Our post on Friday discussed how credit card skimming at the major retail stores and now the major restaurants are affecting customers on an almost daily business. It’s not just the credit card number that gets stolen, but if affects the psyche of the individual that gets affected. For instance, buying patterns of customers change, and mistrust amongst vendors increases greatly.
I am a prime example of this. When my credit card was hacked into Wal Mart at Wal Mart, it took me almost a year until I felt even starting to shop there on a sporadic basis. Even now, I always make sure that the POS has a secure credit card transaction thing attached to it, and I even jiggle it around a little bit just to make sure that it feels secure, and that a fake skimmer has not been installed onto it.
But now, there are another group of people whom are feeling the impact of Cyber attackers: Your hard-core investor. This finding was revealed by a study that was recently conducted by Pricewaterhouse Coopers in their latest survey entitled: “PwC Global Investor Survey 2018”. It was an exhaustive study, but here are some of the key takeaways from it as it relates to Cyber Security:
*41% of investors overall are gravely concerned about the Cyber threat landscape. Interesting enough, this concern ranked 5th in last year’s same survey that was given.
*64% of investors feel that businesses of all industries and types need to prioritize their spending onto mitigating the threats posed by the Cyber attacker;
*Because of the sheer number of Cyber threats that are occurring on a daily basis, only 23% feel confident that they will get a positive rate of return on their investment within a 12-month timespan. This does not imply at all that they do not have lost faith in the businesses that they have initially invested, but rather it is a reflection of their fear that one of the businesses that they have invested could very well become a target of a major Cyber-attack, and thus, they could be forced to shut their doors down permanently.
*Only 20% of investors of investors feel confident about the revenue growth in the businesses that they invest in over the next three years. Once again, this is due to the ever-changing Cyber threat landscape that persists out there.
*85% of investors believe that there will be some sort of major technological disruption could happen to one of their invested businesses if they become a victim of a Cyber-attack.
According to Hilary Eastman of Pricewaterhouse Coopers: “Investors expect disruption to have a bigger impact on business than CEOs, which might be affecting investor confidence in growth over the longer term. Effective communication between businesses and investors is key to addressing caution. If businesses can clearly demonstrate the actions they’re taking to combat investors’ concerns, they’re more likely to be able to attract long term investment.” (SOURCE: https://www.securitymagazine.com/articles/88796-investors-put-cybersecurity-top-of-the-business-threat-list).
True, under the Trump Administration, the economy looks pretty good right now. Despite the recent ups and downs that we have recently in the financial markets, an upward trend seems to be appearing and most of the losses seemed to have been wiped out. The job numbers, at least statistically speaking look good as well, based from the recent jobs report.
But, Cyber threats and attacks will soon be a huge drag on the economy, at least in my opinion. So far, the effects of all these major Cyber-attacks that have been occurring in the last couple of years has not yet resulted in a net loss in the overall GDP figures, it will soon have an impact. The fact is that the Cyber attacker is growing in sophistication every day, and just trying to keep up with all of that is a huge and daunting task for any business large or small.
Probably one of the catalysts that will trigger the next economic recession will be the fact that investors will stop investing their money because of their lack of faith and confidence that Corporate America is doing all it can do mitigate Cyber risks and threats as much as possible. This is clearly evident in the numbers that this survey has revealed.
But the same also holds true for any would be start up seeking any kind of investments, whether it is from angel or venture capitalist side: If you want any money, make sure you put a section in your business plan as to how you plan to address the Cyber threat landscape that is out there and growing exponentially every day.