Cybercrime and the outgrowing impact on developing nations

Cybercrime and the outgrowing impact on developing nations. Costa Rica in the background

ESSAY

05 | 11 | 2024

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Small nations with limited cybersecurity capabilities can be severely impacted by cyber threats, potentially exacerbating global inequalities

Cybercrime in the last century has increased in sophistication and become much more widespread, requiring immediate and cooperative international responses. These attacks threaten national security, economic stability, and public safety; thus, it is a critical issue for global stability and no longer limited to a digital realm. An encompassing framework is needed to address both technological and policy solutions and anticipate all evolving threats. Nations and organizations must develop a shared understanding of cyber threats to establish standardized, cross-border regulatory response.

The evolution of cybercrime

Cybercrime has transformed from individual data theft to a highly developed network that targets infrastructure and state assets. The recent ransomware attacks represent the extent to which cybercrime can impact national security and exemplify how both well-resourced governments and those in development can find themselves as victims. For example, in 2022, Costa Rica declared a state of emergency after a ransomware attack on government systems by the 'Conti Group', resulting in widespread disruption across various public sectors(Barker, 2023), including its Ministry of Finance and Social Security Fund. The attack was marked by a $20 million ransom requested from the government. This situation highlighted the potential for cybercrime to debilitated public systems, leading to both direct and indirect economic damage. Moreover, this demonstrated that cyber threats can severely impact the stability and security of even smaller nations, potentially aggravating global inequalities and public trust in governmental institutions when it comes to cybersecurity capabilities. As more critical infrastructure, including healthcare and energy sectors, are integrated with digital networks, vulnerabilities to cyber threats increase, particularly for nations without the resources to establish resilient defenses. The Conti case highlights the importance of international collaboration, as Costa Rica, lacking extensive cyber-defense mechanisms, relied on support from international entities to regain control of its systems.

The increase in threats

Cybercrime has progressed from single data retrieval to coordinated efforts aimed at state apparatus and critical infrastructure. Recent high-profile ransomware attacks, such as the one that prompted Costa Rica to declare a state of emergency in 2022, illustrate the growing national security implications of these threats. The Conti Group's attack on governmental systems caused widespread disruption across public sectors, underscoring the potential for cybercrime to debilitate essential public services and inflict significant economic damage, both directly and indirectly. These incidents emphasize the reality that even smaller nations with limited cybersecurity capabilities can be severely impacted by cyber threats, potentially exacerbating global inequalities. As more critical infrastructure, including healthcare and energy sectors, becomes integrated with digital networks, vulnerabilities to cyber threats increase, particularly for resource constrained countries. This case has also highlighted the importance of international collaboration. Costa Rica, lacking extensive cyber defense mechanisms, had to rely on support from international entities to regain control of its systems. Thus, the changing dynamic of cybercrime continues to possess a growing threat to national security and economic stability, in which coordinated global response to enhance cyber resilience and defense capabilities are necessary.

Impact: Key drivers

Cybercrime's escalating impact is driven by three primary factors: technological advancements, legal ambiguity, and global interconnectivity. The rapid digitalization of governmental and private institutions has created new vulnerabilities, as these organizations integrate digital processes without sufficient safeguards (Holt & Bossler, 2022)[1]. In addition to that issue, legal and regulatory gaps make it difficult to prosecute cybercriminals that take advantage of the borderless nature of cyberspace to evade legal pursuance. Furthermore, global interconnectivity accelerates the impact of cyberattacks, as disruptions to critical infrastructure can affect the international economy. Financial and economic repercussions have extended beyond traditional sectors, affecting vital industries like healthcare, energy, and transportation(Johnson, 2024). Thus, developing countries face heightened cybersecurity challenges due to limited resources and expertise, making them attractive and unprotected targets for cybercriminals. This cyber divide underscores the growing dependence of under-resourced nations on international cooperation and aid to develop effective response mechanisms against its rise.

Role of international organizations

Transnational cyber threats have a significant impact on the functioning of international organizations. The United Nations and the European Union aim at promoting cyberspace norms and mitigating the threats in cyberspace. For example, The EU's General Data Protection Regulation (GDPR) and the NIS Directive are about the implementation of cybersecurity principles to the member states(European Union Agency for Cybersecurity, 2023). However, a lack of enforcement and regulatory alignment between regions creates challenges in bringing to justice transnational cybercriminals.

In addition, cyber threats have also been incorporated in the context of the collective defense of the member countries of the North Atlantic Treaty Organization (NATO). NATO has endorsed the Tallinn guide which is a provision on international law as applicable to military cyber operations shows the organization appreciates the existence of parameters. However, incidents such as the NotPetya attack, which was a malware incursion that targeted the infrastructure of several countries in 2017, indicates the shortcomings of the existing principles in curtailing as well as dealing with states that develop offensive cyber capabilities (Schmitt, 2017)[2].

Also, entities like Interpol or the International Telecommunication Union assist by way of enabling the exchange of information and capacity building, and they provide global network security strategies. Nevertheless, the lack of valid legal mechanisms still prevents these organizations from curbing incidences of cybercrime in an efficient manner. Therefore, these entities are concerned with the enhancement of international laws and policies on cyber crimes since they would facilitate the improvement of safety measures in cyberspace. However, while the use of the Tallinn guide is quite helpful, chances of compliance are very minimal.

