Over one-third of organizations that experienced a breach in 2016 reported substantial customer, opportunity and revenue loss of more than 20 percent, according to the Cisco 2017 Annual Cybersecurity Report (ACR).
The report surveyed nearly 3,000 chief security officers (CSOs) and security operations leaders from 13 countries in the Security Capabilities Benchmark Study, part of the Cisco ACR.
The 2017 ACR revealed the potential financial impact of attacks on businesses, from enterprises to SMBs. More than 50 percent of organizations faced public scrutiny after a security breach. Operations and finance systems were the most affected, followed by brand reputation and customer retention.
For organizations that experienced an attack, the effect was substantial:
- Twenty-two percent of breached organizations lost customers — 40 percent of them lost more than 20 percent of their customer base.
- Twenty-nine percent lost revenue, with 38 percent of that group losing more than 20 percent of revenue.
- Twenty-three percent of breached organizations lost business opportunities, with 42 percent of them losing more than 20 percent.
The security leaders cite budget constraints, poor compatibility of systems, and a lack of trained talent as the biggest barriers to advancing their security postures.
The CSOs also reveal that their security departments are becoming increasingly complex environments with 65 percent of organizations using from six to more than 50 security products, increasing the potential for security effectiveness gaps, according to report.
Ninety percent of these organizations are improving threat defense technologies and processes after attacks by separating IT and security functions (38 percent), increasing security awareness training for employees (38 percent), and implementing risk mitigation techniques (37 percent).
“In 2017, cyber is business, and business is cyber –that requires a different conversation, and very different outcomes. Relentless improvement is required and that should be measured via efficacy, cost, and well managed risk,” said Shukri Eid, Managing Director – East Region, Cisco Middle East.
To exploit these gaps, ACR data shows criminals leading a resurgence of “classic” attack vectors, such as adware and email spam, the latter at levels not seen since 2010.
Spam accounts for nearly two-thirds (65 percent) of email with eight to 10 percent cited as malicious. Global spam volume is rising, often spread by large and thriving botnets.
Lower Time to Detection
Measuring effectiveness of security practices in the face of these attacks is critical. Cisco tracks progress in reducing “time to detection” (TTD), the window of time between a compromise and the detection of a threat. Faster time to detection is critical to constrain attackers’ operational space and minimize damage from intrusions.
Cisco has successfully lowered the TTD from a median of 14 hours in early 2016 to as low as six hours in the last half of the year. This figure is based on opt-in telemetry gathered from Cisco security products deployed worldwide.
“One of our key metrics highlighted in the 2017 Annual Cybersecurity Report is the ‘time to detection’ – the time it takes to find and mitigate against malicious activity. We have brought that number down to as low as six hours. A new metric – the ‘time to evolve’ – looked at how quickly threat actors changed their attacks to mask their identity. With these and other measures gleaned from report findings, and working with organizations to automate and integrate their threat defense, we can better help them minimize financial and operational risk and grow their business,” said Scott Manson, Cyber Security Leader for Middle East and Turkey, Cisco.