Study on the Recent Cyber Security-Attacks and the Economic Loss Due to the Growing of Cyber-Attacks

Abstract

Economic damages caused by cyberattacks have been on the rise recently, on a global scale. However, there has not been enough research on the economic damage caused by cyberattacks to other industries; most studies have concentrated on the attacked enterprises. As a means of better damage prediction and other national measures, this study examined the economic damages inflicted on Japan by cyberattacks by employing the production function and the input-output model. We begin by outlining a production function–based approach to estimating the yearly direct harm by industry. Working hours lost due to cyber events are the major input dataset. Second, we used the input-output model to create a model that could estimate the national spillover damage. Thirdly, we explained how to estimate direct and spillover harm in all Japanese industries, even if the data on cyber damage was confined to interview data from the JNSA and the IPA. Therefore, we think our approach of estimating is workable and efficient on a nationwide scale.