A report lists losses by cyber crime at 126 billion spanning over 21 countries a

Question

A report lists losses by cyber crime at 126 billion spanning over 21 countries and affecting over 650 million people. This is a staggering amount and I am sure this will only grow in coming years. This year the credit card companies introduced EMV chips which are seen as helping to quell credit card fraud. A good step in the right direction but hackers and or opportunists are always a step ahead as it seems. I'd like for countries to set up an international CyberCrime prevention units to quell and curb it. https://www.yahoo.com/tech/cybercrime-cost-126b-globally-2015-120837997.html

Explanation / Answer

The most important cost of cybercrime comes from its damage to company performance and to national economies. Cybercrime damages trade, competitiveness, innovation, and global economic growth. Studies estimate that the Internet economy annually generates between $2 trillion and $3 trillion, a share of the global economy that is expected to grow rapidly. Based on CSIS estimates, cybercrime extracts between 15% and 20% of the value created by the Internet.

Cybercrime’s effect on intellectual property (IP) is particularly damaging, and countries where IP creation and IP-intensive industries are important for wealth creation lose more in trade, jobs and income from cybercrime than countries depending more on agriculture or industries of low-level manufacturing, the report found. Accordingly, high-income countries lost more as a percent of GDP than low-income countries – perhaps as much as 0.9 percent on average.

“Cybercrime is a tax on innovation and slows the pace of global innovation by reducing the rate of return to innovators and investors,” said Jim Lewis of CSIS. “For developed countries, cybercrime has serious implications for employment. The effect of cybercrime is to shift employment away from jobs that create the most value. Even small changes in GDP can affect employment.”

MV -- which stands for Europay, MasterCard and Visa -- is a global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions. In the wake of numerous large-scale data breaches and increasing rates of counterfeit card fraud, U.S. card issuers are migrating to this new technology to protect consumers and reduce the costs of fraud.

"These new and improved cards are being deployed to improve payment security, making it more difficult for fraudsters to successfully counterfeit cards," says Julie Conroy, research director for retail banking at Aite Group, a financial industry research company. "It's an important step forward."

For merchants and financial institutions, the switch to EMV means adding new in-store technology and internal processing systems, and complying with new liability rules. For consumers, it means activating new cards and learning new payment processes.

Most of all, it means greater protection against counterfeit fraud.

Want to know more about the ongoing transition and your new EMV chip-equipped credit card? Here are eight frequently asked questions to help you understand the changes.

It's that small, metallic square you'll see on new cards. That's a computer chip, and it's what sets it apart the new generation of cards.

The cost of cyber crime for the global economy has been estimated at $445 billion annually.

Cyber espionage and stealing individuals' personal information is believed to have affected more than 800 million people during 2013.

Financial losses from cybertheft could cause as many as 150,000 Europeans to lose their jobs, according to a report conducted by internet security company McAfee.

Cyber crime damages trade between nations, competitiveness, innovation, and global economic growth, and slows the pace of global innovation.

McAfee is calling for governments to begin a serious, systematic effort to collect and publish data on cybercrime to help countries and companies make better choices about risk and policy

Studies estimate that the internet economy annually generates between $2 trillion and $3 trillion, a share of the global economy that is expected to grow rapidly. Based on Center for Strategic and International Studies analysis, cybercrime extracts between 15 per cent and 20 per cent of the value created by the internet.

Despite one London-based business losing $1.3 billion in a single malicious attack during 2012, the majority of cyber criminals still have substantial difficulty in monetising their stolen data.

The total cost of cyber crime to the UK economy alone was $11.4 billion during 2013, the equivalent to 0.16 per cent of the GDP. Retailers lost more than $850 million during the same period as a result of penalty free financial crime.

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