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Spam Costs U.S. Companies $22B Annually

KoReE writes "According to this CNN article, a study at the University of Maryland says the loss of productivity from spam is costing U.S. companies $22 billion per year." Of course, they also say people get 18.5 spam per day, and I'm tipping in at 20x that.

35 of 326 comments (clear)

  1. Does that include the cost of studies about spam? by MattW · · Score: 5, Funny

    Since I read about a new spam study every other day, I'm wondering if that $22B price tag includes the cost of all the studies being done about the cost of spam?

  2. What's spam? by Quasar1999 · · Score: 4, Funny

    Funny, I get about 25 spam messages a day... now that's after the corporate firewall/antispam software has had it's hands in it... and really, any message from my boss is counted as SPAM and moved to my junk folder so, yeah, 0 spam from the world, about 25 spams from my boss... yup... near the average then I guess..

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
  3. Uh huh... by jargoone · · Score: 4, Insightful

    Of course they also say people get 18.5 spam per day, and I'm tipping in at 20x that.

    Yeah, their estimate is really low. I mean, everyone runs a website that gets millions of hits a day. They apparently don't realize this.

    1. Re:Uh huh... by dknight · · Score: 3, Informative

      I'm a nobody. An absolute nobody.
      I get (spread between my various email accounts) a bare minimum of 100 spam emails a day. Usually that number is closer to 200-300, and occasionally as high as 1000.

      My spam filtering takes care of a great deal of this spam (only maybe 5 make it to my inbox) but still.

    2. Re:Uh huh... by dknight · · Score: 4, Insightful

      notice I said only 5 or so makes it to my inbox, so I'd say that means I DID solve my spam problem. At least, by what seems to be your definition of it. However filtering all that mail still eats up a lot of processing power, and the bandwidth to receive it.

  4. How to get less spam by umrgregg · · Score: 4, Funny
    I'm tipping in at 20x that

    Yes, well, maybe you'd have less if you weren't publicly providing your email on one of the most viewed forums on the internet.

    --
    NMG
    1. Re:How to get less spam by Prairiewest · · Score: 4, Interesting

      Yes, having to post your email address for others to see on a web site is no longer a requirement. Especially since most of the web hosting companies will provide you with a free formmail script.

      I took a few steps to curb spam in 2002: first, change my email address. That alone put an abrupt halt to the flow. Second, added comments forms to all my web sites, to stop the future flow.

      Granted, I still get some spam, assumedly because some messages that I send get forwarded and harvested somewhere. I get about 2 or 3 spam emails per week right now, without using any filters at all. So that's acceptable to me.

      I continue to advise people to change their darn email address and start anew. It's pretty easy to do for *most* people. I just don't understand the paralyzing fear that overcomes them when I suggest that. I also think that "but my business email address has to stay the same!" is not a valid argument. I have assisted some people here at the university that I work in getting a brand new email address, and (surprise) life went on and people still managed to send them email.

      On a side note, I switched to a different bank in 2002, one with no monthly fees. I was amazed at how easy it was to do, and now I must be their most vocal evangelist. I'm constantly reassuring people that they, too, can stop paying monthly services charges to their bank. I think I have six converts so far :)

      And no, 2002 wasn't some magical year of transformation. I think it's just coincidental...

      Todd

    2. Re:How to get less spam by Schlemphfer · · Score: 3, Insightful
      Yes, well, maybe you'd have less if you weren't publicly providing your email on one of the most viewed forums on the internet.

      A funny, but misleading, comment. Slashdot's popularity has little to do with how much spam Taco gets. He could have posted the same contact info at PeterLorreFansUnite.com and the spam spiders still would have found him. He'd be getting roughly the same amount of spam even if his address was posted on one of the most obscure sites on the net.

      I publish Vegan.com and until I abandoned the domain for use of email last autumn I was getting something like 2000 spams a day. And as much as I'd like to think otherwise, I suspect Slashdot gets a tiny bit more traffic than Vegan.com ;)

      --
      I'm generally "Interesting," "Insightful," and even "Funny" here. What the hell happens to me at parties?
  5. Re:My $0.02 by Rude+Turnip · · Score: 5, Insightful

    Here, let me beat you over the head for a while...what, too ignorant or stupid to buy a helmet?

  6. 10 seconds per e-mail??? by Psionicist · · Score: 4, Insightful

    A telephone-based survey of adults who use the Internet found that more than three-quarters receive spam daily. The average spam messages per day is 18.5 and the average time spent per day deleting them is 2.8 minutes.

    2.8 minutes to delete 18 e-mails? That's 10 seconds per mail, man that's ineffective. I'd guess the companies would save billions if their employes learned how to read and respond faster, or at least if they learned that if the e-mail subject says "c1al|z", it IS spam, no reason to verify it by reading the thing.

