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Which of the following statements is true of the financial losses due to computer crimes?

A) All studies on the costs of computer crimes are based on surveys.
B) There are several set standards for tallying computer crime costs and financial losses.
C) Companies are legally required to calculate their financial losses due to computer crime every month.
D) Knowledge about the cost of computer crimes is restricted to large companies.

User Tusar
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Final answer:

Studies on the financial losses due to computer crimes are primarily based on surveys, capturing a variety of direct, indirect, and intangible costs. These crimes affect companies of all sizes, and understanding their impact helps inform policies and prevention strategies.

Step-by-step explanation:

The true statement regarding the financial losses due to computer crimes is that all studies on the costs of computer crimes are based on surveys. There is no one standard approach for evaluating the costs associated with these types of crimes, and they are not calculated on any legally mandated schedule. Additionally, knowledge about the cost of computer crimes is not limited to large companies; organizations of all sizes,—as well as individuals—are affected and may seek to understand these costs.

Computer crimes can lead to significant financial losses through direct costs, such as theft of funds or data breach remediation, as well as indirect costs like damage to brand reputation or loss of customer trust. Intangible costs, such as emotional distress or a decrease in sense of security, are also a crucial part of the equation. Understanding and estimating these costs can be complex. Surveys are often used as they allow researchers to collect data on perceptions and estimates of loss from a variety of organizations, but they may not be precision accurate in capturing the full economic impact.

The costs of crime, more generally, involve a broad range of factors, from direct damages to opportunity costs for individuals who might choose to engage in criminal activities. Understanding the scale and impact of these costs, including for computer-related crimes, is vital for informing policies and prevention strategies.

User Alex MacArthur
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