Money Approved in 2016 to Counter Russian Disinformation

Posted on February 27, 2018February 27, 2018 by Denise Simon

Government does move slowly, in some cases if at all at tackling specific issues. With the cheap but effective disinformation campaign launched by Russia via the Internet Research Agency during the U.S. election season, the Mueller operation continues including the indictment of several Russian operatives.

A little factoid which has not been covered by media, much less how the visa got approved is curious, but a former IRA supervisor from Russia has moved to Bellevue, Washington. She is running a blog…ah what? This suspected ex-troll factory manager talked of filing for a Social Security Number (SSN). Burdonova declined to comment to TV Rain about her reasons for the move to the U.S. and denied having worked for the Internet Research Agency. The IRA, since at least 2014, worked to “interfere with the U.S political system” in part by supporting Donald Trump and “disparaging” Hillary Clinton.

The organization used social media advertising to spread misinformation and even staged political rallies in the U.S., the indictment alleged. Officials from Facebook, Twitter and Google have admitted their platforms were abused. More here from Newsweek.

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So, between the U.S. State Department and the Pentagon, $40 million has been allocated to the Global Engagement Center to counter the Russian disinformation operation and China or other rogue nations are not exempt from the soon to be American response.

The State Department describes it this way:

The work of the GEC is focused around four core areas: science and technology, interagency engagement, partner engagement, and content production.

Science & Technology: The GEC’s Science & Technology team is charged with enabling the U.S. government and its partners to increase the reach and effectiveness of their communications. The team conducts research on target audiences and utilizes data science techniques to measure the effectiveness of our efforts. Among other techniques, the Science & Technology team performs A/B testing and multivariate analysis to measure the effectiveness of our content distribution. The GEC utilizes hypothesis-driven experimentation and applies a “create-measure-learn” approach to its activities to maximize effectiveness.

Interagency Engagement: The GEC liaises regularly across the interagency and coordinates closely with the relevant national security departments and agencies to identify efficiencies and opportunities in the messaging and partnership space. The GEC’s staff includes detailees from throughout the interagency, including the Department of Defense, Intelligence Community, United States Agency for International Development, and Broadcasting Board of Governors.

Partner Engagement: One of the GEC’s overarching strategies is to identify, cultivate, and expand a global network of partners whose voices resonate with individuals most vulnerable to harmful propaganda. These partners work tirelessly to drive a wedge between susceptible audiences and those nations, groups, and terrorists seeking to influence them. The GEC conducts on-the-ground training sessions to enable these partners to develop their own content and disseminate it through their distribution networks. The GEC also leverages rigorous research and data science to improve tactics and techniques and inspire innovation.

Content Production: The GEC and its partners have established programming across multiple platforms, including social media, satellite television, radio, film, and print. This programming is conducted in various languages, including Arabic, Urdu, Somali, and French. These platforms allow the U.S. government and its partners to inject factual content about terrorist organizations into the information space to counter recruitment and radicalization to violence. They also allow us to develop and disseminate messaging on effective themes, such as exposing ISIS’s financial and governance failures; its violence against women, children, and religious minorities; and its ongoing territorial losses.

The GEC is currently led by Acting Coordinator Daniel Kimmage.

Congress had mandated the initiative to counter propaganda and disinformation after Russia’s meddling in the 2016 US election. Lawmakers and career foreign service officers were deeply critical when Tillerson didn’t move to use any of the funding, and cited his inaction as another example of the agency’s dysfunction.

A similar operation was allegedly applied to counter Islamic State Islamic propaganda and sophisticated media messaging. Measuring effectiveness is still in question.

China is Bullying India and Australia over Maldives for Silk Road

Posted on February 20, 2018February 20, 2018 by Denise Simon

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China is bullying India, Australia and the United States to change the balance of power globally. Anyone paying attention?

Maldives crisis: China sends a naval task force to muscle India, Australia out of power game

CHINA is muscling its way into Australia’s backyard. With an island paradise deep in crisis, the superpower sees a chance.

