Cybersecurity stocks have received a boost in recent weeks amid the Russian invasion of Ukraine, ramping up the threat of cyber warfare between Russia and the United States. A open cyber conflict between the two nations has yet to take place, but if the impact of sanctions worsens, Russia could retaliate with a wave of cyberattacks on the US and other western allies.
Simultaneously, tech giants Nvidia and Samsung have each recently been affected by serious cyberattacks, highlighting the need for heightened security. Google has taken notice of increased threats in cyberspace, purchasing cybersecurity firm Mandiant in a $5.4 billion deal. That acquisition could create a ripple effect amongst cloud computing rivals Microsoft, Amazon, and others in the near future.
Related ETFs: First Trust NASDAQ Cybersecurity ETF (CIBR), ETFMG Prime Cyber Security ETF (HACK)
Threat of Russian Cyber War Highlights Need for Increased Cybersecurity
Despite being bombarded by sanctions from the United States and the rest of NATO, Russia has pushed further into Ukraine in hopes of seizing the entire country. With war looking as if it will drag on for some time, the threat of Russian retaliation against the US and its NATO allies for supporting Ukraine has grown tremendously – particularly in the form of cyber warfare.
For now, Russia and the US do not appear likely to engage in physical combat, yet Russia seems to be weighing the risks of launching cyberattacks against the West to counter heavy sanctions.
According to a recent report from S&P Global Market Intelligence, highlighted by CNN, national security experts believe the evolution of cyberthreat activity could shape the nature of conflict in the future and acknowledge there is a real threat of Russian cyberattacks on US infrastructure in the wake of the Ukraine conflict.
With sanctions crippling the Russian economy, Putin may have no choice but to retaliate against the West. USA Today reported that US officials are highly concerned the war in Ukraine could impact American cyber networks, encouraging US organizations to beef up their security.
Some of these attacks have already begun. Just two weeks before the Russian invasion of Ukraine, a group of hackers gained access to over 100 computers at nearly two dozen major US natural gas firms, a move that some have speculated is associated with Russia’s GRU military intelligence service, per Bloomberg.
The motive of the operation remains unknown, yet the timing of the hack coincides the broader changes in the energy industry that have been accelerated by Russia’s war. Gene Yoo, CEO of Resecurity, the company that discovered the hack, believes the attack…
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