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Tech investors should watch out for surge in cyber attacks from Russia over West’s sanctions, analysts


A pro-Russian man (not seen) holds a Russian flag behind an armed serviceman on top of a Russian army vehicle outside a Ukrainian border guard post. Baz Ratner/Reuters

A pro-Russian man (not seen) holds a Russian flag behind an armed serviceman on top of a Russian army vehicle outside a Ukrainian border guard post. Baz Ratner/Reuters

  • Watch for a surge in cyberwarfare from Russia as the West imposes sanctions over Ukraine, Wedbush said.
  • Well-positioned vendors in the cybersecurity sector should be a focus for tech investors, the analysts said on Tuesday.
  • “It’s a matter of when, not if, this increased cyber warfare activity begins over the coming weeks,” they added.
  • For more stories go to www.BusinessInsider.co.za.

Tech investors should watch out for a surge in cyber warfare from Russia as the West imposes sanctions over its escalating crisis with Ukraine, Wedbush has warned.

“With the Ukraine conflict now front and centre and poised to widen, we expect a surge of cybersecurity attacks from Russia state-sponsored organisations that could change the game for US/European enterprises and governments over the coming months,” Wedbush analysts Dan Ives and John Katsingris said in a note on Tuesday.

Western powers brought in sanctions after Vladimir Putin on Monday recognised two breakaway regions in Ukraine as independent and ordered Russian troops into the country. US President Joe Biden described the moves as the beginning of a Russian invasion of Ukraine.

Biden on Tuesday imposed US sanctions on a pair of Russian banks, some of the country’s political elites, and Russia’s sovereign debt.

The UK brought in sanctions against five Russian banks and three wealthy individuals. The European Union is close to announcing its own measures, which include restricting the Russian government’s ability to raise money on EU financial markets, the Guardian reported.

The market assessed these moves as relatively measured, as they avoided sanctioning Putin personally and didn’t penalise the most significant Russian banks. 

Based on recent conversations with enterprises and security officers, Wedbush said there are growing chances of cyber attacks that could leave sensitive data vulnerable. It also expects companies to invest in protection against persistent cyberthreats.

“With a significantly elevated level of cyberattacks now appearing on the horizon, we…

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