A recent IBM survey of companies in the manufacturing, healthcare, financial and retail industries reveals that the changing nature of cybercrime is ringing alarm bells in the international community.

Conducted in 17 countries, surveying mainly CIOs, the study shows that cybercrime is viewed as a considerable threat. In fact, 58% of international businesses agree that cybercrime is more costly to their organizations than physical crime (42%).

However, while 83% of U.S. businesses boast that they have adequate safeguards in place to combat organized cybercrime, their international counterparts are not so confident, with just over half (53%) indicating they are prepared.

In combating cybercrime, there are some slight differences between international IT business executives and their U.S. counterparts when it comes to their priority initiatives. The top two initiatives for international businesses are implementing intrusion detection/prevention technologies (33% versus 20% of U.S. businesses) and upgrading their firewall (27%). The top two for U.S. businesses are upgrading their virus software (39% versus 24% of international businesses) and upgrading their firewall (32%). In addition, 18% of international businesses felt that encrypting their files was a top priority, while only 7% of their U.S. counterparts felt the same.

However, both parties share the same concerns when it comes to the key costs associated with cybercrime. Both groups indicated that loss of revenue (74% international versus 63% U.S.) and loss of current customers (70% international and 56% U.S.) would have the highest cost impact should their organizations fall victim to a cybercrime.

Damage to their brand/reputation is of much higher concern to international businesses than to those in the US. More than two-thirds, 69%, of international businesses cited this as a key cost associated with cybercrime, compared to only 40% of U.S. businesses. Conversely, legal fees are considered to be a main cost in U.S. (33%), while of less concern internationally (19%). In addition, the international community(70%) is more concerned about losing current customers and less concerned about losing prospective customers (33%) as compared to U.S. businesses who are equally concerned about the loss of both (56% for each).

The above research was conducted by Braun Research on behalf of IBM. The international businesses comprised of businesses from China, India, Japan, Australia, Czech Republic, U.K., Russia, Poland, Germany, Spain, Italy, France, Argentina, Brazil, Canada and Mexico. Eligible respondents were at the CIO level, a VP or higher, reporting directly to a CIO, or other individuals who were well-versed and qualified to answer questions about their company’s IT practices.