Hacking cost businesses $800
                million 
                By Mike Ricciuti
                June 6, 1996, 12:15 p.m. PT 

                Hackers cost businesses worldwide an estimated
                $800 million in 1995 through break-ins to
                computer systems at banks, hospitals, and other
                large businesses, according to investigators of the
                Senate's Permanent Investigations Subcommittee. 

                Despite the staggering losses, few businesses
                report the security breaches for fear of negative
                publicity that could scare off customers, officials
                say. Also, most losses incurred by banks do not
                appear in required federal reports, according to a
                story in today's Wall Street Journal. 

                The subcommittee's eight-month investigation
                showed that security problems seem to be worse
                in the private sector than in government. More
                than $400 million of the calculated losses were
                attributed to U.S. businesses. 

                Fear of hacker attacks has prompted many
                corporate users to boost budgets for security
                spending. A study conducted by The Yankee
                Group, a Boston-based consulting firm, and
                Infosecurity News showed that corporate security
                budgets have already increased by 25 percent,
                with more increases expected this year. 

                The study also concluded that nearly half of all
                break-ins are committed by internal users. 
               
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