CHINESE warships have entered the Indian Ocean, marking a significant shift in regional power. They’re there to keep India away from Beijing’s interests in the strife-torn Maldive Islands.

And their presence has implications for Australia.

Naval posturing is nothing new. Gunboat diplomacy has been a major player in great power games of thrones for centuries.

But it is odd for it to be played out so close to home.

A scattering of pristine coral islands in the Indian Ocean is becoming the next flash point between New Delhi and Beijing.

The Maldives islands are in the throes of a constitutional crisis.

The little democracy has traditionally been part of India’s “sphere of influence”. And the eastern Indian Ocean is, of course, of significant strategic importance to Australia.

But recently a new kid has arrived on the block.

And now Beijing’s grown enough confidence to let its presence be felt in the area’s affairs.

A naval force of at least one modern destroyer, a frigate, an amphibious assault ship and a support tanker entered the Indian Ocean last week. It is believed destined to linger off the scenic scatterings of coral, sand and palm trees.

International affairs analysts believe they’re there to stop India from intervening.

Beijing, after all, has big plans for these little islands. And it doesn’t want the locals getting in the way.

Blue skies. White sand. Clear water. The international tourist resorts of the Maldives have been sidelined by the archipelago’s strategic importance. Picture: AFPSource:AFP

TROUBLE IN PARADISE

These islands are unlikely to appear on anyone’s radar — unless you’re after an idyllic island paradise getaway.

But the Maldives have suddenly become the centre of a struggle for international influence.

It’s in the grip of a constitutional crisis.

Opposition leader Mohamed Nasheed recently dared to state that China was “buying up the Maldives” through President Abdulla Yameen. He highlighted the tiny nation was massively in debt to Beijing, and faced seizure of public assets — such as ports — to help pay it back.

It wasn’t long after this Yameen had key opposition figures arbitrarily arrested.

Then Yameen sprung a state of emergency on his people on February 5. It came as the Supreme Court ordered the opposition leaders be released as their arrests had been politically motivated.

So Yameen sent his security forces to arrest the Supreme Court’s judges.

Maldivian police detain a protester demanding the release of political prisoners during a protest in Male, Maldives. Picture: APSource:AP

This has Beijing bothered. It has invested big in a major port project there.

But it’s not the money it’s worried about.

Nor is it the potential collapse of a fragile democracy.

It has implications for its grand ‘One Belt, One Road’ infrastructure campaign. This is intended to vastly expand China’s economic network — and influence — through Asia, the Middle East and into Europe.

“Although traditionally within India’s strategic sphere, in recent years the Maldives has become unstable, impoverished and increasingly desperate,” says the Lowy Institute’s Dr David Brewster.

“Indeed, much of the nation could soon disappear beneath rising sea levels. We may soon see China’s ‘magical island-building ship’ pay a visit to the Indian Ocean.”

India has always been a roadblock in these plans. But now Beijing’s bypass via the Maldives may be in trouble.

Which is why it wants to New Delhi to keep out.

A screen capture of Chinese media footage showing the naval task force currently operating in the eastern Indian Ocean. It includes an amphibious assault ship, a guided missile destroyer and frigate, and a supply ship. Picture: CCTV7Source:Supplied

BELT AND ROAD AMBITIONS

Every day, more than 40 million barrels of oil passes through the strategic “chokepoints” at either end of the Indian 0cean. This includes the Straits of Hormuz, the Gulf of Aden and the Malacca Strait.

All pass through the waters between the Maldives and Ceylon, to India’s south.

It’s a vital arterial supply line. Not least of all to Beijing.

Chinese media is boasting about its new naval presence in the Indian Ocean. It’s been proudly displaying photos and video of its modern ships refuelling and reprovisioning at sea on a mission that is certainly a long way from home.

It’s by no means the first time a Chinese task force has entered the Indian Ocean.

This time things may be different.

The Australian Strategic Policy Institute says Beijing’s infrastructure activity is part of a determined strategy to extend its influence across the Indian Ocean — at the expense of India.

