2024 will forever be remembered as the 'Year of Global Outages,' revealing the fragility of over-automated systems. A single cybersecurity provider’s disruption triggered global chaos—freezing transactions, grounding flights, and crippling healthcare. The call for resilience is deafening.
As we close the book on 2024, we welcome you to our Holiday Edition, where we unwrap the biggest stories that defined a whirlwind year in AI and cyber affairs—a celebration of relentless innovation, jaw-dropping rivalries, and high-stakes power plays that kept us captivated all year round.
Cisco faces fallout from a massive data leak exposing critical files, while China accuses the U.S. of cyber espionage amid rising tech tensions. AI governance sparks debate as Europe enforces strict rules, and ASIC sues HSBC for $23M scam failures. Global cyber affairs take center stage this week.
Cybersecurity news: Delta sues CrowdStrike for $500M over a tech outage, IBM launches an AI-powered cybersecurity assistant to boost threat detection, and the industry faces a severe talent shortage. With rising cyber threats and gaps in expertise, the cybersecurity landscape is rapidly evolving.
In an escalating legal battle, Delta Air Lines is suing cybersecurity firm CrowdStrike for over $500 million following a catastrophic tech outage that grounded 5,000 flights. This case not only spotlights the critical dependencies between major corporations and their cybersecurity providers but also raises significant questions about accountability and operational resilience in the digital age. As both companies brace for a lengthy legal confrontation, the potential repercussions for the wider industry are profound, highlighting the dire consequences of IT failures.
Meanwhile, IBM is making waves with the launch of its generative AI-powered Cybersecurity Assistant, designed to revolutionise threat detection and response. This cutting-edge tool aims to significantly enhance security operations, enabling faster, more efficient handling of security threats. Additionally, the cybersecurity sector is grappling with a severe talent shortage, with demand far outstripping supply. This skills gap poses a substantial risk to organisational resilience, prompting a call for innovative solutions to attract and retain cybersecurity talent amidst a rapidly evolving threat landscape.
Delta Air Lines is suing cybersecurity firm CrowdStrike, embroiling both companies in a potentially cascading series of legal battles. Delta CEO Ed Bastian has announced the airline's intention to seek over $500 million in damages following a technology outage that caused the cancellation of about 5,000 flights and incurred significant additional costs. This public legal claim against CrowdStrike marks a significant escalation in the dispute, with Delta accusing the firm of failing to properly test the update and provide adequate support during the recovery process.
CrowdStrike, however, firmly rejects these allegations. In a letter published on Sunday, CrowdStrike lawyer Michael Carlinsky stated the company is “highly disappointed by Delta’s suggestion that CrowdStrike acted inappropriately and strongly rejects any allegation that it was grossly negligent or committed willful misconduct.” Carlinsky emphasised that CrowdStrike had apologised, shown empathy for Delta's situation, and offered assistance multiple times, which were allegedly ignored by Delta.
The U.S. Department of Transportation is now investigating Delta's response to the outage, which is estimated to cost Fortune 500 companies over $5.4 billion. CrowdStrike is also facing backlash from its investors, including a lawsuit filed by the Plymouth County Retirement Association after the company's share price dropped due to the incident. As both companies prepare for a potentially lengthy legal battle, the dispute highlights the complexities and potential fallout of large-scale IT failures.
August 5, 2024 — IBM has announced the launch of a new generative AI feature within its managed Threat Detection and Response Services. This innovation, integrated into IBM Consulting’s Cybersecurity Assistant, aims to enhance and streamline security operations for clients. Leveraging IBM’s watsonx data and AI platform, the new assistant is designed to accelerate the detection, investigation, and response to critical security threats, significantly boosting efficiency for security analysts.
This follows from IBM's latest Cost of a Data Breach Report which highlighted the escalating challenges businesses face in combating cyberattacks. In the report it highlights that during 2023, more than half of organizations experienced cyberattacks that disrupted access to data, with costs in the UK alone soaring to £3.58m (US$4.8m) in 2024.
The Cybersecurity Assistant will be a key component of IBM Consulting’s threat detection and response practice and the broader IBM Consulting Advantage platform. This AI services platform is equipped with purpose-built AI assets to ensure consistent, repeatable, high-quality, and speedy service delivery.
Mark Hughes, Global Managing Partner of Cybersecurity Services at IBM Consulting, emphasized the growing complexity of cyber incidents and the need for advanced tools to manage the increasing volume of attacks. By incorporating generative AI, IBM aims to reduce the manual workload for security analysts, enabling them to respond more proactively and precisely to threats, thereby enhancing the overall security posture for clients.
