Cyber crime is not new. And despite grappling with it now for years, the cost of cyber crime continues to increase. This has been made plain by the 2013 Cost of Cyber Crime Study by the Ponemon Institute that was sponsored by Hewlett-Packard.

What do we learn from this study? Well, for starters, the annual cost of cyber crime is a staggering $11.56 million per U.S. organization. This represents a 26 percent increase from the $8.9 million figure from last year.

Cyber Attacks More Complex, More Frequent

One might think that this cost should decrease over time as companies learn how to deal with cyber crime. However, the opposite appears to be true, as the complexity and frequency of attacks have increased. Furthermore, companies are spending more money on credentialed security personnel than in the past (which is a good thing, of course).

Notwithstanding increased costs, security intelligence tools can help to bring down the costs of dealing with cyber crime. Indeed, the study indicates that the return on investment of such tools is 21 percent.

With respect to heightened attack volume, U.S. organizations are experiencing 122 attacks weekly on average. This represents an increase from 102 average weekly attacks last year.

Longer Response Time

The time to respond to attacks also has lengthened. This year, 32 days on average go by before a cyber attack is resolved. This is an increase from 24 average days last year. Again, this may relate to the greater complexity of attacks. It also may result from companies trying to take more care in resolving attacks properly while going into further depth as to forensic analysis.

Since the beginning of time, there have been some people who are up to no good. This has been happening on the Internet in recent times. And while cyber crime likely is here to stay, companies cannot lie down and just take it. They therefore will have to do their best to maintain security, including paying the freight to get the job done as best as possible going forward.

This article is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The description of the results of any specific case or transaction contained herein does not mean or suggest that similar results can or could be obtained in any other matter. Each legal matter should be considered to be unique and subject to varying results. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice.

Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. The Duane Morris Institute provides training workshops for HR professionals, in-house counsel, benefits administrators and senior managers.