June 2025 Report: Cyber is now the THIRD largest economy in the world

by | May 31, 2025 | News, Security

As we approach the midpoint of 2025, New Zealand’s cyber security landscape continues to evolve rapidly. With digital transformation accelerating across sectors, the country faces a growing array of cyber threats—ranging from financially motivated scams to sophisticated nation-state attacks. This article outlines the key cyber threat trends shaping Aotearoa’s digital security posture so far this year.

Cyber-crime is the THIRD largest economy in the world.

The projected cost of cybercrime is set to reach an astounding 10.5 trillion USD by 2025 according to Cybersecurity Ventures, positioning it as the third largest economy globally, trailing only the United States and China. This unprecedented economic shift signifies the largest transfer of wealth in history, jeopardises the very foundations of innovation and investment, and dwarfs the financial toll of natural disasters annually, ultimately yielding profits that surpass the combined global trade of all major illegal drugs.

Surge in Financially Motivated Attacks

According to the National Cyber Security Centre (NCSC), online threats cost New Zealanders an estimated NZD $1.6 billion in 2024, and the trend has continued into 2025. Over half the population has experienced some form of cyber threat, with 830,000 individuals suffering financial losses

Phishing, investment scams, and ransomware remain the most common attack vectors, often targeting small businesses and individuals with limited cyber resilience.

AI and Data Security Under Scrutiny

With the rise of generative AI and machine learning, the NCSC has issued joint guidance on securing data used to train and operate AI systems. This reflects growing concerns about the misuse of AI for cyber-attacks, including deepfakes, automated phishing, and data poisoning

Organisations are being urged to adopt robust data governance and implement AI-specific security controls.

Critical Infrastructure in the Crosshairs

New Zealand’s critical infrastructure—such as energy, transport, and healthcare—has become a prime target for cybercriminals and state-sponsored actors. The NCSC’s updated Cyber Security Framework and the May 2025 release of NZISM v3.9 (New Zealand Information Security Manual) highlight the need for enhanced protections in these sectors

Final Thoughts

Cyber threats in 2025 are more pervasive and sophisticated than ever. For New Zealand, the path forward lies in a combination of public-private collaboration, investment in security automation, and a strong emphasis on education and awareness. As the digital frontier expands, so too must our collective vigilance.