$1 trillion = McAfee report on the hidden costs of cybercrime
McAfee Corp and the Centre for Strategic and International Studies (CSIS) published a new report on 7 December on “The Hidden Costs of Cybercrime”, which estimates losses
from cybercrime at more than $1 trillion globally or just over one per cent of global GDP.
This latest estimate is more than 50 per cent higher than the previous 2018 study, which estimated global losses at $600 billion.
The report is based on quantitative research commissioned by McAfee carried out between April and June 2020.
To combat cybercrime, the report suggests:
- implementing necessary security measures,
- increasing transparency by organisations and governments,
- standardising and coordinating cybersecurity requirements,
- providing employees with cybersecurity awareness training, and
- developing prevention and response plans.
Report highlights include:
- Intellectual property theft and financial crime, the biggest threats to companies, account for 75 per cent of cyber losses
- Interruption to operations average at 18 hours, with an average cost of more than $0.5 million per incident
- Downtime, brand reputation and reduced efficiency are among the damages from cyber attacks
- Inadequate planning in terms of prevention and response to cyber incidents was noted by 56 per cent of the surveyed organisations
McAfee press release