Cyber Attacks Cost $400 Billion A Year, Wrecking Global Economy

The frequency and severity of cyber attack has sharply risen over the past few years. With the key targets being financial institutions, banks and industry entities, it isn’t surprising to note that these cyber attacks cost the global economy a cool $400 billion each year.

Cyber crime

In terms of the money involved, cyber crime occupies the 27th position on the list of businesses involving the greatest amount of revenue. To put the $400 billion loss to the global economy in perspective, it is equal to 0.5% of the gross domestic product of the world.

The findings have been revealed in a security report from McAfee, a leading security company. The world of cyber crime has grown complex and crowded over the years. And this is further compounded by the fact that many hacking groups are backed by nation-states. McAfee estimates in its report that some 20 to 30 cybercrime groups are operating on a ‘nation-state level.’

Going after such nation-state-backed cyber criminals is mostly impossible. That’s because the countries supporting the groups tend to protect them, putting them to effective use such as industrial and military espionage. Moreover, such groups typically have sufficient resources to overcome about any of the key digital security mechanisms, enabling them to penetrate into the most secure locations on the web.

According to the chief technical officer of McAfee in Europe, Raj Samani, “We want the economy to grow, and it’s being held back by cybercrime. If you’re not taking important measures you’re contributing to criminals, and I mean nasty criminals, making money off you. Not taking action is resulting in people losing their jobs.” McAfee report further states that nearly 200,000 jobs have been lost so far due to the damages incurred through cyber crimes.

Ultimately, nixing organized cyber crimes is not only crucial for economies around the globe but is also needed for a free and open web. Otherwise, like Samani says, the innovation on the internet with wither away and die because hackers and cyber criminals will be able to steal even the most cutting-edge ideas and researches, and put them to profit themselves. You can read the complete report at the link provided below.

Source: McAfee

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Salman Latif is a software engineer with a specific interest in social media, big data and real-world solutions using the two.Other than that, he is a bit of a gypsy. He also writes in his own blog. You can find him on Google+ and Twitter .

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