During the month of January, cybersecurity incidents were colossal. JD Sports, a sportswear chain, recently reported that the stored data of 10 million customers was at risk after a cyberattack. The company said the cybercriminal may have accessed names, addresses, email accounts, phone numbers, online order details between 2018 and October 2020, and the last four digits of customer bank cards.
Luckily, the hackers didn’t get full payment card details and account passwords were not accessed. Nonetheless, the company said that it is reaching out to customers who have been affected by this cybersecurity incident.1
In a federal filing, T-Mobile US Inc. said that it had discovered a cybersecurity hack on January 5, 2023 wherein the cybercriminal obtained the data of 37 million customer accounts. The telecommunications provider said that the data hacked didn’t include payment information, passwords, or other sensitive personal data. The stolen data includes names, addresses, emails, and phone numbers of customers. It also includes account numbers and plan details.
T-Mobile said the investigation is still in progress and the hacker seems to have gained access through a single entry point serving customer data. The company revealed that it’s unlikely the hacker breached its systems or networks.2
As cybersecurity incidents become the norm, the outlook for what’s ahead seems dire. In the World Economic Forum’s (WEF) Global Security Outlook Report 2023, it’s highlighted that 93% of cyber leaders and 86 of cyber business leaders believe that the current geopolitical instability in the world is setting the stage for a catastrophic cybersecurity event in the next two years.
While presenting at WEF, Edi Rama, Albania’s prime minister, said that the cybercrime industry is growing significantly. It was worth $3.0 trillion in 2015 and is expected to be worth $10.5 trillion in 2025. If cybercrime was a country, it would be the third largest economy in the world just behind China and the U.S.3
COMPANY SPECIFIC UPDATES
Palo Alto Networks Inc.
Palo Alto Networks offers cybersecurity solutions including, but not limited to, firewall appliances and software, threat prevention, DNS security, Internet of Things security, and cloud security.
Recently, the company has been getting attention from analysts. JPMorgan Chase & Co. began coverage on shares of Palo Alto Networks, giving it an overweight rating and a $195.00 price objective on the stock.
Other research analysts have also weighed in on the company. Piper Sandler gave Palo Alto Network’s stock an overweight rating in its research note to clients and cut the price target from $230.00 to $220.00. In November 2022, MKM Partners dropped its price target on Palo Alto Network’s stock from $250.00 to $220.00 and gave it a buy rating.4
Absolute Software Corp.
Absolute Software Corp. is the only provider of self-healing intelligent cybersecurity solutions that offer its clients resilience against ransomware and malicious cyberattacks.
The company recently announced that it has entered a new commercial agreement with Aranda Software and IMTLazarus to provide Absolute Application Persistence-as-a-Service (APaaS). APaaS allows the integration of Absolute’s Application Resilience into software packages to keep application integrity above par and lower maintenance and deployment costs.
With this agreement and deploying Absolute Software’s solution, software providers will be able to monitor and automatically self-heal their mission-critical endpoint applications.5
Investing in Cybersecurity 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/cybr/.
CYBR ETF PORTFOLIO STRATEGY AND ACTIVITY
For the month, Palo Alto Networks Inc. made the largest contribution to the Fund, followed by Zscaler Inc. and Okta Inc. The largest detractors to performance for the month were Booz Allen Hamilton Holding Corp., followed by Darktrace Plc and Arqit Quantum Inc. On last rebalance, the following companies were added to the fund: Hancom WITH Inc, KSIGN Co Ltd., and Absolute Software Corp.
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- Race, M., “JD Sports says 10 million customers hit by cyber-attack,” BBC, January 30, 2023; https://www.bbc.com/news/business-64452986.
- Larkin, C. and Starr, G., “T-Mobile Says Hacker Stole Data for 37 Million Customers,” BNN Bloomberg, January 19, 2023; https://www.bnnbloomberg.ca/t-mobile-says-hacker-stole-data-for-37-million-customers-1.1872465.
- Newcomb, T., “A Catastrophic Mutating Event Will Strike the World in 2 Years, Report Says,” Popular Mechanics, January 25, 2023; https://www.popularmechanics.com/technology/security/a42660926/global-catastrophic-mutating-event-coming-in-2-years/.
- “Palo Alto Networks (NASDAQ:PANW) Coverage Initiated at JPMorgan Chase & Co.,” Defense World, January 25, 2023; https://www.defenseworld.net/2023/01/25/palo-alto-networks-nasdaqpanw-coverage-initiated-at-jpmorgan-chase-co.html.
- “Absolute Software Announces New ISVs Leveraging Application Persistence-as-a-Service,” Yahoo! Finance, February 2, 2023; https://finance.yahoo.com/news/absolute-software-announces-isvs-leveraging-130000354.html.