Establishing Digital Trust: Don't Sacrifice Security for Convenience
According to a new report from the Center for Strategic and International Studies (CSIS), sponsored by McAfee, cybercrime costs businesses more than $400 billion worldwide, costing approximately 200,000 jobs in the U.S., and 150,000 jobs in the European Union.
The report, entitled "Net Losses -- Estimating the Global Cost of Cybercrime" [PDF], states that global losses connected to breaches of personal information could reach $160 billion -- fully 40 million people in the U.S. have had their personal information stolen by hackers.
With the Internet economy estimated to generate between $2 trillion and $3 trillion a year, cybercrime is estimated to extract between 15 and 20 percent of that value.
"Cybercrime is a tax on innovation and slows the pace of global innovation by reducing the rate of return to innovators and investors," CSIS senior fellow Jim Lewis said in a statement. "For developed countries, cybercrime has serious implications for employment."https://o1.qnsr.com/log/p.gif?;n=203;c=204650394;s=9477;x=7936;f=201801171506010;u=j;z=TIMESTAMP;a=20392931;e=i
A significant portion of the cost of cybercrime is attributed not to the money stolen by hackers, but to cleanup costs. For example, in Italy, actual losses due to hacking totaled $875 million, but recovery or cleanup costs reached $8.5 billion.
"It’s clear that there's a real tangible economic impact associated with stopping cybercrime,” McAfee chief technology officer for the public sector Scott Montgomery said in a statement. "Over the years, cybercrime has become a growth industry, but that can be changed, with greater collaboration between nations, and improved public private partnerships."