Technology is evolving at a startling pace, perhaps faster than ever before. Businesses are scrambling to reap the rewards of these technologies, especially AI. But do they recognize the cybersecurity risks associated with these changes? The World Economic Forum’s latest Global Risks Report suggests not.
Digital Era, Digital Threats
We are truly living in the digital age. This brings many benefits. We’re more connected, efficient, and informed than at any time in history. But it also brings massive risks. According to the WEF, three of the top ten global risks are now technological in nature: misinformation and disinformation, the adverse outcomes of AI technologies, and cyber espionage and warfare.
Other factors compound the issue. As the world grows ever more divided and supply chains grow increasingly intricate, opportunities for cybercriminals abound. Nation-state actors, criminal gangs, and even individual hackers now have access to AI-driven tools that enable attacks at an unprecedented scale and level of sophistication.
Generative AI, in particular, has revolutionized cybercrime. While legitimate businesses are using the technology to great effect, so too are cybercriminals. These tools can identify vulnerabilities, craft convincing phishing attacks, and, perhaps most concerning of all, generate deepfake audio and video. In 2024, one British engineering group fell victim to a deepfake scam to the tune of $25 million. And these threats are only likely to become more sophisticated.
The Perils of Complacency
As noted, despite these threats, business leaders remain remarkably complacent. Speaking to Reuters, Jay Chaudry, founder of Zscaler, pointed out that many organizations are still dependent on legacy technologies like firewalls and VPNs—tools developed decades ago. He explained that while these measures once provided a sufficient defensive moat, once they are breached, attackers can move laterally within internal networks with little resistance.
Moreover, organizations seem not to grasp the true impact of cybercrime. Just 11% of respondents in the WEF report said they were concerned about financial losses resulting from cybercrime, while only 12% said they were concerned about reputational damage. Contrast this with IBM’s Cost of a Data Breach Report 2024, which puts the global average cost of a data breach at $4.88 million, and research from the UK government revealing that 50% of businesses experienced a breach throughout 2023, and it’s easy to see that the business world could have a massive problem on its hands.
Regulation’s Role
In Europe, directives like NIS2 and the Digital Operational Resilience Act (DORA) are designed to bolster cyber defenses across critical sectors such as healthcare, financial services, and infrastructure. In light of the concerning statistics outlined above, we’re likely to see some major updates to these measures in the years ahead. Moreover, countries like the United Kingdom are expected to introduce legislation akin to the EU’s cyber resilience laws soon.
However, one could argue that, amidst heightened cyber threats and evolving technologies, organizations must go beyond compliance alone. Although compliance with major regulations dramatically reduces the risk of a security incident, it’s a long way from a foolproof solution. Regulations are, by their nature, one step behind cybercriminals, and hence, organizations should try to be more forward-looking in their cybersecurity strategies.
Zero Trust Boosts Resilience
That said, zero-trust security models are dramatically improving organizations’ cyber resilience. At this point, zero trust – the principle of “never trust, always verify” - is no longer optional; it is essential. Treating every user and device as a possible threat is hugely important for thwarting cybersecurity threats, especially as attackers become better at impersonating legitimate users.
Poor Cybersecurity Spooks Investors
Investor confidence is another factor that could boost cyber resilience among businesses. According to the aforementioned Reuters report, investors are incorporating cybersecurity assessments into their environmental, social, and governance (ESG) frameworks. This trend means that companies lagging in modern cybersecurity practices risk not only operational disruption but also the potential withdrawal of investment from funds that demand high standards of risk management and accountability.
Looking Ahead: A Call to Action
The key takeaway here is that the rise in cyber threats, amplified by the rapid adoption of AI, presents both a challenge and an opportunity for businesses worldwide. Sure, complacency can lead to devastating consequences—a reality that is already becoming apparent in the form of costly breaches and loss of customer trust. However, companies that proactively revamp their cybersecurity strategies – especially beyond mere regulatory compliance - stand to gain a competitive edge.
Ultimately, organizations can no longer treat cybersecurity as an afterthought. As digital transformation accelerates, so too must our efforts to safeguard critical systems and data. The evidence is compelling—modern cyber threats require modern solutions.
Fortra’s comprehensive cybersecurity platform is an ultra-modern solution to contemporary cyber threats. It is your go-to singular resource for a straightforward strategy that makes you stronger, more effective, and more adaptable. Our offerings give you the tools you need to meet the challenges of today’s threat landscape head-on while streamlining and automating your infrastructure.
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