German Firms Scramble to Outwit Cybercriminals

Artificial intelligence is seen as both the culprit and the remedy for an expanding number of cyberattacks in Germany, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens Cybersecurity - Solutions and Services report for Germany finds that steadily more sophisticated, often AI-driven cyberattacks are causing considerable trouble for businesses in Germany that are seeking AI-based solutions to counter them. The challenges are especially acute among small and medium-sized enterprises (SMEs), the ISG report says.

“SMEs are a particularly attractive market segment for cybersecurity providers,” said Roger Albrecht, partner and co-lead of ISG Cybersecurity, based in Germany. “Those companies are often saddled with outdated security systems and are scrambling to upgrade them.”

The scarcity of qualified resources and the need for updated specialist knowledge are driving German companies to turn to managed security services, the ISG report says. Due to concerns about data protection, large and medium-sized customers alike prefer Security Operations Centers (SOCs) located in Germany. Although managed security services providers rely on AI and automation to combat cyberattacks, human expertise remains indispensable, ISG says.

As with AI, the human factor can be both a cure and a cause for cybersecurity woes. When it comes to increasing a company’s vulnerability to cyberattacks, users can be a major culprit with careless actions, such as falling victim to Trojan or phishing attacks, the ISG report says. That is why up-to-date cybersecurity equipment alone isn’t always sufficient. User training and consulting can also play an important role, ISG says.

Devious cybercriminals aren’t the only thing keeping German enterprises on their toes, ISG says. Legal regulations such as the General Data Protection Regulation (GDPR) in the EU also require companies to implement stronger security measures. According to ISG’s report, complying with these regulations remains a major challenge, especially for medium-sized companies.

“Most companies realize this is a battle that they are unable to fight on their own,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They are turning to experienced providers that can offer proactive methods based on AI to safeguard against cyberthreats.”

The report also examines how organizations are using XDR solutions to better understand and contextualize information gathered from various security tools deployed in their IT infrastructure.