Hackers are using AI to steal billions — are we helpless to stop them? In a world where AI can bypass security in minutes, we have to ask: Are we truly ready for what’s coming? Cyberattacks are picking up speed — threatening not only financial cost but also our way of life.
“It takes 20 years to build a reputation and a few minutes of cyber incident to ruin it.” – Stephane Nappo.
The battle for digital survival has begun. After COVID-19, nearly 80% of businesses adopted a hybrid model, securing software both on-premises and in the cloud. At the same time, criminals have weaponised AI to deploy malicious code faster than ever.
In 2020 alone, cybercrime cost the world $3 trillion, a figure set to hit $14 trillion by 2028 — almost equal to China’s 2020 GDP.
AI has lowered costs for businesses, but it has dramatically increased the speed of cyberattacks. Hackers once took nine weeks to exploit a vulnerability. Now, experts predict they could do it in under an hour by 2026. That’s a terrifying leap.
North Korea’s cyber groups focused on financial theft, leveraging fake IT job candidates to infiltrate organisations.
Last week North Korea’s Lazarus Group pulled off a $1.5 billion hack on crypto exchange Bybit by compromising one of its offline Ethereum wallets and transferring the funds to an unknown address. This marks one of the largest crypto thefts in history, raising concerns about exchange security and the ongoing threat of state-backed cybercrime.
AI-enabled deepfake attacks targeted high-profile individuals. For example, in one shocking case, a finance worker at a major Hong Kong firm used deepfake tech to steal HK$200 million (around $25.72 million USD) — all by faking video calls with top executives.
According to the cybersecurity firm CrowdStrike, AI-assisted phishing attacks showed a 54% click-through rate, compared to 12% for human-written phishing.
China, Russia, and Iran leveraged AI-powered disinformation campaigns to influence elections.
According to IBM, the average breach costs $4.88 million. In healthcare, that number soars to $9.77 million, and in finance it’s $6.08 million. Beyond direct financial losses, reputational damage can scare off customers, trigger legal action and sink trust. And rebuilding that trust? It can take years — if it’s even possible.
Phishing attacks — those scam emails or texts — often go undetected for 261 days, roughly nine months. Social engineering, which tricks individuals into revealing sensitive data, takes 257 days to uncover. For stolen credentials, it can drag on for almost 292 days. Meanwhile, AI is helping attackers move faster, while our detection methods struggle to keep up.
FBI data shows that 97% of cyberattack victims are in the U.S. and U.K., highlighting the urgent need for better protection in these countries.
Historically, attacks came from criminals, rogue nations, insiders and hacktivists.
Today, we even have “vulnerability brokers” — grey hat hackers who sell or publish weaknesses in your systems for profit. If crucial infrastructure is taken offline — water, electricity, communications — entire communities could be paralysed.
Access broker advertisements increased 50% year-over-year, showing a thriving underground market for selling compromised credentials.
According to Statista, the cybersecurity market is set for significant growth, reaching $202.98 billion by 2025. Security Services will dominate with $103.09 billion, and the market is expected to grow at 7.58% CAGR, hitting $271.91 billion by 2029.
The average spend per employee will be $56.50 in 2025. The U.S. will lead the market, generating $88.2 billion, driven by rising state-sponsored cyber threats and increased defence investments.
These accelerating threats demand more than just routine tech upgrades. They require a robust defence strategy. That’s why we focus on innovative companies like Fortinet.
Fortinet, Inc. is a global leader in cybersecurity, offering integrated security solutions that protect organisations from cyber threats. The company is known for its strong innovation, global reach, and recurring revenue model.
Fortinet’s Edge
- Founder-Led Vision & Ownership: Ken Xie has steered Fortinet for over 25 years. He and his brother Michael own a combined 17.5% — a significant stake that aligns their interests with shareholders.
- Cutting-Edge Tech: AI-driven, real-time security that integrates with tech giants like Microsoft, Google, and AWS.
- Switching Costs & Innovation: FortiOS and integrated solutions create strong switching costs, backed by continuous innovation.
- Product Range & Growth: Over 35 core platform products for businesses of all sizes. Fortinet’s 5-year average return on invested capital stands at 20.4%, and its 5-year annual growth rate hits 39%.
The company has low debt, high margins, and strong leadership, making Fortinet a standout in a booming cybersecurity market. While challenges like hardware reliance on Taiwan or competition from cloud-based solutions exist, Fortinet’s proven record in network security underlines its long-term potential.
Why We Invest
The YFS Intelligent Wealth Fund chose Fortinet because it meets all our criteria for growth, leadership, and innovation. As AI-powered attacks evolve, robust cybersecurity isn’t optional — it’s essential. Fortinet’s approach, led by a visionary founder, offers a compelling way to safeguard our digital future.
Investing in cybersecurity isn’t a choice — it’s a necessity. Strengthening defenses today safeguards our assets, reputation and the people who depend on these systems. That’s why we’re bullish on the cybersecurity market.
Awet Ghirmay, Head of Investment Research
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Risk warnings
The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
