April 20, 2023
According to a new report by cybersecurity firm Trend Micro, as cybercrime groups continue to “corporatize,” they are under growing pressure to keep up with staff compensation.
According to the survey, the majority of the operational expenditures of medium to big cyber crime groups are spent on paying workers and contractors for their activities, with an average value of roughly 80%.
Even small cyber crime groups are affected, with those earning over $100,000 in annual turnover spending approximately 78% of their operating expenses budget on labor force payment. The study defines small groups as those with no more than five members and revenue under $500,000, medium groups as having up to 49 members with up to $50 million in turnover, and larger groups as anything above that.
As cyber crime groups grow out of the “small” category, they add more management layers. Typically, medium-size groups have two layers of management, while larger groups have three. While one person in the medium outfits is still sitting at the head of the pyramid and calling the shots for all of the operations, there is more delegation of responsibility for everyday tasks to “middle management” figures who in turn require a larger proportion of operating expenses to keep on salary.
Moreover, the report highlights that cybercrime groups tend to become more unstable as they grow, due to sprawling operating expenses becoming harder to manage, and a lack of the social or career bonds present that help to hold legitimate businesses together.
The sources for this piece include an article in CPOMAGAZINE.
