Report Says Cyber Crime Costs Over $400 Billion per Year

A recent report released by security analysts estimates that “cyber crime” costs “the global economy in excess of $400 billion each year“, according to a recent article published on the Telegraph’s website. The article indicates that the findings of a report conducted by security giant McAfee show that “cyber espionage” and personal information theft “is believed to have affected more than 800 million people” in the year 2013 alone.

Data generated by this report calculates that the resulting financial damage caused by “cyber theft” in Europe could leave 150,000 individuals without jobs due to the aftermath effects to “trade between nations, competitiveness, innovation, and global economic growth” and also the slowdown of “global innovation“, according to the Telegraph article. After studying the results of the report, McAfee would like to see governments make the effort to seriously begin collecting cyber crime data to assist their authorities and “companies make better choices about risk and policy“, according to the article.

Mark Sparshott, EMEA director of the security firm Proofpoint, was quoted in the article to say, “The volumes of attacks are increasing because it is a profitable business model for organised crime. With cyber crime there is no risky getaway because the attack is routed through hundreds or thousands of PCs in dozens of countries, making it almost impossible to trace. The internet makes most attacks anonymous and untraceable and that is really attractive to cybercriminals“. McAfee‘s EMEA Chief Technology Officer, Raj Samani was also quoted in the article to say, “It is clear that cyber crime has a real and detrimental impact on the global economy. Over time, cyber crime has become a growth industry; the returns are great, and the risks are low.”

Read more about this report in the full Telegraph article and learn what security analysts say about what improvements should be made to avoid escalations in this global cost.

 

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