“India has long been concerned about China’s growing maritime interest in the Indian Ocean region,” says ASPI executive director Peter Jennings. “Over the last decade the PLA-Navy has transited through the region many times to participate in UN and EU backed counter-piracy missions off the Horn of Africa. China has established its first overseas military base at Djibouti and is using the ‘One Belt One Road’ strategy to build extensive port infrastructure in Pakistan and Sri Lanka.”

In that context, the timing of this task force’s arrival in the eastern Indian Ocean is likely to be significant.

A Chinese Type 052D guided missile destroyer tests its antimissile gatling gun during a recent exercise. One of these potent warships is among Beijing’s task force in the eastern Indian Ocean. Picture: XinhuaSource:Supplied

“Sending warships to operate off the Maldives is a new and concerning development, because it shows that China is trying to exercise influence over a small state more usually within India’s strategic view. New Delhi will read this as a worrying move. It will intensify strategic competition and increase mistrust between China and India.”

Some international observers had been expecting New Delhi to send its own task force to exert influence over the tiny islands’ fate. Instead, it has taken a hands-off approach through an appeal to the United Nations. It wants help to help pressure Yameen into restoring democratic values.

So Beijing has stepped into the power vacuum with a task force of its own.

But does India have a strong enough presence to keep Beijing out of its own backyard?

The presence of four modern Chinese warships near the Maldive Islands has significant implications for the balance of power in the Indian Ocean. Picture: CCTV7Source:Supplied

OPTIONS OPEN

The chances of any clash between India and China are very low.

But the true impact of the Beijing’s warships is being felt in the corridors and back rooms of power throughout the region.

The warships give Beijing options. And status.

If things take a sudden turn for the worse in the Maldives, it can present itself as an international hero by quickly landing its troops in a “humanitarian intervention”.

It could lift its own citizens out of trouble — and those of other nations. It could impose in a “peace keeping” force to support the local political entity of its choice.

That such acts would irreparably damage India’s influence and status is an unspoken benefit.

It would also cement Beijing’s intimidating presence in what is a key “chokepoint” for its “belt” project.

The under-construction China Maldives Friendship Bridge is pictured near the city of Male. The international community has censured Maldives President Abdulla Yameen for imposing a state of emergency. Picture: AFPSource:AFP

If, however, the Maldives crisis does not worsen, the mere presence of Chinese warships acts as a deterrent to Indian intervention. It’s also a neon-sign of Beijing’s determination to wield its new-found influence worldwide.

The force Beijing appears to have deployed may seem small. But it is capable.

The Type 052D guided missile destroyer (Luyang-III class) is among its most modern combat ships. With a crew of 280 and weighing some 7500 tons, it carries a helicopter, land-attack cruise missiles, surface-to-air missiles, surface-to-surface missiles and anti-submarine missiles.

The Type 054A frigate (Jiangkai II) is one of more than 21 of these modern frigates deployed by Beijing. It is a stealthy design, intended primarily to supplement the air defence of a task force, though it also has some anti-surface and submarine capability.

The Type 071 amphibious transport dock is ideal for humanitarian relief — and landing forces of troops. It can carry a variety of amphibious assault vehicles and landing craft, along with two helicopters. But it also operates hospital and command-and-control facilities. It has accommodation for up to 800 troops.

It’s also backed-up by China’s 28th Anti-Piracy Task Force out of Africa. It’s believed to have wandered closer to the middle of the Indian Ocean in recent weeks.

Indian Navy personnel stand on the INS Vikramaditya, a modified Kiev-class aircraft carrier, similar to the aircraft carrier Liaoning operated by China. Picture: AFPSource:AFP

DEEP IMPLICATIONS

India has not been sitting idle. It has been modernising its own navy. Like China, it is one of just a few nations operating fixed-wing aircraft carriers.

Neither is currently operating near the Maldives.

But New Delhi has also just signed a deal with the Seychelles islands to establish a mid-Indian Ocean naval facility of its own.

