UK spending watchdog, the National Audit Office (NAO), has highlighted a threat to the UK government’s cyber resilience – but Naoris Protocol 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 which show “significant gaps” in cyber resilience. It adds that the government does not know how vulnerable at least 228 legacy IT systems are to cyber attack.
It also 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 $15-trillion by 2030 – equivalent to the combined GDP of Germany, Japan and the UK, with 9% predicting it will hit $20-trillion.
Its global study with Web3 developers shows the average cost of a data breach could climb to $5,3-million within five years, up from the current $4,88-million.
Almost all Web3 developers (97%) see the Metaverse, AI, and machine learning as accelerants for more frequent and sophisticated cyberattacks.
David Carvalho, CEO and founder of Naoris Protocol, says: “The NAO warning is a welcome wake-up call but it should not be a surprise for the industry and the government.
“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.