Just as gangs used to siphon off oil from holes in pipelines, the new organized crime now exploits security breaches through broadband wires. As such, cybercrime is experiencing significant growth. According to Cybersecurity Ventures, a cybersecurity research and market intelligence firm, cybercrime caused $3 trillion of damage to the global economy in 2015, and that number is expected to double by 2021. A KPMG study demonstrated that 87% of all companies have suffered an attack. More worryingly, many hacks and breaches of privately held, unregulated companies go unreported for fear of reputational damage.
The trend continues
This trend continues as the borders between the real world and the digital world melt away. As the Internet of Things (IoT) grows, it is estimated that over 30 billion devices will be connected by 2020. Every new device is a possible security breach and password enhancement methods like multi-factor authentication (MFA)/ smart authentication are still not very common. Business titans are very clear-eyed about the threat the cybercrime can pose. Ginni Rometty, CEO of IBM, stated: ‘Cybercrime is the greatest threat to every company in the world’ and Warren Buffett regards cyber-attacks as an even bigger threat to humanity than nuclear weapons.
Connected Devices – Internet of Things (Source: Statista 2018)
Is now the time to invest?
Size of the cyber security market worldwide (Source: Statista 2016)
2018 will see several new regulations come in to force such as the EU General Data Protection Regulation (GDPR), National Institute of Standards and Technology in the US, and China’s Cybersecurity Law. These regulations will drive many companies to increase spending on information security to avoid becoming both a victim of an attack and to hedge against being on the receiving end of massive monetary fines for failure to protect and secure their customers’ data. Indeed, a recent survey by Marsh LLC and Microsoft found that 78% of senior executives are planning to increase spending on cyber risk management in the next 12 months, both to ensure that their own systems are up to date as well as doing due diligence for 3rd Party risk management.
The Cybersecurity market is booming
The cybersecurity industry is in a constant battle to stay one step ahead of organized crime, thereby creating investment opportunities, new jobs and plenty of new startups. An important contribution to cybersecurity will be made by the movement, DevSecOps, which aims to make security an integral part of the software development. With Cybersecurity Ventures reporting that almost $1 trillion is expected to be spent globally on cybersecurity from 2017 to 2021, it’s no wonder that the global cyber security industry is experiencing a huge growth and multimillion dollars cybersecurity deals are on the rise. According to CSO, a cybersecurity online magazine, cybercrime will more than triple the number of unfilled cybersecurity jobs, which is predicted to reach 3.5 million by 2021. As a result, the cybersecurity unemployment rate has dropped to 0% for those in technical roles.
Improve your knowledge
CyberTrap, previously a finalist of Security Rockstars by our partners from SBA Research, uses ‘deception technology’ to create a full attacker profile, providing predictive analysis and intelligence reports in real-time. This helps to solve the issue underlying many cyber attacks, namely that many breaches stay undetected for a long period of time. We will explore cybersecurity in more depth during our Q1 roadshows to Munich, Zurich, Vienna and Madrid in partnership with KPMG Partner, Andreas Tomek author of the Cybersecurity study 2017 and SBA Research.
Berthold Baurek-Karlic, CEO of ESAC, commented, “for the next Batch of European Super Angels Club we are scouting and selecting the most talented entrepreneurs in this field. We are strongly supported by our cybersecurity and regtech experts from KPMG and SBA Research, who also have deep technological insight and active market experience”.