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Annual Cost of Cybercrime Reaches Nearly $400 Billion
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Annual Cost of Cybercrime Reaches Nearly $400 Billion

Cybercrime affects many businesses nowadays. This fast-growing area of crime is an easy way for criminals to abuse ...

Annual Cost of Cybercrime Reaches Nearly $400 Billion

Cybercrime affects many businesses nowadays. This fast-growing area of crime is an easy way for criminals to abuse the speed, advantages, and anonymity of the Internet, which leads the global economy to suffer billions of dollars in losses.

 

The Centre for Strategic and International Studies (CSIS) has published a new report, “Net Losses: Estimating the Global Cost of Cybercrime, Economic Impact of Cybercrime II,” that found cybercrime to be a “growth industry” that is crippling the trade, competitiveness, innovation, and global economic growth.

 

The report, which is sponsored by McAfee, a software security company, states that cybercrime costs businesses a jaw-dropping $445 billion a year, affecting approximately 200,000 jobs in the USA and 150,000 in the EU.

 

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It is being estimated that the Internet economy generates about $3 trillion, a share which is expected to grow fast. The CSIS estimates that cybercrime will pull between 15 to 20% value created by the Internet.

 

One of the most difficult areas to determine the cost of cybercrime is intellectual property (IP). Intellectual property is difficult to value, but companies still place value on IP each day. The report says that countries where intellectual property, and wealth related to it, is created, suffer more loss in trade, income and jobs, from cybercrime.

 

Personal information theft and similar breaches because of cybercrime could reach nearly $160 billion global loss. Nearly 40 million American citizens have had their private information stolen, while similar breaches have been tracked worldwide: 54 million in Turkey, more than 20 million in China, 16 million in Germany, and 20 million in Korea.

 

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In some cases, recovery costs can surpass the losses. The CSIS report states that even though criminals do not monetize from the theft, the victims spend resources to do the digital clean-up. For instance, hacking losses in Italy have added up to $875 million, but the recovery costs have totalled $8.5 billion.

 

While all these numbers baffle us to the point of seeing cybercrime as a sham so that big corporations and governments gain more control over our online data, the McAfee's report suggests that improved international collaboration and joint partnerships can help stop cybercrime, and reduce the risk of economic impact.

 

Scott Montgomery, the chief technology officer in McAfee's public sector, says, “It’s clear that there’s a real tangible economic impact associated with stopping cybercrime. Over the years, cybercrime has become a growth industry, but that can be changed, with greater collaboration between nations, and improved public/private partnerships. The technology exists to keep financial information and intellectual property safe, and when we do so, we create opportunities for positive economic growth and job creation worldwide.”

 

Watch the full video of CSIS's report and panel discussion in the video below:

 

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