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.


Pakistan wants peace with India, but conducts missile test

Updated 20 min 11 sec ago
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Pakistan wants peace with India, but conducts missile test

  • Pakistan announced that it has conducted a training launch of a Shaheen II, surface-to-surface ballistic missile
  • ‘We never speak bitterly, we want to live like good neighbors and settle our outstanding issues through talks’

ISLAMABAD: Pakistan has signaled a willingness to open peace talks with India as Prime Minister Narendra Modi appears set to return to power in New Delhi after an election fought in the shadow of renewed confrontation between the nuclear-armed enemies.
But in a possible warning to India, Pakistan also announced that it has conducted a training launch of a Shaheen II, surface-to-surface ballistic missile, which it said is capable of delivering conventional and nuclear weapons at a range of up to 1,500 miles.
“Shaheen II is a highly capable missile which fully meets Pakistan’s strategic needs toward maintenance of deterrence stability in the region,” Pakistan’s military said in a statement that made no direct mention of its neighbor.
On Wednesday, Pakistani Foreign Minister Shah Mehmud Qureshi spoke briefly with his Indian counterpart at the sidelines of a meeting of the Shanghai Cooperation Organization member states in the Kyrgyz capital, Bishkek.
“We never speak bitterly, we want to live like good neighbors and settle our outstanding issues through talks,” he said following the meeting.
The remark follows months of tension between the long-time rivals, which came close to war in February over the disputed region of Kashmir, which both sides have claimed since independence from Britain in 1947.
Following a suicide attack in Kashmir that killed 40 members of an Indian paramilitary police force in February, Indian jets launched a raid inside Pakistan, striking what New Delhi said was a training camp of Jaish-e Mohammed, the radical group that claimed the Kashmir attack.
In response, Pakistan conducted a retaliatory strike of its own and jets from the two countries fought a dogfight in the skies over Kashmir during which an Indian pilot was shot down and captured.
Amid international pressure to end the conflict, Pakistan returned the pilot and there were no further strikes but tensions remained high, with regular exchanges of artillery fire from both sides in Kashmir.
Pakistan has also kept part of its airspace closed to international air traffic, disrupting flights to India and other parts of the region.
Prime Minister Imran Khan has repeatedly offered to start talks with India to resolve the Kashmir issue, and officials have said that they hoped the process could start once the election is concluded.
Khan himself said last month he believed there was more prospect of peace talks with Indian if Modi’s Hindu nationalist Bharatiya Janata Party (BJP) won the election.