Corporate Cyber Attacks Increase, Cost $2M Each

"Cyberintruders have stepped up their attacks on corporate computer networks, according to two surveys released Monday.

Symantec (SYMC) , the world's largest supplier of anti-virus software, reports a 332% spike in worms and viruses launched against Windows desktop computers and servers in the last half of 2004 compared with the year before - 7,360 variants in all.

What's more, the bad guys' determination appears to be paying off. In a January survey of 229 midsize and large companies, security firm Mazu Networks found 47% had networks compromised by a self-propagating worm in the past year."

This correlates with Aberdeen Group research last year which found large enterprises facing two intrusions a year. The IT costs to fix the intrusion were less than $100K, but the very troubling report is that direct costs in lost business were $2M per intrusion. Hardening networks is currently an IT job. I expect more outsourcing to network providers, who are being asked to provide "clean pipes" for IT applications and customer Internet access. Spending for countering cyber attacks is a high growth area.

Peter S. Kastner