Cybersecurity is on the brink of significant transformation as we approach 2025, grappling with escalating complexities driven by advancements in technology, increasing geopolitical tensions, and the rapid adoption of AI and IoT. In this blog, I’m exploring these changes, grouped under key categories that I’ve used in previous years, to help business leaders and cyber risk owners better prepare for the evolving landscape.
Threat Actors
Cybersecurity threats are growing more complex and persistent, driven by the heightened activities of nation-state actors and increasingly sophisticated cybercrime groups. The next year is set to test global defences as these adversaries amplify their tactics, targeting critical infrastructure and small businesses, intensifying their use of advanced strategies. Here’s what we can expect and how organisations can prepare.
Nation-State Actors: The Masters of Long-Term Infiltration
Geopolitical instability and the looming threat of global conflict are accelerating state-sponsored cyberattacks. When Microsoft published their Digital Defense Report they revealed that of the 600-million cyberattacks they face daily, 34% of them were from nation state threat actors.
Nation-state attackers are no longer interested in quick disruptions or data theft alone. Over the past year, a clear shift has emerged towards long-term infiltration, where these actors sit in wait, embedding themselves inside systems for months or even years. It’s a strategy of patience, allowing them to gather intelligence, assess vulnerabilities, and wait for the perfect moment to act—whether to disrupt operations, extract data, or gain geopolitical leverage.
Critical infrastructure face heightened risk from targeted disruptions, as do small businesses who are the backbone of the economy. Sectors like energy, healthcare, transportation, utilities, and financial systems are increasingly at risk because they are integral to national security and daily life. The USA has already flagged concerns about threats from China, while the UK continues to monitor activities especially those attributed to Russia—all while similar dynamics play out worldwide. The potential impacts are severe—crippling supply chains, compromising emergency services, or even destabilising the financial systems of entire countries.
Often, the intent of these attacks isn’t solely disruption but rather intelligence gathering and long-term strategic advantage. For example, an attacker could map a country’s power grid vulnerabilities without triggering any alarms, setting the stage for future, large-scale operations.
Organised Cybercrime Groups Up Their Game
Cybercriminals aren’t resting on old tactics with cybercrime expected to hit $12 trillion in 2025. Ransomware remains a prominent threat, but the methods have evolved. Double extortion ransomware is now a preferred technique—a devastating one-two punch where attackers not only encrypt a company’s data but also steal sensitive information. The stolen data is then used as leverage, with threats of public leaks or regulatory repercussions (such as SEC notifications), leaving victims with little recourse.
But it doesn’t stop there. These groups are also shifting toward more human-centric exploits, like social engineering and insider assistance. Insider threats are particularly insidious, as attackers increasingly rely on employees—malicious or unwitting—as entry points. Sophisticated social engineering tactics, phishing campaigns, or financial incentives make it easier for cybercriminals to use insiders as tools for gaining access and maintaining their foothold in systems rather than hacking in.
Additionally, the use of customisable ransomware-as-a-service (RaaS) platforms is now mainstream, enabling even novice threat actors to launch professional-level attacks. With 24% of all data breaches using ransomware, this commoditisation of cybercrime significantly broadens the field, resulting in a sharp increase in the frequency and variety of attacks.
Insider Threats as a Growing Concern
Insider threats represent one of the most underestimated vectors in this evolving landscape. Employees—whether compromised through coercion or negligence—can be exploited to bypass even the most sophisticated security measures. Often, these threats are deeply hidden, making them harder to detect and manage than external attempts.
An insider unknowingly clicking a phishing link or downloading a malicious file could leave the door wide open for attackers. Worse still, malicious insiders could actively collaborate with threat actors, providing detailed system knowledge or direct access to secure areas. Businesses must step up efforts to monitor unusual activities, implement behaviour-based analytics, and cultivate a culture of cybersecurity awareness to mitigate these risks.
