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by Kathleen Ohlson

BOSTON (IDG) -- With the dawn of more business than ever being done over the Internet, companies will have to be aware of the new 21st century hacker -- disgruntled employees, said Rich Brewer, an International Data Corp. (IDC) analyst.

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Brewer made his comments during Directions '99, held here earlier this week. IDC is a sister company of Computerworld.

The perception is that most hack attacks come from political activities and professional industrial thieves, but the reality is approximately 70% of attacks come from within a company, Brewer said. Most security breaches are committed through a bunch of holes, enabling hackers to steal assets and, more important, ideas, he said.

"Hackers are benefiting from a company's silence," Brewer said. According to the FBI, fewer than 3% of hack attacks were detected last year, and out of those, fewer than 1% were reported to the FBI, he added.

To defend against hack attacks, "products alone can't save" companies, Brewer said. Companies will have to look at all options: security consulting and implementation; managed firewalls; an intrusion, detection and response operation; and hacker insurance, he said.