FBI Says Computer Crime Costs Billions Every Year 142
JamesAlfaro wrote to mention a C|Net article putting a pricetag on computer crime. From the article: "The FBI calculated the price tag by extrapolating results from a survey of 2,066 organizations. The survey, released Thursday, found that 1,324 respondents, or 64 percent, suffered a financial loss from computer security incidents over a 12-month period. The average cost per company was more than $24,000, with the total cost reaching $32 million for those surveyed. Often survey results can be skewed, because poll respondents are more likely to answer when they have experienced a problem. So, when extrapolating the survey results to estimate the national cost, the FBI reduced the estimated number of affected organizations from 64 percent to a more conservative 20 percent. "
Questions? (Score:4, Insightful)
Re:Questions? (Score:5, Informative)
I filled it out, and really I used numbers off the top of my head. We really never had actual security breeches by hackers, but they were asking for an aggregate of security incidents and measures. I included budgetary expenditures for preventative as well as reactionary security.
I've filled out surveys like this for Gartner and others and I have to say, while the overall methodology followed norms, I really did not get a sense that they had much of a clue as to what the IT industry would classify as loss related to computer crime. Under their model, as I understood it - if you had to buy anti-virus software, that was a business loss due to cybercrime!
Re:Questions? (Score:2, Funny)
In that case you'd better include the costs of Windows and Office in there, too. : p
Re:Questions? (Score:2)
>that was a business loss due to cybercrime!
Why shouldn't it be consideed a business loss due to computer crime. If I build a ware house and crime in the area increases, I have to buy better physical security, isn't that loss directly atributable to an increase in physical crime?
Re:Questions? (Score:2)
Re:Questions? (Score:2)
If there was no trespass or theft, why would I buy locks? (I wouldn't, they'd not exist)
Re:Questions? (Score:2)
This discussion doesn't add
Re:Questions? (Score:2)
if you had to buy anti-virus software, that was a business loss due to cybercrime!
It is.
the fish i caught (Score:2, Funny)
and when they hacked our system, it cost us a trillion, billion dollars.
Re:Questions? (Score:5, Insightful)
Re:Questions? (Score:2)
so they bury the loss in other expense numbers.
Re:Questions? (Score:2)
Re:Questions? (Score:2, Funny)
Re:Questions? (Score:2)
Tell everyone the bank was robbed.
Pretty Boy Floyd was a bank robber of that era who, if you check the records, on one day is said to have robbed 3 banks, in 3 seperate towns, at over 150 miles distance, all on the same day. Same or sim
Re:Questions? (Score:2)
That's the ticket!
Re:Questions? (Score:2)
The Real Data and CSI Links (Score:5, Informative)
I think this is a case of CSI running a survey and doing a damn fine job on the support but the media (and Slashdot) feel that FBI is better news than CSI.
Re:The Real Data and CSI Links (Score:2)
Thanks for the informative links. However, it is also news that the FBI bungles their reporting of the survey results, not to mention their analysis of such.
The FBI, like any federal agency, needs to justify themselves to the public as well as those that vote on their budget. Little reports like this do so, as well as help people be aware that se
Which areas need improvement (Score:3, Insightful)
Perhaps the problem is that companies aren't putting enough money into their security and not enforcing strict enough protocol among their staff. How many viruses felt by businesses do you assume were caused by a stupid employee? This could take the form of lazy tech staff, or even the assistant downloading something to pass the time. Then there is also the fact that alot of smaller businesses I have experience with do not have an employee that can properly setup and maintain the businesses networks and desktops. How much money are these companies spending on techie staff to remove stuff that otherwise could be done by any teenager who has experience with computers.
The number is huge, however the issue behind it I feel is being avoided and unseen. Businesses need a better method of using computers, perhaps a more business friendly OS. From the article, "Some are very small businesses that should have that technology, but they don't," and this is the problem. We won't be able to stop people from trying to bring down software and networks, however businesses can become more competent on how to prevent and protect.
