Cybercrime continues to be a growing and significant threat to the global economy. Projections indicate that the global annual cost of cybercrime will reach $8 trillion in 2023. This figure represents the greatest transfer of economic wealth in history, surpassing the damage caused by natural disasters and being more profitable than the global trade of all illegal drugs combined.
Ransomware: A Growing Problem
Ransomware, in particular, has proven to be a devastating threat. A 2017 report from Cybersecurity Ventures predicted that ransomware damages would cost $5 billion that year, a dramatic increase from $325 million in 2015. By 2021, damages had reached $20 billion, and they are expected to hit $265 billion annually by 2031. With a new attack occurring every 2 seconds, the threat of ransomware is clear and present. Lindy Cameron, Chief Executive of the UK’s National Cyber Security Centre, warned that these attacks are the “most immediate threat” to all nations, with implications that will persist for many years due to the Covid-19 pandemic.
Cryptocrime: A New Battlefield
The rapid growth of decentralized finance (DeFi) has created new opportunities for criminals. Cybersecurity Ventures estimates that cryptocrime will cost $30 billion in 2025, nearly double the $17.5 billion lost in 2021. Criminals are exploiting everything from direct exchange hacks to scams designed to trick users into handing over their cryptocurrencies. In 2021, scammers stole $7.7 billion through cryptocurrency scams, an 81 percent increase compared to 2020.
Impact on Small Businesses
Small and medium-sized businesses (SMBs) are particularly vulnerable. Scott Schober, author of “Hacked Again” and “Cybersecurity Is Everybody’s Business,” points out that there are 30 million small businesses in the U.S. that need to protect themselves from phishing attacks, malware, ransomware, and other cyber risks. More than half of all cyberattacks are directed at SMBs, and 60 percent of them go out of business within six months of a data breach or hack.
Given this landscape, it is essential for small businesses to take proactive measures to strengthen their cybersecurity and protect their assets, data, and customer trust.