Within Damage Claims

Why Did Mc Kinnon's Damage Estimate Drop?

Early reports cited about $900,000 in losses, while later extradition records usually stated more than $700,000.

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On this page

  • Where the two headline figures appeared
  • How prosecution estimates can change
  • What the discrepancy does and does not show

Introduction

Early reporting on Gary McKinnon’s hacking case frequently stated that the alleged damage totalled about US$900,000, while later court decisions and extradition documents usually referred to more than US$700,000. The change has sometimes been presented as evidence that the prosecution’s case weakened dramatically. The available record supports a more limited conclusion: the headline figure evolved as investigators refined their assessment of recoverable losses and narrowed the figures relied upon during the extradition process. Neither amount was established through a criminal trial or a judicial damages award, because McKinnon was never tried in the United States. Instead, both figures remained prosecution estimates used at different stages of the case.[justice.gov]justice.govDepartment of JusticeLondon, England Hacker Indicted Under Computer Fraud and Abuse Act For Accessing Military Computers (November 12, 20…

Changing Totals illustration 1

Where the Two Headline Figures Appeared

The approximately US$900,000 figure appeared in the US Department of Justice announcement issued after McKinnon’s November 2002 indictment. That press release alleged that the combined losses suffered by military organisations, NASA and several private-sector victims amounted to roughly US$900,000. The estimate covered the broad investigation as it then stood and reflected losses attributed across multiple affected organisations.[Department of Justice]justice.govDepartment of JusticeLondon, England Hacker Indicted Under Computer Fraud and Abuse Act For Accessing Military Computers (November 12, 20…

By contrast, later legal documents connected with the extradition proceedings—including the House of Lords judgment in 2008—consistently referred to the alleged cost of repair as “over US$700,000.” Contemporary reporting of the extradition hearings likewise repeated the lower figure rather than the earlier press-release estimate.[parliament.uk]publications.parliament.ukUK Parliament House of LordsUK ParliamentHouse of Lords - Mckinnon V Government of The United States of America and Another…

The coexistence of these figures reflects different stages of the same prosecution rather than two separate hacking incidents.

How Prosecution Estimates Can Change

A reduction from approximately US$900,000 to more than US$700,000 is not unusual in a long-running cybercrime investigation. Several factors can explain such revisions.

First, investigators often begin with preliminary loss estimates gathered from affected agencies. As forensic work continues, duplicated costs, overlapping recovery work or speculative future expenses may be removed, leaving a narrower figure considered more defensible in court.[Department of Justice]justice.govDepartment of JusticeLondon, England Hacker Indicted Under Computer Fraud and Abuse Act For Accessing Military Computers (November 12, 20…

Second, prosecutors may refocus the calculation on losses directly tied to the charged conduct. Computer crime statutes often permit losses to include incident response, system restoration, security reviews and operational disruption, but prosecutors may later exclude costs they consider harder to attribute with confidence. The extradition record therefore appears to rely on a more conservative aggregate figure than the original announcement.[UK Parliament]publications.parliament.ukUK Parliament House of LordsUK ParliamentHouse of Lords - Mckinnon V Government of The United States of America and Another…

Third, the investigation covered numerous military and civilian systems. Individual indictments also identified specific damage calculations for particular incidents—for example, the New Jersey indictment alleged roughly US$290,431 in losses relating to Naval Weapons Station Earle. Such component figures formed part of the overall case rather than replacing the total estimate, illustrating that the aggregate loss was assembled from multiple incidents whose valuation could change during the investigation.[Department of Justice]justice.govDepartment of JusticeLondon, England Hacker Indicted Under Computer Fraud and Abuse Act For Accessing Military Computers (November 12, 20…

Changing Totals illustration 2

What the Discrepancy Does—and Does Not—Show

The differing totals are sometimes cited as proof that the government’s allegations collapsed. The available documentary record does not support that interpretation.

The later extradition judgments continued to describe extensive alleged operational harm, including deleted operating-system files, deleted user accounts, impaired network availability and lengthy restoration work, while using the lower overall repair-cost figure of more than US$700,000. The prosecution therefore maintained that significant damage had occurred even after adopting the revised estimate.[UK Parliament]publications.parliament.ukUK Parliament House of LordsUK ParliamentHouse of Lords - Mckinnon V Government of The United States of America and Another…

Equally, the reduction should not be interpreted as judicial confirmation that either figure was correct. British extradition courts were assessing whether the legal requirements for extradition were satisfied, not determining the precise financial loss suffered by US agencies. McKinnon admitted unauthorised access but denied intentionally causing the alleged damage, and because extradition was ultimately halted on human-rights grounds, no US trial ever tested the competing accounts or established a final damages figure beyond reasonable doubt.[UK Parliament]publications.parliament.ukUK Parliament House of LordsUK ParliamentHouse of Lords - Mckinnon V Government of The United States of America and Another…

The Most Accurate Way to Describe the Figures

Taken together, the historical record supports a careful summary:

