The Kaseya attack the tip of an iceberg

Fortinet and Crowdstrike are among the top five holdings in the Global Security Fund and two companies whose products may have helped prevent the REvil Kaseya ransomware attack that affected COOP and so many other companies around the world.

The ransomware attack is a reminder of the geopolitical risks facing businesses today. A malicious enough attack can wipe out many companies completely and it is the increased costs of cybercrime that is driving the growth of cyber security companies.

According to Cybersecurity Ventures, the cost of cybercrime could reach $10.5 trillion by 2025, or, to put that into perspective, about 10 percent of global GDP. Even for us at the Global Security Fund, it is almost incomprehensible to understand the enormity of this.

The American-Swedish cyber security company Recorded Future recently explained in a podcast how interconnected companies are and how a malicious attack can have far-reaching consequences. The fact that you cannot buy food in the store arouses the media's reporting regarding the cyber area, but this attack is only one of many that are ongoing all the time.

This podcast and many others can be listened to here: Recorded Future

Insurance companies that don't want to pay the ransom can force companies to focus more on preventative measures and less on a "cure". Paying a ransom is no guarantee that the problem will be solved, while a large investment in having up-to-date protection can instead prevent attacks.

The growth forecast of the cyber security industry until 2027 according to Grandview Research.

The economic consequences of cybercrime are obvious and support the growth hypothesis of the cyber security industry. This is also a reason why the Global Security Fund is investing heavily in this sector. Along with investments in traditional security and space, the global security fund gives investors exposure to industries dealing with increasing geopolitical risks.