Ransomware attacks have become the Sword of Damocles hanging over companies’ heads. A sword that, incredulously, appears to be ignored by Australia’s business leadership who are very eager to take advantage of customers’ data, but are unable to properly manage the cyber-risks.

Part of the problem is that cybersecurity is a complex field: Recent incidents like the TissuPath and Dymocks breaches serve as a glaring reminder of the vulnerability in our interconnected digital landscape.

Data is the new oil, and ransomware is more than able to tap into that wealth. The need for robust cybersecurity solutions that can reduce complexity has never been more critical.

TissuPath, a small healthcare provider based in Melbourne, recently reported a devastating data breach that led to the leak of over 700,000 files. The ALPHV ransomware gang seized a staggering 471 gigabytes of data, including sensitive patient records related to cancer diagnoses. TissuPath stated that a vulnerability in a third-party supplier’s remote access toolkit allowed the attackers to gain access to their network.

Similarly, Dymocks, a nationally recognised book store chain, alerted customers that their data might have been compromised. The breach had Dymocks cautioning its customers to “be vigilant” because their personal information, including email and postal addresses, might be available on the dark web. Which means the damage had already been done.

Change is already afoot. In the face of private sector apathy, the Government has announced an upcoming cybersecurity strategy to keep Australian data safe. The securities regulator ASIC has declared that company directors must show they understand technology and not blindly trust third parties. Being unable to shift the blame will make demand for cybersecurity solutions rise, particularly amongst those sectors that are not inherently cybersecurity-technology focused. It’s a huge opportunity for the sector to make up for a decade of underinvestment in Australia.

 

Protection and prevention: Senetas and Votiro

In this turbulent cybersecurity landscape, companies like Senetas (ASX:SEN) and its subsidiary Votiro are taking shape to help businesses respond. Senetas specialises in encryption technologies that act as a fail-safe for data, while Votiro focuses on anti malware content disarm technologies that neutralise any malicious code in documents before they can even reach a user’s inbox.

The increasing demand for cybersecurity is reflected in Senetas’ financial performance. In FY2023, Senetas and Votiro collectively achieved a 17% increase in consolidated group revenue. The sales pipelines for both businesses soared by over 100% during the year, hinting at a promising outlook for FY2024.

Particularly impressive is Votiro’s performance; it more than doubled its sales pipeline to over US$30 million by the end of FY2023. The Asia Pacific region, with its large scale commercial and government contracts, remains Votiro’s largest driver of annual recurring revenue. Votiro is now positioned to deliver the industry’s first unified content security platform and has processed over 7 billion documents with zero breaches for almost 400 customers globally.

Combined, Senetas and Votiro offer an holistic approach to cybersecurity, with encryption providing data protection when breached and Votiro’s content disarm technologies helping to prevent many of the most common ways a business can be hacked. Both solutions offer market leading advantages.

 

Investing in the Future

The trajectory of cyber threats is trending upwards, but so too are the advancements in cybersecurity solutions. As digital infrastructures and data become increasingly critical in decision-making and operations, companies can’t afford to take chances with their cybersecurity measures.

As Australia’s corporate regulator, ASIC, recently reminded company directors and officers of their legal responsibilities for cybersecurity, it’s clear underinvestment in cybersecurity is unacceptable in the face of increasing everyday serious cyber-threats.

By developing both prevention and protection technologies, Senetas is investing heavily into a future where cybersecurity will no longer be seen as just a painful business expenditure. With the threat of ransomware set to remain in place, cybersecurity will become an investment maintaining customer trust, ensuring operational continuity, and safeguarding critical data that investors will demand from the c-suite.

 

This article was developed in collaboration with Senetas, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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