Cybercrime Costs US Economy at Least $117B Each Year

As staggering as the losses pegged to cybercrime are, they may even be worse than estimated, according to David A. Powner, GAO director of IT management issues and the lead author of a recent report. "Whatever is reported by organizations, most of that will likely be underreported because of disincentives to report losses," he told TechNewsWorld.

Cybercrime has become a threat to the nation's economic and security interests, according to a report released Monday by a Congressional research and investigation agency.

Cybercrime in its various forms -- computer crime, identity theft and phishing -- costs the U.S. economy some US$117.5 billion a year, reported the Government Accountability Office (GAO).

"These projected losses are based on direct and indirect costs that may include actual money stolen, estimated cost of intellectual property stolen, and recovery  cost of repairing or replacing damaged networks and equipment," says the report, released through the offices of Reps. Bennie G. Thompson (D-Miss.), chairman of the committee on Homeland Security, and James R. Langevin (D-R.I.), chairman of the subcommittee on Emerging Threats, Cybersecurity, Science and Technology.