Global data theft hits $1 trillion

Cybercrime during 2008 cost businesses more than $1 trillion worldwide in lost intellectual property, a new survey shows. The new CIO survey also shows businesses who use off-shore data storage do not consider higher security implications of having data processed in other countries.

Trent Telford, Cocoon Data chief executive, says the global downturn means business data is more vulnerable than ever, and businesses must pick up the slack.

“The cyber-underground is growing ever more sophisticated and hi-tech criminals trading stolen information are thriving rather than suffering the economic downtown. And in the current economic climate the threat from ‘inside’ the company poses the biggest threat to trade secrets,” he says. “Financially stressed, laid-off staff can be tempted into stealing vital information that’s not locked down.

“With increasingly tough data protection laws, business cannot afford to get complacent about protecting their most valuable intangible assets – information and integrity. Despite the extensive resources a company may invest in cleaning up the mess left from a data breach, the damage to brand and reputation can ruin a business.

“Email, portable storage devices, laptops, information sitting on the server, on the server of supply chain partners are an open gateway to attack. Being aware of such risks and putting the right policies and technology in place is crucial to avoid serious financial loss,” says Telford.