You are here: Home » Technology » News
Business Standard

McAfee report says cybercrime to cost world economy over $1 trillion

Growing cybercrime incidents now cost the world economy over $1 trillion, or just more than 1% of global GDP, which is up 50% from a 2018 report that put global losses at $600 billion, McAfee said

McAfee | cybercrimes | Global economy

IANS  |  New Delhi 

Representative image of a hacker

The growing cybercrime incidents now cost the world economy more than $1 trillion, or just more than one per cent of global GDP, which is up more than 50 per cent from a 2018 report that put global losses at close to $600 billion, leading cybersecurity firm revealed on Monday.

Two-thirds of surveyed companies reported some kind of cyber incident in 2019 and the average cost was more than half a million dollars per incident.

IP theft and financial crime account for at least 75 per cent of cyber losses and pose the greatest threat to companies, according to the report conducted in partnership with the Center for Strategic and International Studies (CSIS).

The report. titled 'The Hidden Costs of Cybercrime,' also explored the damage reported beyond financial losses, revealing that 92 percent of businesses felt there were other negative effects on their business beyond financial costs and lost work hours after a cyber incident.

"The severity and frequency of cyber attacks on businesses continues to rise as techniques evolve, new technologies broaden the threat surface, and the nature of work expands into home and remote environments," said Steve Grobman, SVP and CTO at

"We need a greater understanding of the comprehensive impact of cyber risk and effective plans in place to respond and prevent cyber incidents given the 100s of billions of dollars of global financial impact."

Damage to companies also includes downtime, brand reputation and reduced efficiency and 56 per cent of surveyed organisations said they do not have a plan to both prevent and respond to a cyber-incident.

Out of the 951 organisations that actually had a response plan, only 32 per cent said the plan was effective.

The system downtime was a common experience for around two thirds of respondents' organisations.

The average cost to organisations from their longest amount of downtime in 2019 was $762,231, said the report based on interviews with 1,500 IT and business decision makers online.

Thirty-three per cent of survey respondents stated that IT security incident resulting in system downtime cost them between $100,000 and $500,000.

"As a result of system downtime, organisations lost, on average, nine working hours a week leading to reduced efficiency. The average interruption to operations was 18 hours".

According to the report, it took an average of 19 hours for most organisations to move from the discovery of an incident to remediation.

Nearly 26 per cent of the respondents identified damage to brand from the downtime experienced because of a cyber-attack, the report mentioned.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, December 07 2020. 11:15 IST