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.


South Korea dismantles guard posts with dynamite, excavators

Updated 15 November 2018
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South Korea dismantles guard posts with dynamite, excavators

  • Last week the two Koreas finished withdrawing troops and firearms from some of the guard posts along their border before dismantling them
  • The Koreas each agreed to dismantle or disarm 11 of their guard posts by the end of this month

CHEORWON, South Korea: South Korea exploded a front-line guard post Thursday, sending plumes of thick, black smoke into the sky above the border with North Korea, in the most dramatic scene to date in the rivals’ efforts to reduce animosities that sparked last year’s fears of war.
Last week the two Koreas finished withdrawing troops and firearms from some of the guard posts along their border before dismantling them. The steps are part of agreements signed in September during a meeting between their leaders in Pyongyang, North Korea’s capital.
On Thursday, South Korea’s military invited a group of journalists to watch the destruction of a guard post with dynamite in the central border area of Cheorwon. The journalists were asked to stay hundreds of meters (yards) away as black smoke enveloped the hilly border area. They later watched soldiers and other workers bulldoze another guard post.
While most of the South Korean guard posts are being destroyed with construction equipment for environmental and safety reasons, dynamite was used for the first structure because of its location on a high hill where it was difficult employ excavators, the Defense Ministry said.
North Korea is demolishing its guard posts with explosives, according to South Korean media.
The guard posts are inside the 248-kilometer (155-mile)-long, 4-kilometer (2.5-mile)-wide border called the Demilitarized Zone. Unlike its name, it’s the world’s most heavily fortified border with an estimated 2 million land mines planted in and near the zone. The area has been the site of violence and bloodshed since the 1945 division of the Korean Peninsula, and civilians need special government approval to enter the zone.
The Koreas each agreed to dismantle or disarm 11 of their guard posts by the end of this month before jointly verifying the destruction next month. South Korea had about 60 posts inside the DMZ guarded by layers of barbed wire and manned by troops with machine guns. North Korea was estimated to have 160 such front-line posts.
Under the September agreements, the Koreas are also disarming the shared border village of Panmunjom and clearing mines from another DMZ area where they plan their first-ever joint searches for Korean War dead. They’ve also halted live-fire exercises along the border.
The deals are among a set of steps they have taken since North Korean leader Kim Jong Un reached out to Seoul and Washington early this year with a vague commitment to nuclear disarmament. The fast-improving inter-Korean ties have raised worries among many in South Korea and the United States as global diplomacy on the North’s nuclear weapons program has produced little recent progress.