US cybercrime losses reach $240m
Auction fraud means record high
Financial losses from online crime reported to US authorities reached a record high last year, topping nearly $240m. Taking into account unreported crimes the real figure is likely to be much higher.
Auction fraud and other forms of cybercrime reported to the Internet Crime Complaint Center (IC3) were up $40m or 20 per cent from those reported in 2006. The IC3 received 206,884 complaints about internet crimes last year, more than 90,000 of which were referred to law enforcement agencies across the US. IC3, which serves as a clearing house for cybercrime, is a joint operation between the FBI and the National White Collar Crime Center.
Although internet auction fraud was the most widely reported complaint to the IC3, other problem areas included non-delivery of purchases and credit card fraud. Computer hacking attacks, spam and child abuse on the net formed the subject of other complaints. Commonly reported scams involved the purchase or sale of pets, cheque fraud, email spam, and online dating fraud.
"The internet presents a wealth of opportunity for would be criminals to prey on unsuspecting victims, and this report shows how extensive these types of crime have become," said FBI Cyber Division Assistant Director James Finch. "What this report does not show is how often this type of activity goes unreported. Filing a complaint through IC3 is the best way to alert law enforcement authorities of Internet crime."
The report provides evidence that the UK is fast catching up with the US in being a hotbed of cybercrime. Despite the fact that the IC3 study is supposedly a national US annual report, the UK is the source of 15.3 per cent of the crime reports, significantly ahead of other cybercrime hotspots such as Nigeria (5.7 per cent).
The 2007 Internet Crime Complaint Report from the IC3 is available here (pdf). ®
The damage from Code Red was far from imaginary. As someone who was involved in the clean-up for one major international company, I'd say the figure quoted was perfectly realistic.
Your continued restating of the fallacy that viruses cost nothing and impact no-one is irresponsible
Nice to see cited sources for once, re: crime costs
After seeing so many inflated guesstimates from computer security vendors over the past decade, it's good to see some hard numbers reported in by some very real people. The one dollar per person, as suggested by RW, sounds plausible. Serious enough to warrant attention, but not stupid.
Compare: "Code Red has already cost an estimated $1.2 billion in damage, and may top out at an incredible $8.7 billion when its bitter reign of destruction finally ends."
So, $240 million lost to real, reported fraud compared to $8.7 billion lost to imaginary, guesstimated damage from a single piece of malware. I wonder if any of the Code Red-affected folks filed insurance claims.
so that's like..
a day in iraq then? slow news day?