3 Questions for 2024
As 2024 unfolds, the world faces a series of pressing questions and challenges that reverberate across various domains. Cybersecurity threats, the far-reaching impact of economic shifts and A.I. , we explore issues that will impact investment migration in 2024.
1. Cyberattacks are proliferating, causing trillions of dollars of damage every year. How safe is investment migration data?
As we step into 2024, investment migration firms are facing an increasingly complex landscape of cybersecurity threats. These firms traditionally hold sensitive client data, including information related to the source of funds and source of wealth, which makes them prime targets for cybercriminals looking to exploit vulnerabilities and steal valuable information. Cybersecurity threats are constantly evolving, and investment migration firms need to stay ahead of the curve to protect their clients’ confidential information. Here are some of the most significant cybersecurity challenges these firms will face in 2024:
Ransomware Extortion
Ransomware attacks have been a persistent threat, but experts believe that in 2024, they are becoming even more sophisticated. Double extortion attacks, where cybercriminals steal sensitive data before encrypting it, are on the rise. This approach makes it harder for firms to recover their data without paying a ransom, posing a significant risk to the security and reputation of investment migration firms.
Cloud Third-Party Threats
As investment migration firms increasingly rely on cloud services to manage client data, they become vulnerable to attacks targeting cloud service providers. Cybercriminals can exploit trust relationships between firms and their service providers, potentially gaining access to sensitive client information. Understanding the shared security model of the cloud and implementing best practices is essential for mitigating this risk.
Mobile Malware
With the widespread use of mobile devices, mobile malware has emerged as a growing threat. Cybercriminals are creating malicious versions of legitimate apps, making them difficult to detect. Investment migration firms must educate their employees about the risks of downloading apps from unofficial sources and implement robust mobile security measures.
Wipers and Destructive Malware
While ransomware garners much attention, wipers and other destructive malware can have even more devastating consequences. Instead of encrypting data for ransom, wipers delete it entirely, causing significant business disruptions. Investment migration firms should focus on data backup and recovery strategies to mitigate the impact of such attacks.
Weaponisation of Legitimate Tools
Cybercriminals are increasingly using legitimate penetration testing and system administration tools to infiltrate systems. This approach allows them to go unnoticed by signature-based detection tools. Investment migration firms must stay vigilant and monitor their networks for any unusual activity or tool misuse.
Zero-Day Vulnerabilities in Supply Chains
Zero-day vulnerabilities, where no fix is available for a known issue, pose a significant risk, especially in the software supply chain. Investment migration firms should conduct thorough assessments of their software vendors and third-party dependencies to identify and address potential vulnerabilities promptly.
Mitigating Cybersecurity Risks
To address these cybersecurity challenges effectively in 2024, experts suggest that firms consider streamlining cybersecurity efforts by adopting a single security platform with all required capabilities. This consolidation improves efficiency and makes it easier to monitor and manage security infrastructure. Companies should also shift the focus from detection to prevention by proactively identifying and blocking inbound threats. This approach reduces the window of opportunity for attackers to exploit vulnerabilities. Firms also need to ensure that their cybersecurity measures cover all potential attack vectors, including cloud services, mobile devices, and IoT devices.
Investment migration firms must remain vigilant and adaptable in the face of evolving cybersecurity threats. The consequences of a data breach can be devastating, and agents, service providers and government units must be prepared to defend against threats originating from around the world. Comprehensive threat protection, continuous monitoring, and access to up-to-date threat intelligence are critical components of every robust cybersecurity strategy in 2024 and beyond.
2. In a world facing mounting economic pressures, the global economy is at a crossroads, with new challenges and uncertainties on the horizon. How will these economic shifts impact investment migration?
The global economy today is teetering on the edge. Despite its relative resilience in the face of significant shocks like the Covid-19 pandemic, skyrocketing living costs, energy crises, rampant inflation, and Russia’s war in Ukraine, the eruption of hostilities between Israel and Hamas on 7th October 2023 served as a stark reminder of how daunting it has become to protect economies from ever-more frequent and unforeseeable global shocks.
The Forecast
Global economic growth is expected to slow to 2.9% in 2024, according to the IMF’s October World Economic Outlook. The figure, down from growth of 3.5% in 2022 and 3% in 2023, remains well below the historical average (2000–19) of 3.8% and marks the lowest growth forecast in decades.
Advanced economies are expected to slow from 2.6% in 2023 to 1.4% in 2024 as policy tightening starts to bite. Emerging market and developing economies are projected to have a modest decline in growth from 4.1% in 2022 to 4% in 2024.
Global inflation is forecast to decline steadily, from 8.7% in 2022 to 5.8% in 2024, due to tighter monetary policy aided by lower international commodity prices.
The Unknown
China’s looming real estate crisis, precarious banking stability, and volatile commodity prices amid climate and geopolitical shocks pose major threats to taming inflation.
Moreover, the Israel-Hamas conflict, like past Middle East wars, holds the potential to disrupt the global economy and even push it into recession if more nations get involved. Bloomberg Economics predicts that in such a scenario, oil prices could skyrocket to $150 per barrel, while global growth could plummet to 1.7%, resulting in a trillion-dollar loss in world output.
