Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Small Business
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
What the $500 Billion Cybercrime Estimate Means for Enterprises
What the $500 Billion Cybercrime Estimate Means for Enterprises

By Jennifer LeClaire
July 26, 2013 10:18AM

    Bookmark and Share
For enterprises, breaches have an ongoing cost that can take a long time to manifest as intellectual property continues to be stolen from the organization and is put into practice competitively in global markets. "When an attacker breaches your network his work has just begun," said security analyst Tom Cross.
 



When hackers tap into a database and steal the personal information of thousands of users, there's always a cost associated with the breach. Now, a McAfee-sponsored report is offering insights into the broader economic impact of cybercrime.

In an effort to eliminate the guesswork from estimates on cybercrime costs, McAfee hired the Center for Strategic and International Studies (CSIS), a international policy institution for defense and security, to build an economic model and methodology to accurately estimate these losses.

The results are revealed in a report called "Estimating the Cost of Cybercrime and Cyber Espionage." And the numbers are staggering. The firm estimates a minimum of a $100 billion -- and as much as a $500 billion -- annual loss to the U.S. economy. What's more, about 508,000 U.S. jobs are also lost in the wake of malicious cyber activity.

How Accurate Are the Numbers?

"We believe the CSIS report is the first to use actual economic modeling to build out the figures for the losses attributable to malicious cyber activity," said Mike Fey, executive vice president and chief technology officer at McAfee. "Other estimates have been bandied about for years, but no one has put any rigor behind the effort. As policymakers, business leaders and others struggle to get their arms around why cybersecurity matters, they need solid information on which to base their actions."

So how did CSIS come up with the figures? The firm used real-world analogies like figures for car crashes, piracy, pilferage, and crime and drugs to build out the model. CSIS believes this is a better approach than surveys because companies that reveal their cyber losses often cannot estimate what has been taken -- intellectual property losses are difficult to quantify and the self-selection process of surveys can distort the results.

In its report, CSIS classified malicious cyber activity into six areas: the loss of intellectual property; cybercrime; the loss of sensitive business information, including possible stock market manipulation; opportunity costs, including service disruptions and reduced trust for online activities; the additional cost of securing networks, insurance and recovery from cyberattacks; and reputational damage to the hacked company. What about the jobs estimate?

"Using figures from the Commerce Department on the ratio of exports to U.S. jobs, we arrived at a high-end estimate of 508,000 U.S. jobs potentially lost from cyber espionage," said James Lewis, director and senior fellow, Technology and Public Policy Program at CSIS, and a co-author of the report. "As with other estimates in the report, however, the raw numbers might tell just part of the story. The effect of the net loss of jobs could be small, but if a good portion of these jobs were high-end manufacturing jobs that moved overseas because of intellectual property losses, the effect could be wide ranging." (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:

Faizan:

Posted: 2013-08-12 @ 12:22am PT
Start using VPN!!!!!

Maureen Robinson:

Posted: 2013-08-12 @ 12:09am PT
Great findings Jennifer. The latest breaches have yielded a veritable treasure trove of head-shaking security stories, all related to my favorite security soft spot -- people. The shimmer from our technological advances blinds us from the damage people can do -- and we remain so easily fooled. We've written a great article about this http://blog.securityinnovation.com/blog/2011/04/people-people-people.html



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Small Business
1.   Female Yahoo Exec Lashes Back
2.   Seagate Unveils Networked Drives
3.   For Partners, Microsoft Is in the Clouds
4.   Microsoft Revamps Office 365 Plans
5.   Data Recovered from 'Wiped' Phones


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Mobile Technology Spotlight
Nvidia Revamps Shield as an Android Game Tablet
Going after hardcore PC gamers, Nvidia is releasing a gaming-focused tablet that works with a controller. The Shield Tablet follows the Shield Portable gaming handheld Nvidia released last year.
 
Apple Patent for Smart Watch Comes to Light
Does a new smart watch patent issued to Apple provide a preview of the expected wearable from the tech giant? Some Apple-watchers are parsing the patent for signs of the coming product.
 
Will iPhone 6 Cannibalize Apple's Tablet Sales?
Could Apple’s iPhone 6 -- it’s so-called super-size phone due to hit store shelves this fall -- come back to haunt the smartphone maker? Some observers say yes; others say preposterous.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.