Re:Which areas need improvement (Score:1)
Re:Which areas need improvement (Score:2)
Why not? This is like saying "I live in a crime-ridden part of town, but I can't do anything to help myself and my neighbors other than getting bigger, stronger security grates."
How about addressing the problem? Why is attacking computers and destroying information so much fun?
Sure, it is difficult but part of the
Some Guy says computer crime creates jobs (Score:5, Insightful)
My IT business makes about 40% of its income dealing with security issues. We have to turn new business away usually, as most new customers that we go visit are so insecure it isn't even funny. With insecurity comes more than just data theft but spyware and viruses and the rest, as we all know. It amazes me how many companies leave their homes unlocked, the lights on, the alarm off, and a big sign on the front steps saying "Come and get it!"
The solution to computer crime isn't using the FBI -- I'd like to turn their offices off and throw out the key. The solution to computer crime is:
1. Developing a good infrastructure and upgrade cycle
2. Commit to teaching users proper ways to set up their data and desktops
3. Purchasing security sofware and services from companies that do the best job finding the holes and plugging them.
Is the law useful? Not one bit. Most companies aren't going to bother suing civilly for damages, and no one wants to bother calling the cops. The chalk line around your stolen data isn't very useful. Get a good consultant, pay them well, and make them back it up with guarantees. Problem solved.
Re:Some Guy says computer crime creates jobs (Score:2)
2. Commit to teaching users proper ways to set up their data and desktops
Put users in charge of an essential part of your computing environment and you get what you deserve: an environment about which you can guarantee nothing. By definition, you have introduced a population of rogue systems. This would be true regardless of platform.
Re:Some Guy says computer crime creates jobs (Score:3, Interesting)
If it happens again, we fix it without charging them. How is that untrustworthy?
Or, you can ask the cops to sit in front of your house and make sure you don't get robbed. I'd rather pay a private security firm to handle my security, thank you very much.
Prevention is better than trying to get someone busted for a previous crime because you didn't take the steps necessary to protect your assets.
Re:Some Guy says computer crime creates jobs (Score:1)
I don't know about your company, but most consultant can do that, easily. Considering that they sell you padlocks that have to be made out of platinum to be worth their weight.
Re:Some Guy says computer crime creates jobs (Score:1)
It all comes down to cost benefit analysis. Which costs less? Being hacked/cracked, or purchasing and applying all of the security stuff? That's the choice most companies and individuals will go with.
Ok so... (Score:1)
The law.
Your guarantee is worthless without legal remedy when it fails.
One other thing
This
"How is that untrustworthy?"
Where did I say ANYTHING about trustworthiness?
WHY ARE YOU CONSTANTLY MAKING SHIT UP? WHAT IS WRONG WITH YOU THAT YOU CAN'T READ AND RESPOND TO WHAT I SAID WITHOUT ARGUING A POINT I NEVER EVEN REFERENCED, MUCH LESS ATTEMPTED TO MAKE?
Are you just fucking stupid? Do you have
Re:Ok so... (Score:2)
Because human beings are animals that repeat behavior that has provided rewards in the past.
For most posters, reading responses to a message is the reward for posting a message. And, in general, the more provocative the message, the bigger the reward. There is no reward for posting truthful messages.
Re:Some Guy says computer crime creates jobs (Score:1)
If it happens again, we fix it without charging them. How is that untrustworthy?"
I wouldn't say it's untrustworthy, but, if you fix their security, and it happens again, do you also offer to pay for the $insert_amount_lost that they've suffered in damages? Now that would be an impressive guarantee.
Security contractors and law-enforcement both have their place, one to help secure a system, and one to catch/deter threats to that system usi
Re:Some Guy says computer crime creates jobs (Score:2)
While that is a bit of a harsh way to put it, there is a grain of truth in the thought. Good consultants only give guarantees very carefully. As a consultant, I oughta know. You always need a way to protect yourself from the idiocy of the client. If a client screws up, through no fault of the consulting firm, the guarantee could backfire on the consultant.
