Cybersecurity incidents around the world remain rampant. Over the past few weeks, several companies and organizations reported data breaches, hacks, and other forms of cyberattacks.
LastPass, a company with 33 million customers that provides auto-generated hard-to-crack passwords for users for multiple accounts, said that a hacker stole its source code and proprietary information. LastPass revealed that user passwords were not stolen and that customers do not need to take any action to secure their accounts. However, an investigation is under way into how the hacker was able to gain access.1
According to a report by the Telegraph, a major cyberattack delayed response times for the U.K.’s NHS 111 emergency telephone service. The target of the breach was Advanced, a software provider for 85% of the hotline services of the NHS.2
Meanwhile, Nomad, a cross-chain token bridge that allows users to send and receive tokens between various blockchains, recently said that attackers have drained $200 million from the protocol—virtually all of the company’s funds.3 While the cyberattack at Nomad is fairly recent, cross-chain bridges have been severely targeted by cyber criminals in the past.
In early August, cyber criminals attacked Solana’s ecosystem for trading digital assets and stole not just Solana’s cryptocurrency (SOL), but also stablecoins compatible with the Solana blockchain, such as the USD coin. The company hasn’t said how much was stolen, but according to independent analysts from PeckShield, it could be as much as $8.0 million. In the past, Solana has had to deal with cybersecurity incidents like bot spam and Distributed Denial of Service (DDoS) attacks.4
It’s not just digital companies that are being affected by cyberattacks. The Ontario Cannabis Store, the only legal online retailer of recreational cannabis in Ontario and distributor to roughly 1,333 licensed cannabis stores, recently said that it was unable to process or deliver orders due to a cyberattack at one of its logistical partners—Dominion Logistics.5
BRP Inc., maker of snowmobiles and other recreational vehicles under brands such as Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, and Can-Am vehicles, also experienced a cyberattack that led to suspension of operations. The company warned that the suspension of its operations could mean transaction delays with customers and suppliers.6
Palo Alto Networks Inc.
Palo Alto Networks Inc. recently announced a 3-for-1 stock split and increased its stock repurchase program after reporting a solid financial performance.
The split comes as high-profile technology companies like Apple Inc. and Alphabet Inc. have announced splits in hopes of lowering their stock prices to levels where they are more affordable for smaller investors.7
IronNet, Inc. is an innovative cybersecurity solutions provider with a flagship product called DefenseSM. Recently, the company announced that a major European logistics company that offers courier, package delivery, and express mail service to million of customer across the continent will be deploying DefenseSM to defend against cyber threats.8
The company also announced that it has entered into an agreement with the U.S. Cybersecurity and Infrastructure Security Agency (CISA) to share information from IronNet’s DefenseSM platform to help the agency defend against increased global cyber threats.9
INVESTING IN THE CYBERSECURITY INDUSTRY WITH CYBR ETF
A cybersecurity ETF offers a great alternative to gaining exposure to this industry without being locked into any single security, and without the hassle of hand-picking individual stocks. ETFs allow you to diversify by investing in multiple companies in multiple markets, ensuring that a single market shock won’t tank your portfolio.
If you’re interested in investing 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.
CYBR ETF PORTFOLIO STRATEGY AND ACTIVITY
For the month, Palo Alto Networks Inc. made the largest contribution to the Fund, followed by Qualys Inc., and Darktrace PLC. The largest detractors to performance for the month were Okta Inc., followed by Cyxtera Technologies Inc. and Fortinet Inc. On last rebalance, IronNet Inc. was added to the portfolio.
For more information on CYBR ETF, please visit the fund page here: https://evolveetfs.com/product/cybr/.
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- Murphy, M., “World’s Most Popular Password Manager Says It Was Hacked,” BNN Bloomberg, August 25, 2022; https://www.bnnbloomberg.ca/world-s-most-popular-password-manager-says-it-was-hacked-1.1810651.
- Prem, P., “Cyber Attack Disrupts NHS 111 Emergency Line in UK: Telegraph,” BNN Bloomberg, August 6, 2022; https://www.bnnbloomberg.ca/cyber-attack-disrupts-nhs-111-emergency-line-in-uk-telegraph-1.1802303.
- Kessler, S., and Betz, B., “Crypto Bridge Nomad Drained of Nearly $200M in Exploit,” CoinDesk, August 1, 2022; https://www.coindesk.com/tech/2022/08/02/nomad-bridge-drained-of-nearly-200-million-in-exploit.
- Vincent, J., “Solana ecosystem hit by hack draining millions in crypto from 8,000 hot wallets,” The Verge, August 3, 2022; https://www.theverge.com/2022/8/3/23290149/solana-ecosystem-blockchain-attack-hack-wallets-phantom-slope-supply-chain.
- Deschamps, T., “Ontario Cannabis Store deliveries halted after cyberattack,” BNN Bloomberg, August 9, 2022; https://www.bnnbloomberg.ca/ontario-cannabis-store-deliveries-halted-after-cyberattack-1.1803384.
- “Cyberattack forces Ski-Doo maker BRP to suspend operations,” Global News, August 9, 2022; https://globalnews.ca/news/9047589/quebec-brp-skidoo-cyberattack.
- Savitz, E.J., “Palo Alto Networks Stock Soars on Strong Earnings and 3-for-1 Stock Split,” Barron’s, August 23, 2022; https://www.barrons.com/articles/palo-alto-networks-stock-split-earnings-51661201304.
- “One of Europe’s Largest Logistics Companies Selects IronNet to Increase its Network Visibility and Proactively Hunt for Cyber Threats,” Yahoo! Finance, August 25, 2022; https://finance.yahoo.com/news/one-europe-largest-logistics-companies-120500884.html.
- “IronNet to Collaborate with CISA to Strengthen the Nation’s Cyber Defense,” Yahoo! Finance, August 17, 2022; https://finance.yahoo.com/news/ironnet-collaborate-cisa-strengthen-nation-120000722.html.