Craigslist founder gives $200 million to prevent cybercrime against US (video)

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Craig Newmark, the 71-year-old founder and former CEO of classifieds site Craigslist, is alarmed by the potential cyber security risks in the US.

“The deal is that our country is under attack now,” he told Yahoo Finance’s executive editor Brian Sozzi on Opening offer podcast (video above; listen below). “It’s not like I’m in the draft line after Pearl Harbor because my dad was a volunteer in the ’40s, but I think that’s what I should do.”

Newmark, who resigned from the company in 2000 but retained a position responding to customer complaints, has given up financial rewards in semi-retirement.

Instead, it started Craig Newmark Philanthropies to invest primarily in projects to protect America’s critical infrastructure from cyber attacks. He told Sozzi that he is now spending $200 million more to fix the problem, on top of the original $100 million commitment unveiled in September of this year.

He encouraged other wealthy people to join him in the fight against cyber attacks.

“I tell people, ‘Hey, the people who protect us could use some help. The amounts of money are relatively small, so why not help,’” he said.

Cybersecurity has had a big year in the spotlight, with issues going beyond past annoyances where consumers simply have to change passwords, call a credit bureau or cancel an account after a breach.

Last summer, a Microsoft (MSFT) Windows update containing a flaw hit 8.5 million computers. It led to flight cancellations and hampered health and payment services. Concerns have arisen about potential attacks on infrastructure on a global scale, such as the Paris Olympics.

In October, utility company American Water Works (AWK) announced a cyber security attack that temporarily shut down its customer portal and disrupted billing.

Shares of cybersecurity stocks rose further: Palo Alto Networks (PANW) and CyberArk software (CYBR) are up 38% and 53% year-to-date, respectively. Wall Street remains bullish on every stock, as per Yahoo Finance analyst recommendation and price target data.

Global financial impact of cybercrime could reach $13.82 trillion by 2028, up from $9.22 trillion in 2024, ASEAN and East Asia Economic Research Institute estimate.

The need for municipalities and other government entities to act rather than react remains paramount, warns Newmark.

“I think about it a lot,” Newmark said. “I’ve started to fund networks of smart volunteers who can help people protect infrastructure, especially (for) small businesses and utilities across the country that are responsible for most of our electricity and power sources, transportation infrastructure and (and) food distribution. .”

“A lot of these systems don’t have any protection, so an adversary could compromise them, saying if you don’t do what we need, we can start shutting these things down,” he continued. If that happens, recovery “could take weeks and weeks without water or electricity.”

Newmark is a self-proclaimed tech geek. The IBM alum worked at Big Blue for 17 years before founding Craigslist in 1995.

While he continues to watch Craigslist from afar, Newmark said these days he’s most focused on making sure his fortune goes to the right causes.

“My takeaway is that I want all of this money to go directly into the nonprofit world — I just have to figure out where it goes and how I do it in the next five to 20 years,” Newmark said.

Three times a week, Yahoo Finance Executive Editor Brian Sozzi insightful field conversations and chats with the biggest names in business and markets Opening offer. You can find more episodes on our website video hub or follow you your favorite streaming service.

Grace Williams is a writer for Yahoo Finance.

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