  • Approximately US$900,000 was the early estimate announced when the US indictment was unveiled.[Department of Justice]justice.govDepartment of JusticeLondon, England Hacker Indicted Under Computer Fraud and Abuse Act For Accessing Military Computers (November 12, 20…
  • More than US$700,000 became the figure consistently used in later extradition litigation and associated reporting.[parliament.uk]publications.parliament.ukUK Parliament House of LordsUK ParliamentHouse of Lords - Mckinnon V Government of The United States of America and Another…
  • The available evidence indicates that the change reflected a revised prosecution estimate rather than a court finding that the original figure was false.[Department of Justice]justice.govDepartment of JusticeLondon, England Hacker Indicted Under Computer Fraud and Abuse Act For Accessing Military Computers (November 12, 20…
  • Because no criminal trial occurred, neither amount became a judicially determined measure of McKinnon’s liability.[UK Parliament]publications.parliament.ukUK Parliament House of LordsUK ParliamentHouse of Lords - Mckinnon V Government of The United States of America and Another…

Changing Totals illustration 3

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Endnotes

1. Source: justice.gov
Link:https://www.justice.gov/archive/criminal/cybercrime/press-releases/2002/mckinnonIndict.htm

Source snippet

Department of JusticeLondon, England Hacker Indicted Under Computer Fraud and Abuse Act For Accessing Military Computers (November 12, 20...

2. Source: publications.parliament.uk
Title: UK Parliament House of Lords
Link:https://publications.parliament.uk/pa/ld200708/ldjudgmt/jd080730/mckinn-1.htm

Source snippet

UK ParliamentHouse of Lords - Mckinnon V Government of The United States of America and Another...

3. Source: wired.com
Title: Accused Pentagon Hacker in Court | WIRED
Link:https://www.wired.com/2005/06/accused-pentagon-hacker-in-court/

Source snippet

Accused Pentagon Hacker in Court | WIRED...

4. Source: hansard.parliament.uk
Title: uk Extradition
Link:https://hansard.parliament.uk/lords/2012-10-16/debates/12101643000907/Extradition

Source snippet

UK ParliamentOctober 16, 2012 — HANSARD Statement 3.17pm The Parliamentary Under-Secretary of State, Home Office (Lord Taylor o...

Published: October 16, 2012

5. Source: hansard.parliament.uk
Title: Gary Mckinnon
Link:https://hansard.parliament.uk/commons/2009-03-24/debates/09032470000106/GaryMckinnon

Source snippet

McKinnon - Hansard - UK ParliamentMarch 24, 2009 — HANSARD Chris Huhne To ask the Solicitor-General what her most recent estimate is of t...

Published: March 24, 2009

6. Source: GOV.UK
Title: Gary Mc Kinnon extradition case: Home Secretary’s statement
Link:https://www.gov.uk/government/speeches/gary-mckinnon-extradition-case-home-secretarys-statement

Source snippet

Gary McKinnon extradition case: Home Secretary's statement - GOV.UK...

7. Source: GOV.UK
Title: latest on [gary mckinnon case]({{ ‘mc-kinnon-case/’ | relative_url }})
Link:https://www.gov.uk/government/news/latest-on-gary-mckinnon-case

Source snippet

on Gary McKinnon case - GOV.UKNovember 4, 2010 — LATEST ON GARY MCKINNON CASE Find out the latest position on the Glasgow-born systems ad...

Published: November 4, 2010

Additional References

8. Source: youtube.com
Title: The Man Who Hacked the U.S. Government
Link:https://www.youtube.com/watch?v=ND0zQX1rGdg

Source snippet

Hacking for UFOs and fighting for his life. Who is Gary McKinnon? | NordVPN details the background of Gary McKinnon's computer intrusion...

9. Source: youtube.com
Title: Gary Mc Kinnon: No hacking charges in UK
Link:https://www.youtube.com/watch?v=xAhzZRa2aws

Source snippet

Hacking for UFOs and fighting for his life. Who is Gary McKinnon? | NordVPN...

10. Source: theguardian.com
Link:https://www.theguardian.com/technology/2008/jul/30/gary.mckinnon

11. Source: theguardian.com
Link:https://www.theguardian.com/uk/2007/apr/03/politics.usa1

12. Source: theguardian.com
Link:https://www.theguardian.com/technology/2008/jun/16/hacking.internationalcrime

13. Source: youtube.com
Title: Hacking for UFOs and fighting for his life. Who is Gary Mc Kinnon? | Nord VPN
Link:https://www.youtube.com/watch?v=OImdnvQx7sQ

Source snippet

UK hacker's extradition to US blocked...

14. Source: aljazeera.com
Title: U K to extradite alleged hacker to US | News | Al Jazeera
Link:https://www.aljazeera.com/news/2006/7/6/uk-to-extradite-alleged-hacker-to-us

15. Source: youtube.com
Title: UK hacker’s extradition to US blocked
Link:https://www.youtube.com/watch?v=v4Js8DF80HY

Source snippet

UK Hacker extradition to US blocked...

16. Source: youtube.com
Title: UK Hacker extradition to US blocked
Link:https://www.youtube.com/watch?v=Y5jtyps4oaY

Source snippet

The Man Who Hacked the U.S. Government...

17. Source: cbsnews.com
Title: Brit Hacker Loses U.S. Extradition Appeal
Link:https://www.cbsnews.com/news/brit-hacker-loses-us-extradition-appeal/