Benjamin

Dean
15 January, 2015
Total direct losses from cyber-crime, amount spent for cyber-security and
amounts lost to traditional fraud now going cyber, various years,
United States
Item

Annual loss or
spend, US

Year

Source

Copyright infringing music and

video

21 million

2014

Patent-infringing software

23 million

2011

Patent-infringing pharmaceuticals

72 million

2011

Internet-enabled scams

574 million

2013

Online payment card fraud

1 561 million

2012

Offline payment card fraud

2 227 million

2012

Global revenues earned by cyber-lockers scaled down to US contribution to world GDP.

See https://app.clickdimensions.com/blob/netnamescom-av7bl/documents/dca-netnames-cyberprofibility.pdf
Estimates based on study by Chris Kanich, Christian Kreibich, Kirill Levchenko, Brandon Enright,
Geoffrey M. Voelker, Vern Paxson, and Stefan Savage (2008), Spamalytics: An empirical analysis
of spam marketing conversion. In Proceedings of the ACM Conference on Computer and
Communications Security, October 2008.
See: http://cseweb.ucsd.edu/~savage/papers/UsenixSec11-SMTM.pdf
Estimates based on study by Chris Kanich, Christian Kreibich, Kirill Levchenko, Brandon Enright,
Geoffrey M. Voelker, Vern Paxson, and Stefan Savage (2008), Spamalytics: An empirical analysis
of spam marketing conversion. In Proceedings of the ACM Conference on Computer and
Communications Security, October 2008.
See: http://cseweb.ucsd.edu/~savage/papers/UsenixSec11-SMTM.pdf
Internet Crime Complaint Center (iC3.gov), 2013 Internet Crime Report.
See: https://www.ic3.gov/media/annualreport/2013_IC3Report.pdf
Federal Reserve Board Services, 2013 Federal Payment Reserve Payment Study, unauthorized
rd
(3 party) not-in-person credit and debit cards, 2012.
See: https://www.frbservices.org/communications/payment_system_research.html
Federal Reserve Board Services, 2013 Federal Payment Reserve Payment Study, unauthorized
rd
(3 party) in-person credit and debit cards, 2012.
See: https://www.frbservices.org/communications/payment_system_research.html

Anti-virus spending

4 957 million

2014

US cyber-command budget

447 million

2014

US Dept of Homeland Security,

cyber-budget

792 million

2014

US Dept of Defense budget,

cyber-activities

4 700 million

2014

National Intelligence Program,

'Enhancing cyber-security'

4 208 million

2013

US Federal spending on cybersecurity

10 000 million

2013

Losses due to cyber-crime

Spending on cyber-security
Authors estimate using average anti-virus package price (for one user), multiplied by number of
internet users in the US.
A comparison of the prices for major anti-virus software packages in 2014 can be found here:
http://www.top10antivirussoftware.com/AntivirusPrices-Comparison
The market share for each anti-virus company in 2014 can be found here:
http://www.statista.com/statistics/271048/market-share-held-by-antivirus-vendors-for-windowssystems/
House Appropriations Committee, US Cyber Command budget 2014.
See: http://appropriations.house.gov/uploadedfiles/01.13.14_fy_2014_omnibus_-_defense__summary.pdf
Fahmida Rashid (2013) Obama Budget Outlines Federal CyberSecurity Spending, April 12, 2013,
PCMag.com.
See: http://securitywatch.pcmag.com/security/310295-obama-budget-outlines-federalcybersecurity-spending
Fahmida Rashid (2013) Obama Budget Outlines Federal CyberSecurity Spending, April 12, 2013,
PCMag.com.
See: http://securitywatch.pcmag.com/security/310295-obama-budget-outlines-federalcybersecurity-spending
The National Intelligence Programs budget for 2013 was covered in detail in the Washington Post
article on the Black Budget.
See: http://www.washingtonpost.com/wp-srv/special/national/black-budget/
Associated Press estimates based on data from the White House and the US Computer
Emergency Readiness Team.
See: http://my.wavebroadband.com/news/read/category/us/article/the_associated_pressfederal_government_struggles_against_cyberattacks-ap

Losses due to traditional crimes becoming cyber

Welfare fraud

4 079 million

2013

Tax filing fraud

5 200 million

2010

Tax evasion

385 000 million

2006

United States Department of Labor (2013), Unemployment Insurance Improper Payments by State,
2013 Calendar Year data [01/01/2013 12/31/2013]
See: http://www.dol.gov/dol/maps/Data.htm
Lizette Alvarez (2012), With Personal Data in Hand, Thieves File Early and Often, New York Times,
May 26, 2012.
See: http://www.nytimes.com/2012/05/27/us/id-thieves-loot-tax-checks-filing-early-andoften.html%3F_r=0
Internal Revenue Service (2012), Tax Gap for Tax Year 2006, Overview.
See: http://www.irs.gov/pub/irs-soi/06rastg12overvw.pdf