The economic impact of cybercrime

and cyber espionage

Published November 2013

In this initial report we start by asking what we should count in estimating losses from cybercrime and cyber espionage. We can break malicious cyber activity into six parts:

  • The loss of intellectual property and business confidential information
  • Cybercrime, which costs the world hundreds of millions of dollars every year
  • The loss of sensitive business information, including possible stock market manipulation
  • Opportunity costs, including service and employment disruptions, and reduced trust for online activities
  • The additional cost of securing networks, insurance, and recovery from cyber attacks
  • Reputational damage to the hacked company