago.
- The study involves companies located in North America, Europe, the Middle East, and the Asia-Pacific region.
Insider threats are on the rise. To substantiate it, a new study from The Ponemon Institute has highlighted that cybersecurity incidents caused due to such threats have increased by a whopping 47% since 2018. This, in turn, has caused organizations across all sectors to spend an average of $11.45 million annually to remediate such security incidents caused by careless or malicious insiders. Overall, organizations are spending 60% more to recover from insider threats in comparison to what they paid three years ago.
What does the study comprise of?
The study involves companies located in North America, Europe, the Middle East, and the Asia-Pacific region.
For a more detailed analysis, the incidents are split into three different categories of threat:
- Those caused unintentionally by negligent employees or contractors;
- Those perpetrated by credential thieves who are hell-bent on using insiders’ login information to gain unauthorized access to applications and systems; and
- Those instigated by criminals and malicious insiders to damage an organization’s reputation.
- It has been found that health and pharma organizations are spending $10.81 million each year to recover from cybersecurity incidents caused due to insider threats.
- Large organizations with a headcount of more than 75,000 have spent an average of $17.92 million over the past year. On the other hand, small organizations with a headcount below 500 spent an average of $7.68 million to thwart insider threat incidents.
- The three largest affected organizations are from Financial Services, Energy & Utilities and Retail industry. Financial services have incurred a loss of $14.05 million - which is a rise of 20.3% - to remediate insider breaches in the past 2 years.
- The average cost incurred by organizations due to careless or negligent insiders stands at 4.58 million per year.
Time for rectification also increases
Researchers further found that incidents that take more than 90 days to contain have caused organizations to lose around $13.71 million on an annual basis. However, the incidents that lasted for less than 30 days has cost organizations roughly $7.12 million per year. Meanwhile, it takes an average of more than two months to contain an insider threat.
The bottom line
According to the report, the costs are driven by monitoring and surveillance, investigation, escalation, incident response, containment, ex-post analysis, and remediation. While containment and remediation represent the most expensive activity centers for insider threats, the least expensive activities are ex-post analysis and escalation. The researchers note that investigations are the fastest growing cost center, with the average cost across all incident types rising to 38% in the last two years.