SCARSSCARS SCARS - Society of Citizens Against Relationship Scams Inc. A government registered crime victims' assistance & crime prevention nonprofit organization based in Miami, Florida, U.S.A. SCARS supports the victims of scams worldwide and through its partners in more than 60 countries around the world. Incorporated in 2015, its team has 30 years of continuous experience educating and supporting scam victims. Visit www.AgainstScams.org to learn more about SCARS.™ Insight: CybercrimeCybercrime Cybercrime is a crime related to technology, computers, and the Internet. Typical cybercrime are performed by a computer against a computer, or by a hacker using software to attack computers or networks. – It’s Worse Than We Thought – 2020
A United States Government Analysis Of How Bad Cybercrime Has Become
Reprinted from NIST For ScamScam A Scam is a confidence trick - a crime - is an attempt to defraud a person or group after first gaining their trust through deception. Scams or confidence tricks exploit victims using their credulity, naïveté, compassion, vanity, irresponsibility, or greed and exploiting that. Researchers have defined confidence tricks as "a distinctive species of fraudulent conduct ... intending to further voluntary exchanges that are not mutually beneficial", as they "benefit con operators ('con men' - criminals) at the expense of their victims (the 'marks')". A scam is a crime even if no money was lost. Awareness. Authored by Douglas S. Thomas
The cyber-world is relatively new, and unlike other types of assets, cyber assets are potentially accessible to criminals in far-off locations. This distance provides the criminalCriminal A criminal is any person who through a decision or act engages in a crime. This can be complicated, as many people break laws unknowingly, however, in our context, it is a person who makes a decision to engage in unlawful acts or to place themselves with others who do this. A criminal always has the ability to decide not to break the law, or if they initially engage in crime to stop doing it, but instead continues. with significant protections from getting caught; thus, the risks are low, and with cyber assets and activities being in the trillions of dollars, the payoff is high.
When we talk about cybercrime, we often focus on the loss of privacy and security. But cybercrime also results in significant economic losses. Yet the data and research on this aspect of cybercrime are unfortunately limited. Data collection often relies on small sample sizes or has other challenges that bring accuracy into question.
In a recent NIST report (see PDF below), I looked at losses in the U.S. manufacturing industry due to cybercrime by examining an underutilized dataset from the Bureau of Justice Statistics, which is the most statistically reliable data that I can find. I also extended this work to look at the losses in all U.S. industries. The data is from a 2005 survey of 36,000 businesses with 8,079 responses, which is also by far the largest sample that I could identify for examining aggregated U.S. cybercrime losses.
Using this data, combined with methods for examining uncertainty in data, I extrapolated upper and lower bounds, putting 2016 U.S. manufacturing losses to be between 0.4% and 1.7% of manufacturing value-added or between $8.3 billion and $36.3 billion. The losses for all industries are between 0.9% and 4.1% of total U.S. gross domestic product (GDP), or between $167.9 billion and $770.0 billion. The lower bound is 40% higher than the widely cited, but largely unconfirmed, estimates from McAfee.
What makes the estimates startling is that, despite being higher than commonly cited values, the assumptions I used to calculate losses pushed the lower bound estimate down significantly, meaning the true loss may be much higher. I calculated the low value assuming that those who did not respond to the Bureau of Justice Statistics survey did not experience any losses. This amounted to 77% of the 36,000 businesses surveyed being presumed as having no loss; thus, the true loss is most likely higher than the low estimate.
Additionally, the 2005 data from the Bureau of Justice Statistics comes from a time when cybercrime was considered to be less of a problem and the digital economy was smaller. If the Bureau of Justice Statistics data is representative, that is, if the average losses of the respondents’ companies equals the actual average U.S. losses per company, then the losses approach the high estimate of $36.3 billion for manufacturing and $770 billion for all industries. This would make total cybercrime losses greater than the GDP of many U.S. industries, including construction, mining and agriculture. If the losses per company have increased faster than inflation, which is likely, then the losses would be even higher.