A survey sponsored by Hewlett-Packard Company (HPQ - Free Report) and conducted by the Ponemon Institute – the 2013 Cost of Cyber Crime Study – revealed that the rate of cyber crimes and the cost of prevention are on the rise for the fourth consecutive year. Ponemon Institute conducts research on privacy, data protection and information security policies.
According to the study, enterprises on an average have spent $11.56 million for cyber crime protection which has increased 26% from the 2012 level. Moreover, the rate of cyber attacks per week has increased from 102 in 2012 to 122 so far this year.
The study also revealed that the sophisticated nature of the cyber attacks increased the time as well as the costs associated with resolving them. In all, the time to resolve a cyber attack has increased from 24 days to 32 days and the rise in average cost also increased 55% from 2012.
The 2013 Cost of Cyber Crime Study also revealed that corporations are deploying advanced security intelligence tools in their IT systems such as “security information and event management (SIEM), network intelligence systems and big data analytics” to mitigate the cyber threats.
According to Gartner, the global security technology and services market is expected to rise 8.7% from 2012 and reach $67.2 billion in 2013. Gartner also suggested that spending on security will be $86 billion in 2016. To capitalize on these predictions, cyber security providers such as EMC Corp. , Symantec Corp. (SYMC - Free Report) and McAfee, a subsidiary of Intel Corp. (INTC - Free Report) , are developing new and innovative security solutions to cater to their clients.
Enterprises are bracing themselves with a higher level of online security measures against cyber crime. Efforts are being made to improve coordination within the private sector as well.
Currently, Hewlett-Packard has a Zacks Rank #3 (Hold).