by | Nov 24, 2022
Written by Rahul Bhushan, co-founder of Rize ETF
But where these (arguably) more positive aspects of the online world tend to court the lion’s share of attention, the investment proposition indirectly offered by one of its more objectively ‘dark’ sides is often overlooked.
The reality is, by next year, there will be three times more networked devices worldwide than humans, according to a report from Cisco.1 And as this ‘surface area’ of global connectivity continues to increase, so too do the opportunities for cybercrime.
In fact, according to online security company Surfshark, UK victims of cybercrime have increased 17 times over in the past two decades.2 Meanwhile, figures from Bitkom Research released earlier this year found that cyber-attacks now impact an astonishing 90% of companies.
Increasingly pervasive attacks
It’s not just the number of attacks, either. It’s also the type. The public perception of cybercrime may be wedded in early 90s films like “Hackers”. But while these code-based attacks on corporates no doubt still exist, the reality is that the cybercrime sector as a whole is now more sophisticated.
Perhaps most worryingly, individuals themselves are more at risk than ever, with their personal data and even their personal safety being targeted.
In 2022 alone, cyber-attacks on InterContinental Group3, Uber4, and Optus5 have compromised customer data. Likewise, it was only August this year when a ransomware group was alleged to have threatened to change the composition of some 1.6 million individuals’ water supplies during an extortion attempt.6
This is an extreme example. Not to mention the fact that the validity of the claim was disputed by South Staffordshire Water, the victim of the attack. But what all of these points serve to demonstrate is that cybercrime is no longer something that happens to someone else, or to big businesses only.
The regulatory response
As a result, regulators are stepping in to ensure firms take adequate steps to guard themselves and their customers online. Just last month, the European Union unveiled a new “Cyber Resilience Act”, which introduces mandatory cybersecurity requirements to protect consumers and businesses from products with digital elements throughout their whole lifecycle.7
As our lives are conducted via more and more digital touchpoints, it seems likely the requirement – both from regulators and customers – for adequate cybersecurity measures will continue to grow too. In line with this, spending will have to increase significantly from today’s levels.
For context, a recent survey by KPMG discovered that 40% of UK CEOs believe a cyber-attack on their company is inevitable.8 That’s despite the fact that investment in UK cybersecurity companies surpassed a record £1 billion in 2021 – an increase of 25% on the previous year.9
A wave of expenditure should be approaching the global cybersecurity sector over the coming years. And it’ll be the quality providers best equipped to meet both the growing quantity and growing diversity of demand who will be best placed to benefit.
We’re already seeing a swell in cybersecurity M&A as some of the sector’s larger constituents leverage their bountiful resources to shore up their offerings in preparation for growth. Perhaps the most high-profile example recently was Google’s acquisition of Madiant in September for $5.4 billion.
Likewise, we are seeing prominent private equity players rush to secure cybersecurity exposure. Both Thoma Bravo10 and Turn/River Capital11 recently completed multi-billion acquisitions of innovative smaller players in the space.
The threat of cybercrime is only becoming more prevalent and that means the cybersecurity sector is rising to meet the challenge. This clearly presents an interesting investment opportunity and one which doesn’t appear to show any signs of slowing down.
By Guy Monson, chief market strategist at Sarasin & Partners World markets remain in the grip of rising interest rates and Vladimir Putin’s war. Yes, equities remain extremely oversold and value is appearing in many areas, but the spark that triggers a lasting…
How the PruFund range of funds is managed in order to remain an industry-leading solution to market volatility With so much uncertainty prevailing across global markets the benefits of a smoothed investment option for longer term investors who are keen to minimise the…
By Andrew Marr, managing partner at Forbes Dawson. Jeremy Hunt’s Autumn Statement announcement last week continued the theme of a government which is desperately trying to increase tax take without actually increasing rates. In these times of high costs and high…
The latest research by Alliance Fund has revealed that, even when adjusting for inflation, the Qatar 2022 World Cup is not only the most con…
Autumn Statement , Mortgage and Property
Following Chancellor Hunt’s Autumn Statement, there’s much for property experts to consider from the details he has announced. So what are p…
Autumn Statement , Economy
Following Chancellor Hunt’s plans for taxes and government spending which were announced in Parliament on Thursday, 17th November, investmen…
By Frédérique Carrier, Head of Investment Strategy in the British Isles and Asia at RBC Wealth Management The UK seems to be the first major…
COP 27 , Investments
By Rajul Mittal, Head of Sustainable Finance & ESG, Synechron, The Netherlands & Parul Vyas, Sr. Associate Research & Strategy…
Chancellor Hunt’s Autumn Statement has been one of the most significant fiscal events in over a decade. Law firms have been sharing their re…
GBI was delighted to sit down recently with Richard Roberts Director of Investor Relations at Oxford Capital. Established in 1999, Oxford Ca…
Investments , Pru
Financial advisers have long sought the holy grail of investment for their clients, which is a long-term return ahead of cash but whilst min…
Multi Asset Funds
M&G Investments have announced changes to management responsibilities within multi asset investment as Eric Lonergan leaves the firm aft…
Since May to July 2022, the professional and scientific industry has been the only one where regular wage growth (excluding bonuses) has rem…
© IFA Magazine 2022. All rights reserved.
We are using cookies to give you the best experience on our website.
You can find out more about which cookies we are using or switch them off in .
This policy explains how IFA Magazine collects, stores, uses and shares personal information (including but not limited to information from which you can be personally identified such as your name, address, job title, company, email address, or telephone number) and information about your visits to the network, including the pages you view, the links you click and other actions taken in connection with www.ifamagazine.com, www.gbinvestments.co.uk , www.robopromedia.com, www.mvpromedia.com
IFA Magazine Publications Limited may update this Policy at any time. It is your responsibility to check for updates to this Policy, as your continued use of the website denotes an acceptance of this Policy. Unless stated otherwise, IFA Magazine Publications Limited’s current Policy applies to all information that IFA Magazine Publications Limited has about you and your account.
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.