Cybersecurity:
successfully facing new challenges

Tracking the future

Cybersecurity: successfully facing new challenges

Almost 700,000 a week. Cyber attacks this year.
35% of people own at least one unprotected device.

Our economy and society are becoming increasingly digital. As IoT, cloud and FinTech applications become more widespread, cybercrime is developing accordingly and the Cybersecurity industry is growing rapidly. Key reasons for this growth include availability of new technologies, increasing awareness of dangers and changing legislation, such as the recent Cybersecurity executive order in the US. Companies and institutions are looking closely at their security investments. But what areas should they focus on?

Developments in Cybercrime

Cybercrime, once limited to computers and peripherals, now extends to all online devices. The advent of the darknet with TOR access allows users to remain anonymous, making it impossible to retrace the steps of hackers. And Crypto currencies have made payments untraceable. Microsoft has published data showing that earlier this year the number of attempted cyber attacks are 600,000-700,000 a week. Just two or three years ago, that was ‘merely’ 20,000 each week.

The Eurobarometer 423 on Cybersecurity claims that up to 85% of internet users feel their risk of falling victim to Cybercrime is increasing. So which specific dangers will be the most prevalent in the near future? Experts predict an increase in ransomware and extortion exploits. Ransomware almost doubled in the first half of 2016, growing 172% in comparison to the previous year.

This type of crime may spread to a wider variety of (connected) devices. Figures from Norton indicate that 35% of people around the world own at least one unprotected device, making them vulnerable to ransomware, malicious sites or phishing. With the fast proliferation of IoT and ‘Smart’ devices, companies have an increasing responsibility to ensure the safety and security of the applications and data. Some manufacturers are looking at building this in at component or chip level.

The number of Industrial IoT hacks is also expected to grow. Europol has uncovered new trends, such as cybercrime-as-a-service, where hackers are paid to organize DDoS attacks. Convergence between governance and business systems may also mean greater vulnerability. Another risk category that needs to be carefully considered is the internal attack.

Companies and institutions may introduce advanced perimeter defences, whilst leaving their internal organisations vulnerable. Certain physical networks are easier to tap than others, although in some cases (such as fibre) it is practically impossible to extract information in a legible format. Traffic can be rerouted automatically when suspicious activity is detected. However, the nearer data is to the end point, the fewer alternative routes are available, increasing vulnerability.

IMPROVING SECURITY

Awareness is essential in the fight against cybercrime. Making certain actions illegal or regulating them strictly is not always effective, as the internet has no borders. A coordinated effort involving governments and the private sector is key. In addition to technology investments, standards, harmonization awareness and education are vital for developing and enhancing a culture of safety. Several basic steps can help companies and individual users protect themselves. These include developing processes and best practices around user privileges on networks, regular password changes, deleting unused apps, installing automatic updates, and using a VPN.

Risk boosts market potential

The United States are currently the main global Cybersecurity market, with $31.5 bn forecast for 2016. Western Europe comes second, with revenue of $19.5 bn. Markets and Markets estimate that Cybersecurity market size will grow from $122.45 bn in 2016 to over $202 bn in 2021, or 10.6% CAGR. The global cybersecurity market was valued at $3.5 billion back in 2004.

According to Strategic Cyber Ventures CEO Tom Kellermann, total annual investment in cyber-security is likely to exceed $200 billion in 2020. By that time, corporations will be held accountable for the security of their networks, by regulators as well as courts.

A Cybersecurity Ventures Report suggests the global industry will reach $1 trillion by 2021 – whilst the cost of cybercrime damages grows to $6 trillion each year by 2021. Global annual cybercrime costs could grow from $3 trillion in 2015 to $6 trillion by 2021. Juniper Research states that increasing digitalisation may increase the cost of data breaches to $2.1 trillion globally by 2019. As more business infrastructure is connected, the average cost of data breaches will exceed $150 million by 2020. Zion Market Research predicts that the global Cybersecurity market will reach $ 181.77 bn in 2021 (9.5% CAGR between 2016 and 2021).