Study: Cybercrime cost firms $1 trillion globally

Data theft and breaches from cybercrime may have cost businesses as much as $1 trillion globally in lost intellectual property and expenditures for repairing the damage last year, according to a new study from McAfee.

McAfee made the projection based on responses to a survey of more than 800 chief information officers in the U.S., United Kingdom, Germany, Japan, China, India, Brazil, and Dubai.

The respondents estimated that they lost data worth a total of $4.6 billion and spent about $600 million cleaning up after breaches, McAfee said.

The report, entitled "Unsecured Economies: Protecting Vital Information" is due to be released Thursday at the World Economic Forum annual meeting in Davos, Switzerland. It also finds that developing countries spend more money on protecting intellectual property than companies in Western countries.

The ongoing recession is only increasing the security risk for corporations, respondents said, with 42 percent reporting that displaced workers were the biggest threat to sensitive information on the network.

There were some other interesting geographical-related results. More than one quarter of the respondents said they avoid storing data in China, and 47 percent of the Chinese respondents said they believed the U.S. poses the biggest security threat to their data.

[n3td3v]

McAfee are part of the Cybercrime economy.

[UITD]

Well, since our criminal justice system favors the criminals - this will continue. Maybe someday, in my life hopefully, we'll actually see a reversal in out fruity criminal justice system, the whacked out our DAs and liberal fruitcake judges. I doubt it. Next we'll know, the criminals that ARE in prison will request a bailout from our all-knowing, all-wonderful government.

[johnfranks1234]

Price Waterhouse Cooper and Carnegie-Mellon?s CyLab have recent surveys that show the senior executive class to be, basically, clueless regarding IT risk and its tie to overall enterprise (business) risk. Data breaches and thefts are due to a lagging business culture ? absent a new eCulture, breaches will, and continue to, increase. As CIO, I look for ways to help my business and IT teams further their education. Check your local library: A book that is required reading is "I.T. WARS: Managing the Business-Technology Weave in the New Millennium." It also helps outside agencies understand your values and practices.
The author, David Scott, has an interview that is a great exposure: http://businessforum.com/DScott_02.html -
The book came to us as a tip from an intern who attended a course at University of Wisconsin, where the book is an MBA text. It has helped us to understand that, while various systems of security are important, no system can overcome laxity, ignorance, or deliberate intent to harm. Necessary is a sustained culture and awareness; an efficient prism through which every activity is viewed from a security perspective prior to action.
In the realm of risk, unmanaged possibilities become probabilities ? read the book BEFORE you suffer a bad outcome.

[Identity-Theft-Speaker]

Criminal hackers have changed their motivations. Industry has been slow to meet that change. When the pain of non compliance trumps the costs of fraud, then industry will comply. www.IDTheftSecurity.com