“Despite these dramatic developments, the shape and future purpose of China’s naval presence in the Indian Ocean remains an open question,” Dr Brewster says. “We should not automatically assume that the Chinese navy intends to challenge the US Fifth Fleet, at least in the short term. China will remain at a big geographic disadvantage in the Indian Ocean.”

This is because it does not have the complex and extensive supply network that the other major international influence in the region — the US 5th Fleet — has.

But it’s working on it.

Royal Australian Navy ships HMAS Adelaide, Toowoomba and Darwin in formation as part of the Joint Task Group for Indo-Pacific Endeavour 2017. Picture: DefenceSource:Supplied

There’s also bound to be pushback.

“China’s move may reinforce a growing Indian interest to co-operate more closely with Australia,” Mr Jennings says.

“The idea of quadrilateral co-operation between India, Australia, Japan and the US — which was abandoned a decade ago because of worries it would be seen to contain China — is now firmly back on the agenda.

“It would be ironic if China’s rather amateurish attempts to build political influence in the Maldives led to enhanced co-operation between the democracies on Indian Ocean security.”

5 Former Venezuelan Officials Charged, Money Laundering/Bribery

Posted on February 20, 2018February 20, 2018 by Denise Simon

5 former government officials from Venezuela charged in Houston federal court with money laundering scheme involving foreign bribery

Criminal complaint is here.

Some of the vendors lived in the United States, the DOJ said, or owned and controlled businesses incorporated and based in the United States.

The defendants allegedly laundered some of the bribe money through real estate transactions and other investments in the U.S.

The indictment alleges two PDVSA vendors sent over $27 million in bribe payments to an account in Switzerland.

De Leon and Villalobos controlled the account.

Some of the money went to another “foreign official” who wasn’t named in the indictment. That’s the basis for the FCPA conspiracy charges against De Leon and Villalobos.

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HOUSTON — Five former government officials from Venezuela were charged Monday for allegedly participating in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).

Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA). U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated this case.

In October 2017, Spanish authorities arrested four of the following defendants on arrest warrants based on a 20-count indictment returned Aug. 23, 2017, in the Southern District of Texas: Luis Carlos De Leon Perez (De Leon), 41, Nervis Gerardo Villalobos Cardenas (Villalobos), 50, Cesar David Rincon Godoy (Cesar Rincon), 50, and Rafael Ernesto Reiter Muñoz (Reiter), 39.

On Feb. 9, Cesar Rincon was extradited from Spain and made his initial appearance Monday in federal court in the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant, Alejandro Isturiz Chiesa (Isturiz), 33, remains at large; a warrant remains outstanding for his arrest. All five defendants are citizens of Venezuela. De Leon is also a U.S. citizen.

De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering; Cesar Rincon is charged with two counts of conspiracy to commit money laundering. De Leon, Cesar Rincon and Reiter are charged with four counts of money laundering; Villalobos and Isturiz are charged with one and five counts of money laundering, respectively. De Leon and Villalobos are each also charged with one count of conspiracy to violate the FCPA.

“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes,” said Mark Dawson, special agent in charge of HSI Houston. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.”

The indictment alleges the five defendants, all of whom were officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA.

According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were U.S. residents and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business.

The indictment further alleges the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions including to, from or through U.S. bank accounts. In some instances, they allegedly laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.

The indictment also reads that the following two PDVSA vendors sent more than $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner, and De Leon and Villalobos were authorized signers: Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida. The indictment alleges those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are awaiting sentencing.

On Feb. 12, the indictment was unsealed. Fifteen individuals were charged, and 10 have pleaded guilty as part of a larger and ongoing investigation by the U.S. government into bribery at PDVSA.

HSI Houston is conducting the ongoing investigation with assistance from HSI Boston, HSI Madrid and the IRS Criminal Investigation.

The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil also provided assistance.

Illegals Using Fake or Stolen Social Security Cards 3.4 million by 2040

Posted on February 20, 2018February 20, 2018 by Denise Simon

ICE Boston and US Attorney announce sentencings in major document and benefit fraud cases

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BOSTON – ICE’s Homeland Security Investigations (HSI) Boston and the U.S. Attorney for Massachusetts announced the sentencing in federal court yesterday of several Massachusetts Registry of Motor Vehicles clerks for their role in a scheme to produce false identification documents.

