Report says: IT security costs countries more than gained

Report says: IT security costs countries more than gained

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Each of the countries examined in the report typically do have some form of cyber security strategy, but Hathaway called for greater attention to the negative aspects , especially given more countries are becoming more connected.

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The internet brings plenty of benefits to the world, including gross domestic product (GDP) growth via broadband, e-banking, online collaborative platforms and the promise of a global supply chain. However, according to Hathaway Global Strategies president Melissa Hathaway, few are considering the negative impacts that ICT investments have on GDP.

In a media briefing for the launch of a study into how prepared countries are to respond to online threats (PDF), Hathaway said that the negative impacts of issues such as intellectual property (IP) theft, denial of service attacks and identity theft were causing GDP degradation sometimes in excess of the gains experienced.

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The Netherlands, for example, experienced a 1.6 percent growth in GDP in 2010 due to investments in ICT, however, IP theft accounted for a 2 percent degradation totalling 10 billion Euros.

The US saw a 2.2 percent growth in GDP in 2012, but a 1 percent or US$300 billion loss due to IP theft alone.

Likewise, despite Germany experiencing significant growth from ICT investment in 2010 at 4.2 percent, it lost 24 billion Euros, or 1.5 percent of its GDP due to IP theft.

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Source: Michael Lee

Image Source: Intel Free Press