NetworkTigers discusses cybercrime as a global threat and its place on the World Economic Forum’s list of global threats.
From the threat of espionage and infrastructure disruption to the millions of dollars that ransomware attacks and other hacks cost government agencies and businesses, both large and small, global cybercrime remains at the top of the list of international threats, and it shows no signs of slowing down.
In 2021, the FBI reported losses of around $6.9 billion due to cybercrime. In 2022, that number climbed to $10 billion, and 2023’s report indicates a loss of over $12 billion, with 880,418 reported complaints.
The total cost of cybercrime on a global level hit $8 trillion in 2023 and is expected to reach $10.5 trillion by the year 2025.
In 2018, the World Economic Forum (WEF) ranked cyberattacks as the third greatest threat to the world behind extreme weather and natural disasters. In WEF’s 2024 report, online threats sit at positions 2, 5, 7, and 9 of the top ten global threats.
- Extreme weather
- AI-generated misinformation and disinformation
- Societal and/or polarization
- Cost-of-living crisis
- Cyberattacks
- Economic downturn
- Disrupted supply chains for critical goods and resources
- Escalation or outbreak of interstate armed conflict(s)
- Attacks on critical infrastructure
- Disrupted supply chains for food
Why has cybercrime as a global threat increased?
WEF’s 2024 report indicates that cyber threats have continued to trend upward, with hackers and criminals diversifying.
International interconnectedness
With organizations doing business across borders and with third-party vendors via digital infrastructure, it’s never been easier for hackers to penetrate a network and cause far-reaching damage far outside the scope of a single victim. As legal businesses have expanded their horizons with hybrid work environments, subscription-based services, and large online footprints, so too have the bad guys.
The rise of crypto
Cryptocurrency has given criminals more effective ways to cover their tracks and launder their funds in ways that are difficult to trace. While not impossible, the advent of the blockchain has been a boon for criminals looking to cash in and remain anonymous.
It’s lucrative
Financially motivated threat actors continue to profit. Pig butchering schemes siphon cash out of the bank accounts of unsuspecting individuals. Ransomware attacks bring in millions of dollars from large companies willing to pay up if it means a swift end to the operational disruption and PR nightmare that results from a breach. Organized criminals in Southeast Asia, where victims are trafficked and forced to conduct scams under abusive conditions in guarded encampments, have profited to the tune of $3 trillion a year.
Advancements in AI
While deepfake video content has remained a “just around the corner” threat for some time, the writing on the wall has been made clear by criminals already using AI to enhance phishing scams, create convincing correspondences, and more efficiently carry out their attacks.
More connected devices
With nearly every person holding a smartphone and even devices like refrigerators, coffee pots, and smart bulbs connecting to the internet, threat actors have more ways than ever to breach networks. Cybersecurity protocols for internet-of-things devices are often neglected. Many people do not change the default password on a new appliance without realizing how vulnerable this leaves their devices.
What are world leaders doing in response to cybercrime?
Global cybercrime takes many forms, making it challenging to locate threat actors and even harder to prevent them from simply resurfacing after having their schemes breached by law enforcement. From efforts to stymie ransomware attacks to regulations aimed at preventing espionage, governments are finding ways to deal with cybercrime:
World government collaboration
Operations targeting cybercrime platforms, dark web marketplaces, and threat actor groups require close cooperation between world governments to be effective. Over the last few years, law enforcement agencies have been working together to take down some of the most prevalent and dangerous enterprises.
In April of 2022, the US Department of Justice and German federal police dismantled Hydra Market, a dark web marketplace where criminals could buy and sell illicit goods and launder money.
In November 2023, the 48 countries in the International Counter Ransomware Initiative pledged that “relevant institutions under our national government authority should not pay ransomware extortion demands.” While the pledge lacks the teeth necessary to have a huge impact on the prevalence of ransomware, especially in private industry, the collaboration and public announcement show that governments are prioritizing cybersecurity and are willing to work together to help mitigate dangers.
In February of 2024, the US and the UK worked together to disrupt the infrastructure of LockB. This particularly notorious Russian ransomware gang had targeted more than 2,000 victims and received over $120 million in payments from them.
Legislation
Under the Biden-Harris administration, the US government has made cybersecurity a focus.
The Bipartisan Infrastructure Investment And Jobs Act, signed in 2021, will invest $100 million over five years in a fund that CISA can dip into if needed and establish a $1 billion state and local cybersecurity grant program.
In 2022, President Biden signed the Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA). This law created “regulations requiring covered entities to report covered cyber incidents and ransomware payments to CISA. These reports will allow CISA to rapidly deploy resources and help victims suffering attacks, analyze incoming reporting across sectors to spot trends, and quickly share that information with network defenders to warn other potential victims.”
2022 also saw the signing of the Better Cybercrime Metrics Act, designed to enhance, bolster, and streamline the collection and sharing of data related to cybercrime, threat actors, and the methods they employ.
The UK has also been strengthening laws to protect against cyber threats. In 2022, more organizations will be subject to government regulations and rules if they provide essential services, and the fines and punishments for non-compliance or cybercrime will increase.
What is the future of global cybercrime?
Cybercrime shows no signs of slowing down and is expected to continue to wreak havoc and cost tremendous amounts of money for the foreseeable future.
Government takedowns of criminal infrastructure, while necessary, often prove largely ineffective as gangs and platforms briefly disappear before rebranding themselves and continuing to break the law.
Technological advances are adopted quickly by agile criminal enterprises operating free from regulatory red tape. Law enforcement often plays catch-up with sophisticated groups that can disband and reform with seemingly little effort.
The criminals in Southeast Asia are largely untouchable, as government officials and police are often on the payroll or helpless against the militarized gangs hired to provide security for labor camps.
It would appear that law enforcement has little choice but to continue to engage in a global game of whack-a-mole against cybercriminals. Currently, the best weapon against cybercriminals is education.
The more individuals are aware of pig butchering scams, password hygiene, phishing messages, and security in general; the less likely social engineering campaigns will work. The more the private sector resists the temptation to pay a ransomware attacker, the less profitable it will be for hackers.
Hackers are always poised to take advantage of any opportunity and will continue weaponizing the internet. For a safer future, a strong combination of government regulation and individual familiarity with cybercriminals’ tactics is required.
About NetworkTigers
NetworkTigers is the leader in the secondary market for Grade A, seller-refurbished networking equipment. Founded in January 1996 as Andover Consulting Group, which built and re-architected data centers for Fortune 500 firms, NetworkTigers provides consulting and network equipment to global governmental agencies, Fortune 2000, and healthcare companies. www.networktigers.com.
