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...
GET RECOGNIZED
Let an ISACA® certification elevate your career.
Register today and save
You are here: Home / Big Data / Cybercrime Costs Biz $400B a Year
DDoS Protection Powered By Verisign
Cybercrime Costs Business More than $400B Annually
Cybercrime Costs Business More than $400B Annually
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JUNE
09
2014


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:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
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.
MORE IN BIG DATA
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Known for its hot fries and soft-serve ice cream, Dairy Queen just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

Mobile Technology Spotlight
Samsung Maps Its Way with Nokia's 'Here' App for Galaxy Phones
Korean electronics giant Samsung has opted to license Here, Nokia’s mapping app -- formerly known as Nokia Maps -- for its Tizen-powered smart devices and Samsung Gear S wearable.
 
Will iPhone Finally Catch Up with NFC Mobile Payment Ability?
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 
Visual Search To Shop: Gimmick or Game Changing?
Imagine using your phone to snap a photo of the cool pair of sunglasses your friend is wearing and instantly receiving a slew of information about the shades along with a link to order them.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | 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.