Check Point revealed: Cyberattacks Surge in Israel Amidst the war against Hamas in Gaza

As the conflict in Israel intensifies, the nation is grappling with an 18% surge in cyberattacks, according to Gil Shvid, the founder and CEO of Check Point. Shvid made this announcement today when Check Point released its financial statements for the third quarter of 2023.

"Since the beginning of the war, we have seen an 18% increase in cyberattacks on Israel, especially on government websites," stated Shvid. He pointed out that while most of these attacks aren't particularly sophisticated, there has been a noticeable rise in ransom demand attacks. Over the last three weeks, one out of every 19 organizations in Israel fell victim to a ransom demand attack, which is double the rate compared to the same period in the past.

Shvid also highlighted the growing presence of Iranian actors attempting more sophisticated attacks. "We are also seeing the Iranians increasingly attempting to produce more sophisticated attacks," he said.

To counter these threats, some hospitals proactively disconnected from the internet to prevent attacks, and other entities were advised to do the same by Check Point.

Check Point monitors nearly a hundred Iranian, Russian, and other groups engaged in cyberattacks concurrently. However, most of them do not pose a significant threat, primarily aiming to overload websites and disrupt services. Media outlets have also been targeted during this period.

Despite the challenging circumstances, Shvid commended the commitment and dedication of Check Point employees, emphasizing that global operations have continued as usual.

Shvid expressed his gratitude for the support received from employees, customers, partners, and the financial community during this trying period. Check Point, which employs 6,000 people worldwide, including around 2,500 in Israel, saw the loss of two employees on the first day of the war.

Shvid also noted that approximately 5% of the global workforce, or about 300 workers, were recruited as part of Order 8. While most employees have returned to hybrid work, the management has already returned to offices.

Check Point's stock showed resilience in the face of adversity, with only a 4% decrease since the outbreak of the war in Israel. It is currently valued at $15 billion, aligning with the behavior of American technology stocks.

Regarding financial performance, Check Point reported third-quarter revenues of $596 million, indicating steady growth. Net income showed a remarkable 19% increase, reaching $1.75 per share, aligning with the upper range of the company's forecasts provided three months ago.

A positive aspect to highlight is the 15% increase in software subscription revenue, totaling $248 million. This reflects a shift toward Software as a Service (SaaS) as a major revenue source for the company, moving away from traditional software license sales.

It's worth noting that operating profit constitutes approximately 40% of Check Point's revenues, and it will be interesting to observe how this figure evolves following the company's acquisition of Perimeter 81 for half a billion dollars in the third quarter. In a symbolic move, Check Point donated Perimeter 81's offices to support the headquarters of the abductees, who had previously operated from a law office located in the museum tower in Tel Aviv.

This news comes at a time of significant challenges for Israel, both in terms of security and its cybersecurity landscape. Check Point's report sheds light on the evolving threat landscape and the ongoing resilience of Israel's tech sector in the face of adversity.