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Computer theft and theft-prevention statistics Look how easy it is to steal a computer with this actual surveillance video7

Computer theft is a far more prevalent problem than one might believe, just as efforts at computer theft prevention are much more ubiquitous than is commonly believed. The extent of computer theft and its associated risks are difficult to measure, primarily because only about 10% of computer crime gets reported.3

  • Radioactive information stolen -- Eight state-owned computers containing details on all of the New Mexico companies that use radioactive material were stolen from the state's Radiation Control Bureau (4/03)

  • Phoenix crime spree -- At least six break-ins of financial institutions in the Phoenix area where hard drives were specifically targeted. Organized crime and identity theft are the two leading theories. (2002)

  • Law firm victimized -- the prestigious Palo Alto law firm of Cooley Godward LLP suffered a loss of over 200 computers over a one-year period. An employee was charged with stealing 120 HP desktop computers and 90 laptops.8

  • FBI investigating hard drive theft -- TriWest had computer hard drives stolen that contain sensitive information about 220,000 military personnel. Identity theft is the primary concern.
  • School system loses 10,413 computers -- NSW Australia estimates a loss of $20 million over seven years due to repetitive thefts. They are implementing a response program costing $11million, which includes physical locks and clamps on all new computers, and many existing computers.
  • $4.5 billion losses per Fortune 500 company -- Confidential surveys indicate data theft losses are staggering, and as much as 80% of losses are due to insiders.1
  • Nuclear secrets lost -- The famous Wen Ho Lee case involved two computer hard drives containing nuclear design secrets gone missing for several days
  • Navy missing computers - An internal audit found 187 computers unaccounted for, some containing sensitive and classified information.
  • Visa loses credit card information -- Over a quarter million credit card accounts were jeopardized when a desktop computer was stolen from a Visa data processing center.6
  • Property thefts on the rise -- Government statistics show property thefts against individuals and corporations have risen as the economy has slowed down.
  • Insiders are the culprits -- Reports indicate that as much as 80% of all computer crime, and 50% of all computer crime against Fortune 500 companies, are committed by insiders. 
  • 500,000 computers stolen in 2002 -- In a nationwide TV ad campaign, IBM states that there were 500,000 computers stolen last year
  • Total losses $5 Billion -- Estimated losses due to hardware theft.2 The FBI estimates $2 billion a month due to loss of trade secrets.5
  • Top Ten Security Threat -- Information security ranked fourth for 2002.4
  • Everybody's doing it -- Roughly 90% of Fortune 500 companies install some form of physical security for their computer systems.1

What can we conclude from these facts and statistics? One conclusion would be that the risks associated with computer security breaches are real, and the breaches are both widespread and in some cases devastating. In addition, in most cases, the loss of computer DATA is the greatest risk. Whether that data contains nuclear secrets or a marketing plan, the threat to an organization can be extremely serious, and in many cases, the perpetrators are the very persons entrusted with the data in the first place, i.e. the "insiders" that are repetitiously identified in the many surveys.

If computer security breaches are so serious, then why don't we hear more about computer theft and its associated risks? A number of influences contribute to the lack of public awareness. To begin with, around 80% of computer crime is committed by insiders.3 For large companies, it's been reported that roughly HALF of all security breaches come from inside the organizations.1 It's rather obvious that the threat in these kinds of cases is not from viruses or outside hacking, it's from insiders gaining access to computers and computer hardware and stealing or sabotaging the data.
 It is generally believed that corporations do not want the publicity and embarrassment of their weaknesses revealed, and certainly do not want to make the public any more aware of the vulnerabilities and difficulties with theft prevention.

Want to know more? Here's some stories about the "little guys" who get taken too.

Sources:

1 "Computer Security Issues & Trends," Computer Security Institute, Spring 2001. The survey was based on 538 respondents from computer security practitioners in predominantly large US corporations and agencies.

2 RAND Report MR-1070-AEA, 1999

3 Pittsburgh City Paper, Vol 4, no. 34. August 24-30, 1994, pp. 8-9

4 Year 2002 Survey of Fortune 1000 Companies, Pinkertons

5FBI/Financial Institution Fraud Unit

6 Infosecurity News - January/February 1997 

7 Posted without copyright restrictions on http://ww.cboss.on/ca/surv.html, November, 2002

7 "More than 200 Computers Stolen from Law Firm," Police Report by Don Kazak, Oct. 8, 1997