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.


Vladimir Putin gets lavish welcome on visit to ally Serbia

Updated 17 January 2019
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Vladimir Putin gets lavish welcome on visit to ally Serbia

  • Church bells tolled, guns saluted and people waved Russian and Serbian flags on Putin’s route through the Serbian capital, Belgrade
  • Serbia has maintained close links with traditional Slavic ally Russia despite formally seeking European Union membership

BELGRADE, Serbia: Vladimir Putin received a hero’s welcome in ally Serbia on Thursday as the Russian president attempted to maintain political and economic influence in the Balkans, which is increasingly looking Westward.
Putin’s presidential plane was escorted over Serbian airspace by MiG-29 fighter jets he recently donated to Serbia as he arrived for the one-day visit. Church bells tolled, guns saluted and people waved Russian and Serbian flags on Putin’s route through the Serbian capital, Belgrade.
Serbia has maintained close links with traditional Slavic ally Russia despite formally seeking European Union membership. It has refused to join Western sanctions against Russia over Ukraine and has pledged to stay out of NATO.
Putin has recently stepped up efforts to restore Moscow’s influence in the former communist countries of Eastern Europe.
Putin and his host, Serbian President Aleksandar Vucic, praised the relationship between the two countries. Putin handed a top Russian honor to Vucic, who gave a puppy of a Serb dog breed to the Russian president.
Vucic thanked Russia for its support for Serbia’s claim over Kosovo, a former province that declared independence in 2008, and added that “however small,” Serbia has been a “reliable partner” to Russia.
Several bilateral agreements were signed, including on the supply of Russian gas and weapons to Serbia.
On the gas, Putin said Russian companies are ready to invest about $1.4 billion into a stretch of a pipeline that would go from Turkey via EU-member Bulgaria to Serbia and then on to Hungary, “but in the end, everything will depend on other countries, including the European Union.”
Putin’s visit come as thousands have been holding weekly demonstrations against Vucic because of what they see as his autocratic rule.
Tens of thousands of Vucic’s right-wing party supporters were bused into the capital on Thursday to gather in front of the St. Sava Orthodox church, which the two presidents visited. They were chanting slogans including “Serbia-Russia, we don’t need the European Union!“
Vucic’s critics say the gathering was staged to suggest that the Serbian leader has many more supporters than opponents, who have been marching the same route since December to demand free elections and media.
Several liberal Serbian rights groups issued a statement on Thursday protesting “glorification of Vladimir Putin’s authoritarian regime.”
It said that Putin’s visit “indicates that the Serbian rulers are ready to sacrifice human rights and better living standards of citizens because of their servile attitude toward Putin’s regime.”
Russia’s interest in Serbia relates to its strategic position between East and West. Of Serbia’s eight neighbors, five are NATO members and two more are seeking membership; and four are in the EU and two more are working toward accession. Serbia remains Moscow’s only ally in the region.
Unlike NATO, Putin formally does not oppose Serbia’s EU path and analysts believe that this is because he wants a staunch ally — or perhaps a Trojan horse — within the 28-nation bloc.
Putin’s popularity in Serbia is mostly because the Kremlin is supporting Serbia in its rejection of Kosovo’s independence. In contrast, most Western countries have recognized Kosovo’s statehood.