Study reveals considerable increase in relation to 2014, when the damage was approximately US$ 445 billion; the growth of the last three years is due to the speed with which criminals adopt new technologies, the ease of entering cybercrime and the increasingly sophisticated malicious structure
The global report “Economic impact of cyber crime: no signs of slowing down” revealed the enormous impact of cyber crime on the world economy. The study finds that cybercrime generates a loss of almost US$ 600 billion for companies (0.8% of world GDP), reflecting a considerable increase compared to a 2014 study, which estimated global losses at approximately US$ 445 billion. The survey was conducted by McAfee in partnership with the Center for Strategic and International Studies (CSIS).
The report attributes the growth of the past three years to the speed with which cybercriminals adopt new technologies, the ease of entering cybercrime (including an increasing number of cybercrime centers) and the increasingly sophisticated financial structure of professional cybercriminals. .
“The digital world has transformed virtually every aspect of our lives, even influencing crime and risk. As a result, crime is more efficient, less risky, more profitable and easier to do than ever before, ”says Steve Grobman, CTO at McAfee. “In the case of ransomware, for example, criminals can outsource much of their work to specialized service providers. Cloud ransomware-as-a-service providers adapt attacks to target millions of systems. These attacks are automated and require minimal human intervention. To make matters worse, cryptocurrencies make it quick and easy to make a profit, while minimizing the risk of imprisonment. Unfortunately, the US$ 600 billion figure associated with cyber crime reflects how technological advances have transformed the crime economy as profoundly as every other part of our economy. ”
According to the study, banks remain the favorite target of cybercriminals and nation states in international conflicts are the most dangerous source of cybercrime. Russia, North Korea and Iran are the countries that most carry out hacker attacks on financial institutions, while China is the most active country in cyber espionage.
"Our research has shown that Russia is the leader in cyber crime, which reflects the proficiency of its hacking community and its disregard for Western law," said James Lewis, senior vice president at CSIS. “North Korea is second on the list, as the country uses cryptocurrency theft to help finance its political regime. In addition, there is an increasing number of new cyber crime centers that, in addition to North Korea, include Brazil, India and Vietnam. ”
The report assesses cyber crime in North America, Europe, Central Asia, East Asia and the Pacific region, Latin America and the Caribbean, Sub-Saharan Africa, the Middle East and North Africa. As expected, the damage generated by cyber crime is greater in the wealthier countries. However, the countries with the highest losses (percentage of national income) are middle-income nations that are digitized, but not fully proficient in cybersecurity.
Methodology
The purpose of the report was not to assess the harm associated with all types of malicious activity on the Internet, and the focus was on criminals who gain illicit access to a particular victim's computer or network. Elements of cyber crime identified by the perpetrators include:
· Loss of intellectual property and confidential business information
· Financial crimes and online fraud, usually through the theft of personally identifiable information
· Financial manipulation targeting publicly traded companies
· Opportunity costs, such as interrupting production or services, as well as decreasing confidence in online businesses
· The cost of protecting networks, purchasing cyber insurance and spending to recover from cyber attacks
· Damage to reputation and risks of legal liability for the attacked company and its brand
To help identify the damage caused by cyber crime, the authors analyzed other types of crimes for which there are estimates, such as maritime piracy, theft and transnational crime. They point out that data on cyber crime remains insufficient, as not all cases are reported and most governments around the world do not apply adequate procedures to collect data on cyber crime.
Recommendations
The report also provides some recommendations on how to deal with cyber crime, such as:
· Uniform implementation of basic security measures and investment in defense technologies
· Greater cooperation between international public security entities
· Increased data collection by national authorities
· Increased standardization and coordination of cybersecurity needs
· Advancement of the Budapest Convention, a formal treaty on cyber crime
· International pressure on countries that are hubs of cyber crime
Source: securityreport.com