    1. Re:10 seconds per e-mail??? by idontgno · · Score: 3, Insightful
      if the e-mail subject says "c1al|z", it IS spam, no reason to verify it by reading the thing.

      Yeah, that helps speed-filter about 25% of the spammage I see. But what about "UPS Tracking Number" when you've just completed a bit of web-based purchasing and are actually expecting a tracking number in the e-mail? How about obscure and nearly incomprehensible subjects? I can't just crapcan those, because I subscribe to various NetBSD support lists. (If you follow *BSD mail lists, you know what I mean.)

      So yes, for the majority of spam, you have to at least preview the content. If you have a slow mailserver, particularly if you use a "download on demand" (IMAP) rather than "download in advance" protocol (POP), you have to pay the content download time. And if you're foolish enough to let your MUA download remote links, that's more time before you figure out the message you're looking at is spam. (If you don't do the remote links thing, all you know is that you've got a blank e-mail. I guess that's spam. Even if it theoretically might have been something you wanted.) So 10 seconds per mail is perfectly reasonable.

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    2. Re:10 seconds per e-mail??? by Speare · · Score: 4, Informative
      Two words: dialup and webmail.

      Some people don't use local clients which download headers, summarize subject lines, allow you to delete before reading, etc. Boggles the mind, but it's true.

      --
      [ .sig file not found ]
  7. way lowball by delmoi · · Score: 3, Informative

    This dosn't take into account how much time and effort they put in to filtering out spam, and doing all this crap. I've had to abandon email address and spammers have made an entire domain of mine almost useless for sending email because they started jojobbing (forging headers to look like the mail came from my box, with random addresses so I get tons and tons of bounce messages) it when sending spam.

    --

    ReadThe ReflectionEngine, a cyberpunk style n
  8. Strange Rationale for Coming Up With $22B... by phidipides · · Score: 5, Informative

    >Time wasted deleting junk e-mail costs American
    >businesses nearly $22 billion a year, according
    >to a new study from the University of
    >Maryland... The average spam messages per day
    >is 18.5 and the average time spent per day
    >deleting them is 2.8 minutes.

    Using this same logic, I would guess that Solitaire, Minesweeper, etc. cost American businesses at least $200 billion per year. I hate spam as much as the next guy, but using the time it takes to delete spam as the basis for determing its economic impact is ridiculous. A much more accurate number would be the amount of time/money companies use to prevent spam from coming in and going out of their systems, the amount lost to phishing and other scams, etc.

    1. Re:Strange Rationale for Coming Up With $22B... by ObsessiveMathsFreak · · Score: 4, Insightful

      but using the time it takes to delete spam as the basis for determing its economic impact is ridiculous

      Wrong.
      Wrong. Wrong. Wrong.

      You say spam only takes 5 seconds to realise and delete. The spammer is only taking five seconds of your time. What's the big deal? He shouldn't have to pay for doing this to tens of thousands of people because it only wastes a few seconds of their time, right?

      Wrong.

      Lets take TV ads. A nice short five second TV ad. It only takes up five seconds of everyones time. Maybe millions of people are looking at it, but what's the big deal eh? So how come then advertisers pay millions of dollars every year in order that these five second ads be shown to viewers? Same goes for ads on billboards, radio magazines, blimps, football stadia, buses, T-shirts, people's foreheads and on web banners. They should all be free right?

      But spam is even worse than all these other forms of advertising because you cannot ignore spam. You must take the time to recognise it and delete it. If someone sends you spam you cannot look away. With all other forms of advertising, bar junk mail, it costs you the same amount of effort and time to look at the ad as it does not to. That's yet another reason why spam is so evil.

      Spam is profitable. That's a fundamental fact. You need to make it either illegal or unprofitable or both. But how to do this without killing regular email? See the ant-spam response sheet for more info on that one.

      --
      May the Maths Be with you!
    2. Re:Strange Rationale for Coming Up With $22B... by drooling-dog · · Score: 3, Informative
      Using this same logic, I would guess that Solitaire, Minesweeper, etc. cost American businesses at least $200 billion per year.

      So when did time stop being equal to money? I can't speak to the actual amount, but I would say that they actually do cost quite a bundle in lost productivity. If someone is paying for your time, then the things you spend that time on - productive or otherwise - are all costs. This would be crystal clear to you if you were an employer rather than an employee.

  9. What scares me... by myheroBobHope · · Score: 5, Insightful

    The real problem that I noticed from the study is that 4% of people have bought something advertised through spam. That's the real problem. If everyone would just ignore it, and get there *cough* all important pills elsewhere (try Mexico!) then none of us would get spam. It's a simple cost to benefit ratio, as long as enough people buy things off spam, spammers will continue to operate.

