McKinsey & Co. Offers Confirmation for Our Cybersecurity & Data Privacy Investment Theme
Confirmation for thematic investing can come from a variety of sources. While we prefer the hard data, it’s rather nice to have a global consulting firm throw a confirming iron into the fire. In this instance of our Cybersecurity & Data Privacy investing theme and index, we’re talking about McKinsey & Co. which recently shared how some organizations now spend a greater share of security funds on managing active cyberattacks than they do on preventive measures. As we see below, the company confirms our view that cybersecurity spending will continue to rise in the coming years, driving revenue and earnings at the constituents of the Foxberry Tematica Research Cybersecurity & Data Privacy Index.
“Cybersecurity has always been a never-ending race, but the rate of change is accelerating. Companies are continuing to invest in technology to run their businesses. Now, they are layering more systems into their IT networks to support remote work, enhance the customer experience, and generate value, all of which creates potential new vulnerabilities.
At the same time, adversaries—no longer limited to individual actors—include highly sophisticated organizations that leverage integrated tools and capabilities with artificial intelligence and machine learning. The scope of the threat is growing, and no organization is immune. Small and midsize enterprises, municipalities, and state and federal governments face such risks along with large companies. Even today’s most sophisticated cybercontrols, no matter how effective, will soon be obsolete.”
More Cybersecurity Headlines
Were it just be McKinsey & Co. that was offering support for our cybersecurity investment theme and index that would be one thing, but it’s not. As readers can see from the sampling of headlines below, those attacks continue to evolve, and as many are learning, the worst of the attack happens early on. Odds are we’ll see more such headlines in the comings weeks and months, confirming the growing pain point of cyberattacks and reinforcing the view that cybersecurity spending will continue to rise.
Attackers compromise 94% of critical assets within four steps of initial breach
Phishing attacks exploit free calendar app to steal account credentials
What exactly is Ransomware?
In the above section, we referenced an article that speaks to the evolution of Hive Ransomware, but it got us thinking that perhaps not everyone knows exactly what “ransomware” is.
With that in mind, here’s a quick video tutorial. Enjoy!