A new study of almost 12,000 Australians has found one-third of the adult population has experienced pure cybercrime during their lifetime, with 14% reporting this disruption to network systems in the past 12 months.
With all forms of cybercrime already costing trillions every year globally, experts from the Australian Institute of Criminology (AIC) and Flinders University say the crimes involved substantial levels of personal victimisation including direct losses as well as the high cost of preventing future attacks.
A pre-COVID-19 snapshot of the cost of ‘pure cybercrime’ in 2019 has found an approximate total economic hit of $3.5 billion (RM14.8 billion) – comprising $1.4 billion spent on prevention costs, $1.9 billion in money directly lost by victims and $597 million spent dealing with the consequences of victimisation.
With only about $389 million recovered by victims – barely paying for the cost of dealing with the incidents – the survey estimated about 2.8 million Australians had been hit within the past year and nearly 6.7 million Australian adults could have been victims at any time in the past.
Only a small proportion of financial losses are recovered by victims.
‘Pure cybercrime’ activities include hacking, spreading viruses and other malware, and distributed denial-of-service attacks. While this involves crimes against machines and networks, it is estimated other forms of cyber-enabled identity crime cost Australian government agencies, individuals and businesses additional sums of more than $3 billion a year.
“On current information, as cybercriminals become more sophisticated, it’s clear the need for additional expenditure on prevention will need to increase.
“Equally, it is imperative that the financial harms associated with cybercrime are assessed so that resources for prevention and response activities can be targeted most effectively, and a baseline can be developed against which to measure the impact of future policy responses,” said Flinders University Professor Russell Smith.
He also warned of a potential rise in online fraud as a result of opportunities for dishonesty created by COVID-19-related economic disruptions.
A 2018-2019 investigation into identity crime (Smith & Franks 2020) found a cost of $3.1 billion to Commonwealth entities, state and territory agencies (including police), individuals and businesses – most of which, but not all, was a consequence of cyber-enabled identity crime.
Cyber-enabled offences use technology to make conventional crimes such as identity theft, fraud, stalking and harassment easier to commit and with a lower risk of detection.