Cybercrime

by James C
Summary:

Like a domino effect Cybercrime, also known as e-crime, can cripple a company, lower its market value, and prevent it from conducting further business in a secure manner. E-business, business done from business-to-consumer (B2C) and business-to-business (B2B), in the US alone is affected annually by over $100 billion. The effects of Cybercrime not only extend to theft of assets, but also to a damaged reputation and lose of future business due to consumer insecurity. In October 2004, ChoicePoint Inc.’s database was accessed by an unauthorized user. The perpetrator downloaded an excess of 145,000 files of credit card accounts. In June 2005, another incident of database intrusion was CardSystems Inc’s, a processor of credit card transactions. The hacker in this case altered the security of millions of cards that had been issued by Discover, Visa, MasterCard and American Express. In turn many banks were negatively affected by the breach. J.P. Morgan, for example, had conduct extensive investigations into the security of client accounts. Unlike J.P. Morgan, Washington Mutual Inc. had to close out roughly over 1,400 bank card accounts.

Reflections:

The list of e-crimes has only grown since the inception of e-business and has included not only loss of business, etheft, and company status, but also netspionage, cyber-terrorism, phishing and credit card fraud.With the advent of the Internet and World Wide Web, ironically and unknowingly came a great responsibility to information and communication security. The founders of the Internet had implemented a system that allowed them to instantaneously communicate electronically between two points. It was envisioned that this system would help to securely communicate vital information in reliable manner. This idea of secure communication was ideal until the incorporation of the World Wide Web.

Businesses, as I see it, saw an easier way to reach new markets globally through the Web. No matter how secure they become, though, the holes of every good ideal are sooner or later exposed. I believe businesses don’t take enough precautions to safely secure the information they house. Time is money, meaning the more time businesses spend on securing their information the more money it costs them due to downtime, programming, and system monitoring.

Citations:

Smith, K. T., Smith, L. M., & Smith, J. L. (2011). Case studies of cybercrime and their impact on marketing activity and shareholder value. Academy of Marketing Studies Journal, 15(2), 67-67-81. Retrieved from http://search.proquest.com/docview/886545073?accountid=10357

3 thoughts on “Cybercrime”

  1. well.. I heard a lot about the cyber crimes around 2005 but it seen that these crimes reduce after companies upgrade their security. I accept the point that nothing is absolute secure. There will be always a hole however these companies tried it. That why business hire security experts with a lot of money. I always have a norton360 in my laptop and one of my friends asked me that “Is need to install an anti-virus if you do not visit some harmful sites?”. It may be ok for him to use internet without having any security software but it will be a problem for me because I always scan new websites with norton before visiting.

  2. It seems that companies don’t see themselves as targets. This is a weakness as the potential threats to their business are not clearly evaluated. As more companies get hacked and lose money as a result, the more security will be implemented.

  3. It is safer to assume as a business that it can and will happen to you and in doing so you can plan how to mitigate damage done. Sony never thought they would be a target of hacking on that level. Their security was found lacking and they paid the price…as did their customers. I had a friend who’s credit card info was compromised due to this incident. As he jokingly put it “All they have to do is roll out a New TV model to cover their losses, the regular people are just S.O.L.”

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