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Economic Crisis Thought To Fuel Data Theft
SecurityProNews
Staff Writer
2009-01-29
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Last year, companies worldwide lost about $1 trillion to intellectual property theft and damage repair, an estimate McAfee calls conservative. The company warns that a weakened worldwide economy will just increase data theft in 2009.
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McAfee based that hefty number on a survey conducted by Purdue University's Center for Information Assurance and Security. Data from over 800 CIOs in the US, UK, Germany, Japan, China, India, and Dubai were examined, especially in regard to the origination, storage, transfer and loss of intellectual property (IP). Combined, companies in the survey lost $4.6 billion worth of IP last year, and spent about $600 million patching up holes from data breaches.
"Companies are grossly underestimating the loss, and value, of their intellectual property," said Eugene Spafford, professor of computer science at Purdue University and executive director of CERIAS. "Just like gold, diamonds or crude oil, intellectual property is a form of currency that is traded internationally, and can have serious economic impact if it is stolen."
Experts expect the threat to IP to worsen this year as the global economy worsens. The two main threats seem to be cyber gangs and "financially challenged" employees. Survey respondents regarded this second group to be a bigger threat than outsiders. While 39 percent cited outside data thieves as their biggest concern, 42 percent were worried about "displaced" employees looking to improve their situations by selling off vital corporate information.
"This report is a wake-up call because the current economic crisis is poised to create a global meltdown in vital information," Dave DeWalt, president and chief executive officer of McAfee. "Increased pressures on firms to reduce spending and cut staffing have led to more porous defenses and increased opportunity for crime. Companies need to stop looking at security as a cost center but as a business enabler."
It appears that developing countries are investing more in security than developed nations. Brazil, China, and India all out-spent Germany, US, UK, and Japan. Much of that may be catch-up, however.
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SecurityProNews is a daily online and email publication focusing on internet security issues.
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