Key Takeaways
- The global cost of cybercrime is estimated to reach $10.5 trillion by 2025 and $12.2 trillion by 2031.
- Cybercrime costs include damage and destruction of data, stolen money, lost productivity, and reputational harm.
- The growth rate of cybercrime costs is expected to plateau at 2.5% per year due to the increasing size and profitability of the cybercrime economy.
- Legacy threats such as computer viruses are decreasing, while next-generation threats like deepfakes and AI-powered attacks are on the rise.
- Estimates of cybercrime costs vary, with some predicting over $23 trillion by 2027, but these figures are considered unsustainable.
Introduction to Cybercrime Costs
Clearly, it’s essential to consider the vast and varied costs associated with cybercrime when estimating its overall impact. According to Tony Burgess, a twenty-year veteran of the IT security industry, casting a wide net is crucial when evaluating the expenses related to cybercrime. A 2025 Cybercrime Magazine article highlights the numerous costs of cybercrime, including damage and destruction of data, stolen money, lost productivity, theft of intellectual property, and reputational harm. These costs can also include post-attack disruption to normal business operations, forensic investigation, restoration and deletion of hacked data and systems, legal costs, and regulatory fines.
The Rising Cost of Cybercrime
The predicted global cost of cybercrime for 2025 is a staggering $10.5 trillion, a significant increase from the 2020 estimate of $1 trillion. Looking ahead to 2031, the magazine predicts that the cost will rise to $12.2 trillion, based on a steady increase of 2.5 percent per year. This assumption is grounded in the idea that the cybercrime economy is becoming so large and profitable that its growth rate will eventually plateau. This plateau is expected to occur as the cybercrime economy reaches a point of maturity, where the increasing costs of operating and maintaining complex cybercrime operations will slow down the rate of growth.
Evolving Threats and Costs
One crucial point to consider is that the damages from legacy threats, such as computer viruses, have decreased over the past decade, while next-generation threats like deepfakes and AI-powered attacks have risen sharply. This shift in the threat landscape highlights the need for organizations to adapt and evolve their cybersecurity strategies to address emerging threats. According to Steve Morgan, founder of Cybersecurity Ventures, the cybercrime economy is becoming increasingly sophisticated, with new threats and attack vectors emerging all the time. As a result, organizations must remain vigilant and proactive in their cybersecurity efforts to mitigate the risks associated with these emerging threats.
Estimating Cybercrime Costs
There are varying estimates of the potential cost of cybercrime, with some sources predicting that it could exceed $23 trillion by 2027. However, Steve Morgan notes that these estimates are often based on unsustainable growth rates and are not supported by the data. Morgan argues that these inflated figures are the result of media outlets and vendors projecting a 15 percent year-over-year growth rate, which is not realistic. Instead, the more conservative estimate of $12.2 trillion by 2031 is based on a steady increase of 2.5 percent per year, which is more in line with the current trends and the expected plateau in the growth rate of the cybercrime economy.
Conclusion and Implications
In conclusion, regardless of the actual numbers, there is no doubt that cybercrime imposes massive costs on the world’s economy, and these costs are rising. The estimated costs of cybercrime are a stark reminder of the need for organizations to prioritize cybersecurity and invest in robust defenses to protect against emerging threats. As the cybercrime economy continues to evolve, it is essential for organizations to stay informed and adapt to the changing threat landscape. By understanding the costs and implications of cybercrime, organizations can take proactive steps to mitigate the risks and protect their assets, reputation, and bottom line. Ultimately, the fight against cybercrime requires a collective effort from organizations, governments, and individuals to stay ahead of the threats and minimize the economic impact of cybercrime.
