2023 Cybersecurity Trends Report: Hedge Funds Outsource to Fight Surge in Cyberattacks
Hedge funds are facing a rising tide of sophisticated cyber threats, and the impact has been significant. For the 2023 Hedge Fund Cybersecurity Trends Report, Agio gathered insights from 121 hedge fund professionals in technology, operations, cybersecurity, compliance, and finance roles to provide a detailed view of the industry’s cybersecurity practices.
The report highlights a striking difference in the experiences of firms that outsource their cybersecurity programs compared to those that handle them in-house. While those that relied on outsourcing felt the impact of heightened attack complexity and intensity over the last year, firms managing their programs internally were even more overwhelmed.
Firms that thought they could single-handedly manage cybersecurity in-house ultimately found attacks hit them harder and more often. In fact, 77% reported an increase in attacks and 87% said the severity of attacks increased (and one in four said that increase was significant).
After a challenging year of fending off bad actors, firms that primarily insource unanimously said they’ll outsource in the next 24 months. Interestingly, the reasons they gave for initially insourcing were the same as those they gave for their decision to outsource. The important motivators being better protection for hybrid work environments and integrating cyber operations and managed IT under a single core group.
In a time of increasing scrutiny from regulators and investors, proactive measures to address vulnerabilities and enhance cybersecurity are crucial. The full 2023 Hedge Fund Cybersecurity Trends Report offers valuable insights into the evolving landscape of cybersecurity in the hedge fund industry, helping firms stay ahead of ever-growing threats.
Download the full 2023 Hedge Fund Cybersecurity Trends Report to read more.
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