It seems that cybercrime pays after all.
The Wall Street Journal reports this morning on a joint study conducted by the Center for Strategic and International Studies and computer security firm McAfee that the estimated cost of cyberespionage and cybercrime to the US is as much as $100 billion each year.
That figure is much less than previously estimated numbers bandied about, and is only around 1 percent or less of US GDP.
In any case, the story observes, it’s difficult to really arrive at a true and accurate estimate because so many companies are still hesitant in reporting cybersecurity incidents in fear of the implications: blowback, lessening of investor confidence, etc.
The Center’s report breaks the components of malicious cyber activity into six key parts:
- The loss of intellectual property and business confidential information
- Cybercrime, which costs the world hundreds of millions of dollars every year
- The loss of sensitive business information, including possible stock market manipulation
- Opportunity costs, including service and employment disruptions, and reduced trust for online activities
- The additional cost of securing networks, insurance, and recovery from cyber attacks
- Reputational damage to the hacked company
The global impact is estimated in the report to be around $400 billion in annual losses, still a fraction of a percent of global income…
Also on the security front today, Cisco agreed to buy cybersecurity firm Sourcefire for $2.7 billion, as part of its efforts to bolster its own security offerings.
Sourcefire offers products like intrusion prevention software, firewalls, and malware protection, and Sourcefire’s real-time network awareness and intrusion prevention IP is likely to be incorporated into Cisco networking technology.
If you’re interested in learning about IBM’s latest and comprehensive offerings on the cyber security front, go here.