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article imageData breaches could cost the global economy trillions by 2019

By Brian Booker     May 12, 2015 in Technology
Juniper Research has concluded that data breaches could cost the global economy as much as $2 trillion in the next five years, and has pointed the finger at weak corporate and network security as the reason for the breaches.
Data breaches are becoming a huge concern for companies, governments, and individuals alike as an increasing number of hackers and criminals take to the internet to glean vital and sensitive information.
Major companies, such as Home Depot and Target, have been targeted in elaborate schemes and sensitive data regarding millions of customers has been stolen.
The Target data breach, which the company revealed in December of 2013, cost the company $150 million dollars in the second quarter alone, and experts believe total costs could top a billion dollars by the time it's all said and done.
Some 40 million credit card numbers were lost, and the personal information of a total of 70 million people was also leaked. Target's stock price and profits were heavily impacted by the data breach.
Juniper Research suggests, however, that this could be just a drop in the bucket compared to the total costs. The firm believes the total costs could hit $2 trillion dollars by 2019, with North America projected to account for about three quarters of the total. Western Europe will also be heavily impacted.
Juniper notes that healthcare, financial and banking, and government industries will be the most lucrative targets.
Tracking and combating cyber crimes is especially difficult due to the high-skill levels of the hackers involved, and the myriad of ways said hackers can cover their tracks and abscond with the data.
While the United States and other developed countries may bear the brunt of the financial burden, many of the hackers actually hail from poorer countries.
Authorities believe that Eastern European hackers were behind the Target breach. Last October, Federal prosecutors alleged that a Vietnamese identity theft service gained access to 200 million personal records, including social security numbers.
If Juniper's predictions turn out to be accurate, this could be just the beginning.
More about Cyber crime, Hacker, Security Breach