Cybersecurity Private Equity

Cyber TRUST™ Index

-2.8%

Daily Change

+40.9%

Change from Jan 2023

5 Emerging Cybersecurity Technologies for 2023

New cybersecurity technologies are created because cybercriminals constantly search for vulnerabilities and develop new hacking techniques. Technological advancements often make life easier for cybersecurity teams, but criminals also have access to this technology and can use it to exploit systems. 

Startups and established cybersecurity firms are looking to the latest technologies as they develop ways to keep organizational data safe. These solutions aim to stay one step ahead of the bad guys, preserving customer information and institutional secrets.

Understanding the technology state-of-the-art cybersecurity firms use can help investors identify the industry’s next unicorn. This guide looks at some environmental factors that could increase cyberattack frequency and examines some new cybersecurity technology we’ll see in 2023.

Factors That Could Drive an Increase in Cyber Crime

The number of global material breaches increased by 20.5% between 2020 and 2021, despite worldwide cybersecurity budgets rising by 51%. Most companies know the threat cyberattacks pose, but that isn’t slowing cybercriminals down. We’ll likely see cybercrime numbers jump again in 2023, with the following issues driving some of this increase:

Economic Uncertainty

It’s no secret that we’re experiencing a global recession, which is making people more desperate. The result could be a more significant number of cybercriminals entering the field and attempting to make money by holding business and individual data hostage. We could also see hackers-for-hire emerge as a way for experienced criminals to earn a quick payday.

Cryptocurrency Issues

The recent bankruptcy and collapse of the FTX cryptocurrency exchange put the entire market under increased scrutiny, but it could also open the door for more scams. Phishing scams are particularly problematic, as financial uncertainty drives people to look for new ways to make money. More seniors will likely fall for these get-rich-quick schemes as they search for ways to invest their cash during the downturn.

Cloud Migration

The mass migration to the public cloud is leaving data more vulnerable than ever before, and hackers will look to take advantage of it. Attacks could target hyper-scale cloud services providers like Accenture, IBM, and Infosys because of the massive amounts of data they migrate and host. Successful criminals could do a lot of damage with the information they uncover.

Global Geopolitical Tensions

There’s significant tension in the world, particularly as war rages on in Europe. Geopolitical tensions could cause state actors to hack enemy systems to uncover military secrets. These tensions will likely continue to escalate, and we could see new cybersecurity technologies become necessary as a result. 

These issues reflect a small portion of cybersecurity professionals’ problems in 2023. Companies worldwide should be aware of how cybercriminals could attack them in the coming years and put protections in place to reduce their risks. 

Five New Cybersecurity Technologies to Watch in 2023

The good news is that industry professionals are aware of which vulnerabilities cybercriminals could try to exploit and are working on solutions. Predicting where hackers could attack and staying one step ahead is essential, as is using new cyber security technologies. Here are some examples we could see professionals use in 2023:

1. Zero-Trust Architecture

Zero trust isn’t a new concept, but it will be more widely adopted in 2023 because of the risks involved as hackers enter an IT environment and move throughout it to other targets. Implementing zero-trust architecture ensures that anyone using a company’s digital environment is verified at every stage, reducing the chance of a malicious outsider gaining access to sensitive data. New zero-trust applications and infrastructure should make it easier for firms to protect their information in 2023. 

2. AI Tools

There’s significant concern regarding cybercriminals using artificial intelligence (AI) tools to attack their targets, but cybersecurity teams can also use this technology to protect their firms. AI can detect network anomalies, patterns, and risks that a human could miss, providing additional protection. New tools will likely emerge as AI, and machine-learning technologies continue to advance.

3. Multifactor Authentication

Multifactor authentication is pretty much mainstream at this point, but it will be deployed in new ways in 2023. Many more organizations will require two-factor authentication when accessing systems, and organizational IT teams could find themselves implementing this technology for employees as they access company computers and accounts. This technology will also monitor systems for compromised credentials and prevent employees from reusing old passwords.

4. Company-Specific Tools

Every organization has different cybersecurity needs, so we may see targeted security software that’s customized for a particular industry or company come to the forefront. Many of these tools will be open source, as developers understand that local IT teams want to adjust their cybersecurity solutions on the fly as they see fit. Startups could also focus on creating more open-source tools in the coming years to fill this need.

5. Endpoint Detection and Response

Companies can only stop cyberattacks by identifying unusual activity on their networks, applications, and infrastructure and by responding to them. Endpoint detection and response is a threat detection tool that analyzes data using machine-learning algorithms and spots unusual patterns. This new cybersecurity technology will continue to evolve in 2023 and should become a staple for many firms as they attempt to reduce their risks.

New cybersecurity technologies will aim to make the online landscape safer for companies of all sizes, but the job isn’t done just because these advancements could come to the forefront in 2023. Cybercriminals are always working, so cybersecurity developers must do the same to stay ahead.

Cybersecurity Investment

New startups will aim to enter cybersecurity as threats become more widespread, and there’s plenty of room for them in the industry. Motivated investors who get behind some of these firms during their early stages may experience significant growth as their contributions to the industry gain traction. The result is a solid return and the understanding that the investment has done some good in the world.

Option3 connects investors who understand the importance of cybersecurity with industry startups. We have a long history in cybersecurity and understand where the industry needs to go in the future. Contact Option3 for more information on new cybersecurity technologies.

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