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Report Says Cyber Crime Costs Over $400 Billion per Year Featured Image

Report Says Cyber Crime Costs Over $400 Billion per Year

by: Bryon Turcotte  /  June 10, 2014

A recent report released by security analysts estimates that "_cybercrime_" costs "_the global economy above $400 billion each year_", according to a recent article published on the Telegraph's website. Furthermore, 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 report results, McAfee would like to see governments make an effort to begin collecting cybercrime data to assist their authorities seriously 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 organized crime. There is no risky getaway with cybercrime 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 attractive to cybercriminals_". McAfee's EMEA Chief Technology Officer, Raj Samani, was also quoted in the article to say, "_It is clear that cybercrime has a real and detrimental impact on the global economy. Over time, cybercrime 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.

Written by Bryon Turcotte  /  June 10, 2014