The article examines the psychological effect and aspect of cyber terrorism. When ordinary people think of cyber threats attacks, most worry about their passwords and banking details instead of a terrorist attack, but think of a shooting or bombing more frightening than a cyber breach. However, the paper argues, based on the research, that as cyber-terrorists aim for both physical and mental destruction, depending on who the attackers and the victims are, the psychological effects of cyber threats can rival the consequences of traditional terrorism.