Cybercrime costs up to $500 bn: study

Jul 22, 2013
A delegate works on a tablet computer at the Conference on Cyberspace in London on November 1, 2011. Cybercrime costs the global economy between $100 billion and $500 billion annually, according to a study which acknowledged more data is needed for precise estimates.

Cybercrime costs the global economy between $100 billion and $500 billion annually, according to a study released Monday which acknowledged more data is needed for precise estimates.

The study by the McAfee and the Center for Strategic and International Studies said the US economy loses some $100 billion to and cyber espionage, including loss of key business data and intellectual property.

The estimate is lower than some earlier reports which put the costs as high as $1 trillion, but study authors said it was a matter of narrowing the range of damage from .

"It will always be a range," said James Lewis, a CSIS scholar on and co-author of the report.

"The data is either sparse or distorted."

But Lewis said the report offers a better way to compare the cost of cybercrime to other types of risks such as or other types of theft.

"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, chief technology officer at McAfee.

"Other estimates have been bandied about for years, but no one has put any rigor behind the effort."

The report said the impact of cybercrime includes loss of intellectual property and confidential information; reduced trust for online activities; additional costs for security, insurance and recovery; and damage to reputations.

Lewis said the impact on business could translate into the loss of as many as 508,000 jobs in the United States, based on a government formula for the ratio of exports to US jobs.

"The raw numbers might tell just part of the story," he said.

"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."

Explore further: Fitbit to Schumer: We don't sell personal data

add to favorites email to friend print save as pdf

Related Stories

SKorea cyber attack part of long campaign: US study

Jul 09, 2013

The massive cyber attacks on South Korean banks and broadcasters earlier this year were part of a broad campaign of cyber espionage which dates back at least to 2009, a US security firm has concluded.

The inverse CSI effect in the age of digital crime

Jul 10, 2013

The "CSI Effect" has been described as being an increased expectation from jurors that forensic evidence will be presented in court that is instantaneous and unequivocal because that is how it is often presented for dramatic ...

US Senate panel to weigh cybercrime costs

Mar 22, 2011

A key US Senate panel announced Tuesday it will hold a March 29 hearing on the economic costs of cyberattacks and cyber crimes like identity theft and hacker strikes on government computers.

Chinese economic spying 'intolerable': US lawmaker

Oct 04, 2011

A US lawmaker said on Tuesday that Chinese economic espionage, including cyber spying, has reached an "intolerable level" and called for the United States and its allies to confront Beijing.

Recommended for you

US warns shops to watch for customer data hacking

46 minutes ago

The US Department of Homeland Security on Friday warned businesses to watch for hackers targeting customer data with malicious computer code like that used against retail giant Target.

Fitbit to Schumer: We don't sell personal data

15 hours ago

The maker of a popular line of wearable fitness-tracking devices says it has never sold personal data to advertisers, contrary to concerns raised by U.S. Sen. Charles Schumer.

Should you be worried about paid editors on Wikipedia?

19 hours ago

Whether you trust it or ignore it, Wikipedia is one of the most popular websites in the world and accessed by millions of people every day. So would you trust it any more (or even less) if you knew people ...

How much do we really know about privacy on Facebook?

20 hours ago

The recent furore about the Facebook Messenger app has unearthed an interesting question: how far are we willing to allow our privacy to be pushed for our social connections? In the case of the Facebook ...

Philippines makes arrests in online extortion ring

20 hours ago

Philippine police have arrested eight suspected members of an online syndicate accused of blackmailing more than 1,000 Hong Kong and Singapore residents after luring them into exposing themselves in front of webcam, an official ...

Google to help boost Greece's tourism industry

Aug 21, 2014

Internet giant Google will offer management courses to 3,000 tourism businesses on the island of Crete as part of an initiative to promote the sector in Greece, industry union Sete said on Thursday.

User comments : 0