According to McAfee, the cost of cybercrime globally is predicted to exceed $1 Trillion in 2022.That is one of the solid reason to invest in Cybersecurity
Given that numerous sources have documented an increase in the number and sophistication of cyberattacks during the epidemic, it is most likely even higher today.
In this infographic from Global X ETFs, we highlight three key themes that investors should be aware of as they shape the future of the cybersecurity business.
Here are 3 Reason you should consider investing into Cyber Security , Not just a short term investing but Thematic investing.
Reason 1 to Invest in Cybersecurity : Rising costs
According to IBM research, the average cost of a data breach to enterprises increased from $3.6 million in 2017 to $4.2 million in 2021. This figure is broken down into four parts in the following table:
| Cost Component | Value ($) |
|---|---|
| Cost of lost business | $1.6M |
| Detection and escalation | $1.2M |
| Post breach response | $1.1M |
| Notification | $0.3M |
| Total | $4.2M |
The biggest expense of a data breach is lost revenue, which comes from lost customers, reputational damage, and system outages. The second step is detection and escalation, which includes audit services, investigative actions, and stakeholder communications.
Legal fees, the creation of new accounts or credit cards (in the case of financial institutions), and other monitoring services are charges associated with the post-breach reaction. The expense of informing authorities, stakeholders, and other third parties is referred to as notification.
Businesses are putting more focus on cybersecurity to stay ahead of these escalating costs. For instance, Microsoft declared in September 2022 that it will increase its efforts in cybersecurity by a factor of four to $20 billion over the following five years.
Reason 2 to invest in cybersecurity : Remote work opens doors to more vulnerability
Companies that depend more on remote work suffer bigger costs as a result of data breaches, claims IBM. The average cost of a data breach for businesses with between 81 and 100 percent remote workers was $5.5 million (2021). For businesses where less than 10% of employees worked from home, this figure fell to $3.7 million.
The fact that work-from-home arrangements are frequently less secure is a big factor in this difference. Phishing assaults increased in 2021 as a result of the increased use of personal devices by employees to access business networks.
| Type of Attack | Number of attacks in 2020 | Number of attacks in 2021 | Growth (%) |
|---|---|---|---|
| Spam phishing | 1.5M | 10.1M | +573% |
| Credential phishing | 5.5M | 6.2M | +13% |
Spam phishing describes “fake” emails that deceive users by seeming to be from upper management at a corporation. They might contain harmful links that infect the user’s device with ransomware. Though the aim of credential phishing is to steal a person’s account credentials, the premise is identical.
You may be familiar with the Amazon scam, in which senders pretend to be Amazon and persuade recipients to change their payment options. The internal systems of a business could likewise be accessed using this tactic.
Reason 3 to Invest in Cybersecurity : Artificial intelligence based Cyber Security can reduce the cost of Data breach
Without the need for human intervention, AI-based cybersecurity can recognize and respond to cyberattacks. When completely implemented, IBM found that the time needed to find and stop a breach was reduced by 20%. Additionally, it produced cost reductions of up to 60%.
Google, a well-known consumer of AI-based cybersecurity, employs machine learning to identify phishing attempts within Gmail.
With an accuracy rate of over 99.9%, machine learning enables Gmail to filter spam and fraudulent messages from reaching your inbox. Given that 50–70% of Gmail’s messages are spam, this is a significant development.
Andywen , Google
Bonus Reason to Invest in Cybersecurity
Acumen Research and Consulting predicts that the market for AI-based security solutions will increase from $15 billion in 2021 to $134 billion by 2030 as cybercrime increases.
