Spend on Cybersecurity is only a Fraction of Proceeds from Cybercrime

Global cybercrime costs this year (2023) is expected to reach $8 trillion globally. Comparing that to GDP, that would make cybercrime the third biggest economy in the world. That is why there is so much of it. It is highly lucrative. While the hackers only get a fraction of that, the cost goes to businesses and individuals who have to clean up after being attacked.

It is anticipated that cybercrime damage costs will grow 15 percent a year over the next few years, reaching $10.5 trillion by 2025.

Cybercrime costs include damage and destruction of data, stolen money, lost productivity, theft of intellectual property, theft of personal and financial data, embezzlement, fraud, post-attack disruption to the normal course of business, forensic investigation, restoration and deletion of hacked data and systems, and reputational harm.

Another report says that U.S. (not global) cybercrime cost was $19.4 billion in 2017, $320 billion in 2023, $452 billion next year and $1816 billion by 2028.

No one knows the exact numbers, but all you have to do is look at the news to know the number is big.

But lets compare that number to global cybersecurity spending.

It was estimated that global cybersecurity spend for the five year period 2021 to 2025, on products and services, was going to be $1.75 trillion or an average of $350 billion a year.

So, as a global economy, we are spending about $350 billion year while cybercrime is costing us $8 trillion a year. Lets assume that both numbers are off by a factor of two – not likely, but possible. That would mean that we are spending $700 billion while crime is costing us $4 trillion.

If we assume 15 percent annual growth, the gap between spend and cost is only going to grow.

No one wants to spend money on cybersecurity; I understand that, but right now the difference between spend ($350 billion) and cost ($8 trillion) is something like 20 to 1.

Are you feeling lucky, punk, to quote Dirty Harry?

Maybe you will luck out this year and not get hacked, but what about next year and the one after?

The hackers are getting better every year; they are using better tools and while law enforcement scores a win every now and again, they are not even making a dent in the problem.

You have to take care of yourself. Credit: Cybersecurity Ventures

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