Cybercrime Costs Business More than $400B Annually

Cybercrime is making a significant impact on economies around the world. So says a new McAfee-sponsored report from the Center for Strategic and International Studies (CSIS).

Dubbed EUNet Losses -- Estimating the Global Cost of Cybercrime,EU the report offers a stunning takeaway: Cybercrime costs businesses worldwide about $400 billion. That translates to a loss of about 200,000 jobs in the U.S. and 150,000 jobs in the European Union.

The report points to studies that estimate the Internet economy, a share of the global economy that is expected to grow rapidly, generates between $2 trillion and $3 trillion annually. All told, CSIS estimates conclude that cybercrime extracts between 15 percent and 20 percent of the value created by the Internet.

EUCybercrime is a tax on innovation and slows the pace of global innovation by reducing the rate of return to innovators and investors,EU said Jim Lewis, senior fellow and director of the Strategic Technologies Program at CSIS. EUFor developed countries, cybercrime has serious implications for employment. The effect of cybercrime is to shift employment away from jobs that create the most value. Even small changes in GDP can affect employment.EU

From Corporate to Personal

Also damaging is cybercrimeEUs effect intellectual property (IP). Countries where IP creation and IP-intensive industries are important for wealth creation lose more in trade, jobs and income from cybercrime than countries depending more on agriculture or industries of low-level manufacturing, the report reveals.

According to the research, the U.S. notified 3,000 companies in 2013 that they had been hacked. Retailers emerged as favorite targets for hackers. In the U.K., retailers reportedly lost more than $850 million to hackers. Meanwhile, Australian officials said large scale attacks have hit the airline industry, hotel chains and financial services companies, costing those sectors about $100 million.

Turning to the realm of EUpersonal information,EU the report...

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