Global cybercrime costs $600 bn annually: study

The annual cost of cybercrime has hit $600 billion worldwide, fueled by growing sophistication of hackers and proliferation of criminal marketplaces and cryptocurrencies. (AFP)
Updated 21 February 2018
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Global cybercrime costs $600 bn annually: study

WASHINGTON: The annual cost of cybercrime has hit $600 billion worldwide, fueled by growing sophistication of hackers and proliferation of criminal marketplaces and cryptocurrencies, researchers said Wednesday.
A report produced by the security firm McAfee with the Center for Strategic and International Studies found theft of intellectual property represents about one-fourth of the cost of cybercrime in 2017.
Russia, North Korea and Iran are the main sources of hackers targeting financial institutions, while China is the most active in cyber espionage, the report found.
The researchers said ransomware is the fastest-growing component of cybercrime, helped by the easy availability of marketplaces offering hacking services.
The global research report comes days after the White House released a report showing cyberattacks cost the United States between $57 billion and $109 billion in 2016, while warning of a “spillover” effect for the broader economy if certain sectors are hit.
Globally, criminals are using the same tools for data or identity theft, bank hacks, and other cyber mischief, with anonymity preserved by using bitcoin or other cryptocurrency.
“The digital world has transformed almost every aspect of our lives, including risk and crime, so that crime is more efficient, less risky, more profitable and has never been easier to execute,” said Steve Grobman, chief technology officer for McAfee.
CSIS vice president James Lewis said meanwhile the geopolitical risks of cybercrime are a key element in these attacks.
“Our research bore out the fact that Russia is the leader in cybercrime, reflecting the skill of its hacker community and its disdain for western law enforcement,” Lewis said.
“North Korea is second in line, as the nation uses cryptocurrency theft to help fund its regime, and we’re now seeing an expanding number of cybercrime centers, including not only North Korea but also Brazil, India and Vietnam.”
The latest McAfee-CSIS report suggested cybercrime costs were rising from a 2014 estimate of $445 billion.
“Cybercrime remains far too easy, since many technology users fail to take the most basic protective measures, and many technology products lack adequate defenses, while cybercriminals use both simple and advanced technology to identify targets, automate software creation and delivery, and easy monetization of what they steal,” the report said.
The study did not attempt to measure the cost of all malicious activity on the Internet, but focused on the loss of proprietary business data, online fraud and financial crimes, manipulation directed toward publicly traded companies, cyber insurance and reputational damage.


Eritrea responds to Ethiopia PM’s olive branch

Updated 10 min 26 sec ago
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Eritrea responds to Ethiopia PM’s olive branch

  • Eritrea and Ethiopia remain bitter foes after a 1998-2000 conflict that drew comparisons to the First World War
  • Even after the end of the war, the border remains heavily militarised and disputed

ADDIS ABABA: Eritrean President Isaias Afwerki is dispatching a delegation to Addis Ababa for “constructive engagement” with arch-foe Ethiopia after peace overtures this month from its new Prime Minister, Abiy Ahmed, a senior Eritrean diplomat said on Wednesday.
Isais made the annoucement — a potentially significant breakthrough in one of Africa’s most protracted conflicts — earlier on Wednesday, Eritrea’s ambassador to Japan, Estifanos Afeworki, said on Twitter. He gave no further details.
Eritrean information minister Yemane Ghebremeskel did not respond to requests for comment.
Eritrea and Ethiopia remain bitter foes after a 1998-2000 conflict that drew comparisons to the First World War, with waves of conscripts forced to march through minefields toward Eritrean trenches, where they were cut down by machine gun fire.
Casuality figures are disputed in both countries although most estimates suggest 50,000 Ethiopian soldiers died, against 20,000 on the Eritrean side.
Even after the end of the war, the border remains heavily militarised and disputed, most notably the town of Badme which was part of Eritrea, according to a 2002 international arbitration ruling.
Since then, Addis has ignored the ruling and refused to pull out troops or officials, to the fury of Asmara.
However, Abiy, a 41-year-old former soldier who has embarked on a radical economic and political reform drive since taking over in March, stunned Ethiopians this month when he said Addis would honor all the terms of the settlement between the two countries, suggesting he was prepared to cede Badme.
In parliament this week, Abiy also acknoewledged the tensions continued to inflict a heavy economic cost on both countries and said Addis should no longer hide this price tag from the Ethiopian people, another stunning departure with the past.
There has so far been no official response to Abiy’s overtures from Eritrea, one of the Africa’s most closed states.