Computer Crime

According to The Computer Security Institute (CSI) the annual cost of computer crime is rising rapidly. In a recent study("1998 Computer Crime and Security Survey" conducted by CSI with participation by the FBI International Computer Crime Squad), CSI released the following statistics:

• 64% of 520 respondents reported computer security breaches within the last twelve months.

• Although 72% of respondents acknowledge suffering financial losses from such security breaches, only 46% were able to quantify their losses.

• The total financial losses for the 241 organizations that could put a dollar figure on them adds up to $136,822,000. This figure represents a 36% increase in reported losses over the 1997 figure of $100,115,555 in losses.

Security breaches detected by respondents included:

• Unauthorized access by employees.
• System penetration from the outside.
• Theft of proprietary information.
• Incidents of financial fraud.
• Sabotage of data or networks.

The most serious financial losses occurred through

• Unauthorized access by insiders ($50,565,000 in losses).
• Theft of proprietary information ($33,545,000 in losses).
• Telecommunications fraud ($17,256,000 in losses).
• Financial fraud ($11,239,000 in losses).

The number of organizations that cited their Internet connection as a frequent point of attack rose from 47% in 1997 to 54% in 1998.  Significantly, the number of respondents citing their Internet connection as a frequent point of attack is now equal to the number of respondents citing internal systems as a frequent point of attack.

For more information about this report and other information on computer security, visit the CSI web site at http://www.gocsi.com.

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2087 Grand Canal Blvd., Suite 12, Stockton, CA 95207.
Mailing Address: P.O. Box 70334 Stockton, CA 95267.
Phone: (209) 473-8937, Fax: (209) 472-8692, e-mail:mmcdougal@armonline.com
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Last modified: 12/16/02