Impacts of Cybercrimes on the Digital Economy | LegaMart Articles
The impact of Cybercrimes in the digital economy

Impacts of Cybercrimes on the Digital Economy

This article is written by Stephen Omondi Okong’o

Abstract

The vast majority of today’s information is available online, making it vulnerable to cyber threats. Many cyber threats and their behaviour make it difficult to restrict cyber-attacks in the early stages and difficult to understand. Therefore, the term “cyber security” refers to a violation of a law prohibiting or commanding an act committed or omitted for which a conviction is punishable. This includes criminal activities related to computer use, specifically illicit breakdown into computer or database systems, handling or robbery of stored and online data, or sabotaging devices and data. This includes criminal activities.

The internet is a collection of millions of computers that provide a network of electronic connections between the computers. There are millions of computers that are connected to the internet. Everyone appreciates the use of computers, but it also has a disadvantage. Crimes committed in the space result in a loss of coins. Cyber terrorism, cyber-bullying, and cyber-thievery come in various forms. Some have a job, earn a little, steal a little, and then move on to another job. Sometimes, they conspire with others or work within organized gangs such as the mafia.

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Difference between Cybercrimes and Cyber security

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The internet space, or cyberspace, is expanding rapidly, as are cybercrimes. The following is a list of Cybercrime examples that have resulted in cyberspace.

Hacking/Hackers

This is the continuous exploration of the other individual computer system for education out of curiosity or to compete with their peers. They may be attempting to use more powerful computers, gain respect from fellow hackers, build a reputation or gain acceptance as an expert without formal education.

Cracking

They are individuals who cause loss to satisfy some antisocial motive or just for fun-computer virus creators and distributors fall into this category.

Pranksters

These individuals perpetrate tricks on others but do not intend any particular or long-lasting harm.

Cyber Terrorist

There are many types of cyber terrorism. Sometimes it is a smart hacker breaking into a government website, and other times it is just a group of like-minded Internet users flooding a website with traffic. No matter how innocuous it appears, it is still illegal for those addicted to drugs, alcohol, or attention from others to the criminally negligent.

Cyberbullying

Cyberbullying is harassment that occurs via the internet, vicious forums, posts name calling in chat rooms, posting fake profiles on websites and mean or cruel email messages are all ways of cyber bullying.

Salami attackers

Salami attackers are perpetrated to perpetrate financial crimes. The key here is that the change is made so important that in a single case, for example, it would be unnoticed if an employee of a bank puts a program on the server that deducts little from every customer’s account.

Classifications of Cybercrimes

Data crimes

Data Interception 

An attacker gathers information by monitoring data streams or from a target. This usually entails sniffing network traffic, but it can also include observing other data streams, such as radio (BAIRWA, 2019). The attacker in most variants of this attack is passive and observes regular communications; however, in some variants, the attacker may attempt to initiate a data stream or influence the nature of the transmitted data.

Data Modification

Privacy of communication is essential to ensure that data is modified or viewed in transit. Distributed environments allow a malicious third party to perpetrate a computer crime by tampering with data as it moves between the sites.

In a data modification attack, an authorized party in the network intercepts data in transit and changes parts of the data before transmitting it. An example is Changing the dollar amount from $ 100 to $10,000. In a replay attack, an entire set of valid data is repeated one thousand times $100 bank account transfer transaction.

Data theft (copyright infringement) 

When information such as passwords, social security numbers, credit card information, other personal information, or other confidential corporate information is disclosed because this information was obtained illegally, it is likely that when the perpetrator of this crime is apprehended, they will be prosecuted to the fullest extent possible.

Network Crime

IP address and the Subnet Musk (CMD)

Internet protocol is a unique address that identifies a device on the internet or local network,(IP) means a set of rules governing the format of Data sent via the internet or local network. The subnet is the practice of dividing a network. 

Network Interference entails interfering with a computer’s or network’s operation by inputting, transmitting, damaging, delegating, deteriorating, altering, or suppressing network data. Therefore, network sabotage or inept managers attempting to represent the people into two or more networks is called subnetting. The maximum value of each octet is 255.

Access crimes

Unauthorized access 

Unauthorized access is an insider view of the computer cracker underground. The filming took place all across the United States, Holland and Germany. Unauthorized access looks at the personalities behind the computer screens and aims to separate the media type of the outlawed hacker from reality.

Virus Dissemination

Malicious software that attaches itself to other software (viruses, worms, Trojan horses, time bombs, Logic Bomb Rabbit and bacterium) are examples of malicious software that destroys the victim’s system.