Re:Some Guy says computer crime creates jobs (Score:2)
I've worked with broker dealers and large brokerage firms, too, to look at security of their in-house guys. Some of these firms are extremely secure, others are open like you wouldn't believe. I make my guarantees based on what the customer expects -- and what damage the customer has shown they are capable of producing th
Re:Some Guy says computer crime creates jobs (Score:1)
Re:Some Guy says computer crime creates jobs (Score:2)
A law can only clean up after the fact. A consultant can (probably/maybe) prevent it from happening.
Re:Some Guy says computer crime creates jobs (Score:2)
The broken window theory is Bastiat's most memorable, but I take it a step beyond what he looked into. Why was the window there in the first place, and why did the baker want to buy a suit instead of more materials to sell?
Re:Some Guy says computer crime creates jobs (Score:2)
The window keeps the elements out, as well as criminals. An IT security company works similarly.
If you don't have a window, crime and elements will cost you more. We need a cost-benefit parable
Skew? (Score:2)
Re:Skew? (Score:2)
Yeah but hiring a security guy costs money too. So does developing and implementing a security strategy. I wonder if the FBI's numbers take into account the costs incurred by companies in preventing computer crime.
Re:Skew? (Score:2)
It is true, however, that this estimate of "damages" is probably calculated using pages from the RIAA book of estimating damages: download one song, $21,000 (or whatever it is they are claiming these days).
Who knows what else the FBI says... (Score:5, Insightful)
Next time someone says "XXX Trend is costing us YYY dollars every year", it's probably going to be followed up with "Therefore we should spend ZZZ dollars dealing with it."
XXX = overstated threat
YYY = some made up figure
ZZZ = profit
Re:Who knows what else the FBI says... (Score:3, Interesting)
There are diminishing returns when it comes to trying to solve any problem. Which is better:
Re:Who knows what else the FBI says... (Score:2)
XXX = overstated threat
???
ZZZ = profit
Maybe? (Score:4, Insightful)
"We'll just create this broken product... and let everyone else deal with the billions of lost dollars which it causes."
WTF, why 64% to 20% Why not 21% or 19%? (Score:5, Insightful)
Why? Because that seemed like a good number? This inexplicable change causes me to question the validity of the whole study.
Re:WTF, why 64% to 20% Why not 21% or 19%? (Score:2)
But you have to question the whole thing when the FBI basically doesn't believe what they're being told! What was the point of asking? Why didn't they just make the whole damn thing up?
Perhaps they could have approached the problem from the other end - look at the amount spent of IT security and said the loses must be less than that, because otherwise companies are not acting in their share holders interest. (I'm not a
Incredible, but true! (Score:2)
It is amazing how many crimes go unreported, and if we were to prosecute all crimes by every person alive today, it would cost Quadrillions!
Comment removed (Score:4, Insightful)
Re:And why the cops will always be behind (Score:2)
Re:And why the cops will always be behind (Score:1)
>spend $2B for a stealth bomber
While the cost of a weapons program is staggering and of questionable value relative to other needs, it's not as simple as deciding to spend $2B for a bomber.
You start out with an appropriation to spend $XXB on a program, expecting to produce NNN planes which will result in a cost of $YYY million each (still a lot, obviously).
Then, years into the program, things change and funding is cut and they say, build just 18
Re:And why the cops will always be behind (Score:2)
It may be, but it carries a risk of its own. Companies can (and do) pay large sums of money for certain services and still get screwed. Money in and of itself isn't answer...money helps, but competence is what gets the job done.
FBI Says MS-Windows Costs Billions Every Year (Score:1, Insightful)
Rather cheap (Score:1, Insightful)
With the difference that in that crime people die.
*insert squealing breaks sound* (Score:2, Interesting)
Whoa, whoa. Back the truck up here, pal. Define "loss." I'm betting the overwhelming majority of the reported un-cash is probably:
1) "Lost" sales -- which is money the company didn't have in the first place
2) Money paid to try and prevent computer crime (which was their choice, and obviously didn't work
3) Money paid to chase criminals after the fact (which, though necessary, shouldn't be lumped together with what a robber stole)
That leave
Re:*insert squealing breaks sound* (Score:2)
Probably loss in, "the computer isn't working or the internet died so let's take a break" by the whole company.
