Cybercrime pays: Cash in War against hackers and rogue countries

Companies like Blancco, CrowdStrike, Darktrace, Arqit, KnowBe4, Palo Alto, Splunk, and Qinetiq may not be household names.

But it’s just a few of the US and UK players making the list for cybersecurity, a $120bn (£99bn) global market whose technologies are becoming increasingly important to businesses, governments and households, as people spend more time online. .

The expected growth in the sector suggests that cybersecurity could provide some long-term protection for your portfolio.

Threat: Expected growth in the sector suggests that cybersecurity could provide some long-term protection for your portfolio

Such is the growing threat from ransomware criminal groups, hackers, and rogue states to public and private sector services, IT systems, and personal devices like phones that the market could be worth $434,000. million (£358 billion) by 2030.

“Criminal organizations and nations are trying to steal the secrets of people, companies and governments,” says Mike Seidenberg of the Allianz Technology Trust, whose holdings include CrowdStrike and Palo Alto. ‘What did Russia do before the war in Ukraine started?

‘Launch a cyber attack on Ukraine’s communications systems. Cyber ​​security is the hottest territory in tech right now.”

The offensive at the beginning of the war in Ukraine and the damage to the Nord Stream gas pipelines point to further Russian action.

As Steve Wadey, head of Qinetiq, said: ‘World events continue to reinforce the vital importance of a technologically advanced defense industry to society.’

Cybersecurity involves the use of AI and other technologies to protect against cyberattacks and against what the industry calls “the unauthorized exploitation of systems, networks, and technologies.”

However, you may have doubts about any kind of technology, given Big Tech’s performance this year. Stocks have plunged thanks to rising interest rates that make the long-term returns offered by these groups less attractive.

However, while companies in all fields of activity are economizing, they are less likely to cut back on cybersecurity, given the scale of the problem. Many may increase spending, as cybercrime is said to cost businesses up to a trillion dollars a year.

A victim of the website and phone cybercrime gang iSpoof, shut down this week by Scotland Yard, has lost £3m. Charlotte Meyrick, manager of UK-listed small and mid-cap fund Aviva Investors, comments: “The proliferation of threats and repercussions for companies in case of default is more onerous today than it has been in the past.

1669461477 216 Make Cyber Crime Pay Cash In On The War Against

‘Consequently, a company’s cyber strategy is increasingly a strategic business issue.’

The Accenture consultancy highlights the risks of security breaches through supply chains. Such raids, or so CrowdStrike says, were up 431 percent last year.

Supply chains ‘offer a fulcrum for attack’ because a company, its customers and its suppliers can have linked systems for greater efficiency. Rising demand for services may be why shares in the sector have fallen less this year than those of other technology groups.

The ISE Cybersecurity Index is down 28 percent since January, less than the drop in the tech-heavy Nasdaq 100 Index.

The Aviva fund has Blancco, which wipes data from discarded computers, and NCC, whose tagline is: “Just because you don’t see cyber threats and risks doesn’t mean they’re not there.” It also has a stake in defense specialist Qinetiq, a company spun off in 2001 from the Defense Ministry.

Today, its main clients are the American, Australian and British governments. An analyst consensus rates shares of Blancco, NCC and Qinetiq a Buy.

The US may dominate the industry, but Britain is a major force, carrying on the heritage of Bletchley Park and its wartime codebreakers. Currently, Darktrace may be the most controversial option in the UK, following US private equity fund Thoma Bravo’s decision in September to pull out of the offering.

Mystery also surrounds the intentions of Mike Lynch, who is the founder of Darktrace and owns, along with his wife, a 12 percent stake. Lynch faces extradition to the United States over Hewlett Packard’s acquisition of his Autonomy business.

Despite this, brokers Jefferies and Numis rate it a ‘Buy’, reflecting enthusiasm for CEO Poppy Gustafsson’s ambitions to make Darktrace a world-leading example of British innovation.

There is considerable clamor from organizations for their Prevent system. Exactly how Prevent simulates the malicious thought processes of a ransomware hacker, the vast majority of us will never know. Like the other ever-evolving technologies implemented by all cybersecurity companies, this system is complex and shrouded in secrecy.

When investing, it can be tempting to avoid deals you don’t understand. I am resisting that urge. I want to benefit from increased spending on your products and feel part of the fight.

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