by James C
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.
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.
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