Re:*insert squealing breaks sound* (Score:1)
security vs defects, what to fix? (Score:2, Interesting)
http://www.nist.gov/public_affairs/releases/n02-10
Has anyone seen an update to this report?
With limited resources, organizations need to choose between fixing security problems or fixing others types of defects in their software.
Sarcastic question (Score:5, Insightful)
Strong security (Score:1)
Sorry, can't resist (Score:2, Funny)
"Should have already spent" (Score:4, Interesting)
It's like a thief crashing through your dry-rot, termite-infested walls and then blaming HIM that you have to rebuild your whole house now. This money is almost always money that *should* have been spent, but wasn't in the name of cost-cutting or just general laziness.
personnel costs (Score:2)
Waste of money. (Score:1, Insightful)
We realized the data was completely meaningless. So we pulled a number out of our arse and decided that made the results accurate and meaningful.
Defining Computer Crime, and Evaluating Losses (Score:2, Informative)
RIAA (Score:1)
And no, I didn't RTFA
All due (Score:1, Insightful)
1, coders inablility to write code that is secure
2, admins inablility to secure their infrastructure.
3, admins not being knowledgible enough to monitor and handle hacking attempts.
The idea of passing new laws to "prevent" such crime is stupid. Kill as many flies as you can, there will still be flies to bother you.
But get a good repellant, and the flies dont bother you any more.
Re:All due (Score:2)
Still bad numbers, probably (Score:2)
I think the size of the loss will probably have a major effect as well. Somebody who's lost only twenty dollars is a lot less likely to respond than somebody who's lost fifty thousand.
There are also questionable cases. Consider something I hit about a year ago. Shortly after Cingular bought AT&T, I switched my cell phone to Verizon. Cingular cont
Put in perspective.. (Score:3, Insightful)
Some other odd bits from that survey (Score:2)
Another odd thing is that only 23% used IDS, and only 90% had a firewall of any kind. Wha? These things seem so fundamental to me. I suppose the large number of very small companies just don't pay any attention to security.
Related Note: (Score:4, Funny)
As the world changes, so does the crime.
In other news: (Score:3, Interesting)
Accountant: So how much did you think we lost because of computer crime?
IT Guy: I dunno... Our server web server went down for a while and I joked that it was because some guy was hitting F5 in China.
Accountant: Ah! Excellent... *writes something down* So how much do you think it cost us.
IT Guy: Oh I dunno... Whats the cost of me getting up out of my seat to make a phone call to the guy down in the server room to boot it... Oh $0.35 cents?
Accountant: Hrm... *scratches chin* No good. But if I multiply it by inflation and theoretical estimates and carry the zero. By golly! I think we've lost over $2,000,000.35 to computer crime! Thats one hell of a tax break. Daddies going to be rolling in the bonus this year!
IT Guy: But... I... Oh never mind...
More than just Windows problems (Score:2)
What good is your phone number? (Score:2)
There is this new thing called a MODEM, you see (Score:2)
Re:There is this new thing called a MODEM, you see (Score:2)
keys are useless by themselves (Score:2)
Read the posts again. The whole point is that you assume all your communications are being sniffed. That's why you use multiple distinct channels.
If you send the keys/passphrase on a modem, and you send the host/user identification through e-mail, you have 2 distinct separate channels. The likelihood of a Bad Guy [TM] being able to
Security 101? Dude you are clueless. (Score:2)
"Read the posts again. The whole point is that you assume all your communications are being sniffed. That's why you use multiple distinct channels."
Right, its all being sniffed so splitting it up doesn't matter, since its all being sniffed. Duh?
Welcome to 1991, you can use PGP to encrypt the keys and send them vi
Never mind. (Score:2)
Either you are determined to misinterpret whatever I say to make yourself appear clever, or you are a troll, or we are not speaking the same language. Further conversation seems pointless.