Types of Cyberattacks
Cybercriminals are superb at innovating, and each year, the methods they use become increasingly sophisticated. Social engineering tactics such as phishing will not only remain prevalent but evolve as attackers leverage AI to craft highly personalised attacks (spear phishing and whaling) , mimicking a victim’s tone or referencing contextual details with alarming accuracy using data from social media, public records, and other sources. Deepfake technology will amplify this by creating convincing impersonations of executives or trusted sources to deceive targets. Everyone remembers when a finance worker paid out $25m to an impersonated CFO on a multi person conference call?
AI Malware will become smarter, and capable of learning from detection attempts and adapting in real time to evade security barriers. For example, it may disable certain defences while masking its activities to appear as normal system behaviour. Alternatively, as more companies implement AI agents – advanced chatbots, more threat actors will target them.
Ransomware will evolve significantly in 2025, with attackers introducing more aggressive tactics to maximise pressure on victims. One such method is Triple Extortion, where beyond locking data and threatening its public release, attackers also target a company’s partners, customers, or supply chain to amplify demands. Another emerging tactic is Data Wiping Ransomware, where attackers may abandon monetary demands altogether, opting instead to disable systems or erase data as a form of ideological or geopolitical warfare. These strategies signal a shift towards more destructive and far-reaching impacts in ransomware attacks.
Supply chain compromises will become increasingly favoured by attackers because they allow them to infiltrate networks via trusted third parties. Software vendors, open-source software, cloud services, and hardware suppliers remain particularly vulnerable. By enabling a compromise at source and inserting malicious code into legitimate software updates or manipulating open-source libraries relied on by thousands of organisations, or hardware backdoors, with attackers embedding vulnerabilities into hardware supply chains, attacks will become more challenging to detect and manage over the long term.
As a result, critical infrastructure will face mounting threats as cybercriminals exploit vulnerabilities in supply chains and essential services, often causing widespread disruptions. With the interconnectedness brought about by IoT and edge computing, attacks targeting dispersed data will increase, posing challenges in securing distributed networks.
Blindspots and Weaknesses
Shadow AI
Shadow IT has long exposed organisations to risks through unauthorized software and applications that bypass security protocols. The emergence of shadow AI—unauthorised AI tools used without IT approval—amplifies these vulnerabilities. Research by e2e-assure reveals a significant gap between perception and reality; while 85% of cyber risk owners express confidence in their AI policies, only 34% of employees are even aware such guidance exists. This disconnect heightens the risk of data breaches, regulatory non-compliance, and weakened security frameworks, creating fertile ground for cyber threats and data mismanagement.
Ethics
The ethical challenges posed by advancing AI technologies will demand urgent attention in 2025. These challenges include bias and discrimination embedded in algorithms, privacy violations due to enhanced surveillance capabilities, and the difficulty of assigning accountability for decisions made by AI systems.
Addressing these issues requires the active involvement of all stakeholders—governments, organisations, technologists, and the public—to build ethical frameworks that strike a balance between safeguarding public interests and fostering innovation. Transparency must be a foundational pillar in AI development, ensuring that systems are explainable and free from hidden biases. Inclusivity is equally critical, with diverse perspectives shaping the direction of AI to ensure it reflects the values of a broad society. Continuous evaluation is vital, enabling periodic checks to align AI systems with evolving ethical standards and societal priorities. By taking these steps, we can harness AI’s potential responsibly and equitably for a more secure and ethical future.
Human Factor Vulnerabilities
Human factor vulnerabilities will remain a critical challenge in 2025, even as organizations adopt advanced technologies to fortify their defenses. Cyber threats often exploit human errors, whether through phishing attacks, weak passwords, or lapses in protocol. This reinforces the pressing need for comprehensive training and awareness programs that foster a culture of vigilance and cybersecurity best practices throughout the workforce.
Incident Response Preparedness
Equally important is incident response preparedness; organizations must have robust crisis response plans in place to act swiftly and effectively during security breaches. These plans should include detailed protocols, clear communication channels, and regular drills to ensure readiness. By prioritizing human-centric cybersecurity and bolstering crisis response capability, organizations can enhance their resilience against the evolving threat landscape and minimize potential damage.
