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The Perpetual Motion of Cyber Warfare's Economy

Written by Arctic Security | August 15, 2023

While traditional warfare reshapes economies through resource allocation, cyber warfare introduces a newer, arguably more distributed economic arena. As per Investopedia's definition of a war economy, focus traditionally gravitates towards production, resources, and technology aimed at sustaining warfare. Interestingly, warfare often leads to significant economic gains for some while leaving others in the lurch.

Today, we're witnessing something analogous in the cyber realm – a sort of global, decentralized war. While it's easy to assume nation-states as primary actors, the vastness and complexity of the cyber warfare landscape blur these lines. Investors, defenders, and even ransomware actors capitalize on this cyber war economy. The defense sector that builds protection against cyber threats and the offense, represented by ransomware gangs and other criminals, are both reaping benefits. 

The Ever-Changing Face of the Cyber War Machine

Historically, war machines – be it military resources or weaponry – were associated with nation-states. Today, the paradigm is shifting. In the context of cyber warfare, we see vulnerabilities in systems as potential weapons. At the same time, attacks on confidentiality, integrity, and availability of data and digital services mirror conventional war strategies, albeit in the digital realm.

However, the dynamics of cyber weapons differ significantly from their physical counterparts. While traditional warfare often leaves the attacked party disadvantaged due to a power imbalance, cyber warfare's potential for destruction becomes universal once a weapon is unleashed. A single cyber weapon can wreak havoc indiscriminately, presenting a "create once, deploy everywhere" situation.

Thus, global interconnectedness implies that cyber warfare isn't just a concern for direct targets. Irrespective of the cyber weapon's origin or primary deployment, the ripple effects can touch anyone, anywhere. It underscores the importance of understanding your vulnerabilities and the broader, continually shifting cyber war front.

Shifting the balance

In this age where physical borders are becoming less distinct, the battles of cyber warfare echo everywhere. It's no longer about political affiliations or geographical locations; it's about understanding the pervasive nature of the cyber war economy and its intricate dance of offense and defense.

There are economic winners in the cyberwar, just like in the conventional war. The losers in the cyberwar are the organizations that end up as victims of attacks and pay the high costs of their defenses, however necessary they may be. We must work to shift the balance and provide more affordable defenses for the countless organizations trying to navigate this environment.