The digital arms race between cybercriminals and global enterprises has taken a significant turn. As organisations grapple with emerging technologies like the Metaverse, artificial intelligence, and blockchain, a new wave of cybersecurity challenges is forcing IT leaders to rethink their strategies and budgets.
New research conducted by Naoris Protocol, a firm specialising in post-quantum security, reveals a growing concern among IT directors at companies with an annual turnover exceeding $300 million. The findings suggest that emerging technologies, while transformative, are becoming potent tools for cybercriminals.
AI and the Metaverse: A double-edged sword
The integration of artificial intelligence and the Metaverse is expected to reshape industries, but these advancements come with risks. According to the study, over 60 per cent of IT directors strongly agree that these technologies will drive a significant escalation in cyberattacks, while 37 per cent partially agree. Hackers are already exploiting AI to create more sophisticated attack methods, with the Metaverse presenting new vulnerabilities. “The Metaverse, combined with AI-driven hacking, presents a perfect storm of vulnerabilities,” warned David Carvalho, CEO of Naoris Protocol.
The study highlights how these tools could be weaponised to develop malware, orchestrate phishing attacks, and exploit decentralised systems. As organisations embrace these innovations, they inadvertently open doors for exploitation by cybercriminals who are evolving just as quickly.
The Web3 knowledge gap
Web3, often referred to as the next iteration of the internet, is a decentralised model of the web built on blockchain technology. Unlike Web2, where platforms and data are controlled by centralised entities, Web3 aims to distribute control across a network, enabling greater transparency, data ownership, and peer-to-peer interactions. However, this decentralised approach introduces unique cybersecurity challenges.
While Web3 promises increased resilience and autonomy, it also relies on mechanisms like private keys and smart contracts, which are frequent targets for cybercriminals. The shift toward decentralisation has exposed organisations to risks they may not fully understand. Only 35 per cent of IT directors believe their organisations fully grasp the risks associated with Web3, while nearly one in five rate their knowledge as average or poor.
High-profile Web3 hacks in 2024, including breaches of DMM Bitcoin ($305 million) and WazirX ($234.9 million), have underscored the vulnerabilities in this emerging space. Blockchain security firm Certik reported that Web3-related security breaches resulted in losses of over $2.3 billion in 2024, marking a 31.6 per cent increase compared to the previous year. “The knowledge gap surrounding Web3 cyber risks must be addressed urgently to avoid significant financial and operational setbacks,” Carvalho said.
Budgets rise to meet escalating threats
The financial impact of cybercrime is becoming increasingly difficult for organisations to ignore. Over the past two years, 38 per cent of IT directors reported dramatic increases in their cybersecurity budgets, while nearly all respondents expect further growth in the next two years.
Of those surveyed, 25 per cent anticipate budget increases of more than 50 per cent, with some projecting rises of over 75 per cent. While such increases may strain resources, they are seen as essential to counteract the evolving threat landscape.
Carvalho emphasised the importance of agility in responding to these changes. “The rapid evolution of the cyber threat landscape demands equally agile responses. Organisations must not only expand their cybersecurity budgets but also embrace innovative technologies like decentralised solutions to stay ahead of attackers.”
Decentralised solutions and the future of cybersecurity
Decentralised Physical Infrastructure Networks (DePINs) are emerging as a potential game-changer for cybersecurity. According to the study, 32 per cent of IT directors believe that adopting DePIN-based measures could significantly reduce costs, while nearly half anticipate moderate savings.
Naoris Protocol’s work with the DePIN Association aims to harness these technologies to enhance digital trust and resilience across critical industries, including finance, healthcare, and telecommunications. Decentralised, post-quantum approaches to cybersecurity may provide a more cost-effective and robust defence against increasingly sophisticated threats.
Navigating a new era of cyber risk
The findings paint a clear picture: organisations are bracing for a turbulent future as AI and decentralised technologies redefine the digital landscape. While emerging innovations promise efficiency and growth, they also present challenges that cannot be ignored.
The onus is now on IT leaders to act decisively, not only by increasing their budgets but by adopting forward-thinking strategies that address the complexities of a rapidly changing environment. With the stakes higher than ever, the need for robust, innovative approaches to cybersecurity has never been more urgent.