CISO Perceptions
A critical blind spot for CISOs and cyber risk owners is the divergence in perceptions of their security stack’s effectiveness between leadership and technical teams. While the majority of the C-suite considers their security stack highly capable, a significant number of ITOps professionals see it differently. This gap indicates a disconnect where executives primarily focus on overarching strategy, whereas ITOps face operational challenges firsthand. Bridging this divide requires stronger communication to align perspectives and ensure a cohesive defense strategy. For a deeper analysis of these disparities, explore the insights shared in the latest ManageEngine report.
Cyber Approaches
To counteract these evolving threats, organisations must pivot from reactive defenses to proactive strategies. AI-powered tools will play a vital role in enabling real-time detection, predictive threat modeling, and responsive threat mitigation. For instance, AI-driven Security Operation Center (SOC) co-pilots will assist in analysing massive data streams, prioritising incidents, and improving efficiency.
Further, organisations will increasingly adopt zero-trust architectures to combat identity-based threats – which have just taken over endpoints as the primary attack vector, focusing on strict identity and access management (IAM) practices, passkeys, and enforcing multi-factor authentication (MFA).
Quantum-resistant cryptography will also emerge as a critical investment as quantum technology poses new risks to conventional encryption standards.
Regulations and Guidance
According to analyst Gartner, 69% of employees have bypassed cyber security guidance in the last 12 months, while 74% said they would be willing to do so if it helped them to achieve a business goal. By 2025, the regulatory landscape is set to undergo significant transformations with the introduction of stricter data protection laws and compliance requirements globally. While regulators understand that perfection is impossible, they are leaning into a global trend and revising expectations for cybersecurity. They want to see organisations building out and making visible their practices and procedures for how they navigate incidents, as well as anticipating and preparing for new ones. This evolving framework pushes businesses to prioritise robust cybersecurity measures that align with both operational needs and regulatory demands.
Key developments include:
- USA: The return of the Trump administration heralds a likely shift toward deregulation in U.S. cybersecurity policies by 2025. This approach, focused on reducing federal oversight, brings significant implications for federal and state-level laws, alongside how businesses manage compliance and maintain cybersecurity standards.
- The future of the American Privacy Rights Act (APRA), proposed as a federal framework to unify data privacy standards, is now uncertain. The administration’s preference for minimising regulations may stall or revise the act, likely scaling back its focus on consumer rights and stringent compliance requirements. This could leave businesses navigating a fragmented landscape with varying state-level laws instead of a consistent federal standard. While federal advances may slow, state-level momentum continues. States like New Jersey, Tennessee, and Minnesota are developing comprehensive data privacy laws that emphasise data transparency, risk assessments, and consumer protection. However, these efforts could clash with federal priorities for streamlined regulations. Businesses may face differing compliance expectations depending on the states they operate in, adding complexity to nationwide operations. A key feature of the administration’s policy is likely deregulation, targeting existing cybersecurity mandates to reduce compliance burdens on businesses. This could mean relaxed reporting deadlines, fewer audit requirements, and greater flexibility for organizations, particularly benefiting small-to-medium enterprises. Yet, a lighter regulatory touch could also weaken baseline cybersecurity standards, increasing the risk of breaches and inconsistent protections across industries.
- Europe: The EU continues to refine its data protection framework with the introduction of the Data Act and the Cyber Resilience Act, focusing on cybersecurity and data management. The EU is also enhancing regulations around AI and children’s privacy. Additionally, financial organisations and third party tech providers will be expected to be fully compliant to the Digital Operational Resilience Act (DORA) by January 2025.
- Asia: Countries like Vietnam, Malaysia, and Indonesia are updating their data protection laws. These include mandatory breach notifications, appointment of Data Protection Officers (DPOs), and enhanced penalties for non-compliance.
