Annual US Cybercrime Costs Estimated at $100 Billion

The cost of cyberespionage and cybercrime to the U.S. may reach $100 billion each year, casting doubt on earlier estimates that the costs were as much as 10 times higher.

The latest estimate is backed up by some U.S. intelligence analysts, who also believe the figure is closer to $100 billion, according to a former U.S. official familiar with the intelligence discussions. That figure is 1% or less of the U.S. gross domestic product and, for companies, puts cybertheft losses in a category of costs incurred in the course of doing business. The joint study by the nonprofit Center for Strategic and International Studies and the computer-security firm McAfee reflects a major revision of McAfee's own previous estimate of $1 trillion, which has been cited widely, including by President Barack Obama. That figure also contrasts sharply with an oft-quoted statement by Gen. Keith Alexander, head of U.S. Cyber Command, who last year said the losses represent "the greatest transfer of wealth in human history."