The Middle East’s significance as an energy supplier and a crucial shipping route amplifies the global impact of this strife, reminiscent of the 1973 Arab-Israeli war that led to an oil embargo and stagflation in industrial economies. Rising energy prices could also impact the upcoming US presidential election, where gasoline prices heavily sway voter sentiment.
In the broader region, tensions are simmering. Egypt, Lebanon, and Tunisia grapple with economic and political gridlock. Israel’s retaliation to Hamas’ assault has already sparked protests in multiple regional nations. Analysts believe that the leap from anti-Israel demonstrations to anti-government upheaval in many countries can be swift. A déjà vu of the Arab Spring, the wave of protests that toppled governments in the early 2010s, is not out of the question.
One undeniable truth: dreams of a stable Middle East lie in ruins. Instead, it confronts a fresh inferno. Russia’s Ukraine invasion, the US-China trade showdown, and escalating Taiwan tensions signal the return of geopolitics as a potent force shaping economic and market destinies. The IMF, once more, raised concerns about a world fragmenting into geopolitical factions that threaten to stifle global trade and economic prosperity.
The Impact on IM
The current economic landscape carries profound implications for investment migration. The world could be on the brink of a new sovereign debt crisis as geopolitical tensions escalate. One pressing concern is the potential impact of China’s slowing economy on a global scale, with the IMF warning that nations integrated into the Asian industrial supply chain may be vulnerable to this loss of momentum.
Adding to the complexity is the forecast that trillions of dollars will be needed over the next decade to address the alarming effects of climate change in developing nations. Amidst ongoing global conflicts, investment migration offers countries a means to bolster their public finances and support economic growth without incurring additional debt. These economic and geopolitical factors collectively create an environment of persistent uncertainty, driving demand among high-net-worth individuals for alternative residences and citizenships. Henley and Partners estimate that in 2024, 128,000 millionaires will seek to relocate. This significant migration of human capital and wealth will exert a notable impact on the economic and societal dynamics of both the jurisdictions these affluent individuals depart from and those they invest in.
3. The meteoric rise of ChatGPT in 2023 quickly became a sensation. What will AI bring us next?
The year 2024 is poised to be a significant juncture in the evolution of artificial intelligence (AI). Investment migration is not new to AI – for example due diligence service providers have long been using and experimenting with AI.
The integration of AI into immigration processes presents the potential for unprecedented efficiency and accuracy gains. Nonetheless, challenges persist, encompassing the assurance of data accuracy, elimination of biases, maintenance of transparency, upholding data privacy, and accountability for potential errors. What exactly can we anticipate from AI in 2024?
Augmented Working
Augmented working takes the spotlight in this transformation, with AI becoming a key collaborator across diverse sectors. While recent attention has focused on AI’s content creation capabilities, the upcoming year will see a broader spectrum of applications. This includes leveraging
AI for advanced analytics, predictive insights, coding through automation and debugging, and employing sophisticated virtual assistance to enhance customer service. As AI integrates further into professional spheres, there is a pressing need to redefine traditional job roles, emphasising training programmes to effectively harness AI’s potential.
A significant stride in AI advancement will be the emergence of truly multi-modal AI systems capable of seamlessly integrating diverse data types like text, visuals, and audio. This innovation promises a more natural and intuitive user interface, offering sophisticated virtual assistants adept at handling complex queries, customer service bots capable of interpreting emotions and intentions, and the creation of innovative educational tools, to name just a few. These multi-modal systems represent a leap towards AI that can interact with the world akin to human perception and cognition, opening new dimensions in AI applications and user experiences.
AI Regulation
Yet, this transformative AI landscape is not just about technological prowess; it necessitates robust and evolving legislative frameworks to balance innovation with responsibility. Countries around the world are currently crafting AI governance strategies and regulatory frameworks, emphasising ethical deployment, risk mitigation, and transparency. For businesses, staying agile and well informed is crucial to navigate these evolving legal environments effectively.
Quantum AI
A ground-breaking development poised to revolutionise industries is Quantum AI. Leveraging quantum mechanics, Quantum AI operates using qubits, allowing exponential increases in processing power by existing in multiple states simultaneously. This capability enables Quantum AI to analyse complex datasets at unprecedented speeds. This technology is transitioning from a theoretical marvel to a practical tool, offering businesses and governments unparalleled insights and decision-making capabilities, thereby paving the way for new frontiers in innovation and efficiency.
IM Approach to AI
Yet, some businesses who spoke to the IM Yearbook revealed a cautious stance toward AI adoption. They emphasised that much of the technology still requires refinement. Moreover, in the public sector, for example, in governments units, the uptake of new technologies traditionally moves at a slower pace. Additionally, there’s an observable reluctance among workers. Despite the technology’s potential to alleviate mundane tasks, many fear the looming possibility of being replaced in the long term. Despite these reservations, 2024 foresees widespread AI integration. Now more than ever, future success hinges on smartly embracing changes.
