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Microsoft’s security exec: $500B global cybercrime costs fuel criminal ecosystem

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Microsoft’s security exec: $500B global cybercrime costs fuel criminal ecosystem

Given that cyberattacks have become increasingly frequent and sophisticated, businesses should invest more in detection mechanisms rather than in education, according to Microsoft Corp. 's executive security adviser at the company's enterprise cybersecurity group.

Speaking May 24 at the Temenos AG Community Forum 2018 in Dublin, Sian John called for businesses across the board to explore ways to "quickly pick up and detect" fraud.

"Many speak about education and how it can be used to try and stop users from making mistakes but unfortunately, that will not happen because cybercriminals are getting cleverer by the day with tools designed to exploit people at points of weakness," John said.

She debunked theories about "lone hackers operating from their bedroom," stating that defenders today are combating entire networks and ecosystems, including criminals operating in the black market, on the dark web and in noncriminal services or grey markets.

John added that the rising global cost of cybercrime, which she estimates at $500 billion per year, is fueling the cybercriminal ecosystem and supply chain.

According to a 2017 Cost of Cybercrime Study by Accenture PLC, there was a 22.7% increase in the cost of cybersecurity, while successful breaches per company each year rose by 27%, from an average of 102 to 130.

The need to strengthen cybersecurity defenses among organizations has led to a number of innovative technologies flooding the market.

For example, machine learning has been used to detect malware by performing behavior-based, heuristic detection. Artificial intelligence is also making a growing impact on cybersecurity technology as it can automate complex processes to accelerate incident response and sift through software vulnerabilities.

John, however, warned that as businesses rely more on technology such as machine learning, artificial intelligence and the cloud, more cyber threats are expected to follow.

"The reason we see more financial cybercrime is because financial transactions are increasing as technology becomes an integral strategy for financial institutions," she explained.

Indeed, the Accenture study also found that spending on governance, risk and compliance technologies is not a "fast-track" to increased security.

Microsoft, which reported a 16% year-over-year growth in consolidated revenue for its fiscal third quarter ended March 31, said cybersecurity and compliance services are driving revenue growth for the company. The company launched several cybersecurity features for its cloud clients in 2017, including a new open application programming interface for intelligent security and a regulatory compliance manager.