- Middle East: Middle Eastern countries are actively enhancing their cybersecurity frameworks in anticipation of 2025. Key developments include:
- Saudi Arabia’s Advanced Cyber Frameworks The Kingdom’s Communications, Space, and Technology Commission (CSTC) has introduced stringent regulations targeting service providers in the IT, communications, and postal sectors. These policies emphasise consumer data protection, network security, and incident reporting. Companies must adopt proactive risk management practices and ensure compliance with the updated standards to avoid penalties.UAE’s Comprehensive Cybersecurity Policies The UAE Cybersecurity Council is spearheading new initiatives targeting key areas like cloud computing security, IoT device protections, and cybersecurity operation centers. These frameworks aim to enhance digital trust while promoting technological innovation. Businesses will need to secure their data storage systems, safeguard interconnected devices, and demonstrate readiness to counter evolving cyber threats.Broader Regional Efforts Other nations, including Oman, Qatar, and Jordan, are actively updating their cybersecurity regulations. These frameworks focus on strengthening legal obligations for organizations handling sensitive data. Requirements include mandatory breach reporting, adherence to cross-border data transfer restrictions, and appointing Data Protection Officers (DPOs) to oversee compliance.IoT and Cloud Computing Priorities With the Middle East adopting IoT devices and cloud solutions at a rapid pace, governments are formulating specific policies to address the associated risks. Regulations will require device manufacturers and cloud providers to uphold security-by-design principles, ensuring that potential vulnerabilities are mitigated during the development stage.
- Africa: Nations are developing data protection laws, with some like Nigeria and Tanzania already implementing new regulations. The Malabo Convention aims to harmonize data protection laws across the African Union.
Fines and Class-action Law Suits
Historically, regulations have struggled to keep pace with the swift evolution of cybercriminal tactics, creating vulnerabilities for both customers and employees. This gap has fuelled a surge in class-action lawsuits, now reaching a 13-year peak, as affected parties seek compensation for breach-related damages. Looking ahead to 2025, the incidence of such lawsuits is anticipated to become a more pressing issue for businesses. This trend is driven by the increasing sophistication of cyber threats, which heightens the risk of breaches and subsequent legal challenges.
As consumers and employees become more informed about their rights and the possibility of legal recourse, the propensity to pursue class-action lawsuits grows. If regulatory measures fail to match the threat landscape, individuals are more likely to turn to the courts for justice, further amplifying this trend.
The financial impact of these lawsuits is considerable, compelling companies to prioritise investments in cybersecurity and strengthen their legal defences. Additionally, as legal precedents and frameworks develop through ongoing litigation, the path to successful lawsuits becomes more accessible. Consequently, businesses must proactively enhance their cybersecurity strategies and legal preparedness to reduce the risks and financial burdens associated with potential class-action suits.
Cyber Insurance
Cyber insurance will become an essential component of risk management strategies. As cyber threats become more prevalent, insurance providers will refine their offerings to cover a broader range of incidents. However, businesses must carefully assess their coverage to ensure it aligns with their specific risk profiles and potential exposures.
Regulators will also emphasise the importance of cybersecurity audits and assessments, requiring organisations to demonstrate their commitment to securing customer data and maintaining robust defenses. This increased scrutiny will drive improvements in cybersecurity practices across industries, fostering a culture of accountability and vigilance.
Insurance for CISOs and IT leaders will also become critical, not only as a key component of risk management strategies but also as a safeguard against personal liability. While Directors’ and officers’ (D&O) insurance liability exists, new professional liability insurance offerings tailored for CISOs, plus a cybersecurity trade union, care of The Security Industry Federation (SIF), will enable leaders to better protect themselves from personal financial losses arising from lawsuits tied to breaches or security incidents.
This type of coverage offers a vital layer of security, allowing CISOs to focus on lowering cyber risks without the added fear of personal repercussions. Those who leverage such insurance strategically will also be able to demonstrate a proactive stance on cybersecurity, which can significantly enhance their market reputation. By reducing potential damages and showing commitment to safeguarding both data and leadership, organisations will be able to build greater customer trust and loyalty, setting themselves apart in an increasingly security-conscious world.
