Combating Cyber Crime: Global Strategies and Cost

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Combating Cyber Crime:
Global Strategies and Cost

Guillermo Dumois
Florida International University

Table of Contents
Introduction3
The Increase of Cyber Crime and Attacks5
Motivations6
Scale of Attacks8
Cyber Attacks Impact on Business9
Estimating Costs of Attacks to Business10
Direct Costs of Cyber Attacks12
Indirect Costs of Cyber Attacks to Business13
Analysis of Financial Costs to Business and Consumers14
TJX Security Breach - Financial Analysis15
TJX Stock Comparison16
TJX Financial Ratios17
Financial Costs of Attacks21
Combatting and Preventing Cyber Crime22
The Role of Government22
Global Strategies to Prevent and Fight Cyber Crime23
Conclusion24
References25

Introduction
The growth of e-commerce has been astronomical and its relevance to many businesses c=has increased. According to Forrester, e-commerce in the United States is going to reach $279 billion by 2015 (Indvik, 2011). This includes all electronic financial transactions. A 12.6% increase to $176 billion in 2010 has been fueled by an increase in Internet connected devices such as smartphones, tablets, combined with new e-commerce models—such as NetFlix, Groupon, etc. The consumer appears to be the driving force behind the financial boom of e-commerce. The ease and accessibility of Internet business is clearly of great importance to consumers. We are assaulted on a daily basis by advertisements and other marketing devices on our many electronic devices—all of which have become integral parts of our lives—from young to old. Consumers have also become more comfortable with the purchase of big-ticket items online, items such as airfare, computers, insurance, refinancing of homes, credit card applications, and banking transactions. The ease with which consumers can complete these transactions, paired with consumer perceptions of Internet security, all have greatly contributed to the tremendous growth of electronic commerce. Consumers have grown accustomed to not only inputting their credit card and banking information for transactions, but also saving them on websites for ease of future purchase or transactions. Amazon’s patented 1-click purchase model is a great example of the comfort consumers have with storing personal and credit card information on commerce sites. As consumers spend more and more time online on social media sites, financial portals and shopping web sites, the amount of financial transactions occurring electronically can only be expected to increase in the United States and abroad. The global e-commerce market is equally expected to see high growth at a rate of 19.4% from 2010 to 2013 (Eagers2012). In addition to the growth predicted above for the United States, growth at a global level will surge as technology become more affordable and third-world countries continue to enter the Internet age. It is predicted that in 2013 the world will have 3.5 trillion Internet users, and that by 2014, e-commerce revenues will reach $1 trillion worldwide (Eagers2012). The emerging prevalence of cloud computing has also impacted businesses on a financial level in several ways. New generations of products and services that were not possible before due to high cost can now be created (Hinchcliffe 2009). Cloud computing will give companies agility and control that traditional outsource models did not have. With this agility and new products and services, there will be a rise in new industries and competition. The lower costs of cloud computing will also allow more tolerance for experimentation from businesses that will lead to more innovation and growth. These new products and services will only serve to generate even more online originating revenue for businesses. Due to the overwhelming reliance that consumers and businesses have come to obtain from online transactions, one key issue that continues to surface and evolve is that of cyber-attacks and Internet security....
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