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UK spending watchdog, the National Audit Office (NAO), is right to highlight the threat to the UK Government’s cyber resilience, according to Naoris Protocol. However, the cyber security company warns that it is underestimating the scale of the problem.
The NAO says the threat is “severe and advancing quickly” and points to independent assessments of 58 government IT systems that show “significant gaps” in cyber resilience. It also says the government does not know how vulnerable at least 228 legacy IT systems are to cyber attack.
It highlights skills gaps in the UK Government and says one in three cyber security roles were vacant or filled by temporary staff in 2023/24.
However Naoris Protocol says the financial and operational damage caused by data breaches is poised to worsen dramatically, fuelled by advancements in AI, quantum computing, and the Metaverse.
New Naoris Protocol research shows nearly half of IT directors at global enterprises predict cybercrime costs will exceed USD15 trillion by 2030, equivalent to the combined GDP of Germany, Japan, and the United Kingdom, with 9% predicting it will hit USD20 trillion.
Its global study with Web3 developers shows the average cost of a data breach could climb to USD5.3 million within five years, up from the current USD4.88 million. Almost all Web3 developers (97%) see the Metaverse, AI, and machine learning as accelerants for more frequent and sophisticated cyberattacks.
“The NAO warning is a welcome wake-up call, but it should not be a surprise for the industry and the government,” said Naoris Protocol CEO David Carvalho.”The combination of AI and the Metaverse is creating a larger attack surface for hackers, while quantum computing threatens to undermine traditional encryption methods. The risks are real, and the cost implications are staggering.”
Naoris highlights the role that decentralised physical infrastructure networks (DePIN) can play as a solution to growing cybersecurity challenges. DePIN decentralises critical infrastructure, such as network nodes, data centres, and cloud systems, reducing reliance on centralised entities and enhancing overall resilience.
“DePIN reduces single points of failure and empowers communities to take control of infrastructure, fostering both security and economic incentives,” adds Carvalho.