Every day we receive news of cyberattacks directed at our government, institutions and businesses. With more than 160,000 new pieces of malware, or hacking software, reaching the Internet daily, public opinion deems this “business as usual.” The frequency of cybercrime and the relative infrequency of arrests and prosecutions leads to the resigned assumption by many that there is little that can be done.
U.S. Secretary of State John Kerry recently declared, “it’s the Wild West” out there, when it comes to cyberattacks against business and government. Hackers range from kids with few resources to rogue companies and governments steadfast in their goals of spying, stealing and damaging others. Kerry believes his emails are read in Russia and China.
Even more discouraging is the reality that companies working to protect our infrastructures and businesses from malware and cybercrime are themselves hacked. In the past two years, two large security companies had their software leaked on the Internet to the advantage of anyone with some decent programming skills and illegal intentions and the embarrassment of several police and military forces that used to rely on those protections.
Fortunately, our U.S. senators from Maine have taken the initiative to support the fight in cybersecurity.
Sen. Susan Collins recently advocated for the bipartisan Cybersecurity Information Sharing Act of 2015. She put it clearly in an August statement: “We already know many of the steps necessary to reduce the likelihood of a cyber 9/11, yet many of those actions have not yet been taken, in either the government or the private sector. As one former official told the 9/11 Commission last year, ‘We are at September 10th levels in terms of cyber preparedness.’”
Sen. Angus King organized a conference for businesses last month, where experts from the Department of Homeland Security shared best practices and practical recommendations so that the business community can understand how to protect their intellectual property and systems.
There is much more to do, however, and it requires the participation of the public and private sectors and international cooperation.
The impact of the cybersecurity problem for the American and other large economies is huge: Estimates put the loss at $125 billion annually for the economies of the G20 nations and a staggering $400 billion loss for the world economy.
The economic impact of cybercrime is easy to see:
— As more business functions move online and more companies and consumers around the world connect to the Internet for their products and services, the targets for crime increase. The loss of reputation easily can outweigh the financial damage from a cybertheft. In the famous Target case, where credit card data were lost, the total cost surpassed $200 million.
— Theft of intellectual property increases as acquiring countries improve their ability to exploit it to manufacture competing goods at a fraction of the cost that (usually) we in the U.S. have incurred to develop it.
— Cybercrime is a tax on innovation and slows the pace of research and development by reducing the rate of return to innovators and investors.
— As infrastructures, machines and even cars were not designed to prevent or mitigate cyberattacks, it is too easy for hackers to disrupt power lines, factories and transportation.
— Cybercrime facilitates blackmail. And even when no damage is physically done, the economic impact is tremendous.
Solving the cyberattack problem requires a multipronged strategy, because it really is the Wild West out there on the Internet.
— At the highest international level, governments need to agree on law enforcement treaties so criminals can be reached and punished anywhere.
— Governments also need to recognize that trade commitments only work if intellectual property is protected and commercial practices remain legal.
— Domestically, more needs to be done to develop research and keep abreast of technological innovation so organizations in government and private sectors can benefit from the latest technologies.
— Education at the secondary and college levels needs to raise awareness in the younger generation and support the development of cybersecurity as required curriculum for all professions that design and engineer the economy of tomorrow.
— Decision makers in business need to make cybersecurity a priority in the evaluation of their enterprise as well as in the development of their new products and services.
Cybersecurity needs to climb higher on the agenda of politicians and business leaders alike. The American government, defense industry, and academia all have the means to develop and share technologies so that our economy stops losing resources to domestic and international hackers.
Roberto Dolci is president of Aizoon U.S., a Lewiston company that specializes in cybersecurity.