Lose A Fortune: One DDoS Attack Can Cost A Company Over $1.6M

By   ISBuzz Team
Writer , Information Security Buzz | Oct 02, 2016 03:15 am PST

According to the Corporate IT Security Risks 2016* study conducted by Kaspersky Lab and B2B International, a single DDoS attack can cost a company over $1.6 million, depending on how quickly the attack is detected.

Companies of various sizes affected by DDoS attacks over the last 12 months were asked what costs they incurred as a result. It turned out that the biggest expenses for medium and large companies (20 per cent and 19 per cent respectively) were caused by changes to their credit and insurance ratings, which is hardly surprising considering many DDoS attacks become public knowledge. For small companies, the largest DDoS-related expenditure item was overtime payments to employees (17 per cent).  DDoS attacks are also cited as one of the top five threats that can force companies to hire new employees, with 37 per cent of organisations that fell victim to such attacks planning to significantly increase their IT staff.

Other major DDoS-related costs included PR expenses to restore a company’s reputation (9 per cent), upgrading IT infrastructure and software (ten per cent), staff training (ten per cent) and customer compensation (12 per cent). This can bring the average cost of a DDoS attack to about $106,000 for smaller companies and more than $1.6 million for enterprises. One important finding from the study was that if an attack is detected in the first 24 hours, the costs can be almost halved, compared to an attack detected over a day later.

“Our research demonstrates that DDoS attacks are one of the most expensive cyber-threats for companies. In fact, they are more expensive than a virus or a cryptomalware infection. Just one single DDoS attack can disable the online services for long periods of time, damage the company’s reputation and deprive it of its current or future customers. There have been incidents where prolonged DDoS attacks have led to the bankruptcy and closure of successful online businesses. Proactive protection allows a company to quickly detect an ongoing DDoS attack and, in the case of a solution like Kaspersky DDoS Protection, assist in finding out as soon as an attack begins thanks to the DDoS Intelligence system, thereby warding off any potential risks,” says Alexey Kiselev, Project Manager on the Kaspersky DDoS Protection team.

To learn more about DDoS attacks, please view our Kaspersky DDoS Intelligence reports. More information about the protection offered by Kaspersky Lab against DDoS attacks can be found here.

*Corporate IT Security Risks is the annual survey conducted by Kaspersky Lab in cooperation with B2B International. In 2016, we have asked more than 4,000 representatives of small, medium (50 to 999) to and large businesses (1000+) from 25 countries on their views on IT security and real incidents they had to deal with.

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