Report: Cybercrime and espionage costs $445 billion annually

The Center for Strategic and International Studies, a Washington think tank, has estimated the likely annual cost of cybercrime and economic espionage to the world economy at more than $445 billion -- or almost 1 percent of global income.

The estimate is lower than the eye-popping $1 trillion figure cited by President Barack Obama, but it nonetheless puts cybercrime in the ranks of drug trafficking in terms of worldwide economic harm.

The report, funded by the security firm McAfee, which is part of Intel Security, represents one of the first efforts to analyze the costs, drawing on a variety of data. According to the report, the most advanced economies suffered the greatest losses. The United States, Germany and China together accounted for about $200 billion of the total in 2013. Much of that was due to theft of intellectual property by foreign governments.

Report: Cybercrime and espionage costs $445 billion annually Net Losses: Estimating the Global Cost of Cybercrime (McAfee)