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In this paper, the authors present what they believe to be the first systematic study of the costs of cybercrime. It was prepared in response to a request from the UK Ministry of Defence following scepticism that previous studies had hyped the problem. For each of the main categories of cybercrime they set out what is and is not known of the direct costs, indirect costs and defence costs - both to the UK and to the world as a whole. As far as direct costs are concerned, they find that traditional offences such as tax and welfare fraud cost the typical citizen in the low hundreds of pounds/Euros/dollars a year; transitional frauds cost a few pounds/Euros/dollars; while the new computer crimes cost in the tens of pence/cents.
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