CAST your minds back to the global panic of winter, 1999. Those claiming to know about such things were predicting an IT Armageddon due to the Millennium bug.

That’s why millions, possibly billions, were spent to avert the threat.

Now there’s a new threat to be aware of. In recent weeks, computer networks, on which so much of global trade depends, have come under attack.

Computers have undoubtedly transformed the way we live, work, rest and play. And, as was the case in 1999, they need looking after. We have become dependent on them working efficiently.

That’s why it was more than a little unnerving to learn of recent cyber attacks, not least because the type and scale of terrorist threat we now face has changed so much during the last decade.

These latest attacks hit several US and South Korean government agencies.

The White House, Defence Department and New York Stock Exchange were all hit by the initial attack earlier in the summer. An analysis of the software used revealed its targets also included the National Security Agency, the Nasdaq stock market and the Washington Post.
US officials did not release details of the attack.

Such reticence is understandable, but, under such circumstances, is a lips sealed and arms folded position appropriate?

The US homeland security secretary, Janet Napolitano, stated the obvious when she told the BBC that protecting against virtual attacks was a matter of “great concern” and something the US was "moving forward on with great alacrity”.

In South Korea, the effect of the attacks was to slow down and, in some cases, shut government websites, including the site of the presidential office, for several hours.

These suspected cyber attacks, which were co-ordinated attempts to paralyse a number of major websites, struck one of the country’s biggest banks, a leading national newspaper and the South Korean spy agency.

In what is known as a “denial of service” attack, thousands of virus-infected computers are hijacked and simultaneously directed to a particular site, overwhelming it with the sheer volume of traffic.

The dilemma for governments lies in striking the correct balance between vigilance and avoiding panic. Businesses face the same tightrope walk.