The great danger of cyber attacks

Good morning dear readers,

it is an arms race that the other side threatens to win. Cyber ​​attacks on the Internet are becoming more and more professional, state actors more and more active. At the same time, there is a lack of IT service providers who could defend companies against attacks. The Federal Office for Information Security is now warning of a fundamental “bottleneck” in personnel for dealing with IT security incidents. The threat in cyberspace is therefore higher than ever.

Because as with any lucrative business, the methods used in cybercrime are evolving. Operating malware is becoming easier and easier, which reduces the entry level for attacks. The result: More and more companies are being targeted and have to reckon with high losses and long delays.

The example of Continental shows how quickly it can be to accidentally gain access to malicious software. A single employee there had downloaded an unauthorized browser from the Internet. As a result, the attackers were able to capture 40 terabytes of company data. Such “ransomware” attacks, in which hackers take data hostage and demand a ransom for their release, can cost companies a lot of money.

Since there is a lack of professional staff to manage such cyber attacks, experts warn that IT systems should be checked for vulnerabilities before it is too late. The same applies to the Internet: it is better to be safe than sorry.

Germany’s foreign intelligence service recently uncovered a spy in its own ranks. An employee of the Federal Intelligence Service (BND) is said to have been on duty for Russia’s secret services and was arrested on Wednesday morning, as was announced yesterday. What information did the alleged double agent leak? Nothing is known about this yet. Only this much seems likely: It is said to be a “state secret” that the spy is said to have made available to his client, the Russian intelligence service.

What sounds like a plot from James Bond 007 could have serious consequences for Germany. If the spy also passed on information from secret services in other countries, there is a risk of a massive loss of international trust in the BND – and trust is known to be the most valuable asset in secret service circles.

Can India become the new China? If Indian Prime Minister Narendra Modi has his way, his country will soon overtake its big neighbor in terms of technology production. The first billion-euro investment for this project has already been made. The Taiwanese electronics group Foxconn wants to build one of the first semiconductor plants on the subcontinent in the western Indian state of Gujarat.

The global political situation could push Modi’s ambitious plan. After all, the economic players in Europe and the USA are looking for new allies outside of China. The US company Apple has already discovered India for itself: in 2025 every fourth iPhone could be built there.

In addition to the opportunities in India, however, there are also some major hurdles for interested investors. Experts mention, for example, the complex tax system or the enormous bureaucracy. Although German companies should actually feel almost at home under these conditions.

Ukrainian President Volodymyr Zelenskiy is back in Kyiv after his brief visit to the United States. His trip to Washington may have brought him what he had hoped for: strong images of an American-Ukrainian axis and promises of new support.

But it remains to be seen how far Joe Biden’s promise to support Ukraine as long as it is necessary will carry. Domestically, the president’s Ukraine course is not only met with approval. A new Russian offensive could also prolong the war.

That’s why Washington is backing another plan. Foreign Minister Antony Blinken said the aim was to ensure that Ukraine “can be in the strongest possible position at the negotiating table when the time comes”. The sensitive discussion of an exit scenario is likely to become more urgent the longer the war lasts.

Volodymyr Zelensky is also one of the role models from politics, business and society, who the Handelsblatt editorial team named as People of the Year 2022 at the end of the year. He has become a “symbol of resilience, courage and the will to self-determination,” writes Russia correspondent Mareike Müller.

• The editors chose Economics Minister Robert Habeck as politician of the year as a “crisis pragmatist”. Former Siemens boss Joe Kaeser dares to approach Habeck’s somewhat different style of politics.
• Entrepreneurs of the Year were the founders of the start-up Celonis, which uses artificial intelligence to improve business processes and is now valued at 13 billion euros.
• The model of the year is digital entrepreneur Miriam Wohlfarth, who was able to assert herself with her start-up Ratepay in a male-dominated industry.
• The changer of the year is Adidas boss Björn Gulden, who dared to switch from competitor Puma and now has to prove that he can also put the sporting goods manufacturer with the three stripes on the road to success.

It only remains for me to say goodbye to you at this point for the year 2022. Between the years, my colleague Christian Rickens will again present you with the most important news of the day. I’ll be there for you again in the first week of January.

Until then, I wish you a Merry Christmas and a Happy New Year. Stay healthy!

It greets you cordially

your

Teresa Stiens
Editor of the Handelsblatt