The rapid digitalization of Tamil Nadu’s economy has been accompanied by a surge in cybercrime, threatening the sustainability of economic growth and social well-being. This paper explores the economic impact of cybercrime on society and its implications for sustainable economic development in the region, focusing on key trends, challenges, and consequences. Cybercrimes, including data breaches, phishing attacks, and identity theft, online banking fraud, and social media impersonation, are escalating in Tamil Nadu as more citizens and businesses engage in the digital economy. These crimes disrupt the smooth functioning of the financial sector, reduce consumer trust in online platforms, and increase costs for businesses. The study analyzes how cybercrime undermines economic activities by increasing risk perception, thereby affecting investments in e-commerce, fintech, and digital banking. The paper highlights the challenges of insufficient cybersecurity infrastructure, public awareness, and legal frameworks in Tamil Nadu, which hinder growth prospects and threaten a sustainable, technology-driven economy. The consequences of cybercrime extend beyond financial losses. They affect employment, reduce consumer spending, and hinder the development of a safe, inclusive digital ecosystem. This analysis further examines how cybercrime contributes to economic inequality by disproportionately affecting marginalized communities, such as small businesses and rural populations, who often lack access to robust cybersecurity measures. The paper suggests enhancing cybersecurity policies, raising awareness, and promoting technological advancements to ensure long-term economic sustainability in Tamil Nadu. Collaboration between public and private sectors is crucial for enhancing digital literacy and cyber defense mechanisms.The theme of the research paper is highly relevant in today's interconnected, ever-evolving world, addressing crucial socio-economic and political issues that are both timely and essential for the present context.

Digitalization, Economic Growth, Cybercrime, Society, Phishing Attacks, Online Banking Fraud, Consumer Trust, E-Commerce, Digital Economy and Economic Inequality.