I have ben discussing with folks that we are going to have a 'covid' moment in cyber where IT becomes untrustworthy leading to a rapid societal shift with massive ripples in all areas of life. Economic funding is not possible to do this in advance, it will take a catastrophic level event to get cyber defense anywhere close to the levels of this type of cyber offense. And before anyone in cyber says we have the tech, the problem is not the tech, it's a people problem. Getting any group of people of any decent size scale to act together without urgency is really really hard.
Cybersecurity has long been a climate change sort of problem. A vague diffuse threat that is seen as an inconvenient distraction to leadership and moneyed-interests, easy to blame other factors when something occasionally goes terribly wrong.
People are so uncomfortable thinking about the true extent of the systemic risk that they will happily slurp up distractions, excuses, scams and performative fig-leaf solutions rather than face down the cost of a real system-wide solution. Meanwhile, those occasional black swan disasters are becoming more and more commonplace as we acclimate to that being “just the way things are”.
An unseasonably warm summer here, a database breach there, c’est la vie.
To be frank, I think the real risk is still just… war. A big enough war where one side goes “no holds barred” in the cyber sphere will be a rude wake-up call. And we can’t do non-proliferation the same way we do with nukes. Otherwise as you say, the small and medium size things just happen sporadically. In an (existential or fully escalated) wartime scenario between countries, you get all the systemic risks hammered at once.
