Skip to main content

Losses from information theft now exceed physical theft

Image used with permission by copyright holder

A new survey of more than 800 executives at firms around the world commissioned by risk consultancy Kroll finds that during 2010 more companies are experiencing greater losses from theft of information—account numbers, passwords, product plans and designs, marketing details, business intelligence, and more—than they are from physical theft of their products, stock, and material assets. According to the survey, some 27.3 percent of companies experienced theft of information or assets in the last twelve months, compared to 27.2 percent of companies that experience physical theft. Information theft shows a proportionate increase of over 50 percent compared to 2009, while physical theft is actually down slightly.

Recommended Videos

“Theft of confidential information is on the rise because data is increasingly portable and perpetrators—often departing or disgruntled employees—can remove it with ease absent sufficient controls,” said Kroll America’s VP Robert Brenner, in a statement. “At the same time, there is a growing awareness among thieves of the increasing intrinsic value of an organization’s intellectual property.”

Overall, Kroll’s survey sound the the losses businesses experience from fraud on average grew from $1.4 million per billion dollars of sales in 2009 to to $1.7 million per billion in sales during the last 12 months, an increase of more than 20 percent. Other types of fraud on the increase for the year include fraud among vendors and suppliers, as well as losses due to counterfeiting, piracy, and IP theft.

The survey finds that fraud is usually an “inside job,” with junior employees and senior management being the most likely to turn on a company (at 22 percent each), followed by agents and intermediaries (at 11 percent). The proportion of frauds carried out by employees reached 50 to 60 percent in North America, Europe, and the Asia-Pacific region to 71 percent in the Middle East and Africa. However, in Latin America, customers were the most frequent perpetrators of fraud.

The survey also found that concerns over fraud is a negative factor in company’s decisions to pursue business activities around the world, particularly in emerging economies in Africa and Latin America as well as China.

“The results of the survey do not suggest other types of fraud are decreasing,” Brenner said, “but merely that the rise in theft of intellectual capital has outstripped other fraudulent activity that has remained constant.”

Kroll commissioned the survey from The Economist Intelligence Unit, surveying 801 senior executives at companies in North America, Europe, the Asia-Pacific region, Latin America, the Middle East, and Africa.

Geoff Duncan
Former Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
Topics
Samsung Memorial Day sale: The best washer, dryer, and refrigerator deals
Samsung front-load washer and dryer set in chapagne finish in a laundry room.

The Samsung Memorial Day sale is finally online, so now's the perfect time to make some upgrades in your home. The brand, which is known for making some of the best phones and best TVs, is also a reliable name in the world of appliances, including washer, dryers, and refrigerators. No matter your budget and the amount of space you have, something will surely catch your eye in this year's Memorial Days deals for Samsung appliances.

You can take a look at all the home appliances that are on sale for Memorial Day from Samsung through the link below, but we've also highlighted our recommendations below if you want to finish your purchase quickly. That's actually a good idea, because we're not sure how much longer stocks will remain available. You shouldn't wait until the last minute of these Samsung Memorial Day deals before you proceed with your transaction, as you'll be in danger of missing out.

Read more
How to use the robotic arm of the Roborock Saros Z70
The Saros Z70 picking up a sock.

While the Roborock Saros Z70 didn’t exactly live up to the hype, there’s no denying its robotic arm is still a cool piece of technology. Capable of picking up small objects in its path, moving them to a new location, then continuing its cleaning process, the Saros Z70 and its robotic arm might be the coolest feature we’ve ever seen in a robot vacuum. But how exactly does it work? And what are the robotic arm’s limitations?

Here’s a closer look at how to use the robotic arm of the Roborock Saros Z70 and ways you can improve its performance.
Limitations of the Roborock Saros Z70’s robotic arm

Read more
The new Blink Video Doorbell offers two-year battery life, person detection
Close up of Blink Video Doorbell

The Blink Video Doorbell is a popular choice for frugal shoppers, and its next-generation successor is looking to follow in its footsteps. Available today, the new Blink Video Doorbell offers a remarkable two-year battery life, an improved field of view, a reworked design, and the low price of just $70.

If you’ve ever been shopping for an affordable video doorbell, you’ve probably stumbled upon the old Blink Video Doorbell. Available for just $60, it was a great alternative to premium devices from Nest and Ring. Blink is looking to build on that success with the new Video Doorbell. Its price has crept up $10, but it also picked up some nice new features. The biggest improvement is its field of view -- it’s been enhanced to a 150-degree head-to-toe perspective, compared to the 135-degree horizontal view of its predecessor.

Read more