The Nature of Shadow Digital Economics

Abstract

The purpose of this paper is to analyze, discuss, and develop a study of world universal digitalization processes as well as challenges and threats, and develop an approach to defining the shadow digital economy. Along with huge innovative achievements, digitalization processes are accompanied by the formation of a digital economy and the growth of illegal activities. Digital economy implies total globalization, creates an ultra-high competitive environment, provides a new quality of life, business, and public services. At the same time, many traditional areas of activity are being destroyed. In addition to understandable achievements, it is necessary to analyze new obvious and hidden threats that digitalization processes carry. The analysis shows the causes and factors of the emergence and functioning of the new segment in the shadow economy. The approaches to the definition of this category and its content are discussed. A classification of criminal-oriented products and services that are the basis of a highly profitable illegal business has been proposed. The problem of confrontation with Shadow Digital Economics acquires particular urgency in the face of the emergence of new overt and hidden threats to the individuals, society, and the state. The main components of the digitalization process are analyzed. Conclusions are drawn about the development of shadow digitalization processes and the formation of a shadow digital economy, which is directly related to cybersecurity. DOI: 10.12709/issn2334-7058.