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

Civilisational Data Mining

It’s a new expression I haven’t heard before. ‘Civilisational data mining.’

Let me start by putting it in some context. Every character, you or I have typed into the Google search engine or Facebook over the last decade, means something, to someone or perhaps ‘something,’ if it’s an algorithm.


In May 2014, journalists revealed that the United States National Security Agency, the NSA, was recording and archiving every single cell-phone conversation that took place in the Bahamas. In the process they managed to transform a significant proportion of a society’s day to day interactions into unstructured data; valuable information which can of course be analysed, correlated and transformed for whatever purpose the intelligence agency deems fit.

And today, I read that a GOP-hired data company in the United States has ‘leaked’ personal information, preferences and voting intentions on… wait for it… 198 million US citizens.

Within another decade or so, the cost of sequencing the human genome …

The Nature of Nurture?

Recently, I found myself in a fascinating four-way Twitter exchange, with Professor Adam Rutherford and two other science-minded friends The subject, frequently regarded as a delicate one, genetics and whether there could exist an unknown but contributory genetic factor(s) or influences in determining what we broadly understand or misunderstand as human intelligence.

I won’t discuss this subject in any great detail here, being completely unqualified to do so, but I’ll point you at the document we were discussing, and Rutherford’s excellent new book, ‘A Brief History of Everyone.”

What had sparked my own interest was the story of my own grandfather, Edmond Greville; unless you are an expert on the history of French cinema, you are unlikely to have ever hear of him but he still enjoys an almost cult-like following for his work, half a century after his death.

I've been enjoying the series "Genius" on National Geographic about the life of Albert Einstein. The four of us ha…
The Mandate of Heaven

eGov Monitor Version

“Parliament”, said my distinguished friend “has always leaked like a sieve”.

I’m researching the thorny issue of ‘Confidence in Public Sector Computing’ and we were discussing the dangers presented by the Internet. In his opinion, information security is an oxymoron, which has no place being discussed in a Parliament built upon the uninterrupted flow of information of every kind, from the politically sensitive to the most salacious and mundane.

With the threat of war hanging over us, I asked if MPs should be more aware of the risks that surround this new communications medium? More importantly, shouldn’t the same policies and precautions that any business might use to protect itself and its staff, be available to MPs?

What concerns me is that my well-respected friend mostly considers security in terms of guns, gates and guards. He now uses the Internet almost as much as he uses the telephone and the Fax machine and yet the growing collective t…