Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Network Security
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Cybercrime Costs Business More than $400B Annually
Cybercrime Costs Business More than $400B Annually

By Jennifer LeClaire
June 9, 2014 1:55PM

    Bookmark and Share
Part of the $400B annual loss from cybercrime is connected to what experts call “recovery costs,” or the digital and electronic clean up that takes place after an attack, according to security firm McAfee. But the technology exists to keep financial information safe and create opportunities for positive economic growth and job creation, said McAfee's CTO.
 



Cybercrime is making a significant impact on economies around the world. So says a new McAfee-sponsored report from the Center for Strategic and International Studies (CSIS).

Dubbed “Net Losses -- Estimating the Global Cost of Cybercrime,” the report offers a stunning takeaway: Cybercrime costs businesses worldwide about $400 billion. That translates to a loss of about 200,000 jobs in the U.S. and 150,000 jobs in the European Union.

The report points to studies that estimate the Internet economy, a share of the global economy that is expected to grow rapidly, generates between $2 trillion and $3 trillion annually. All told, CSIS estimates conclude that cybercrime extracts between 15 percent and 20 percent of the value created by the Internet.

“Cybercrime is a tax on innovation and slows the pace of global innovation by reducing the rate of return to innovators and investors,” said Jim Lewis, senior fellow and director of the Strategic Technologies Program at CSIS. “For developed countries, cybercrime has serious implications for employment. The effect of cybercrime is to shift employment away from jobs that create the most value. Even small changes in GDP can affect employment.”

From Corporate to Personal

Also damaging is cybercrime’s effect intellectual property (IP). Countries where IP creation and IP-intensive industries are important for wealth creation lose more in trade, jobs and income from cybercrime than countries depending more on agriculture or industries of low-level manufacturing, the report reveals.

According to the research, the U.S. notified 3,000 companies in 2013 that they had been hacked. Retailers emerged as favorite targets for hackers. In the U.K., retailers reportedly lost more than $850 million to hackers. Meanwhile, Australian officials said large scale attacks have hit the airline industry, hotel chains and financial services companies, costing those sectors about $100 million.

Turning to the realm of “personal information,” the report discovered breaches could reach $160 billion. Forty million people in the U.S. -- that’s about 15 percent of the population -- have had their personal information stolen by hackers.

Difficult To Measure

We caught up with James Lyne, Global Head of Security Research at Sophos, to get his thoughts on the report. He said his attitude has been it's incredibly hard to size the overall level of fraud and many have tried to offer methodologies to estimate it -- many of which have been subsequently lambasted by industry or media.

“Frankly, the important thing is that it is a figure in the billions of dollars -- it matters. The anecdotes paint the picture of the tip of the iceberg but over time I've grown to ignore specific figure claims. It is big enough and concerning enough, quite evidently,” he said. "Lastly, cybercrime increasingly has social harm factors, such as with abuse of web cams or handling of inappropriate content. We all know we need to care, so let's get on with tackling the issue.” (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:





 Network Security
1.   Tor Working To Fix Security Exploit
2.   Wall Street Journal Hacked Again
3.   Dropbox for Business Boosts Security
4.   Hackers Breached StubHub Accounts
5.   Banks Hit by Android-Skirting Malware


advertisement
Tor Working To Fix Security Exploit
Bug reportedly reveals ID of users
Average Rating:
New Technology Defeats Privacy Efforts
Study identifies 3 browser techniques.
Average Rating:
Banks Hit by Android-Skirting Malware
34 institutions, four European countries
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 

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 | CRM Systems | 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.