The UK Election Commission unveiled it suffered a ‘complex cyber attack’ after unidentified hackers accessed voting systems over a year ago, obtaining the data of over 40 million voters – highlighting the continued critical need for cybersecurity investment into both public and private sectors. This comes as a new survey from PWC finds just under half (48%) of UK organisations believe a “catastrophic cyber attack” is the top risk scenario, ahead of a global recession (45%) and the resurgence of COVID-19 (43%). In light of this, Claire Trachet, CEO of business advisory, Trachet, and fractional CFO of global cybersecurity company, YesWeHack, signals the latest cyber hack as a clear indicator for further action from the UK – both public and private sectors – to increase investment into the sector.
Whilst the breach has been reported to the National Cyber Security Centre and the Information Commissioner’s Office, with investigations currently in progress, suspicious activity relating to the attack was detected in October – despite occurring in August 2021. The increasing nature of cybercrimes creates a serious risk to the UK economy, costing an estimated loss of £27bn per annum, with a significant proportion of this cost coming from the theft of IP from UK businesses – which is estimated at £9.2bn per annum, according to GOV.UK. Further to this, a survey from Mckinsey found the global impact of cybercrime is set to cost $10.5 trillion annually by 2025. Trachet indicates that due to the risks associated with cyberattacks, there will be a greater focus on cybersecurity at the board and executive level within companies, and it could be factored more prominently into risk management strategies and decisions.
Despite the UK cybersecurity sector experiencing a dip in investment during 2022, with over £500 million raised across 96 deals – including £302 million across 76 deals by dedicated cybersecurity firms – recent attacks are likely to create a shift in investor sentiment towards cyber specialists. As a result, Trachet signals the cybersecurity market as one of the most lucrative investment opportunities over the next few years as the crucial need to create proactive cybersecurity strategies to safeguard businesses and consumer data persists.
CEO of business advisory, Trachet, and fractional CFO of YesWeHack, Claire Trachet, outlines the crucial need to prioritise investment into cybersecurity and how it can stimulate growth:
“As society becomes more interconnected with new technologies, the risk of cyberattacks will rise as a result. Because of this, it becomes essential that businesses are taking precautions well in advance to ensure that their data and company, in general, are protected. This means looking at the various kinds of attacks that could occur to their business, whether that be, data breaches, phishing attacks, ransomware, or software supply chain attacks, and working out a strategy to combat these risks.
“Companies must be prepared for the advancement of the technology industry, and this goes beyond investing in the latest AI, but catering to the potential risks and dangers these new technologies could pose. If businesses fail to do this, the neglect of safe cybersecurity measures will cause a severe financial loss, which will also make these companies look less appealing to investors who are actively looking for funding opportunities.
“Most sectors are cyclical and rely on a positive economic setting to drive investment, cybersecurity, on the other hand, you could argue that cybersecurity is counter-cyclical, as it will be in times of hardship that cybersecurity can see more investment. In addition to this, there is a massive shortage of talent because companies are turning to digitalisation using websites, apps, generative AI, and more.”
