Newsletters
The Enterprise Security Supersite NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Network Security Viruses & Malware Hackers Security Solutions More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Data Security
Real-time info services with Neustar
Average Rating:
Rate this article:  
What the $500 Billion Cybercrime Estimate Means for Enterprises
What the $500 Billion Cybercrime Estimate Means for Enterprises

By Jennifer LeClaire
July 26, 2013 10:18AM

Bookmark and Share
For enterprises, breaches have an ongoing cost that can take a long time to manifest as intellectual property continues to be stolen from the organization and is put into practice competitively in global markets. "When an attacker breaches your network his work has just begun," said security analyst Tom Cross.
 


When hackers tap into a database and steal the personal information of thousands of users, there's always a cost associated with the breach. Now, a McAfee-sponsored report is offering insights into the broader economic impact of cybercrime.

In an effort to eliminate the guesswork from estimates on cybercrime costs, McAfee hired the Center for Strategic and International Studies (CSIS), a international policy institution for defense and security, to build an economic model and methodology to accurately estimate these losses.

The results are revealed in a report called "Estimating the Cost of Cybercrime and Cyber Espionage." And the numbers are staggering. The firm estimates a minimum of a $100 billion -- and as much as a $500 billion -- annual loss to the U.S. economy. What's more, about 508,000 U.S. jobs are also lost in the wake of malicious cyber activity.

How Accurate Are the Numbers?

"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, executive vice president and chief technology officer at McAfee. "Other estimates have been bandied about for years, but no one has put any rigor behind the effort. As policymakers, business leaders and others struggle to get their arms around why cybersecurity matters, they need solid information on which to base their actions."

So how did CSIS come up with the figures? The firm used real-world analogies like figures for car crashes, piracy, pilferage, and crime and drugs to build out the model. CSIS believes this is a better approach than surveys because companies that reveal their cyber losses often cannot estimate what has been taken -- intellectual property losses are difficult to quantify and the self-selection process of surveys can distort the results.

In its report, CSIS classified malicious cyber activity into six areas: the loss of intellectual property; cybercrime; the loss of sensitive business information, including possible stock market manipulation; opportunity costs, including service disruptions and reduced trust for online activities; the additional cost of securing networks, insurance and recovery from cyberattacks; and reputational damage to the hacked company. What about the jobs estimate?

"Using figures from the Commerce Department on the ratio of exports to U.S. jobs, we arrived at a high-end estimate of 508,000 U.S. jobs potentially lost from cyber espionage," said James Lewis, director and senior fellow, Technology and Public Policy Program at CSIS, and a co-author of the report. "As with other estimates in the report, however, the raw numbers might tell just part of the story. 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." (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:

Faizan:

Posted: 2013-08-12 @ 12:22am PT
Start using VPN!!!!!

Maureen Robinson:

Posted: 2013-08-12 @ 12:09am PT
Great findings Jennifer. The latest breaches have yielded a veritable treasure trove of head-shaking security stories, all related to my favorite security soft spot -- people. The shimmer from our technological advances blinds us from the damage people can do -- and we remain so easily fooled. We've written a great article about this http://blog.securityinnovation.com/blog/2011/04/people-people-people.html



Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.


 Data Security
1.   Fund Seeks To Head Off Heartbleeds
2.   Lessons from Verizon's Threat Report
3.   Verizon Report Exposes Cyberthreats
4.   Heartbleed Exploit Could Cost Millions
5.   Michaels: Nearly 3M Cards Breached


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tech Giants Fund Initiative To Prevent Future Heartbleeds
Can more funding prevent Heartbleed vulnerabilities in future open-source software? A new Core Infrastructure Initiative at the Linux Foundation is attempting to find out.
 
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 

Navigation
Enterprise Security Today
Home/Top News | Network Security | Viruses & Malware | Hackers | Security Solutions | Mobile Security | Disaster Recovery | Windows Security
Data Security | EST Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.