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The Economics of Cybercrime and Security

Building Cyber Resilience

How individuals, firms and governments can build resilience against cyber threats, and a recap of the module.

No system is perfectly secure. The goal is resilience: reducing risk and recovering fast.

For individuals

  • Multi-factor authentication.
  • Updates and backups.
  • Scepticism about calls and links.
  • Report fraud to 1930 quickly.

For firms

  • Backups kept offline.
  • Least privilege: limit access.
  • Training staff.
  • Incident response plans.
  • Cyber insurance.

For governments

  • Standards and reporting rules.
  • Protecting critical infrastructure.
  • International cooperation against cross-border crime.

Module recap

  • Cybercrime costs trillions of dollars a year and keeps growing.
  • Ransomware gangs run like businesses.
  • Black markets enable specialisation.
  • Externalities cause underinvestment in security.
  • AIIMS was hit by ransomware in 2022.
  • Cyber insurance faces correlated risk.
  • CERT-In requires 6-hour reporting.
  • Bug bounties reward ethical hackers.
  • There’s a large skills gap.
  • Attacks can disrupt infrastructure.
  • Organised scam centres traffic workers.
The backup that saved the day

A school's computers are hit by ransomware. Because it kept offline backups, it restores everything within a day without paying.

Thinking perfect security is possible

Resilience means reducing risk and recovering quickly.

Key takeaways
  • Resilience combines prevention and quick recovery.
  • Individuals, firms and governments all have roles.
  • Offline backups and MFA are powerful basics.
  • Cooperation is needed against cross-border crime.
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