    --
    http://www.pterrys.com
    1. Re:What scares me... by Spy+der+Mann · · Score: 3, Interesting

      It's a simple cost to benefit ratio, as long as enough people buy things off spam, spammers will continue to operate.

      I live in Mexico. Here (in Mexico city) there are thousands illegal taxis running. People don't care just as long as they get to their destination. Of course, the number of innocents being raped, kidnapped or assaulted in these illegal cabs.

      If people stopped using them, our taxi assault problems would be over.

      Generalizing, if people don't care about promoting assaults and rapes in illegal cabs, do you think they'll give a sh*t about SPAM?

  10. Re:My $0.02 by Platinum+Dragon · · Score: 3, Informative

    I believe that any company that is too ignorant to install protections on their systems, or too stupid to find someone to do it for them, deserves to lose their money.

    Hardware, maintenance, and setup costs money, which was probably figured into this amount (having not RTFA, natch). Last I heard, unless you find a volunteer and some discarded/donated hardware, those things aren't free.

    --

    Someday, you're going to die. Get over it.
  11. Comment removed by account_deleted · · Score: 4, Insightful

    Comment removed based on user account deletion

  12. Re:Number sounds wrong by justforaday · · Score: 4, Funny

    That number sounds wrong, how could spam cost anyone billions when all they have to do is hit the delete key!!!

    In other news, the replacement keyboard industry has announced increased sales of about $22 billion dollars a year...

    --
    I'll turn into a supernova and burn up everything. Well I'll turn into a black little hole and you'll turn into string.
  13. Wrong assumptions by FiReaNGeL · · Score: 4, Insightful

    These kind of 'calculation' assume that 100% of the time an employee is 'working' is productive work. Trust me, it is not, especially when the employee has unmonitored access to the net.

    Now I don't say that employees SHOULD be productive 100% of the time. I just say that the time spent deleting spam is probably taken on 'unproductive' time anyway, not on things that need to be done.

  14. No it can't by asoap · · Score: 5, Funny
    This is another bullshit study.

    I spent 5 minutes today scratching myself when I got into work. Now if everybody in the world does that, it costs $512823812937123 TRILLION DOLLARS every other minute! Then you'll get angry CEOS who will want to enforce rules to only higher ugly women, or remove them from the work force.

    This is just more serious bullshit. If they really want to do a study. See how much money is spent on men looking at women's breasts at work. They will find out that is 123190238127398071273891029837129387 TRILLION DOLLARS EVERY minute.

    Do these studies ever take into account that people can't spend every single waking second at work doing work, and that it neccessary to sometimes do something different. Although spam does differ, where it is a nusance, and as such it does waste peoples time constantly. But the way the factor it by putting a value on an employees time is very in accurate.

    --
    Treat me like a marketing stat, and I'll treat your movie like a series of ones and zeros
  15. Spam: creating jobs since 1995! by Nijika · · Score: 3, Interesting
    I guess... just like roaches and plagues. I just realized that a large part of my job is figuring out how to keep email going and meaningful despite the deluge of crap that comes in every day. It's not what I was hired for, but here it is as a major part of my role and a justification for my continued payment.

    Would I prefer that Spam be stopped dead in it's tracks? Regardless of this, yes, because it also occours to me how much time I've wasted on this problem that I could have used doing other more productive things.

    --
    Luck favors the prepared, darling.
  16. Re:My $0.02 by jxyama · · Score: 4, Insightful
    "deserve" to lose money?

    i'm sorry, but this is such an awful attitude. spam is being inflicted on millions by a handful of greedy spammers. no one "deserves" to be harmed by it.

  17. Funny, I don't see these on profit/loss reports... by chaboud · · Score: 4, Insightful

    This sounds a lot like the wildly fictitious "cost of hackers" reports that we have all seen before.

    You don't see me declaring that theifs have cost me $120 because I have locks on my doors, do you?

    I know that this is a claim of lost productivity, but people sitting in front of computers aren't 100% productive. Expecting them to be so is absurd, and pinning their less-than-perfect output on spam is just scapegoating. We all hate spam, but this is just the usual cost-hunting nonsense....

  18. Total loss by Rorschach1 · · Score: 4, Funny

    Seems we see these stories about every day or two - 'companies lose $xx billion to such-and-such every year.'

    Has anyone added all of these up? With the wild loss estimates from sick days, viruses, spam, major sporting events, bee stings, and Slashdot, I wouldn't be surprised if the world as a whole is running trillions of dollars in the negative...

  19. Re:Key part of the problem by tbone1 · · Score: 4, Insightful
    How stupid can these people be? Buying from spammers?

