Cost of Cybercrime Overtakes Physical Crime

Cost of Cybercrime Overtakes Physical Crime

Nearly 60 percent of U.S. businesses believe that cybercrime is more costly to them than physical crime, reports a recent IBM survey of companies in the healthcare, financial, retail and manufacturing industries. The costs resulting from cybercrime, these businesses report, are primarily from lost revenue, loss of current and prospective customers and loss of employee productivity.

Surveying 600 CIOs or other individuals qualified to answer questions about their company’s IT practices, the IBM survey reveals that 84 percent of IT executives of U.S. businesses believe that organized criminal groups possessing technical sophistication are replacing lone hackers in the world of cybercrime. The threat from unprotected systems in developing countries is a growing challenge, according to almost three-quarters of respondents. And, alarmingly, almost three-quarters (74%) perceive that threats to corporate security are now coming from inside the organization.

These views come as a majority of respondents (61%) believe it is the joint responsibility of both the Federal and local law enforcement agencies to help combat organized cybercrime. These responses by businesses are in stark contrast to consumer beliefs. A recent IBM survey of consumers showed that 53 percent of Americans hold themselves most responsible for protecting themselves from cybercrime, while 11 percent felt it was the job of federal law enforcement agencies, and only four percent hold local law enforcement agencies responsible.

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