Cyber attacks are becoming an ever-greater burden on companies. Criminals leverage advanced technologies, online anonymity, and global reach to maximise their profits. Our cybersecurity expert Petr Kocmich explains why cyber attacks are more effective and less risky than traditional crimes and what companies and governments can do to counter these threats.
In today’s digital world, cybercrime is one of the most lucrative industries. Cybercriminals leverage advanced technologies and online anonymity to target individuals, businesses, and even nations. One of the most profitable forms of cybercrime is ransomware (a type of malware that encrypts files or renders a computer unusable until a ransom is paid). For attackers, ransomware presents low risk and high returns. Cybercriminals can operate from anywhere in the world, and their identities are often undisclosed, meaning the risk of detection is much lower than with traditional crimes. Moreover, the internet has no borders, allowing cybercriminals to target victims globally, which significantly scales up their attacks and increases potential profits. Using sophisticated tools and techniques, cybercriminals can automate attacks, enabling them to further scale their operations. Last, but not least, cybercrime encompasses a wide range of activities, including not only ransomware but also phishing attacks, identity theft, credit card information theft, and trading in illegal goods and services on the darknet (a part of the internet accessible only through specialised web browsers). Cybercriminals earn millions of dollars annually, often accepting payments in established, anonymous cryptocurrencies, which are widely used for money laundering and carry a low risk of detection.
Cybercrime is often compared to conventional crimes, such as drug trafficking, human trafficking, and arms smuggling. Although these activities may seem different at first glance, they share certain characteristics. Drug trafficking, traditionally a very profitable crime, requires extensive organisation and logistical networks, which can also be true for cybercriminals. However, “conventional” criminals face high risks of detection when cultivating, manufacturing, transporting, and distributing drugs. On top of that, they are constantly under pressure from law enforcement. Human trafficking is also highly profitable, but extremely dangerous. Traffickers face numerous challenges, such as smuggling people across borders, securing false documents, and keeping victims in subordinated positions.
Then there is arms smuggling, a crime associated with high risk. Arms smugglers operate in dangerous environments and often collaborate with other criminal organisations. In comparison, cybercrime is much simpler.
It is estimated that the annual costs associated with cybercrime will reach a staggering USD 10.5 trillion by 2024, up from USD 8 trillion in 2023. For comparison, the global drug trade, often considered one of the most profitable illegal businesses, is estimated at “only” USD 300 to 600 billion per year. These figures highlight the dramatic growth in the scope and impact of cybercrime. While revenues from conventional crime remain relatively stable, the revenues from cybercrime continue to rise. The combination of high profitability, low risk, and global reach makes cybercrime one of the most attractive and lucrative criminal enterprises today.
Cybercrime affects businesses, governments, and individuals worldwide, causing not only financial losses, but also disrupting operations, creating legal issues, and potentially inflicting severe damage on the reputation of targeted entities. On the other hand, the drug trade involves the illegal production, distribution, and sale of drugs, leading to serious social and health issues, as well as high costs for law enforcement, healthcare, and productivity loss.
However, in terms of the economic impact, cybercrime far exceeds drug trafficking. Cybercriminals take advantage of the online world – chiefly anonymity and a low risk of detection. Unlike the high-risk physical transactions and logistics involved in drug trafficking, the internet allows cybercriminals to operate globally with minimal risk. Thanks to advanced technologies and automation, their operations are more efficient and easily scalable, enabling them to reach a much broader circle of victims and generate immense profits.
Yes, but it is no easy task. The high costs associated with cybercrime show how urgent it is to increase investment in cybersecurity for both companies and governments. As in the fight against drug trafficking, international cooperation is essential to effectively combat this global threat. At the same time, raising public awareness and knowledge on cybersecurity is key to reducing the vulnerability of individuals and organisations. The economic impact of cybercrime is expected to far exceed that of drug trafficking, reflecting the pervasive and ever-evolving nature of cyber threats in today’s digital world. Thus, it is crucial to boost investments in modern cybersecurity measures.
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