    There is a certain part of the population who will buy into anything. Generally they are those who would have been eaten by wolves long ago if it weren't for civilization trumping evolution. In this (relatively) enlightened age, we still have people making a mint as fortune tellers, televangelists, runners of Ponzi schemes, 'multi-level marketing', charity scams, and so on. In fact, I think that many people's tastes run to the untruth told in sonorous, comforting tones.

    --

    The Independent: Reverend Spooner Arrested in Friar Tuck Incident - ISIHAC, Historical Headlines
  20. Re:My $0.02 by pegasustonans · · Score: 3, Insightful

    I think that's unfair. Someone with a website selling honey that they make in their backyard isn't necessarily going to be an expert with spam protection software, but that doesn't mean that they deserve to be punished with a bunch of spam in their inbox.

    --
    And all our yesterdays have lighted fools The way to dusty death. --Will
  21. Re:My $0.02 by MightyMartian · · Score: 3, Informative

    It's an uphill battle. For instance, new zombies are expected to start sending through the mail server, since port blocking and SPF have put such a crimp on them directly sending into the great big wide. Now outfits like the one I work for are faced with enforcing SMTP Auth on our clients (our few old customers running ancient versions of Eudora are screwed here), *but* if a zombie starts sending via MAPI, it's quite possible that they will be authenticating to our mail server. Our world becomes darker, as we now have to start much more heavily policing outgoing mail.

    Spammers do indeed cost money, lots of it, and the particularly criminal ones using zombies are some of the nastiest of all.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  22. Loss of productivity, in tiny increments by BlueThunderArmy · · Score: 3, Insightful
    Stuff like this rather reminds me of a scene in The Hudsucker Proxy where, after the boss throws himself out a window, the employees are compelled to observe a moment of silence. Afterwards, there is an announcement that "This moment of silence has been deducted from your pay!"

    I suspect that, while the figures these studies come up with are dramatic, they don't actually reflect very much actual loss of "productivity." If time is money, and each minute equals a certain amount, then millions of employees taking several seconds to delete each spam over the course of a year is going to add up. But time isn't money; time is time. American companies need to chill out a bit.

  23. I get 18 billion by peter303 · · Score: 4, Insightful

    2.8 minutes x 200 days x 100,000,000 workers with email = 56 billion minutes ~= 1 billion work hours. The median hourly wage is $18.

  24. The Onion reports on Industry's Solution by lysium · · Score: 3, Funny

    Fortunately for us all, dilligent corporations are applying an old remedy to bring these costs down.

    --
    Together, we will drive the rats from the tundra.
  25. Re:Does that include the cost of studies about spa by hackstraw · · Score: 5, Interesting

    Since I read about a new spam study every other day, I'm wondering if that $22B price tag includes the cost of all the studies being done about the cost of spam?

    All of these "annual amount of money lost due to X" studies are bullshit.

    This is saying that $22B a year is "lost" due to people spending an average of 2.8 minutes a day deleting emails.

    Well, how much paper has email saved over the years? How much time has email saved? How much does taking a dump cost businesses annually? What about reading /.?

    I've been hearing these "take a miniscule amount of thing X and multiply it by the number of people Y and report REALLY BIG NUMBER Z" studies all my life.

    Who cares?

    Lets do a more interesting and relevant study for people for a change. How many hundreds of millions of dollars would be saved if we switched to a 4 day workweek? How about the quality of life for everyone having at least 3 day weekends every week? That sounds interesting.

  26. Re:Funny, I don't see these on profit/loss reports by chaboud · · Score: 3, Insightful

    As some employees claim to read the mails in question, some have even purchased the products advertized, it appears that the bulk of this cost isn't that the mails are sent but that the employees are willfully seeking distractions in the first place. I would call this the usual cost-hunting nonsense, because people sitting in front of modern computers are not machines.

    These are web-connected, multi-tasking, bright-colors-and-lights computers, and expecting employees to stay constantly focused on the task at hand is folly, at best.

    I mean, look at me. I'm checking out slashdot while waiting for my build to finish when I could be answering work emails or reading code that I'm about to change. It is a personal decision that one could construe to have cost the company money, but it's really more a part of conducting business with human employees.

    If you had read the article in question, you would have found that, of those surveyed, the average time supposedly spent deleting the 18.5 spam messages received per day was 2.8 minutes, rather than 12. I spend more than 2.8 minutes per day going to the restroom.

    Do we see reports on CNN saying that allowing employees to use the facilities costs businesses $44 Billion/year? Should we all be in diapers to increase productivity? Would it increase productivity to be in diapers? I know that this is an inevitable result of employing non-slave labor, but the point here is that attempting to quantify these costs in an attempt to demonize spam is an exercise in futility.