IBM’s Threat Detection and Response (TDR) Services can now automatically manage up to 85% of alerts, thanks to the integration of new generative AI technologies. This advancement has already shown promising results, such as a 48% reduction in alert investigation times for one client. The Cybersecurity Assistant accelerates threat investigations through historical correlation analysis and provides a comprehensive view of attack sequences. Additionally, it features a generative AI conversational engine that offers real-time insights and support, helping to streamline operational tasks and improve the efficiency of Security Operations Centers (SOCs). This continuous learning capability is expected to enhance the speed and accuracy of threat investigations over time.
The cybersecurity industry is facing a significant talent shortage, which has serious implications for organizations worldwide. Recent data shows that there are approximately 470,000 cybersecurity job openings in the United States alone, with these positions taking 21% longer to fill compared to other IT jobs. From May 2023 through April 2024, there were only 85 cybersecurity workers available for every 100 cybersecurity jobs, highlighting a severe mismatch between supply and demand. According to the World Economic Forum's (WEF) Global Cybersecurity Outlook 2024 report, skills gaps are a major challenge to achieving cyber-resilience goals, with 36% of respondents identifying it as a critical issue.
Many CEOs are increasingly worried about this cybersecurity skills gap, viewing it as a major risk to their organizations. This concern is heightened by the rapid evolution of cyber threats and the increasing complexity of managing cybersecurity operations. According to a KPMG survey, 76% of security leaders expressed concerns about the sophistication of new cyber threats, particularly those from organised cybercriminal groups, insider threats, and individual hackers. Furthermore, 78% of organizations reported lacking the in-house skills necessary to fully meet their cybersecurity objectives.
The implications of this talent shortage are extensive, significantly increasing the risk of cyber attacks due to insufficient staff to manage and mitigate threats effectively. The lack of skilled professionals leads to operational inefficiencies and delays in implementing critical security measures. This contributes to a substantial economic impact, with global cybercrime costs projected to reach $9.5 trillion by 2024. James Globe, Vice President of Strategic Advisor Cybersecurity Capabilities at the Center for Internet Security (CIS), predicts that the gap will continue to widen, particularly for public sector organizations, emphasising the urgent need for innovative solutions to attract and retain cybersecurity talent.
To combat this talent gap, organizations are adopting various strategies, including offering competitive salaries and career development opportunities to retain existing talent, investing in education and training programs to upskill current employees and attract new talent, incorporating more automation to handle routine tasks, and promoting diversity and inclusion to attract a broader range of candidates. Reports from PwC Australian insights 2024 on cybersecurity highlights the increasing intensity of cyber threats, with nearly 9 out of 10 businesses experiencing a data breach in the past three years. These breaches have significant monetary costs and potential brand damage.
To address the skill Gap, Gartner predicts that by 2028, the adoption of Generative AI (GenAI) will significantly reduce the cybersecurity skills gap, potentially removing the need for specialised education for 50% of entry-level cybersecurity roles. This shift is expected to transform the workforce by automating routine tasks and enabling cybersecurity professionals to focus on more complex issues.
Top experts from Deloitte and KPMG have all echoed these skill talent concerns and strategies, urging organizations to prioritise cybersecurity workforce development to build a more resilient cybersecurity landscape. For more detailed insights, refer to the World Economic Forum's Global Cybersecurity Outlook 2024 and other industry reports.
Cisco faces fallout from a massive data leak exposing critical files, while China accuses the U.S. of cyber espionage amid rising tech tensions. AI governance sparks debate as Europe enforces strict rules, and ASIC sues HSBC for $23M scam failures. Global cyber affairs take center stage this week.
Broadcom joins Nvidia in the $1 trillion club, reshaping the AI chip race with a 51% revenue surge in Q4 2024 and VMware's $69B acquisition. As China invests $25B to boost semiconductor self-reliance, U.S.-China tensions escalate, redefining global innovation and geopolitical power dynamics.
The Pacific tech war intensifies as Trump's return to power amplifies U.S. export bans, targeting China’s AI progress. ByteDance, Nvidia's largest Chinese buyer, counters with bold strategies like crafting AI chips and expanding abroad. A fragmented 2025 looms, redefining tech and geopolitics.
Australians face rising cyber scams during holiday shopping, with scammers using AI-driven tactics like phishing and deepfakes. Spending $70B online puts consumers at risk, as reports show $30.7K average losses. Visa's new measures push beyond SMS OTPs to combat fraud. Stay vigilant.
