Cisco Cisco Email Security Appliance C190 White Paper

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Cisco Security White Paper
Email Attacks: This Time It’s Personal
Combined Impact: The overall costs of spearphishing and 
targeted attacks to organizations are substantially more than 
their direct monetary loss to cybercriminals. Table 5 provides 
results from the 361 organizations Cisco SIO researched. 
Table 5: Overall Organizational Costs per Attack 
*Per Infected User
While the costs can vary widely depending on the specific 
organization and attack, one point is clear: The overall costs 
to organizations can be significant. In addition, reputation 
management and remediation efforts can create a strain on 
the organization.   
Conclusion
The increased number of low-volume targeted attacks has 
impacted users in many organizations, regardless of industry, 
geography and size. Their prevalence has caused both a 
related increase in criminal financial benefit and impact on 
victimized organizations. Organizations have to bear the  
burden of not only the monetary loss but also the cost of 
remediating infected hosts and the negative impact on 
their brand reputation. With the number of targeted attacks 
expected to increase, cybercriminal activity will continue to 
evolve, as will its impact.
It’s clear that the shift in cybercriminal business models  
has provided an interim benefit from lower threat activity.  
Organizations are only partially able to appreciate the  
reduction in cybercriminal activity, though, as their costs can 
encompass far more than financial loss. To estimate these 
total losses, Cisco SIO conducted primary research with 361 
organizations located globally to understand their perspectives. 
The organizational impacts of attacks can be categorized as 
follows: 
1. Financial
2. Remediation 
3. Reputation
Financial: Financial loss directly to the cybercriminals can 
range widely based on the specific attack; as a result,  
organizations cannot estimate the loss. 
Remediation: The remediation costs of spearphishing  
and targeted attacks are incurred by victim organizations.  
The administrative team must identify and remediate the  
compromised hosts; this can be challenging given the  
increasing use of surreptitious applications. Because of the 
complexity of current targeted attacks and the underlying 
malware, costs for remediation can be significant.  
Remediation costs include the time required to address the 
infected host and the corresponding opportunity cost of that 
time. With the organizations surveyed, Cisco observed that  
infected hosts take an average of two hours of dedicated  
effort to resolve. The cost basis of two hours of effort per 
resolution is specific to each organization, as is the  
corresponding opportunity cost of that time.  
Based on Cisco SIO research, organizations estimated that 
the direct remediation cost per infected user is $640, or 2.1 
times that of the direct monetary loss. 
Reputation: The negative reputation impact of attacks can be 
experienced over time by victim organizations and users. For 
example, building a brand typically takes years, but a negative 
event or news story, especially one that is highly visible, can 
quickly tarnish a company’s image. The direct impact can be 
a significant decline in business, sometimes even leading to 
the organization’s demise. 
Determining the true costs of adverse reputation impact can 
be challenging, as is estimating the value of an organization’s 
brand. Nevertheless, organizations have made it clear that 
adverse events can impact their reputation, which in turn can 
create a significant decline in business and shareholder value. 
Based on Cisco SIO research, organizations estimated that 
the reputation cost per infected user is $1,900, or 6.4 times 
that of the direct monetary loss. 
Size of  
Organization
Monetary 
Loss*
Remediation 
Cost*
Reputation 
Cost*
Up to  
1,000 users
$327
$558
$2,346
Between 1,000 
and 5,000 users
$233
$484
$1,436
More than  
5,000 users
$290
$833
$1,553
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