New Zealand Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

New Zealand Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The New Zealand cybersecurity market is expected to register a CAGR of 7.48% during the forecast period (2022-2027). Organizations must take proactive measures to address increased cyber threats due to the recent COVID-19 epidemic. Because of this, cyber resilience, the capacity of a sector or organization to respond to, plan for, and recover from cyberattacks, has in the present situation turned into a requirement rather than a choice.

Key Highlights

• According to the Portulans Institute, New Zealand is rated 56th in the world for cyber security, and as the economy is constantly becoming more digital, additional work is urgently required.
• The NCSC appreciates the growing public understanding of the gravity of the cyber threat to Aotearoa, New Zealand, and the work we do to counter it. We provide substantial advantages and cost-avoidance through our efforts to respond to accidents and lessen their impact. By preventing incidents or offering assistance and advice that helped nationally significant organizations detect, respond to, and recover from malicious cyber activity, NCSC intervention or advice saved nationally significant organizations from harm, estimated to be worth NZD 119 million in the 2020–21 fiscal year. This amounts to an estimated NZD 284 million since June 2016 in total.
• New Zealand must be thoroughly aware of the cyber threat environment and the effects of cyber security risks to navigate the digital era's difficulties successfully. In order to do this, CERT NZ collaborates with various organizations in the business, public, and not-for-profit sectors of New Zealand's cyber security ecosystem. The Department of Internal Affairs (DIA), Netsafe, the National Cyber Security Center (NCSC), and the New Zealand Police are just a few examples of important referral partners.
• The rise in disruptive, criminally motivated activity among our occurrences reflects the damage done by extortion and ransomware schemes. This behavior increasingly targets businesses and organizations that cannot tolerate long periods of interruption. The National Cyber Security Center (NCSC) noted 404 occurrences that may have had a national impact in 2020–21 or that affected Aotearoa, New Zealand's nationally significant organizations. State-sponsored harmful cyber activity is still a concern for the NCSC despite being less overtly disruptive, with 28% of documented instances demonstrating connections to alleged state-sponsored actors.
• The increased rise in cyber threat activities in the country drives the market for emerging cybersecurity firms. At the same time, the lack of technical skills hinders market growth. Cyber security experts are in great demand worldwide, and New Zealand businesses are having trouble finding staff with the necessary qualifications. By providing training, upskilling, and new immigration opportunities, NZTech declared in January 2022 that it aims to close the cybersecurity workforce deficit.
• In addition to adjusting to COVID-19, New Zealanders were also dealing with a growing number of technologies changing how they operate and posing a severe threat to public cybersecurity. Although many parties involved in developing these applications and tools—including the NZ Government—maintain the strictest security protocols and standards, there will inevitably be security flaws that threat actors can exploit. Using COVID-19-related lore is a frequent entry point for doing this.

Key Market TrendsIncreasing Phishing Risks among Businesses Drives the Cybersecurity Market

• According to the country's cybersecurity organization Computer Emergency Response Team (CERT) NZ, phishing accounts for over 71% of all reports of cyber scams in New Zealand. In the first quarter of 2022, CERT NZ received 1,935 reports from individuals who had been the target of scams, 1,370 phishing-related.
• Phishing is a fraud technique when an attacker poses as a reliable or respectable entity to persuade a victim to disclose personal information or access their electronic networks. Director of CERT NZ Rob Pope advises anybody who has fallen victim to a scam to report it as quickly as possible.
• As a result of the increased frequency of phishing attempts in the nation, CERT NZ, Consumer Protection, the Department of Internal Affairs (DIA), and a number of significant banks have teamed together to alert Kiwis to fresh dangers from con artists. The names of these financial institutions include ANZ, ASB, Co-operative, Heartland, HSBC, ICBC, Kiwibank, Rabobank, TSB, and Westpac.
• Phishing has been around for years, but we have seen that these cyber criminals' methods and strategies have changed with time, according to Rob Pope, director of CERT NZ. He said that in order to trick New Zealanders, who are notably trustworthy, they used social engineering techniques, including playing on their concerns, opportunities, and urgency. He stated that this appears to be the main tendency.
• According to CERT NZ Report 2021, the top three incident categories in 2021 include 1,930 malware reports, up 24% from 2020; 1,897 scams and fraud reports, down 1% from 2020; and 3,709 phishing and credential harvesting reports, up 9% from 2020.

Scams about Buying, Selling or Donating Goods Online Account for Significant Share in Scams and Fraud Financial Losses.

• According to CERT New Zealand, out of 2333 incidents that occurred during the first three months of the year 2022, more than 500 complaints were related to fraud and scams. Michelle, who manages a 16,000-member Facebook group that attempts to expose fraudsters, claimed that the issue is much worse than anybody in authority realizes.
• The total number of cyber events reported to CERT NZ has reduced back to an average level in the quarter of 2022, following a significant increase at the end of the last year, 2021. Still, the number of scam and fraud complaints has stayed constant during the previous three months of 2022 at roughly 550.
• James Taylor, who appears to reside in Tauranga, registered the domain name topoftscontainers.co.nz for a new website in March 2022. He provided a fake phone number. The website took advantage of Ross and Viv's business address and name. The website lists a South Island phone number that connects to an answering machine. The last individual to contact had spent NZD 37,000 and hasn't been able to get a response from them, Viv adds. Sadly, this website has had customers buy containers.
• According to official research released by the Ministry of Business, Innovation and Employment (MBIE), New Zealand generates at least NZD 1.35 billion annually in income used to launder money. Importantly, authorities are unaware of the amount that international fraudsters using New Zealand-registered firms funnel into or through the nation.
• The entire financial loss recorded in 2021 was over NZD 11.9 million (71%), and this loss was due to scams and fraud. Of that loss, nearly NZD 3.9 million was lost to fraud when purchasing, selling, or donating goods online; over NZD 2.1 million was lost to fraud involving offers of employment and business opportunities; over NZD 2 million was lost to unauthorized or forged financial transactions, and NZD 3.9 million was lost to additional fraud and scams.

Competitive Landscape

The New Zealand cybersecurity market is moderately fragmented. Players in the market adopt strategic initiatives such as partnerships, investments, and new product offerings due to increasing awareness regarding mobility security among enterprises.

• May 2022 - Microsoft and TupuToa, a social company, dedicated to developing Mori and Pacific leaders in Aotearoa, have launched a new partnership that aims to increase diversity in New Zealand's cybersecurity industry. As a result of the agreements, TupuToa and the US technology giant will collaborate to create a cybersecurity employment program that aims to create new career routes.
• November 2021 - The connection between iT360 and Spark has been strengthened with the company's partnership with Taranaki. Over the last few years, iT360 and Spark in Auckland have grown their connection, and iT360 is now an official Spark IT partner for the North Shore and Waitakere Spark business centers. This made it possible for Spark's corporate clients in such regions to receive IT services and integrate them into their already-existing billing and relationship with Spark.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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