Useful resources include:
- The Professional Association of CISOs at https://theciso.org/membership/.
- SIF at https://sif.org.uk/
- Cyber Future Foundation at https://cyberfuturefoundation.org
Workforce
The cybersecurity field in 2025 faces a complex interplay of challenges, from a shifting skills gap to intensifying burnout among professionals and the evolving role of the CISO. While some specialised roles continue to face talent shortages, automation and advancing technologies are leading to redundancies in others. To succeed now, cybersecurity professionals must demonstrate unique, irreplaceable value—offering skills and insights that machines cannot replicate. Adaptability has become paramount, with an emphasis on possessing the right skills to manage emerging threats and complex regulations in a rapidly evolving landscape.
These pressures are particularly acute for CISOs, whose roles are transitioning into broader integrated risk management positions, increasingly overlapping with the responsibilities of Chief Information Officers (CIOs). This convergence requires CISOs to go beyond traditional security practices and prove their business value. Failure to do so could render them redundant, prompting many to consider transitioning into roles as virtual CISOs (vCISOs) or CSO consultants to balance escalating responsibilities and accountability.
The burden on CISOs is immense, encapsulated by SolarWinds CISO Tim Brown’s remark, “We’ve been hearing CISO is the ‘chief scapegoat officer,’ right?” This sentiment underscores the growing scrutiny on these professionals, worsened by high-profile cases, such as the U.S. Securities and Exchange Commission’s lawsuit against SolarWinds and Uber, which spotlight the personal risks involved.
Meanwhile, across the broader cybersecurity landscape, burnout is becoming a critical concern as security teams grapple with relentless workloads and the emotional strain of high-stakes responsibilities. AI-driven tools are poised to ease these burdens by automating routine tasks, streamlining incident responses, and reducing false positives, offering professionals much-needed relief. However, technology alone is not enough. Organisations must prioritise work-life balance, providing mental health resources, and creating supportive, collaborative work environments to retain talent and maintain resilience. For CISOs and cybersecurity experts alike, aligning security with broader business objectives and investing in holistic well-being strategies will be essential to thriving in the high-pressure years ahead.
Growth Markets
The cybersecurity global skills shortage is a major factor driving investment in the security services market (security consulting services, security professional services and managed security services) which is expected to grow faster than the other security segments in 2025.
The rising sophistication of cyberattacks has heightened the demand for AI-powered threat detection and automated incident response solutions with research showing that companies leveraging these tools to prevent data breaches save an average of $2.22 million annually compared to those that don’t.
Similarly, as businesses continue their migration to cloud environments, robust cloud security solutions are becoming essential to protect sensitive data and workloads. With the proliferation of IoT devices across industries like healthcare, manufacturing, and smart cities, IoT security is also emerging as a critical area, designed to safeguard vast networks of connected devices from vulnerabilities.
Certain industries and markets are expected to drive cybersecurity innovation through 2025. These include healthcare, where safeguarding patient data against attacks like ransomware will remain critical, and finance, where protecting against state-sponsored intrusions and fraud becomes paramount.
Emerging markets like green technology and electric grids will also demand robust protections as they become key targets due to their essential role in addressing global energy needs. Furthermore, small-to-medium-sized businesses, often part of supply chains, will likely invest more in affordable, scalable cybersecurity solutions as they become increasingly targeted. Some analysts are predicting a focused market move from large USA enterprises to Europe SMEs.
The Road Ahead
The cybersecurity landscape of 2025 will be shaped by the convergence of challenges and opportunities. Organisations and their leaders must prioritise resilience through robust identity protection, proactive approaches leveraging AI, adherence to evolving regulations, and investment in workforce development. Collaboration, innovation, and foresight will be essential for surviving and thriving in this rapidly shifting environment. Businesses that adapt to and anticipate these changes will not only mitigate risk but position themselves as leaders in the new era of cybersecurity.
Now I want to hear from you…
Tell me where you see the market going next year? What am I missing. Join in the conversation on LinkedIn, here.