Economic Aspects of Cyber Security: Socio-Financial Consequences of Cyber Attacks
Economic Aspects of Cyber Security: Socio-Financial Consequences of Cyber Attacks

Summary/Abstract: The economic impacts of cyberattacks on firms, financial institutions, public authorities, and critical infrastructure between 2009 and 2024 were systematically analysed using a sample of 31 publicly documented incidents. The analysis quantified direct financial losses, indirect business disruptions, and broader socio-financial consequences. The median direct losses per incident were approximately $0.4 million, while extreme cases ranged from several hundred million to billions of dollars, in some cases equivalent to 2–2.5% of national GDP. The results confirm that cyber incidents generate multi-layered economic effects, disproportionately affecting highly interconnected sectors such as finance, healthcare, and critical infrastructure. Indirect and systemic losses – including reputational damage, legal liabilities, and erosion of consumer confidence – often exceeded the direct costs of remediation. The study highlights the importance of integrating cybersecurity into economic policy, corporate governance, and risk management strategies to mitigate these macroeconomic and firm-level vulnerabilities.

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