The list of cybersecurity incidents worldwide continues to increase as more governments and corporations have become victims of cyberattacks in recent months.

In July, the government of Albania was forced take its online public services and other related websites offline due to a cyberattack. Albania’s National Agency of Information Society said in a statement that it experienced a synchronized and sophisticated cyberattack from outside the country.

Although government officials didn’t say where the attacks originated from, they are working with Microsoft, cybersecurity consulting firm Jones International Group, and Albanian security companies to mitigate the damage.¹

State-sponsored cyberattacks remain to be a major issue. Recently, the FBI and other U.S. agencies warned that North Korean government-backed hackers could target healthcare organizations.

According to the FBI, Department of Treasury, and US Cybersecurity and Infrastructure Security Agency (CISA), the North Korean hackers use ransomware attacks—a type of computer code that locks files—to encrypt computer systems that hold data such as electronic health records and information regarding diagnostics and imaging services.²

With all these cybersecurity attacks worldwide, governments are taking cybersecurity more seriously. For example, the Cyberspace Administration of China (CAC) served the country’s ride-hailing giant, Didi Global, with fines of $1.2 billion for violating China’s cybersecurity, data, and information protection laws based on how it was handling customer data.

Furthermore, the chairman and CEO of Didi Global, Cheng Wei, and the president of the company, Liu Qing, were also personally fined $147,000.³

In the U.S., the Biden administration is working tirelessly to fill thousands of cybersecurity jobs. There’s a huge talent shortage in the U.S., and it’s being dubbed as both a national security issue and an economic opportunity.

Around mid-July, the administration announced a multi-agency plan that will create hundreds of registered apprenticeship programs with private firms in an attempt to reduce the cybersecurity professional shortages as data breaches, ransomware attacks, and hacking incidents become a normal occurrence.⁴

Palo Alto Networks, Poised for Total Platform Domination

Palo Alto Networks Inc., one of the biggest holdings of the fund and a leading global cybersecurity firm, is getting rave reviews from analysts at Wolfe Research.

While investors believe Palo Alto Networks to be a place to “hide out” in the current market, it offers a lot more in terms of the value and upside potential that comes with the company’s next-generation security portfolio. There is already a strong demand for the company’s firewall business, but analysts believe the company could be poised for total platform domination.⁵

Fortinet, Introduced World’s Fastest Compact Hyperscale Firewall

Fortinet Inc., one of the fund’s top 10 holdings and a provider of integrated and automated cybersecurity solutions, recently introduced a new FortiGate 4800F series of hyperscale firewalls. This firewall is specifically designed with hyperscale data centres and 5G mobile network operators.

John Maddison, EVP of Products and CMO at Fortinet said that FortiGate 4800F isn’t just the world’s fastest compact hyperscale firewall in the industry, it also allows hyperscale data centers and 5G mobile networks to scale their business without disruption to their regular operations.⁶

Investing in the Cybersecurity Industry with CYBR ETF

If you’re looking to invest in a cybersecurity ETF, consider Canada’s first cybersecurity ETF, Evolve Cyber Security Index Fund (TSX Ticker: CYBR). CYBR ETF invests in global companies involved in the cyber security industry. For more information, visit the fund page here: https://evolveetfs.com/product/cybr/.

For the latest information on cybersecurity investing and industry updates on related investment products, sign up for our weekly newsletter here.

 

Sources:

1. Greig, J. “Albania shuts down government websites, services due to wide ranging cyberattack,” The Record, July 18, 2022; https://therecord.media/albania-shuts-down-government-websites-services-due-to-wide-ranging-cyberattack/.
2. Lyngaas, S. “North Korean government hackers hit health services with ransomware, US agencies warn,” CNN, July 6, 2022; https://www.cnn.com/2022/07/06/politics/north-korea-ransomware-health-care/index.html.
3. Xiong, Y., Register, L., and He, L., “China fines Didi $1.2 billion for violating cybersecurity and data laws,” CNN, July 21, 2022; https://www.cnn.com/2022/07/21/economy/china-fines-didi-data-law-violation-intl-hnk/index.html.
4. Fung, B. “Biden administration pushes to close the growing cybersecurity workforce gap,” CNN, July 19, 2022; https://www.cnn.com/2022/07/19/tech/biden-cyber-workforce-gap/index.html.
5. Bary, E., “Palo Alto Networks stock is positioned for ‘total platform domination,’ says analyst,” Market Watch, August 1, 2022; https://www.marketwatch.com/story/palo-alto-networks-stock-is-positioned-for-total-platform-domination-says-analyst-2022-08-01.
6. “Fortinet Introduces the World’s Fastest Compact Firewall for Hyperscale Data Centers and 5G Networks,” Fortinet Inc., August 3, 2022; https://www.fortinet.com/corporate/about-us/newsroom/press-releases/2022/fortinet-introduces-worlds-fastest-compact-firewall-for-hyperscale-data-centers-and-5g-networks.

 

The contents of this blog are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. These contents are not an offer or solicitation of an offer or a recommendation to buy or sell any securities or financial instrument, nor shall it be deemed to provide investment, tax or accounting advice. The information contained herein is intended for informational purposes only.

Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds (funds). Please read the prospectus before investing. ETFs and mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus for a complete description of risks relevant to ETFs and mutual funds. Investors may incur customary brokerage commissions in buying or selling ETF and mutual fund units.

Certain statements contained in this blog may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve Funds undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.