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Study: AI-powered cyber threats drain security budgets

January 21, 2025

Research from post-quantum security speacialist, Naoris Protocol, highlights a stark reality: IT directors at major global firms are preparing for an unprecedented surge in cyber threats driven by AI, machine learning,and the Metaverse.

As cyber criminals deploy increasingly sophisticated attacks, organisations plan significant security budget increases over the next two years. A global study of IT leaders at companies with over $300 million (€289.6m) annual turnover highlights the growing urgency to address emerging cybersecurity challenges.

Metaverse and AI: A Dangerous Nexus for Cyber Attacks

Over 60 per cent of IT directors strongly agree, and 37 per cent partially agree, that the convergence of the Metaverse and AI will significantly escalate cyber attacks. Hackers are expected to exploit AI and machine learning to create more sophisticated methods, making the Metaverse a prime target.

“The Metaverse, combined with AI-driven hacking, presents a perfect storm of vulnerabilities,” warned David Carvalho, CEO of Naoris Protocol.

Decentralisation’s Promises and Perils

The study also highlights heightened cyber risks in the Web3 space. While decentralised technologies offer opportunities, they also bring new threats. Only 35 per cent of IT directors believe their organisations fully understand Web3-related risks, 46 per cent rate their knowledge as ‘quite good’, and 19 per cent report average or poor comprehension. Around 12 per cent say their organisation has an average understanding while 7 per cent admit to a poor or very poor understanding of the cyber risks posed by Web3 This knowledge gap could expose critical systems to exploitation as organisations navigate decentralisation and blockchain complexities.

Some of the biggest hacks in 2024 included DMM Bitcoin in May ($305 million) and WazirX in July ($234.9 million), this underscores the growing need to secure mechanisms frequently exploited in hacks, such as private keys. Overall Web3 security breaches led to cryptocurrency losses exceeding $2.3 billion in 2024, a 31.6 per cent increase compared to 2023, according to blockchain security firm Certik.

Budgets on the Rise: A Necessary Response

Cybersecurity budgets are set to grow significantly as risks rise. Over the past two years, 38 per cent of IT directors reported dramatic budget increases, while 47 per cent saw moderate growth and 15 per cent say it is unchanged. Looking ahead, 97 per cent expect further increases, with 25 per cent predicting over 50 per cent growth and 61 per cent anticipating increases between 10 per cent and 50 per cent in the next two years.

What will happen to cyber security budgets over the next two years?

● 11 per cent expect increases of up to 10 per cent

● 35 per cent foresee growth between 10 per cent and 25 per cent

● 26 per cent predict a 25 per cent-50 per cent rise

● 15 per cent expect jumps of 50 per cent-75 per cent

● 10 per cent project budget increases of over 75 per cent

● 7 per cent project budget increases of over 75 per cent

DePIN: The Future of Cost-Effective Cybersecurity

Decentralised Physical Infrastructure Networks (DePINs) are emerging as a promising solution for reducing the financial and operational impacts of cyber incidents. According to the study, 32 per cent of IT directors believe adopting DePIN-based cybersecurity measures could significantly reduce costs, while 48 per cent see a moderate impact.

Naoris Protocol’s collaboration with the DePIN Association highlights its dedication to advancing cybersecurity and digital trust through a decentralised, post-quantum approach, benefiting industries like finance, telecommunications, and healthcare

A Call to Action for IT Leaders

“The rapid evolution of the cyber threat landscape demands equally agile responses,” Carvalho stated. “Organisations must not only expand their cybersecurity budgets but also embrace innovative technologies like decentralised solutions to stay ahead of attackers.”

With the Metaverse expanding and AI threats evolving, Naoris Protocol’s research highlights the urgent need for organisations to adopt robust, forward-thinking cybersecurity strategies to tackle the challenges of a rapidly changing digital era.

 

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