David Brimage, 46, of Boston, was sentenced by U.S. District Court Judge Leo T. Sorokin to eight months in prison and two years of supervised release. In October 2017, Brimage and co-conspirators Evelyn Medina, 56; Annette Gracia, 37, both of Boston; Kimberly Jordan, 33, of Randolph; and Bivian Yohanny Brea, 41, of Boston, agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. All of the defendants have now been sentenced.

“Today’s sentencing highlights the HSI Document and Benefit Fraud Task Force’s continued vigilance against corruption schemes that damage the trust the public places in our government intuitions,” said Michael Shea, acting special agent in charge of HSI Boston. “This case is another excellent example of federal, state and local cooperation to combat this criminal enterprise.”

“The conduct in this case was egregious. We will always hold accountable those who violate the public trust,” said United States Attorney Andrew E. Lelling. “While these defendants tried to profit by thwarting legal safeguards they were entrusted with enforcing, the crime was more than that – the defendants engaged in a scheme that made U.S. identity documents – and accompanying benefits – available to illegal immigrants who were not entitled to them.”

In December 2017, Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was sentenced to two years in prison after pleading guilty to one count of aggravated identity theft. Tejada will also be subject to deportation proceedings upon completion of any sentence imposed. In January 2018, Medina and Gracia were sentenced to 15 months in prison and one year and one day in prison, respectively. In February 2018, Jordan was also sentenced to eight months in prison and Brea was sentenced to six months of home confinement and three years of supervised release.

In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.

The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.

Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.

HSI Acting SAC Shea, U.S. Attorney Lelling, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service William Gannon, and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the cases.

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So what about E-Verify? Glad you asked…

Alex Nowrasteh, an immigration policy analyst at the Cato Institute’s Center for Global Liberty and Prosperity, a libertarian think-tank in Washington, D.C., said the E-Verify system accepts passports, Social Security cards and other documents submitted by job applicants even if they are fraudulent — which is the way most undocumented immigrants secure employment.

Nowrasteh said “a large portion of employers still don’t use it for new hires” because they know that government audits of traditional paper forms are so few and far between.

Daniel Costa, director of immigration law and policy research for the Economic Policy Institute, a pro-labor think tank based in Washington, D.C., agreed with that assessment. He noted that even though audits of the I-9 forms soared during the Obama administration, an average of only 2,000 workplaces — including some enrolled in E-Verify — were audited annually during the eight years Barack Obama was president.

According to U.S. Citizenship and Immigration Services, which oversees the E-Verify program, an estimated 763,500 employers were taking part in the program as of Jan. 16.

That sounds like a lot, but it’s only a tiny percentage of the more than 18 million businesses in the U.S.

The reason for the low participation rate is that the program is voluntary in most states. It’s mandatory in most of the U.S. only for businesses that have been caught hiring undocumented immigrants.

The Social Security Administration estimated that 1.8 million immigrants were working with fake or stolen Social Security cards in 2010 — and that number is projected to reach 3.4 million by 2040.

Companies that don’t use E-Verify require jobseekers to fill out the I-9 forms to check work eligibility. The employers then must certify that the documents provided by the applicant appear to be genuine.

With such a low chance of being audited, Costa said, the whole job-authorization system is “a wink and a nod from the government to employers” that lets them continue to hire workers who are not in the U.S. lawfully.

The Cato Institute’s Nowrasteh argues that E-Verify exists simply because it allows politicians to claim the U.S. is being tough on immigration without actually having to be tough.

“Nobody wants to shut down businesses. That’s expensive politically and economically,” he said. “It’s much easier to have a system that doesn’t work (but which) sounds like a silver bullet.”

Calls for “mandatory E-Verify” — particularly among immigration hardliners in the Republican Party — have been increasing in recent weeks as Congress wrestles with the “Dreamer” issue. And polls have shown that more than two-thirds of the American public believe the E-Verify should be mandatory.

