Ana SimentalDr. Erik A. SibulEconomy 201December 09, 2017Term Paper: The Effects of Cyber-Crime on the Internet Economy The world of Amazon, Uber and Lifts, and ordering through apps is among us. All people do is order online. Amazon is even venturing into the world of grocery shopping through online! Amazon’s Alexia is making it as easy as just asking her to place the order. SO with all of these big named companies opening a new market that is so accessible to people all around the world I wonder What are the effects of cyber-crime on the Internet economy?Every so often there is a new headline about hackers stealing credit card information. Some of the big named places are Target, Uber, and Sony. With Uber being the most recent and seemingly like the most detrimental because of how many people use Uber on the daily bases sometimes more than once in the same day. Clients are trusting these major companies with very personal information. As more people are joining the internet world and the younger generations being born into an all internet lifestyle it is becoming almost like a trap. The more traffic that is online the easier it is for criminals to take advantage. Crimes online include email spam and phishing, identity theft, online scams or frauds. These are some of the most common cyber crimes as of this year. There’s no telling with this online market as it opens up a new market for criminals to make so much more money. When there isn’t a face behind the victim it is almost easier to just take this dollar amount versus having to wrestle someone for their purse or wallet. When a company becomes hacked it ruins their reputation. Sales go down. This is all a domino affect which eventually does affect the economy but not just nationally; globally. “No one should doubt Amazon.com’s power to disrupt new industries” Salisbury says.”Just last month, grocery store stocks plunged when news arrived that Amazon planned to acquire trendy, upscale grocer Whole Foods”. No one’s first thought when thinking about doing groceries is to open up a new tab and search for Amazon. But it’s becoming even more easier with Alexia and just asking so anything you could possibly want or need. “The rapid pace of technological advancement, coupled with more than a century of intense globalization, has led to a highly interconnected world, characterized by the unprecedented movement of goods, services, people, nances, and ideas both across and within borders” (Cooke). There isn’t a limit as to what a hacker can obtain. Where does the line get drawn of the online market grows everyday. With new applications and new business ventures and ideas there has to be a way for companies to protect their business, reputation, and clients information. Its an inevitable problem that everyone must face or be aware of everytime they make a purchase online. It does make customers feel better when you can trust a company. ” The canonical definition of organized crime comes from the FBI: Any group having some manner of a formalized structure and whose primary objective is to obtain money through illegal activities. Such groups maintain their position through the use of actual or threatened violence, corrupt public officials, graft, or extortion, and generally have a significant impact on the people in their locales, region, or the country as a whole. (FBI, undatedb)” There is a sort of mafia vibe about the definition. When thinking about different gorups of hackers working together from different countries, states, or cities its a scary thought. In articles its mentioned that some of these cyber criminals are as good as the top security placed for IT by these companies.According to CNBC, “The Hiscox Cyber Readiness Report 2017, published Tuesday, surveyed 3,000 companies across the three countries to assess their readiness to deal with cybercrime in terms of strategy, resourcing, technology and process”. Hiscox is an insurance company catered to large companies. The report found “53 percent of the companies assessed were ill-prepared to deal with an attack, and just 30 percent were rated “expert” in their overall cyber readiness.” Taking a look at those statistics is overwhelming. They’re not in the anyones favor except for hacker and scammers who can find out which companies are unprotected. It puts so many people in harm’s way, unknowingly, which is even worse because they don’t have a chance to protect themselves. In 2016 “cybercrime cost the global economy over $450 billion, over 2 billion personal records were stolen and in the U.S. alone over 100 million Americans had their medical records stolen,” said Steve Langan, chief executive at Hiscox Insurance, told CNBC. “This is an epidemic of cybercrime, and yet 53 percent of businesses in the U.S., U.K. and Germany were just ill-prepared.” The percentages of businesses that are ill-prepared is too high. I feel that businesses that offer such an option of serving consumers online offering a safe way to do so should be a second thought. It’s only common sense when a bank opens to have security guards or when