Artificial Intelligence Is Changing The Economics Of Cybercrime

Artificial Intelligence Is Changing The Economics Of Cybercrime

Cybercrime remains one of the most significant and costly risk management challenges facing business leaders. Despite massive investment and improved defenses, attacks on the world's expanding digital footprint are increasing in scale and impact and are projected to reach a staggering cost of $14 trillion in 2028.

Fortunately, with the rapid emergence of artificial intelligence, the tools to defend against cyberattacks are growing in sophistication and effectiveness. AI is a welcome addition to the cyber professional's portfolio of options to protect their organizations.

Perhaps not surprisingly, AI has also become a source of innovation for those intent on committing cybercrimes. By making attacks cheaper, faster, and easier to scale, AI is fundamentally changing the economics of cybercrime. The cybersecurity playing field has shifted quickly, and leaders must understand these new AI-driven challenges and respond with urgency.

The Cost Of Cybercrime Is Falling

Phishing and social engineering attacks are the most common forms of cybercrime today, each costing an enterprise an average of around $4 million per breach.

Unfortunately, despite admirable efforts to defend and reduce these attacks over many years, the tide has turned significantly in favor of the cybercriminal.

AI is fundamentally changing the economics of cybercrime by reducing the cost of attacks while increasing their speed, scale, and potential financial return. In a recent academic study researchers found that AI-automated phishing emails performed identically to human experts, reaching a 54 percent click-through rate, compared with 12 percent for generic phishing emails. With relative ease, AI can automate information gathering, target identification, and vulnerability assessments.

Throughout history, cybercriminals have operated under economic constraints of time, labor, expertise, and cost. AI is reducing each of those constraints simultaneously. When the cost of producing highly convincing phishing campaigns falls while effectiveness remains high, attackers gain a significant economic advantage. As a result, AI is reshaping the economics of cybercrime.

For example, spear phishing, emails customized and sent to specific individuals, used to require substantial human effort. However, AI has made these emails, which often have a higher attack success rate, easier to produce and deliver at scale.

Similarly, another research study concluded that generative AI could be successfully used to reduce the cost and increase the impact of social engineering schemes, by supporting content creation, enhanced targeting and personalization, and attack automation.