Cyber Crime Costs Skyrocketing

Wednesday, January 14, 2015 @ 09:01 AM gHale

Cyber crime costs globally is not only very high right now, but it is continuing to increase, a new study said.

The study found up to $575 billion a year is lost due to cyber crime. The emergence of unregulated and unprotected, Internet of Things (IoT) will make matters only worse, said the new report released by the Center for Strategic and International Studies (CSIS) and the Intel Security Group.

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The study carried out by the two organizations also found up to with an impact on 200,000 jobs in the U.S. and 150,000 jobs in Europe due to damage from cybercrime and the theft of personal records from 40 million people in the United States, 54 million in Turkey, 20 million in Korea, 16 million in Germany, and over 20 million in China. These thefts have occurred due mostly to the vulnerability of the majority of the world’s data.

Studies show the Internet economy annually generates between $2 trillion and $3 trillion, a share of the global economy expected to grow rapidly. Based on CSIS estimates, cybercrime extracts between 15 percent and 20 percent of the value created by the Internet.

The report also broke down which types of attacks had occurred, including the percentages of “physical” attacks, data leaks, password captures, and stolen accounts. Further, the researchers found a significant rise in these events from the previous year, as well as an increase between 2012 and 2013.

What remains at issue is the majority of the world still does not properly value the precautions needed for actual cyber security.

Additionally, the Internet of Things, or the interconnectedness of non-human devices to the Internet, is making the damage much more severe.

Because of this, researchers are seeing a greater threat to the actual infrastructure of the global community, since the IoT is continuing its growth and it is still largely unregulated, and unprotected.

“It’s clear that there’s a real tangible economic impact associated with stopping cybercrime,” said Scott Montgomery, chief technology officer, public sector at McAfee. “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.”

Click here to download the report.

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