Threat Of Computer Crime On Government And Business

10 Pages 2572 Words

Of course, these are sensational computer crimes compared to the less-publicized instances of computer fraud and intellectual property infringement that regularly occur on the Internet. However, when such fraud and infringement cases are analyzed and the data compiled, then the extent of damage suffered by governments, private corporations, and individuals from these lesser-known computer crimes makes them equally, if not more sensational.
Financial Impact on Business
A study conducted by WarRoom Research on the effects of computer crime on business found that 58 percent of 236 corporate respondents suffered computer break-ins within the previous 12 months. Of such corporations experiencing break-ins, 18 percent of the losses exceeded $1 million each and 66% exceeded $50,0004. These figures only represent the monetary loss. What of the start-up software development company whose only asset is its intellectual property?
Compromise of Intellectual Property
Imagine the catastrophic effect that piracy of intellectual property and mass distribution via the electronic channels has on a small software business.5 It has been estimated that 40% of the software used in the United States is illegal, and six out of seven foreign users utilize pirated software.6 Moreover, many businesses are reluctant to admit when computer crime occurs. According to William J. Cook, the author of the United States Justice Department's manual on computer prosecution, organizations often swallow losses quietly rather than notifying the authorities and advertising their vulnerability to shareholders and clients.7 Thus, the losses are likely far greater than reflected in published reports.
Espionage, abuse, fraud and intellectual property piracy are just some examples of computer crimes that have become prevalent with the growth of the Internet and electronic communication. Ordinarily, laws keep pace with the technological changes in society. However, rapid te...