Skip to main content
The True Cost of eCrime

While the global value of the Internet security industry is now estimated at around $20 billion annually, the market continues to grow by over 20% per annum with no sign of slowing down and consolidation continuing among the larger players, such as Symantec, who recently bought storage company, Veritas.



Market research company IDC has estimated that the worldwide information security services market will have a value of $21bn (£14.3bn) this year, reflecting at trend by businesses and individuals to invest in greater Internet security driven by new compliance regulations, which force company directors to properly secure their critical information assets.

Assessing the cost of computer crime on a global basis is a far more difficult exercise for at several reasons; whether credit card fraud should be included, the true cost of unreported viruses and fraud to individuals and small businesses and the scale of costs to larger businesses and financial institutions of which only a fraction, less than 24% in the UK in 2004, (NOP NHTCU survey 2004) are reported to the police.

In the United States, The 2004 E-Crime Watch survey conducted among security and law enforcement executives by CSO magazine in cooperation with the United States Secret Service and the Carnegie Mellon University Software Engineering Institute’s CERT Coordination Center, shows a significant number of organizations reporting an increase in electronic crimes, with respondents reporting that e-crime cost their organizations approximately $666 million in 2003.
A year ago, Microsoft’s- David Finn, director of digital integrity for Europe, the Middle East and Africa, conceded that computer viruses, like Blaster and Sobig-F, could have cost the global economy $13bn in 2003 and in the UK, Parliamentary group, EURIM believes that “While hacking, pornography and other Internet crimes may make headlines, real damage is being done by electronically assisted conventional crime.” It points to one US survey estimated the global cost of e-crime to be about £1Tn annually and Lloyds of London has estimated the global cost of the “I Love You” virus alone to be £10Bn.

While it’s impossible to offer a definitive or even partially accurate picture of the true cost of ecrime it has to be reflected in the $20 billion that is presently being spent on the IT security industry. As a relatively small proportion of users and businesses on a global basis invest in good security and a relatively high number of the same experience virus attacks and even fraud, an estimate of $100 billion to the global economy might be a reasonable guess at the cost of eCrime.

Comments

Popular posts from this blog

Mainframe to Mobile

Not one of us has a clue what the world will look like in five years’ time, yet we are all preparing for that future – As  computing power has become embedded in everything from our cars and our telephones to our financial markets, technological complexity has eclipsed our ability to comprehend it’s bigger picture impact on the shape of tomorrow.

Our intuition has been formed by a set of experiences and ideas about how things worked during a time when changes were incremental and somewhat predictable. In March 1953. there were only 53 kilobytes of high-speed RAM on the entire planet.

Today, more than 80 per cent of the value of FTSE 500* firms is ‘now dark matter’: the intangible secret recipe of success; the physical stuff companies own and their wages bill accounts for less than 20 per cent: a reversal of the pattern that once prevailed in the 1970s. Very soon, Everything at scale in this world will be managed by algorithms and data and there’s a need for effective platforms for ma…

An Ockham of Gatwick

The 13th century theologian and philosopher, William of Ockham, who once lived in his small Surrey village, not so very far from what is today, the wide concrete expanse of Gatwick airport is a frequently referenced source of intellectual reason. His contribution to modern culture was Ockham’s Razor, which cautions us when problem solving, that “The explanation requiring the fewest assumptions is most likely to be correct;” sound advice which constantly proves to be true.

A week further-on since Britain’s second busiest airport was bought to a complete standstill by two or perhaps two hundred different drone sightings, it is perhaps time to revisit William of Ockham’s maxim, rather than be led astray by an increasingly bizarre narrative, one which has led Surrey police up several blind alleys with little or nothing in the way of measurable results.

 Exploring the possibilities with a little help in reasoning from our medieval friar, we appear to have a choice of two different account…
A Christmas Tale

It’s pitch blackness in places along the sea wall this evening and I'm momentarily startled by a small dog with orange flashing yuletide antlers along the way. I’m the only person crazy enough to be running and I know the route well enough to negotiate it in the dark, part of my Christmas exercise regime and a good way of relieving stress.

Why stress you might ask. After all, it is Christmas Day.

True but I’ve just spent over two hours assembling the giant Playmobil ‘Pony Farm’ set when most other fathers should be asleep in front of the television.



I was warned that the Playmobil ‘Pirate Ship’ had driven some fathers to drink or suicide and now I understand why. If your eyesight isn’t perfect or if you’ve had a few drinks with your Christmas lunch then it’s a challenge best left until Boxing day but not an option if you happen to have a nine year old daughter who wants it ready to take horses by tea time.

Perhaps I should stick to technology but then, the instruc…