Cybercrime costs $338bn to global economy; More lucrative than drugs trade

Cybercrime costs $338bn to global economy; More lucrative than drugs trade

Summary: Cybercrime is costing more than the drugs trade, according to new research by Symantec. But this criminologist argues that some crime cannot be measured in financial losses.

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Source: Symantec

Norton reports that cybercrime is costing the global economy $338 billion a year, overtaking a still a lucrative trade in the underground drugs market.

For every second that goes by, 19 people worldwide fall victim to some form of online crime, most commonly social network hacking and credit card fraud.

The Norton Cybercrime Report 2011 outlines the cost of cybercrime worldwide, with 74 million in the United States alone falling victim to online scams, phishing attacks and exploitative malware; costing the U.S. economy an estimated $32 billion.

But the report suggests that more than 69 percent, at two-thirds of online adults, have fallen victim to cybecrime; a figure that is still on the rise.

Symantec, the anti-virus maker who issued the report, noted that it takes U.S. authorities nearly twice as long to resolve cybercrime than its British counterparts.

Though still in the minority, the report found that there is an increasing number of mobile device victims, as reports show that vulnerabilities in mobile operating systems have risen from 115 in 2009 to 163 a year later.

89 percent of respondents to the research say that "more needs to be done to bring cyber-criminals to justice". But from a criminological point of view, the justice system barely gets a foot in the door.

Law enforcement across sovereign boundaries is hampering the efforts in bringing those to appear before the courts.

The drugs market is an interesting one to pin the figures to. Twenty or thirty years ago, the global drugs trade was at its peak. Nowadays, the paradigm shift completes to the online world, where cybercrime is not only more prevalent in practice, but affects a far greater number of people.

Whether this means it's easier to catch a virus or have your credit card swiped, than it is to score on the street corner, there is little to go by in terms of specifics.

But one of the reasons why the online cybercrime market is far more lucrative than the drugs trade -- at least in this example -- falls down to jurisdictional boundaries; something the online world is yet to fully comprehend or even catch up with in terms of firm legislation.

Back in the day when the drugs trade relied on crossing international borders, the police and border units were ready for it, setting up intelligence sharing capabilities and extradition treaties. But as cybercrime is inherently difficult to trace the roots of, particularly sourcing malware authors and botnet controllers, global law enforcement is still struggling to catch up with a game they are still only learning the rules to.

Data theft alone is an immeasurable crime, hitting people more personally than financially, in many cases. It may fall down to a social networking breach or the old fashioned identity theft; the losses cannot be weighed in dollars or economic losses because data is an invaluable resource and commodity in the modern world.

And, with more devices rolling off the manufacturing line into the shops, there is a far greater scope and points of penetration than before. Along with the still developing NFC technology to allow cashless payments under a certain limit, mobile devices are increasingly becoming our mobile wallets, for applications and games, music and video content.

While I may not personally agree with the drugs trade analogy that so many others are reporting with, this modern day sphere of crime is highly comparable to the drugs trade thirty-odd years ago.

Topics: Security, Data Centers, Legal

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  • Sounds like we need powerful legislation

    Like the Patriot Act.
    Your Non Advocate
    • RE: Cybercrime costs $338bn to global economy; More lucrative than drugs trade

      @facebook@...
      The patriot act is more of a very bad joke than anything else.
      It have far more impact on the honest cityzen than on any criminal. Not to say anything about it's costs, both finantial and social.
      Kualinar
  • Message has been deleted.

    Joe.Smetona
  • RE: Cybercrime costs $338bn to global economy; More lucrative than drugs trade

    Junk numbers from a company that depends on FUD for a living.
    Post from Schneier explains why these surveys are worthless:
    http://www.schneier.com/blog/archives/2011/06/the_problem_wit_3.html
    Aaron H
  • RE: Cybercrime costs $338bn to global economy; More lucrative than drugs trade

    It seems plausible to me.<br><br>If I want to rob Fort Knox, I need trucks and lackeys to move the gold, some way of converting it, whilst avoiding the authorities.<br><br>If I want to deal drugs, I have to move them to the market and get lackeys to sell them to customer, whilst avoiding the authorities.<br><br>If I use social engineering and the Internet, people will send me what I want.<br>Chances are, the authorities won't even notice that it's happening.
    lehnerus2000
  • Need a botnet? Anyone can now rent TDL-4 using Visa-MC.

