Cybercrime Costs U.S. Over $12 Billion: California Takes Top Spot


Cybercrime has become a major financial threat in the United States, with losses exceeding $12.5 billion in 2023. This report by CyberNut, a security awareness training company, explores the ten states most impacted by cybercrime.

Top 10 States with Highest Cybercrime Losses (2023):

  1. California: ($2.16 billion) – California’s large population, booming tech industry, and wealth concentration make it a prime target.
  2. Texas: ($1.02 billion) – Texas’ diverse economy, including energy, finance, and healthcare, attracts cybercriminals.
  3. Florida: ($875 million) – Florida’s reliance on tourism, finance, and a large elderly population makes it vulnerable to scams and breaches.
  4. New York: ($750 million) – New York’s status as a global financial hub and concentration of high-profile companies make it attractive to cybercriminals.
  5. New Jersey: ($441 million) – New Jersey’s proximity to New York and its own financial and pharmaceutical sectors contribute to its losses.

Following the Top 5:

  • Pennsylvania: ($360 million) – A large number of healthcare providers and insurance companies make it vulnerable to data breaches.
  • Illinois: ($335 million) – Chicago’s business and commerce center with a diverse economy presents numerous targets.
  • Arizona: ($324 million) – A growing population and businesses, with smaller companies lacking strong cybersecurity, make it susceptible.
  • Georgia: ($301 million) – Atlanta’s status as a financial hub attracts cybercriminals seeking to exploit vulnerabilities.
  • Washington: ($288 million) – Washington’s thriving tech industry, home to giants like Microsoft and Amazon, holds valuable data targeted by attackers.

Reasons Behind the Losses:

Oliver Page, CEO of CyberNut, highlights various factors contributing to these high losses:

  • Thriving Tech Industries: Attract cyberattacks due to the presence of valuable data.
  • Financial Hubs: Banks and financial institutions become targets for financial cybercrime.
  • Large Populations and Diverse Economies: Offer a wider range of targets for cybercriminals.
  • Growing Businesses: Often lack robust cybersecurity resources, making them easier targets.

The Devastating Impact of Cybercrime:

These losses have significant consequences:

  • Reduced Consumer Confidence: Data breaches and scams can erode trust in businesses and institutions.
  • Higher Insurance Premiums: Increased cyber threats lead to higher insurance costs for businesses.
  • Increased Costs for Businesses and Individuals: Disruptions caused by cybercrime lead to financial losses across sectors.

Recommendations for Mitigating Risks:

CyberNut recommends several measures to combat cybercrime:

  • Regular Software Updates: Patching vulnerabilities is crucial to prevent attacks.
  • Strong Access Controls: Implement multi-factor authentication and password management.
  • Cybersecurity Training for Employees: Educate employees to identify and respond to cyber threats.
  • Data Backups and Incident Response Plans: Ensure business continuity in case of a breach.
  • Cybersecurity Insurance: Consider transferring some financial risk associated with cyberattacks.

The Importance of Cybersecurity Awareness:

By implementing these measures and raising awareness, businesses, organizations, and individuals can significantly reduce their risk of falling victim to cybercrime.