Cybercrime as a Tax on the Internet Economy
I was reading this 2014 McAfee report on the economic impact of cybercrime, and came across this interesting quote on how security is a tax on the Internet economy:
Another way to look at the opportunity cost of cybercrime is to see it as a share of the Internet economy. Studies estimate that the Internet economy annually generates between $2 trillion and $3 trillion, a share of the global economy that is expected to grow rapidly. If our estimates are right, cybercrime extracts between 15% and 20% of the value created by the Internet, a heavy tax on the potential for economic growth and job creation and a share of revenue that is significantly larger than any other transnational criminal activity.
Of course you can argue with the numbers, and there's good reason to believe that the actual costs of cybercrime are much lower. And, of course, those costs are largely indirect costs. It's not that cybercriminals are getting away with all that value; it's largely spent on security products and services from companies like McAfee (and my own IBM Security).
In Liars and Outliers I talk about security as a tax on the honest.
Posted on September 1, 2016 at 9:49 AM • 32 Comments