Seriously, get a clue. (Score:2)
Re:I'll be sure to mention it to Whit Diffie somet (Score:2)
Re:What good is your phone number? (Score:2)
Crime is as crime does (Score:2)
So basically (Score:3, Insightful)
So basically they think their method of obtaining information is flawed, they have no idea by how much, but since 64% "feels" too high the decide to create a whole new number out of the blue that was felt to be subjectively acceptable to the committee.
Wow who funded THAT?
I believe it.. (Score:2)
Uniform Crime Reports are bogus for white collar (Score:2)
Thus, US information about the prevalence of white collar crim
Computer Crime (Score:1)
There was a tale not too long back of a one Jeremy Hammond (case pending), so was persecuted for breaking into a rival company's server and stealing over $3.5 million dollard worth of credit card numbers ( http://en.wikipedia.org/wiki/Jeremy_Hammond [wikipedia.org]). Who knows how many Jeremy Hammonds there are in the world, who perpetrate similiar crime every year.
R
Not news (Score:3, Insightful)
I'd guess that most companies are losing more money due to stolen office supplies than computer crime. I get annoyed at computer crime being treated as some magical force, as if it is some how different from every other sort of crime.
Politicians repeat after me: "Computers are not Magic!, Computers are not Magic!"
Heh, so do traffic jams (Score:1)
IT security shops make billions each year.
So do body shops.
So do insurance companies.
Get over it.
Cost is much higher (Score:2)
Crimes Using Vehicles must be Astronomic! (Score:2)
If last year music downloads had their best year ever and other computer based business models are also improving - I wonder what the size of computer aided or assisted business is? What percentage of the profit from that business went in
Other Sarcastic Question (Score:2)
If this were about cars (Score:2)
Virus protection and repair form the largest category of expenses. Doesn't it make sense to avoid the operating system with the largest expense in virus costs.
Why has protecting the nations computers from vi
Is it that time of the year again ? (Score:2)
The FBI is no exception in this case.
Bring in the money guys, bring in the money...
So... what are they going to do about it? (Score:2)
As an online retailer other than eBay or Amazon, try calling them up and saying "We have some information on people that are attempting to use fraudulent credit cards through us." See how quickly you're told to buzz off.
Incompetence is the key (Score:2)
I'm not talking about patch management and implementing the SORBS list and having a firewall and so forth. I see the whole gamut when it comes those guys.
What I never see is any kind of inventory system in place so they can say, hey, we have three thousand known MAC addresses that should be allowed on our network--what's that NEW device?
Or, "I know the operating system, patch level, loadout, and p
Re:Incompetence is the key (Score:2)
Let's say you're a private investigator (incident handler) who is called into to investigate a crime scene at a warehouse (or, mitigate a security incident). Your clients believe someone broke in and stole several items.
You get there and you ask what was stolen. Nobody is sure, because nobody has kept an accurate inventory of items in the warehouse.
So, you walk around and you're trying to figure out where t
Indentity Theft isn't "Computer Crime"? (Score:2)
When a person is a victim of identity theft, the loss is much more "real" in that there's a person who is "hurt" by this crime. There is attributable loss, usually in money taken out of bank accounts, money that may be racked up on credit cards, and the years spent trying to undo th
Mod parent insightful! (Score:2, Interesting)
(Disclaimer: Yeah yeah, i know this is slashdot and I'm probably not the first in mentioning it yadda yadda)
Re:FBI questions Bill (Score:2, Interesting)
Microsoft had two or three possibilities for fixing the security problems in Windows and we are still seeing security issues that are 10 years old...
--
This sig suck
Re:FBI questions Bill (Score:2)
Having said that, I am quite glad that MS is such swiss cheese. I have had a nice little career helping people plug the holes, and if they were to fix all the problems, I'd be stuck having to do something else.
Re:MOD Parent UP! (Score:2)
Whether you agree on more security or less, it does actually cost something and it is quite exspensive.