Impact on international relations and policy development

Cybercrime plays an important role in international relations by redistributing power, impacting diplomatic strategies, and creating a need for an unaccustomed level of working together between different countries. With the threat of state-sponsored cyber warfare becoming real, especially for smaller countries, there has been a tendency for them to ally with bigger, cyber-enabled countries or organizations to avoid the worst effects of cyberactivism. This is evidenced by the actions of Costa Rica following the Conti attack, where the nation in question procured the services of cyber defenses in the United States and Israel to enhance its defense spear. Such partnerships are required since developing countries usually do not have the capability to fight advanced cyber attacks on their own(Lind & Sivasubramaniam, 2022).

There has also been a change in the diplomatic discourse within countries that have to deal with the ethical, political, and economic aspects of cyber norm development. Hence, the establishment of the United Nations' Open-Ended Working Group on Developments in the Field of Information and Telecommunications in the Context of International Security (OEWG) which aims at promoting on the international level, a responsible use of cyberspace. But this has not advanced much as a result of at times geopolitics and interests of different countries clearly in opposition making it harder to reach any compromises. In the meantime, several countries have decided to go by themselves and develop their own cyber capabilities which resulted in utilizing the efforts in quite a disintegrated manner making it difficult for the entire planet to operate(United Nations, 2023). This tension exemplifies problems faced where national security concerns and an emphasis on multilateral policies on cybersecurity disconnect, and there are also risks to international security, potential for creating conflict where none existed or over escalation of situations that happen.

The possibility of a framework

When it comes to the future incursions of cyberspace, it will be important for many, including the nations, the corporations, and the individuals themselves, to come up with a fast and effective multidimensional way to contain such attacks. A uniform global approach to cyber security policies and practices might help to mitigate the problems of enforcement across borders and therefore limit the possibilities of such activities to criminals. The approach needs to be based on accessibility, responsibility, and trust building principles that are sufficiently flexible to meet the needs of various regions. It would also address technical aspects for instance stricter policies for suppliers of software, deterrent policies against cyber crime, such as harsher punishments and even effective international collaboration.

While it is possible to use artificial intelligence and machine learning to prevent and manage cyber risks, it also comes with certain risks. For example, as defenses against cyberattacks are more driven by AI tools, so are the cybercriminals, who have invented advanced tools designed to set these defenses bringing about an ongoing arms race(Mackey et al. 2023). Consequently, in order for any state or corporate body to remain relevant in future defense systems, it has become necessary to continue researching and developing artificial intelligence systems even for predicting future challenges. With regard to that, it is also important to consider ethical issues such as privacy and biases in use of artificial intelligence in tackling cybersecurity in order to make sure it is not violating human rights. Furthermore, there are global frameworks that ensure the Responsible usage of AI in defense against cyber intrusion, thereby ensuring confidence in automated systems through their use by the International Organization for Standardization (ISO) governing such strategies.

Urgency of collaborative measures

In conclusion, cybercrime has transitioned from an individual threat to a global crisis, underlining the need for quick, collaborative, and standardized responses. The balance of power in cybersecurity is likely to depend on nations' capacities to form effective alliances, establish robust defense mechanisms, and enforce meaningful cybersecurity regulations. Without a concerted effort, nations risk facing increasingly severe consequences from cyber incidents. As countries begin to recognize the geopolitical dimensions of cybercrime, a more unified response seems both necessary and inevitable-one that can establish cyber norms while safeguarding the interests of all parties involved.

Ultimately, while some international organizations have made progress toward addressing cyber threats, a comprehensive cybersecurity framework that transcends borders remains difficult to imagine. In a world where economic, political, and social structures are deeply interconnected, the failure to address cyber vulnerabilities collectively could have far reaching consequences, so an integrated cybersecurity framework is essential for the stability and security of the interconnected world, where the next major conflict can be created from the comfort of someone's bedroom.

REFERENCES

Barker, L. (2023). Cybersecurity in Costa Rica: Ransomware and Resilience. Journal of Cyber Studies, 18(2), 201-217.

European Union Agency for Cybersecurity (2023). Cybersecurity policy and regulation in the EU. Retrieved from https://www.enisa.europa.eu/

Holt, T., & Bossler, A. (2022). Cybercrime and Society: Global Perspectives. London: Routledge.

Johnson, R. (2024). Critical Infrastructure and Cybersecurity: Economic and Political Impacts. Journal of Security Policy, 45(3), 345-367.

Lind, M., & Sivasubramaniam, B. (2022). International Relations in Cyberspace: A Study of Cyber Alliances. Policy Review, 21(4), 450-465.

Mackey, T., Brown, A., & Shin, J. (2023). Artificial Intelligence in Cybersecurity: Threats and Opportunities. New York: CyberTech Press.

Schmitt, M. N. (2017). Tallinn guide on the International Law Applicable to Cyber Warfare (2nd ed.). Cambridge University Press.

United Nations (2023). Open-ended Working Group on developments in the field of information and telecommunications in the context of international security.


[1] Thomas J. Holt, Adam M. Bossler, and Kathryn C. Seigfried-Spellar, Cybercrime and Digital Forensics (Boca Raton: Routledge, 2020).

[2] Michael N. Schmitt, Tallinn guide on the International Law Applicable to Cyber Warfare, 2nd ed. (Cambridge: Cambridge University Press, 2017).