Cost of security breaches doubles

Two in three US firms have lost money following IT security breaches, according to the FBI. The results of the organisation’s security survey also show that the amount of money lost due to these intrusions was almost double that of 2000.

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By  Matthew Southwell Published  April 9, 2002

Two in three US firms have lost money following IT security breaches, according to the FBI. The results of the organisation’s security survey also show that the amount of money lost due to these intrusions was almost double that of 2000.

The average cost of security breaches, for the 186 firms prepared to estimate losses, was more than $2 million, compared to an average loss of $1.06 million recorded last year. The most serious financial losses occurred through theft of proprietary information and financial fraud.

On the plus side, the survey showed that there was an increase in the willingness of companies to report computer crimes as 36% of the professionals surveyed said that they reported intrusions to law enforcement agencies.

Patrice Rapalus, CSI Director, said the survey showed "neither technologies nor policies alone really offer an effective defence for your organisation."

Firms which want to build secure infrastructures should embrace "both the human and technical dimensions" of information security, and develop a properly funded strategy to combat security breaches, he added.

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