    This is a re-post because my first post (above) was deleted - Good old ZDNet propaganda is alive and well.<br><br><b><font size=2> The TDL-4 botnet owners are boldly offering use of their botnet (and the millions of infected Windows computers) openly and advertised with Firefox apps for convenience and accepting Major Credit cards and Paypal for payment.<br><br>You can even pay and rent space on your own TDL-4 infected Microsoft computer. What a country! It seems cybercrime pays when you are using Microsoft. :) </font></2></b><br><br><i><font color=navy>"Criminals who operate large groupings of hacked PCs tend to be a secretive lot, and jealously guard their assets against hijacking by other crooks. But one of the worlds largest and most sophisticated botnets is openly renting its infected PCs to any and all comers, and has even created a Firefox add-on to assist customers."<br><br>"The TDSS botnet is the most sophisticated threat today, according to experts at Russian security firm Kaspersky Lab. First launched in 2008, TDSS is now in its fourth major version (also known as TDL-4). The malware uses a rootkit to install itself deep within infected PCs, ensuring that it loads before the Microsoft Windows operating system starts. TDSS also removes approximately 20 malicious programs from host PCs, preventing systems from communicating with other bot families."<br><br>"In an exhaustive analysis of TDSS published in June, Kaspersky researchers Sergey Golovanov and Igor Soumenkov wrote that among the many components installed by TDSS is a file called socks.dll, which allows infected PCs to be used by others to surf the Web anonymously."<br><br>Researchers say this Firefox add-on helps customers use Internet connections of TDSS-infected PCs."<br><br>"Having control over such a large number of computers with this function, the cybercriminals have started offering anonymous Internet access as a service, at a cost of roughly $100 per month, the researchers wrote. For the sake of convenience, the cybercriminals have also developed a Firefox add-on that makes it easy to toggle between proxy servers within the browser."<br><br>"The storefront for this massive botnet is awmproxy.net, which advertises the fastest anonymous proxies. According to Golovanov, when socks.dll is installed on a TDSS-infected computer, it notifies awmproxy.net that a new proxy is available for rent. Soon after that notification is completed, the infected PC starts to accept approximately 10 proxy requests each minute, he said."<br><br>"For us it was enough to see that this additional proxy module for tdl4 was installed directly on encrypted partition and runs thru rootkit functionality, Golovanov told KrebsOnSecurity. So we believe that awmproxy has direct connection to tdl4 developer but how they are working together we dont know. The curators of AWMproxy did not respond to requests for comment."<br><br>"AWMproxy.net, the storefront for renting access to TDSS-infected PCs."<br><br>"The services proxies are priced according to exclusivity and length of use. Regular browser proxies range from $3 per day to $25 monthly. Proxies that can be used to anonymize all of the Internet traffic on a customers PC cost between $65 and $500 a month. For $160 a week, customers can rent exclusive access to 100 TDSS-infected systems at once. Interestingly, AWMproxy says it accepts payment via PayPal, MasterCard, and Visa."</font></i><br><br>From Krebs on Security
    -- <a href="http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/" target="_blank" rel="nofollow"><a href="http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/" target="_blank" rel="nofollow"><a href="http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/" target="_blank" rel="nofollow"><a href="http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/" target="_blank" rel="nofollow"><a href="http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/" target="_blank" rel="nofollow"><a href="http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/" target="_blank" rel="nofollow"><a href="http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/" target="_blank" rel="nofollow">http://krebsonsecurity.com/2011/09/rent-a-bot-networks-tied-to-tdss-botnet/</a></a></a></a></a></a></a>
    Joe.Smetona
    • RE: Cybercrime costs $338bn to global economy; More lucrative than drugs trade

      @Joe.Smetona Thanks for the info and the krebs link. Very interesting stuff.
      tkeller1
    • Being used as a proxy via TDL-4 means you can get arrested.

      Reply to tkeller ... This aspect of the botnet renting out anonymous proxies using infected computers means someone wishing to do illegal activity is using the infected persons IP address to break the law and the infected computer will be identified as the culprit. It's not just for giggles anymore.<br><br><a href="http://www.h-online.com/security/news/item/Anonymisation-service-uses-botnet-as-proxies-1339950.html" target="_blank" rel="nofollow">http://www.h-online.com/security/news/item/Anonymisation-service-uses-botnet-as-proxies-1339950.html</a>

      <i><font color=navy>"To prove that they did not commit these illegal actions themselves, they will first have to find the rootkit deep down in their system. Among other things, it implements its own encrypted file system; its rootkit functions even work on 64-bit Windows."</font></i>
      Joe.Smetona
  • RE: Cybercrime costs $338bn to global economy; More lucrative than drugs trade

    This story isn't a surprise (if it is indeed true?). I've been telling peeps for ages that they just as well be playing with a gun, as that would be safer than using any technology related to the internet. Only because the majority of users have no idea what they are doing with their phone, tablet etc.
    silvryn
  • RE: Cybercrime costs $338bn to global economy; More lucrative than drugs trade

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  • RE: Cybercrime costs $338bn to global economy; More lucrative than drugs trade

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