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.


Taliban’s Ghazni assault sparks new Pak-Afghan tensions

Updated 18 August 2018
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Taliban’s Ghazni assault sparks new Pak-Afghan tensions

  • Pakistan’s Foreign Office says Afghanistan has not shared any evidence to support its recent allegations against Pakistan
  • Imran Khan’s idea of a soft border between Pakistan and Afghanistan may have suffered a big setback in the wake of the Ghazni attack

PESHAWAR: In the backdrop of the Taliban’s brazen assault on the southern city of Ghazni in Afghanistan, President Ashraf Ghani alleged that the bodies of the perpetrators had arrived in Pakistan, though Islamabad maintained that Kabul had not officially shared any information or evidence in this regard.
Soon after that, the Afghan president said in a fiery speech to a jirga in Ghazni: “I have a message for Pakistan. Dead bodies (of the Taliban) have arrived in (Pakistan). Peace cannot be forcefully imposed on Afghanistan. Where did they (Taliban) come from and why are they being treated in (Pakistani) hospitals?”
But Pakistan strongly rejected reports claiming that some Taliban fighters involved in the Ghazni attack had been offered medical treatment in its hospitals.
In the absence of any official communication through regular channels established bilaterally, such reports cannot be given any credence, said Pakistan’s Ministry of Foreign Affairs on Saturday.
Haq Nawaz, a senior Peshawar-based security analyst, told Arab News that the newly elected Prime Minister Imran Khan faced a string of daunting challenges, such as economic revival, political stability, tackling corruption, and improving relations with his country’s immediate neighbors.
However, he added that recent developments in Afghanistan, where the Taliban have stepped up violent activities, will probably constitute a much bigger predicament for the new political administration.
He recalled that Khan had mentioned in his victory speech that he wanted a European Union-style soft border with Afghanistan, claiming that the idea had seemingly received a setback after the Ghazni attack.
“The latest bout of allegations will have a negative impact on the process of reviving good relations between the two neighboring countries,” Nawaz noted.
Chief of Army Staff (COAS) General Qamar Javed Bajwa also expressed “deep concern” over the recent surge in violence in Afghanistan and lamented in a statement released by the military’s media wing the loss of precious lives.
Bajwa reiterated that Pakistan was not supporting terrorist activities inside Afghanistan. He added that the allegation about the movement of injured or dead terrorists from Ghazni to Pakistan was incorrect.
However, the army chief noted that there were scores of Pakistanis working in Afghanistan, and that some of them periodically fell victim to acts of terrorism along with their Afghan brothers inside Afghanistan. “Terming such victims as terrorists is unfortunate,” he maintained.
Yet, the Afghan president sought an explanation from Pakistan’s civilian and military leadership on the Ghazni attack.
“Imran Khan, you are the son of Pashtun parents. Investigate this and give me an answer. General Bajwa, you have repeatedly given me assurances over phone calls that special attention would be given to the issue of peace in Afghanistan once elections took place in Pakistan. Now give me an answer,” Ghani said while addressing a group of tribal elders attending the jirga.
Bajwa said that different factions of the Tehreek-e-Taliban Pakistan hiding in their sanctuaries in Afghanistan after assuming Afghan identities, were transported to Pakistan for medical help after receiving injuries.
Nawaz said the Afghan government should share relevant evidence with Pakistan in this case, arguing that using the media or social media to deal with such serious and sensitive developments can worsen the situation.
He said it was not just a statement or allegation from an ordinary official since the claim was made by a head of state, adding that both countries should settle such teething issues through dialogue and diplomatic channels.
However, the Ministry of Foreign Affairs noted in its statement: “Such reports can only be viewed as malicious propaganda to vitiate the existing cooperation between the two countries.”