any business opens that have alarms set up and cameras as a precaution to any potential crimes committed. “Companies are increasingly factoring cyber-attacks into their business and IT risk assessments, according to Darren Anstee, chief security technologist at Arbor Networks.” Cyber crimes are being called an epidemic and with new technologies coming out everyday with new ways for an attack to be attempted. I feel as though there will always be threat to companies in regards to the economy online. “IBM Corp.’s Chairman, CEO and President, Ginni Rometty, recently said that cyber crime may be the greatest threat to every company in the world.””From 2013 to 2015 the cyber crime costs quadrupled, and it looks like there will be another quadrupling from 2015 to 2019” (Smith). Juniper research predicted that “the rapid digitization of consumers’ lives and enterprise records will increase the cost of data breaches to $2.1 trillion globally by 2019″ (Smith). The digilization alone will increase to almost four times the estimated cost of breaches in 2015.There are so many more crimes that go undetected and only goes to add the amount of money that is a costs to the economy.”Cyber crime is fueling the market for cybersecurity products and services, which is expected to grow from $75 billion in 2015 to $175 billion by 2020. The cyberinsurance market is also getting a boost from cybercrime – and projected to grow from $2.5 billion in 2015 to $7.5 billion by 2020.” Of course as more companies are being put on a pedestal with headlines everywhere about any hackers or scammers getting into the information of customers the harder they are going to try to protect themselves. Their reputation is important in making sales and keeping customers happy and coming back.”Regarding the international system as a whole, cyber-attacks cause a major stumbling block for global economic growth due to its detrimental effects on innovation and the theft of ideas.” Cyber criminals aren’t able to take money but ideas. I feel with money its easiest to track while personal information and ideas are harder to control or get back. Even giant companies like Sony have been hacked. One of their big movies of the year was such a controversy that North Korean hackers decided they wanted to leak it so that there would millions of dollars lost. “While Sony’s decision to cancel the release of “The Interview,” the film that sparked the hacks into Sony’s information, has reportedly cost the corporation $200 million USD.” As of 2016 small businesses make up 99.7 percent of all businesses in America. The losses being considered above are only including larger companies. Without adequate protection they are hacked and won’t even know about it until their sales greatly suffer years later “due to competitors gaining knowledge of the company’s logistics, target markets, or personal information.” So basically cyber crime is an epidemic because of how often it happens and to how many people it is happening too. So many people around the world are becoming victims. There are new technologies being created everyday opening up new opportunities for these cyber gangs to take advantage of. With the ever growing online market there will always be more cyber crime to follow. The costs of these crimes are going to go into the trillions of dollars. Businesses and people need to.Works Cited Graham, Luke. “Cybercrime costs the global economy $450 billion: CEO.” CNBC, CNBC, 7 Feb. 2017, www.cnbc.com/2017/02/07/cybercrime-costs-the-global-economy-450-billion-ceo.html.At the time of the breach. “Uber’s massive hack: What we know.” CNNMoney, Cable News Network, money.cnn.com/2017/11/22/technology/uber-hack-consequences-cover-up/index.html. Treverton, Gregory F., et al. “The Threat Will Continue to Morph.” Moving Toward the Future of Policing, RAND Corporation, 2011, pp. 89–106, www.jstor.org/stable/10.7249/mg1102.13. Morgan, Steve. “Cyber Crime Costs Projected To Reach $2 Trillion by 2019.” Forbes, Forbes Magazine, 17 Jan. 2016, www.forbes.com/sites/stevemorgan/2016/01/17/cyber-crime-costs-projected-to-reach-2-trillion-by-2019/#773fb3213a91.Author: Daniel Cooke. “The Effects of Cybercrime on the Global Economy.” GlobalEDGE Blog: The Effects of Cybercrime on the Global Economy >> globalEDGE: Your source for Global Business Knowledge, 22 Dec. 2014, globaledge.msu.edu/blog/post/17836/the-effects-of-cybercrime-on-the-global.Morgan, Steve. “Cybersecurity? ?Market Reaches $75 Billion In 2015?;? ?Expected To Reach $170 Billion By 2020.” Forbes, Forbes Magazine, 21 Dec. 2015, www.forbes.com/sites/stevemorgan/2015/12/20/cybersecurity%E2%80%8B-%E2%80%8Bmarket-reaches-75-billion-in-2015%E2%80%8B%E2%80%8B-%E2%80%8Bexpected-to-reach-170-billion-by-2020/#455ea55d30d6.”Amazon Could Disrupt These 5 Industries Next | Money.” Time, Time, time.com/money/4868145/amazon-disrupts-industries/.Smith, Sam. “Cybercrime will Cost Businesses Over $2 Trillion By 2019.” Cybercrime will Cost Businesses Over $2 Trillion by 2019, www.juniperresearch.com/press/press-releases/cybercrime-cost-businesses-over-2trillion.