Russia’s invasion of Ukraine in February 2022 caused disruptions across the global economy, from food to energy, and prompted an increase in the number and sophistication of cyberattacks – exacerbating a similar impact from the Covid-19 pandemic.
According to a poll of over 800 chief audit executives conducted by the UK-based Chartered Institute of Internal Auditors, 77% of respondents thought the war had elevated cybersecurity and data security risks. Senior cybersecurity analysts have said that the invasion has been accompanied by a sustained cyber-conflict, with a large number of attacks and threats launched since the start of the war.
On February 23, 2022, one day before Russia’s military forces invaded Ukraine, a wave of distributed denial-of-service attacks attributed to Russian hackers disabled Ukrainian government, military and bank websites. That same day, US and UK intelligence agencies warned that a Russian state-backed hacker group known as Sandworm or Voodoo Bear had created a new malware called Cyclops Blink. Although US government officials announced in April 2022 that they had disrupted the malware, worries remain.
While cybersecurity officials say that Russia has primarily focused cyberattacks on Ukrainian companies and infrastructure, rather than targets in the EU, the US or emerging markets, there are concerns that cyber-conflict could spill over as the war continues and conflicts escalate elsewhere around the world. In February 2022 Viasat, a US satellite communications provider used by the Ukrainian military, underwent a cyberattack which affected customers not only in Ukraine, but also throughout Europe. EU, UK and US officials blamed Russia for the attack.
Covid-19 & Cyberthreats
The increased threat of cyberattacks builds upon the already heightened cybersecurity environment triggered by the Covid-19 pandemic. As financial transactions have increasingly migrated online, businesses around the globe have become targets for hackers. According to a 2022 report published by the security vendor SonicWall, global ransomware attacks were up 105% throughout 2021, including a more than 18-fold increase in attacks on government agencies, with health care (755%), education (152%) and retail (21%) entities also seeing a notable rise in breaches.
The rapid adoption of digital solutions over the course of the pandemic heightened cyberthreats to the education sector and emerging markets with large digital industries. This continued into 2022. For example, leading Nigerian online betting platform Bet9ja announced in early April that its website had been hacked by the BlackCat ransomware group, a syndicate of Russian hackers that is not believed to be aligned with the government.
This followed a ransomware attack undertaken in January 2022 on Bank Indonesia, the country’s central bank, that was ultimately unsuccessful in disrupting public services and did not result in critical data being leaked. Meanwhile, in February of that year the website of television broadcaster CNN Philippines was shut down after a cyberattack while the network was hosting a presidential debate in the lead-up to the country’s May 2022 election.
Cryptocurrencies have provided similarly fertile ground for hackers around the world. A record $14bn in digital currencies were transferred to illegal addresses in 2021, according to blockchain data platform Chainalysis, up from $7.8bn in 2020.
Security Measures
With cyberattacks on the rise in recent years, several emerging markets have taken steps to bolster security. In late May 2022 Saudi Arabia’s National Cybersecurity Authority launched the National Portal for Cybersecurity Services (HASEEN), a body that aims to develop and manage cybersecurity services, support communication mechanisms and enhance cybersecurity capacities. Once it is fully rolled out, all government agencies will be able to access HASEEN, which planned to have capacity to offer its services to more than 400 national entities by the end of 2022. Earlier in the year, Saudi Arabia launched the initiative Wamda, which aims to develop the leadership skills of female Saudi cybersecurity specialists. The country’s approach to increase its flexibility and readiness in order to neutralise attacks as they evolve could provide an example for others in the region. According to market research platform MarketsandMarkets, the Middle East’s cybersecurity market is projected to grow from $20.3bn in 2022 to $44.7bn in 2028.
National Strategies
Nigeria has also taken notable steps to improve its cybersecurity. In June 2022 it announced that it had created cybersecurity toolkits for more than 41m micro-, small and medium-sized enterprises. Many other emerging markets have indicated they will develop their own national strategies in the near term. For example, that same month Kenya announced that it planned to develop strategies to protect its national digital ecosystem.
In a sign of the global importance being placed on the issue, in June 2022 international media reported that the US and the EU were developing plans to fund secure digital infrastructure in developing countries. The proposal marks the first time the two will work together to fund and protect other countries’ critical infrastructure from cyberattacks. Initial projects are slated to take place in Africa and Latin America.
Regional Variations
While cybersecurity awareness is growing, some regions are at more risk. According to the Cyber Risk Index for the second half of 2021, Latin America has the highest risk, followed by Europe, North America and Asia Pacific. Africa was not included in the report. Although the Cyber Risk Index noted that the global increase in cyberthreats in 2021 had largely stemmed from the pandemic and the increase in remote work, Latin America’s elevated risk was attributed to the lower level of perceived readiness of the region’s organisations when it came to responding to cyberattacks. Cyberattacks in Latin America were up 600% in 2021, according to cybersecurity company Fortinet.
Meanwhile, in Africa there has been a rise in reports of malicious cyber-activities in the form of losses from digital fraud and illicit financial flows, as well as national security breaches and sabotaged public infrastructure. There are several strategic areas of interest that could be targeted to reinforce the continent’s cybersecurity preparedness, including investing in technologies to detect and mitigate crime; committing to the enforcement of robust legislation that protects digital rights and cyber-activities; ensuring stronger implementation and better coordination in areas where cybersecurity strategies are already in place; and increasing awareness campaigns so internet users are aware of cyberthreats and can adopt preventive measures.
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