Tuesday, December 06, 2005

Cybercrime pays off more than drug trafficking

Proceeds from cybercrime in 2004 topped $105B

(REUTERS) - Global cybercrime generated a higher payback than drug trafficking in 2004 and is set to grow even further as the use of technology expands in developing countries, a security expert said today.

No country is immune from cybercrime, which includes corporate espionage, child pornography, stock manipulation, extortion and piracy, said Valerie McNiven, who advises the U.S. Department of the Treasury on the problem. “Last year was the first year that proceeds from cybercrime were greater than proceeds from the sale of illegal drugs, and that was, I believe, over $105 billion,” McNiven said. “Cybercrime is moving at such a high speed that law enforcement cannot catch up with it.”

For example, Web sites used by fraudsters for “phishing” -- the practice of tricking computer users into revealing their bank details and other personal data -- only stay on the Internet for a maximum of 48 hours, she said.

Asked if there is any evidence of links between the funding of terrorism and cybercrime, McNiven said, “There is evidence of links between them. But what’s more important is our refusal or failure to create secure systems. We can do it, but it’s an issue of costs.”

McNiven, a former electronic finance and security specialist for the World Bank, was in Riyadh, Saudi Arabia, at a conference on information security in the banking sector. Developing countries that lack the virtual financial systems available elsewhere are easier prey for cybercriminals looking for quick gain.

“When you have identity thefts or corruption and manipulation of information [in developing countries], it becomes almost more important because ... their systems start getting compromised from the get-go,” McNiven said. “Another area that begins to expand is human trafficking and pornography, because both of these become so much available once you have a communication ability.”

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