Kim Zetter, the investigative journalist who covers cybersecurity, once said, “The nations, of course, that are most at risk of a destructive digital attack are the ones with the greatest connectivity.”
The importance of cybersecurity has never been more apparent as more than 5.3 billion people are now connected to the internet – more than ever before in history. Our wallets, health, finances and everything is slowly getting connected to the internet.
The world as we know it has increasingly become digitalised and vulnerable to unpredictable events due to increasing geopolitical risks and uncertainties.
Cyber attacks are increasingly becoming a critical aspect of the digital evolution of conflict strategies. Those attacks target critical infrastructure that can affect military operations and civilian life.
The losses from Cybercrime have skyrocketed from $1.2 trillion in 2019 to $7.1 trillion in 2022. It’s expected to rise to $13.82 trillion by 2028. The astonishing increase in the number of cyberattacks highlights the urgent need for investment in cybersecurity prevention.
Source: Statista
The question is, how do you position yourself to benefit from this opportunity?
The cybersecurity market is expected to grow at a rate of 10.56% a year in the next 4 years. The key objective of cybersecurity is to protect people, companies, and technology from cyber threats.
As technology continues to become more advanced and complex, criminals are also stepping up their game on becoming more sophisticated by using artificial intelligence and machine learning to infiltrate systems.
This creates intense competition and increases the complexity of detecting and preventing cyber attacks to keep our data safe.
The Cybersecurity and Infrastructure Security Agency (CISA) and other cyber security agencies have warned about cyber attacks sponsored by the Chinese Communist Party which target critical infrastructure in the U.S.
The greatest concern is the anonymity of the attackers; nearly 45% of them remain unidentified. The rest are state-sponsored by China, Russia, Iran, North Korea, Ukraine, the United States, Pakistan, Turkey and others.
The danger of this is if companies and governments do not have sufficient detection and protection in place. It can have a significant impact on critical infrastructure and probably disrupt important infrastructure such as our local electric grid and that will have a devastating impact on the food supply chain, heating our homes and access to the internet.
Moreover, criminals have been attacking business and personal emails to target businesses and individuals, particularly those responsible for wire transfers – resulting in $2.4 billion lost in 2021.
The FBI record shows that 97% of victims were from the U.S. and the U.K., raising questions about the investment needed to improve defences, particularly in those two countries.
In the last 23 years, there were 2,506 politically motivated cyber attacks worldwide, and almost 20% of them were targeted at critical infrastructures.
The future is digital and, in this ever-evolving landscape, cybersecurity is not just a necessity — it’s the battleground of tomorrow. The threats are real with the advancement of artificial intelligence and growing but so are the opportunities for those prepared to defend and innovate.
The YFS Intelligent Wealth Fund stands at the vanguard of this digital defence, offering investors a unique opportunity to be part of the solution to a global challenge while seizing the potential for substantial returns.
Strategically investing in leading cybersecurity firms like Google, Fortinet and Microsoft, positions us at the forefront of defence. We believe those companies play a significant role in the cyber security market and have a dominant distribution power to scale their products.
This isn’t just an investment in technology; it’s an investment in the future of security, innovation and prosperity. We believe the investment needed to protect critical infrastructure such as the power grid, water supplies, critical data and the healthcare system will be the main driver as their impact will have widespread consequences for companies and the population.
Join us in safeguarding the future, where we turn cybersecurity challenges into opportunities for growth and protection.
Awet Ghirmay, Head of Investment Research
If you want to learn more about this topic, please find the link here.
More information about our fund can be found here: Hargreaves Lansdown or AJ Bell
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.
