The Biggest Casualty Of DDoS Attacks: Customer Trust

The stories published regularly about new DDoS (distributed denial of service) attacks on major companies and financial institutions always include details of the monetary losses suffered by the targets of the attacks, including revenue lost during site downtime and the cost of hiring expert DDoS mitigation specialists like Psychz Networks.

What the stories seldom mention is the biggest loss these companies suffer after being attacked: the trust of those depending on their services. Retail or financial firms whose customers are unable to reach their sites face the loss of customer confidence and future business, and internet service providers hit with DDoS attacks face the loss of clients who require consistent and reliable uptime.

Corero Network Security has just released its second annual DDoS impact survey of Internet security professionals attending the 2016 RSA Conference, in which almost 50% of those participating said that the worst effect of DDoS attacks is the loss of customer confidence and trust. Only about one-third named lost revenue as the most damaging consequence.

That was the most eye-opening result of the survey, but there were other interesting numbers as well. Read on.

Frequency of DDoS Attacks

The Corero survey asked respondents how often their networks experience DDoS attacks, and about one-third of them said they are DDoS’d weekly or even daily. While that may seem startling, Corero COO Dave Larson says he finds the number troubling but not surprising, because these days it’s relatively easy and inexpensive for hackers and cybercriminals to launch attacks. The survey results seem to support Akamai’s 2015 State of the Internet report, which found that the frequency of DDoS attacks was at an all-time high and had increased well over 100% from the previous year.

Larson also believes that the number of DDoS incidents is now so high because many hackers have started launching two-phase attacks. They begin with a smaller-scale DDoS designed to distract security professionals while using up network resources and lowering overall server performance, covering up a more malicious high-level incursion infecting the system with malware or installing permanent, hidden backdoors.

Defense Against DDoS Attacks

More alarming than the sheer number of DDoS incidents is Larson’s belief that a large number of organizations don’t even know that DDoS attacks against their systems are occurring. He says that’s because 30% of them (as measured by the Corero survey) rely on firewalls, load balancers or other traditional tools for security, and those methods of infrastructure protection are virtually useless in DDoS mitigation. Most of those companies also lack monitoring systems which can detect attacks.

As a security systems vendor, of course, Corero is interested in the security products respondents would be willing to pay for and included survey questions to cover that area. The results showed that 85% of respondents would like to see upstream providers offer better DDoS mitigation services to scrub all traffic coming from attacks, half would consider paying for premium ISP services which would prevent DDoS traffic from reaching them, and a third said they’d be willing to pay up to 10% more on their ISP bill if those services were available.

Growing Demand for Cloud-based DDoS Services Will Propel the Global DDoS Prevention Market Until 2019, Says Technavio

According to the latest market research report by Technavio, the global distributed denial of service (DDoS) prevention market is expected to grow at a CAGR of over 22% until 2019.

In this report, Technavio covers the present scenario and growth prospects of the global DDoS prevention market for 2015-2019. To calculate the market size, the report considers revenue generated from DDoS solutions and DDoS protection services.

“An increasing number of SMEs, particularly in the manufacturing, retail, and banking sectors, are adopting cloud-based DDoS prevention solutions to protect their sensitive data. As SMEs lack the requisite skills and resources needed for deploying, integrating, and managing security infrastructure, vendors are leveraging the immense potential of this market by launching new several new products,” said Amrita Choudhury, one of Technavio’s lead industry analysts for IT security.

“The adoption of BYOD policies has led to an increase in mobile network vulnerability, leading to the growing number of DDoS attacks. As mobile networks can be easily accessed and tampered with, it has become a cause of major concern for enterprises. To counter these threats, enterprises are likely to invest heavily in mobile security products, including DDoS prevention solutions, and this trend is anticipated to significantly improve the global DDoS prevention market’s revenues in coming years,” added Amrita.

Global DDoS prevention market by geography 2019 (USD millions)

  • Americas 559
  • EMEA 475
  • APAC 507

Americas: largest region for the global DDoS prevention market

The DDoS prevention market in the Americas was valued at close to USD 204.2 million in 2014. The region experienced numerous DDoS attacks in 2014, with the US holding the second-largest and Canada the third-largest shares in the world. These regions will therefore witness high adoption of DDoS prevention solutions until 2019.

Some key factors that contribute to the high market growth of Americas are the presence of large enterprises in the region coupled with a rise in hosted servers. While DDoS prevention products are already quite prevalent in the US, DDoS prevention services are likely to gain traction in Latin America. The demand for cost-effective DDoS prevention services is expected to further drive the market over the next four years.

EMEA: second largest region for the global scientific instrumentation market

The DDoS prevention market in EMEA is anticipated to grow at a CAGR of over 22% until 2019. Western Europe emerged as the major revenue contributor to this market, thanks to the surge in DDoS subscriptions in UK, France, and Germany in 2015.

The DDoS prevention solutions market in EMEA has experienced high traction among service providers, mobile operators, and enterprise organizations. There market has witnessed an increase in demand from hosting providers that cater to the BFSI sector in the region. However, the adoption of DDoS prevention solutions in the Middle East and Africa is low and presents an attractive opportunity for market vendors to expand their shares over the next four years.

DDoS prevention market in APAC

The DDoS prevention market in APAC is expected to grow at a CAGR of over 24.23% until 2019. In APAC, China was most affected by DDoS attacks in 2014. The volume and sophistication of DDoS attacks are steadily increasing in the region, especially in the BFSI sector, and it is driving organizations to spend more on DDoS prevention solutions.

Although the global revenue contribution of APAC is currently low, the market share of this region will witness a high growth rate during the forecast period. Factors like growing IT infrastructure, increasing online population, and growing economies have made the region highly attractive to hackers, thus drastically increasing security concerns among organizations.

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