14 DAY TRIAL // In the past few years both government and non-government organizations have been implementing all sorts of sophisticated security measures to protect themselves against cybercriminals. However, a recent study shows that money should be spent more on policing the Internet and less on antivirus software.
The analysis, performed by an international team of scientists led by the University of Cambridge, has focused on the cost of damages caused by cybercrime and the money invested in all sorts of defense mechanisms.
The researchers believe that many of the old reports that detailed the costs of cybercrime have been incorrect.
This study has taken a different approach to counting the damages and it has been determined that welfare and tax fraud costs British citizens around a few hundred pounds each year. Payment card fraud results in losses of a few tens of pounds and the scams that completely depend on the Internet cost less than a pound, on average.
On the other hand, security solutions cost far more than that. For instance, the United Kingdom spends $1 billion (790 million EUR) each year, of which $170 million (134 million EUR) on antivirus software.
In contrast, only $15 million is spent to enhance law enforcement’s capabilities of tackling cybercrime.
Dr. Richard Clayton, expert in the econometrics of cybercrime in Cambridge’s Computer Laboratory, explains how the costs for each crime should be calculated.
“Take credit card fraud. Direct loss is clearly the monetary loss suffered by the victim. However, the victim might then lose trust in online banking and make fewer electronic transactions, pushing up the indirect costs for the bank because it now needs to maintain cheque clearing facilities, and this cost is passed on to society,” he explained.
“Meanwhile, defence costs are incurred through recuperation efforts and the increased security services purchased by the victim. The cost to society is the sum of all of these.”
Clayton believes that governments should spend more money on policing instead of cyber defense products.
“Some police forces believe the problem is too large to tackle. In fact, a small number of gangs lie behind many incidents and locking them up would be far more effective than telling the public to fit an anti-phishing toolbar or purchase antivirus software,” he said.
“Cybercrooks impose disproportionate costs on society and we have to become more efficient at fighting cybercrime.”