What is the Cost of Cybercrime?

Cybercrime is one of the most harmful types in terms its economic costs to individuals and businesses.

This reason alone suggests that students of A-level sociology studying the crime and deviance module should pay special attention to to this type of crime.

What are the economic costs of cybercrime?

A recent McAFee report estimated the global cost of Cybercrime in 2019 to be over $1 Trillion.

Accenture does an annual survey on the costs of Cybercrime to business and that revealed that the average cost of malicious attacks is just over $1 million to a company, with several days of downtime as a result.

In the United Kingdom, this report estimates the costs of Cbyercrime to be £27 billion every year.

This compares to the following:

  • The overall size of the global economy in 2020 was around $84 trillion, meaning global cybercrime accounts for 1% of global economic output.
  • Tax dodging by mainly corporations but also wealthy individuals costs the global economy just over $400 billion annually. (Source: The Conversation)
  • In 2015/ 16 the UK government estimated the total cost of ALL crime to be around £50 billion – besides cybercrime, fraud and theft were very high cost crimes, both made much easier with the growth of online networks.

The projected costs of Cybercrime are much greater. according to Cyber Security Ventures the global cost of Cybercrime is set to reach $10.5 trillion dollars by 2025

Analysis/ Evaluation – what to make of these figures?

These statistics suggest that the costs of Cybercrime are growing rapidly, and if you believe the projections, then Cybercrime is by far the most damaging type of crime in terms of financial cost.

However, you need to question the validity of data published by Cybersecurity companies – it is in their interests to exaggerate the extent of cybercrime so they can sell more security software!

Having said that, official statistics themselves show a HUGE increase in the amount of cybercrime in the last five years, and so it’s likely that the costs of cybercrime would have increased too.

I haven’t here distinguished between cyber dependent crime and cyber-enabled crime – I think a lot of the increasing costs are due to old types of crime (fraud and especially theft) becoming more common online (as opposed to face to face) – I guess the internent just makes it easier to attempt to commit these types of crime, en masse (as through phishing) rather than the slower and more risky physical thefts.

The depressing thing is that I find none of this surprising – we live in more networked world, and one unfortunate consequence is that it’s now easier to attempt to commit fraud and theft against faraway victims online – it’s simple rational choice theory – computer networks make it more convenient to attempt crimes such as phishing and identity theft with less risk.

And while I’m sceptical about Cyber Security companies exaggerating the extent of online crime, I’m inclined to agree with them that this is on an uptrend as that’s what official statistics from all around the world suggest, not to mention the increasing amount of anecdotal evidence from people who have been scammed, and TBH I only need compare the amount of phishing emails in my inbox today compared to five years ago to realise the increase in attempted crimes against me, and presumably millions of other people receiving such mail in their Spam folders every day!

It seems it’s more important than ever to take your online security and safety very very seriously.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.