Crypto Fangs--The Economic Culvert Pierced by Game Over Zeus and Cryptolockers (June 2014)

Crypto Fangs--The Economic Culvert Pierced by Game Over Zeus and Cryptolockers (June 2014)

In 2014, UK crime fighting agencies were alerted to the potential for widespread damage from the dangerous "Game Over Zeus" and "Cryptolocker" viruses. These viruses had the ability to illegally withdraw money from personal and business bank accounts, and if not addressed promptly, could spread within two weeks. The authorities, in coordination with relevant overseas agencies, implemented an operation to temporarily contain these attacks, but the effectiveness of the operation was limited.

Game Over Zeus is transmitted by forcing users to open fake emails and attachments. Once infected, the user information of online banking users is stolen, and money is withdrawn based on the stolen information. Cryptolocker, on the other hand, encrypts files on your computer without your permission and demands that you pay to restore them. If you refuse, all your files become unusable.

These incidents are just the tip of the iceberg. According to a report by a U.S. research organization, the annual global damage caused by this type of crime is estimated to be up to nearly 60 trillion yen. Even conservatively estimated, the total damage is more than 45 trillion yen. This far exceeds the annual budgets of many countries and illustrates the magnitude of the crisis we are facing.

The damage related to finance is particularly severe. For example, when one U.S. mass retailer was attacked, the bank was forced to reissue cards and deal with the situation, resulting in a loss of over 200 billion yen. There have also been incidents in the Middle East where billions of yen were stolen in a matter of hours. In Japan, it has been reported that around 10 billion yen per year has been lost.

Damage caused by viruses such as Cryptolocker cannot be overlooked. The cost for a company to resume operations and to regain credibility is more than just the amount of money that appears on the surface. Even if the perpetrators were not able to use all the information, the affected party must act on the "assumption that all the information was used," and the burden is enormous.

Cybercrime also affects the economy itself. According to the report, while the Internet generates 200 to 300 trillion yen in value annually, 15 to 20% of that is lost through such crimes. In other words, it is like an invisible tax, discouraging investment in new technological developments and hindering growth.

This problem can no longer be solved by internal corporate measures alone. It is directly related to national security and corporate competitiveness, and information sharing and international cooperation are essential. If it is knowledge or blueprints that are stolen, the effects will last even longer and deeper.

Of particular note is the "invisibility" of such damage. Companies do not know what has been stolen and tend to estimate their losses in small amounts. However, cybercrime is slowly eroding the foundation of our economy, and if left unchecked, will undermine our very future. If we fail to take action, we will lose much before we know it.