Hands of hacker with access denied message on laptop

The Economic Impact of Cybercrime and Cyber Espionage

Cybercrime and cyber espionage are more common than most people often realize. The Swedish entertainment industry alone reported over six thousand incidents in 2018. Increasing rates of cybercrime and spying have adverse effects on the economy and wellbeing of companies. What follows are the 5 W’s on the topic: Who, What, Where, When and Why.

Who is being affected?

There’s no specific profile for people who should be concerned with the prospect of a potential cyber attack. There are companies and people that are more exposed to them. However, those looking to steal your information can target anyone and sell your information at any price.

Higher education and government agencies are reported to be at a greater risk of cyber attacks and cyber espionage. This is due to the sensitive information they hold and its value. Yet, there are other industries that are in need of vigilance. Examples include small businesses and online gambling websites such as the Swedish company, Spinia.

As online access to betting has increased, so have the rates of cybercrime in gambling. With access to financial information and client data, it can be a profitable endeavor.

What is the impact on the economy?

As some of the most lucrative activities, cybercrime and cyber espionage not only steal private information for financial gains. These also have a heavy economic impact on local and global scales. For example, the casino industry. As they are contributors to a country’s economy, cybercrime in casinos can have an indirect impact on local and state economies.

While not everyone realizes it, the increasing numbers in cybercrime and cyber espionage have a significant impact. This includes the economic stability of countries as well as the global economy. Companies are at risk of high deficits through the theft of private information. This involves intellectual properties, client info and personal data.

It is important to understand that the global economy can be impacted by the unlawful acquisition of data and confidential information. It can amount to billions in losses per year, which results in dire consequences for a country’s economy and individual companies.

Where is this happening?

It may seem more likely for a cyber attack to target multimillion-dollar companies, but cybercrime statistics show that this is not the case. This can happen to any organization, no matter the country. Furthermore, such an attack is often untraceable and can be difficult to police.

For example, Scandinavian countries have been home to some of the worst cyber-attacks. These have been associated with speedy internet access. In particular, one of Sweden’s most significant challenges is the wide array of phishing scams. Yet, catching the offenders isn’t always an easy task.

When should you be worried about cybercrime?

As people are more and more reliant on the internet for business and personal reasons, it’s vital to make sure that any private information is protected from potential intruders.

Expert Amy Martinsson suggests being extra vigilant when it comes to:

  • Transaction information
  • Passwords
  • Personal data
  • Phishing scams

Keeping an eye on your personal information is beneficial for your private data and protects you from any financial theft.

Why cybersecurity is important?

Cybercrime experts suggest that investment in quality cybersecurity can go a long way. In times of increasingly easy access to the internet and quickly changing technologies, businesses are more at risk than ever.

Thus, the next time you set up an account or manage your private affairs online, keep this article in mind. Incidents involving cybercrime and cyber espionage can happen to anyone, and the economic impact can be severe.

 

Staff Writer at CPO Magazine