In an interview on CNBCs Mad Money, Nikesh Arora, the CEO of Palo Alto Networks, emphasized the importance of modernizing cybersecurity systems in response to the increasing speed at which bad actors breach company defenses. Arora mentioned that companies with outdated security measures must be particularly cautious as cybercriminals are becoming faster than ever before.
Arora highlighted the need to update and modernize cybersecurity solutions. Even suggested leveraging artificial intelligence (AI) to address this issue effectively. By incorporating AI into security systems, companies can respond in time, minimizing potential damage caused by malicious actors constantly evolving their tactics.
OpenAI, the creator of ChatGPT, also made headlines this year by announcing a $1 million grant program to advance AI-driven cybersecurity technologies and measure their impact.
The second quarter of 2023 has seen increased crypto-related hacks and exploits within decentralized finance protocols. Over $300 million worth of cryptocurrencies have been lost due to these incidents.
During August, several crypto projects like Exactly Protocol, Zunami Protocol, Steadefi Protocol, and Cypher Protocol experienced significant financial losses due to various issues. These problems ranged from contract code errors to flash loan exploits rather than traditional cybersecurity breaches.
Towards the end of July, the Securities and Exchange Commission (SEC) decided to implement cybersecurity disclosure regulations. These rules would impact listed companies, including those in the cryptocurrency industry.
Under these regulations, public companies will be required to report any cybersecurity breaches within four days. The SEC believes this is necessary to gather data and protect investors.
However, some corporations have expressed concerns about this short reporting period. They argue that it is unreasonable and that public disclosure could harm their businesses by making them more vulnerable to cybercriminals.
Arora emphasized the importance of addressing breaches instead of exposing them by informing the SEC without a solution.