The Israel-Palestine conflict, which has a long history of violence and unrest, is now taking on a new dimension – cyber warfare. Experts are warning of the rising instances of intelligence hacking, grid disruptions, and cyber attacks that could affect not only the two warring nations but also allied countries around the world.
Israel, known for having one of the most advanced security systems globally, is facing an unprecedented challenge as it grapples with not only physical attacks but also cyber threats. The recent attack by Hamas, a Palestinian militant group, has raised concerns that there may have been a tech hack involved to suppress intelligence gathering and alerts. The conflict is escalating in the physical world, and experts believe it is likely to escalate into a full-blown cyber warfare.
Siddharth Vishwanath, the Risk Consulting Leader for Markets and Emerging Business at PwC, commented on the situation, saying, “Israel has one of the most advanced security systems in the world. The attack on Israel perhaps means there may also have been a tech hack to suppress intelligence gathering, and alerts. It is escalating in the physical world, and it is likely to escalate into a full-blown cyber warfare.”
Geopolitical repercussions are expected to follow suit, with potential disruptions to grids, stock exchanges, and telecommunications systems. The cyber warfare arena is likely to see more players, including state-sponsored actors. In addition to political motives, there may also be cyber attacks carried out for commercial gains. A full-blown cyber war can introduce new malware and ammunition to the world of cybercrime.
Prasanna Kumar, Executive Vice President and Head of Financial Services and Professional Group at Aon, emphasized the potential cascading effects of the conflict on businesses and national infrastructure. He said, “The cyber warfare will see more players. We will see a rise in cyber attacks for commercial gains, and a cyber war also brings newer malware and ammunition to the world of cybercrime.”
The recent escalation in cyber warfare is reminiscent of what was observed during the Russia-Ukraine conflict, where there was a surge in cyber attacks targeting critical infrastructure and organizations. However, experts believe that the situation in the Middle East may be even more aggressive.
Since the Saturday attack by Hamas on Israel, casualties on both sides have surpassed 1,000, with the numbers continuing to rise. Changing geopolitical alliances may lead to more state-sponsored cyber attacks, and intercompany trades are likely to suffer as nations choose sides.
Dhiraj Gupta, Chief Technology Officer at MFilterIt, a fraud detection and prevention firm, pointed out that the next set of targets need not be the warring countries themselves. “One estimate is that hacking to get intelligence data will increase. Cyber attacks in countries that have allegedly helped train the Hamas fighters will increase. Companies, irrespective of where they are headquartered, will have to up their ante,” he said.
Corporations around the world have been steadily increasing their insurance policies against cyber attacks. In India, for example, businesses are increasingly looking at dedicated cybersecurity insurance covers to address pervasive cyber threats, including malware attacks, compromised emails, and cryptojacking.
Banks, non-banking financial institutions, and information technology services companies were among the first to purchase cyber insurance covers due to their higher exposure to digitally-connected systems and the need to protect financial transactions. However, as cyber threats continue to evolve and escalate, many other industries are following suit.
The Israel-Palestine conflict has entered a new and dangerous phase with the emergence of cyber warfare. Experts are warning of the potential for widespread cyber attacks, intelligence hacking, and disruptions to critical infrastructure. As the conflict intensifies, businesses and nations are urged to strengthen their cybersecurity measures and insurance coverage to mitigate the risks associated with this evolving threat landscape.
