How Does Hacking Affect Consumers?

There has been a lot of media attention over the past year on the impact of cyber attacks on companies such as Target Corporation TGT, The Home Depot Company, Inc. HD, and JPMorgan Chase Co. JPM.

Some of the incidents are being blamed on "Russian-speakers," although the country of origin hasn't been pinned down yet. Others could be orchestrated by the Chinese government.

So how are consumers actually affected by hacking?

Related Link: "What Investors Need To Know About Cyber Security"

Bank Robberies Are Out, Cyber Attacks Are In

A goal of many of the hacks is simply to steal. While some hackers are in it for the fun of trying to penetrate sophisticated networks, most just want money. They are after Social Security numbers, bank account user names and passwords, email addresses, and credit or debit card PIN numbers. While every consumer may not suffer to a large extent from these attacks, there are long-term effects.

Banks and other financial institutions will need to recoup losses either directly or indirectly through insurers; Account fees may increase and he consumer might eventually pay.

Intellectual Property Theft

According to some experts, in a bid to catch up to the Western powers in military and aviation technology and to monitor U.S. troop movements, the Chinese government is stealing design information on aircraft and naval vessels from government and private industry and tapping into airline databases to get flight information. The military-industrial complex eventually passes on the costs of these thefts to taxpayers and travelers. In order to counteract the Chinese military in the future more weapons may have to be ordered up, diverting funds from more productive spending needs. Airlines might need to raise airfares to combat future network breaches.