A hacker trying to hack a educational website

Aiding and abetting Crimes

Most aiding and abetting charges against an individual include three elements. The first is that the other person committed the crime. Second, the individual knew about the crime or the principal’s intent, and third, the individual assisted the accessory somehow. An accessory before the fact is a person aware of a crime before it occurs and provides some assistance to those committing it (Kremnitzer & Eliezer, 2021). For example, they may offer advice, actions, or financial assistance. An accessory is someone who is unaware of the crime before it occurs but assists in the aftermath of the crime.

Computer-related crimes (offences)

Various offences are related to computer crimes. All of these are the result of the high use of the internet. These crimes include; Financial fraud /crime, Forgery, Cyber terrorism, Cyber extortion and Cyberwarfare. 

Content Related Crimes

Most of the hackers have unrestricted content online that violates the regulations of the government or an organization. In addition, some of the restricted content is linked online, resulting in cybercrime. Such crimes include; Cybersex, Obscene or offensive content. Online harassment, Drug trafficking, Unsolicited commercial communications.

Impacts of cyber crimes on the economy

Internet piracy, including film and music output, has been widely repressed. The abilities of computer forensic experts in companies and governments are increasingly dependent. Finally, an effort is being made to construct an intergovernmental company. The internet is used by organized crime syndicates to accomplish enormous fraud and theft (Gangwar & Narang, 2020). There’s evidence of involvement in white-collar crime by organized crime. As thieves give up old strategies, Internet crime becomes increasingly widespread. Internet-based stock fraud paid millions of dollars to crooks each year, making investors a lucrative area for this crime.

Country-wide police departments concur that the number of cyber offences notified throughout the years has increased. This is in keeping with the domestic trends of decreases in the use of computers, online commerce and extremely well-educated criminals by 2020; therefore, cybercrime has earned a greater amount than drug trafficking. Furthermore, in a priority supported by the United States Department of Homeland Security, Scott Borg, the Head of the United States Cyber Consequences Unit, has recently declared that denial of service attacks will not be the next future wave.

Potential Economic Impacts

With today’s customers more reliant on computer networks, information is used to store and perpetuate the threat of cybercrime. According to certain assessments, up to 80% of businesses identify financial losses as a result of computer infractions (Wrede, 2020). Approximately 540 million USD were impacted. Every week, we hear about new attacks on the confidentiality, completeness, and availability of computer systems, with around 10% of alleged financial theft. This could range from the theft of personal information to the denial of service assaults. As the economy’s online confidence develops, so does the economy’s vulnerability to cyber criminals.

The modern economy spans various countries and epochs. The interconnectedness of the globe’s economic systems will disrupt other regions in one portion of the world. Any disruption to these systems would thus send shock waves outside the market, which is the source of the problem.

Productivity is also under threat. Attacks from viruses and other malware divert the user’s attention away from their work. Machines may perform more slowly, and servers may be unavailable, networks may be congested, and so on. Such attacks impact the user’s and the organization’s overall productivity.

It has an impact on customer service as well as when external customers regard it as a bad component of the firm. Furthermore, customer apprehension about probable fraud inhibits a sizable proportion of online shoppers from hesitating, doubting, and worrying. These consumer confidence issues can have major consequences and should be addressed in greater detail.

Impacts On Market Value

The economic impacts of security breaches are of interest to companies trying to decide where to place their information security budget and to insurance companies that provide cyber risk policies. As the characteristics of security breaches change, companies continually reassess their Information Systems environment for threats. A ruling in favour of Ingra, micro stated that physical damage is not restricted to physical destruction or harm of computer circuitry but includes loss of use and functionality.

A method of market value takes account of the loss predictions of the capital markets as a result of a breach in security. This approach is justified because exposure to public relations often impacts firms more than the attack. Therefore, Managers also aim to maximize the value of a business by investing in projects which either raise the value of shareholders or lower the risk of a company notification of a safety violation.

Impacts on consumer trust

Since cyber-attackers enter the space of others and try to break the page’s logic, the user who visits a page will be frustrated and discouraged from using this site in the long term. The site is labelled as fraudulent, and the criminal responsible for the hidden assault is not recognized as the root cause. This leads to a loss of customer confidence in the site, the web and its ability.

In conclusion, as cybercrime becomes more prevalent, the Internet space, or cyberspace, is expanding rapidly. Various offences are related to computer crimes. These include; Financial fraud /crime, Forgery, Cyber terrorism, Cyber extortion and Cyberwarfare. One in five online consumers in the US has been the victim of cybercrimes in the last two years.

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