Cybercrime is a tax on innovation that slows the pace of global development, according to James Andrew Lewis, director and senior fellow of the Technology and Public Policy Programme the Centre for Strategic and International Studies (CSIS).
“Cybercrime is a tax on innovation and slows the pace of global innovation by reducing the rate of return to innovators and investors,” he said.
Even though cybercrime is devastating in developing countries, Lewis said developed countries are also badly affected.
“For developed countries, cybercrime has serious implications for employment,” he said.
In CSIS’ latest report, it estimated the annual cost of cybercrime to be about US$445 billion. According to the report, damaging impacts of cybercrime affect businesses ranging from intellectual property theft, which exceeds US$160 billion, to hacking.
The report said cybercrime has become a growing industry that is damaging trade, competitiveness and innovation, with losses ranging from US$375 billion to US$575 billion.
According to the report, about 15 per cent of Americans, about 40 million people, have had their personal information hacked. In Turkey, 54 million people have been affected, 16 million in Germany, while in China, the number exceeds 20 million.
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