Kids from the local uni having a lark, stalkers, vindictive ex employees, local gangs, criminals who understand their victims because they hail from the same community. These are your local hackers. Sift them from the nation states and international crime groups, then deal with the International as a matter of diplomacy. Because we do this so poorly locally, we have little ammunition to when it comes to diplomacy. "reduce attacks by your crime groups and we buy your natural gas, seel you wheat etc"
Want more motivation?- 75% of the local attacks by volume send funds back to terrorist or separatist organizations.
It is not an in-soluble problem. Sentences are a fraction of the answer, effective and receptive reporting processes are more important, then government backing for investigation and enforcement, then policy around home-team activities (ie don't do the bad things yourselves Mr Gov). Deterrence comes after all that.