Capitalizing on that sentiment, Rep. Lamar Smith, a Texas Republican who sits on the House Judiciary and Homeland Security committees, recently introduced a measure to require all employers to use the program. “By expanding the E-Verify system to all U.S. employers, this bill will ensure that jobs only go to legal workers,” Smith said. More here.

Estimating the Costs of Cyber Attacks Against the U.S., Billions

Posted on February 20, 2018February 20, 2018 by Denise Simon

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Cyberattacks cost the United States between $57 billion and $109 billion in 2016

The report published by the White House Council of Economic Advisers examines the cyberattacks cost that malicious cyber activities cause to the U.S. economy.

Paganini: How much cost cyber attacks to the US? According to a report published by the White House Council of Economic Advisers last week, the cyberattacks cost between $57 billion and $109 billion in 2016, and things can go worse in the future.

“This report examines the substantial economic costs that malicious cyber activity imposes on the U.S. economy. Cyber threats are ever-evolving and may come from sophisticated adversaries. Due to common vulnerabilities, instances of security breaches occur across firms and in patterns that are difficult to anticipate.” states the report.

“Firms in critical infrastructure sectors may generate especially large negative spillover effects into the wider economy.”

The report analyzed the impact of malicious cyber activities on public and private entities, including DoS attacks, sabotage, business disruption, and theft of proprietary data, intellectual property, and sensitive financial and strategic information.

Damages and losses caused by a cyber attack may spill over from the initial target to economically linked organizations. More exposed are critical infrastructure sectors, at attack against companies and organization in this industry could have a severe impact on the US economy.

The document warns of nation-state actors such as Russia, China, Iran, and North Korea, that are well funded and often conduct sophisticated targeted attacks for both sabotage and cyber espionage.

“Finally, and perhaps most important, if a firm owns a critical infrastructure asset, an attack against this firm could cause major disruption throughout the economy.” reads the report.

“Insufficient cybersecurity investment in these sectors exacerbates the risks of cyberattacks and data breaches. The economic implications of attacks against critical infrastructure assets are described in more detail later in the paper. “

The reports also warn of devastating cyberattacks that would target sectors that are internally interconnected and interdependent with other sectors.

The report offered little in the way of new recommendations on improving cybersecurity, but noted that the situation is hurt by “insufficient data” as well as “underinvestment” in defensive systems by the private sector.

“Cyber connectivity is an important driver of productivity, innovation, and growth for the U.S. economy, but it comes at a cost. Companies, individuals, and the government are vulnerable to malicious cyber activity.” concludes the report. “Effective public and private-sector efforts to combat this malicious activity would contribute to domestic GDP growth. However, the ever-evolving nature and scope of cyber threats suggest that additional and continued efforts are critical, and the cooperation between public and private sectors is key.”

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The forecast of the cost damage in coming years….

In part from Forbes: In 2015, the British insurance company Lloyd’s estimated that cyber attacks cost businesses as much as $400 billion a year, which includes direct damage plus post-attack disruption to the normal course of business. Some vendor and media forecasts over the past year put the cybercrime figure as high as $500 billion and more.

From 2013 to 2015 the cyber crime costs quadrupled, and it looks like there will be another quadrupling from 2015 to 2019. Juniper research recently predicted that the rapid digitization of consumers’ lives and enterprise records will increase the cost of data breaches to $2.1 trillion globally by 2019, increasing to almost four times the estimated cost of breaches in 2015.

The World Economic Forum (WEF) says a significant portion of cybercrime goes undetected, particularly industrial espionage where access to confidential documents and data is difficult to spot. Those crimes would arguably move the needle on the cyber crime numbers much higher.

Large banks, retailers, and federal agencies make the headlines when they are hacked – but all businesses are at risk. According to Microsoft, 20% of small to mid sized businesses have been cyber crime targets.

For anyone who wants to tally their own bill from cyber crime, check out Cyber Tab from Booz Allen. It is an anonymous, free tool that helps information security and other senior executives understand the damage to companies inflicted by cyber crime and attacks. More here.