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Craig Newmark, the 71 year old founder and former CEO of classifieds site Craigslist, is alarmed about potential cybersecurity risks in the US.
“The deal is our country is under attack now,” he told Yahoo Finance executive editor Brian Sozzi on his Opening Bid podcast (video above; listen in below). “It’s not like I’m in the recruiting line after Pearl Harbor because my dad volunteered in the 40s, but I guess that’s what I should be doing.”
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Newmark, who stepped down from the company in 2000 but kept a position answering customer complaints, has foregone reaping financial rewards in semi-retirement.
Instead, he started Craig Newmark Philanthropies to primarily invest in projects to protect critical American infrastructure from cyber-attacks. He told Sozzi he is now spending $200 million more to address the issue atop an initial $100 million pledge revealed in September of this year.
He encouraged other wealthy people to join him in the fight against cyber-attacks.
“I tell people, ‘Hey, the people who protect us could use some help. The amounts of money comparatively are small, so why not help out,” he said.
Cybersecurity has had a banner year in the spotlight, with its tentacles going beyond past annoyances where consumers simply need to change passwords, call a credit bureau, or cancel an account after a breach.
This past summer, a Microsoft (MSFT) Windows update containing a defect hit 8.5 million computers. It resulted in flight cancellations and hampered health and payment services. Concerns swirled about potential infrastructure attacks on a global scale, such as the Paris Olympics.
In October, utility company American Water Works (AWK) announced a cybersecurity attack that caused it to temporarily shut down its customer portal and pause billing.
Shares of cybersecurity stocks have subsequently soared: Palo Alto Networks (PANW) and CyberArk Software (CYBR) are up 38% and 53% year to date, respectively. Wall Street is staying bullish on each stock, according to Yahoo Finance analyst recommendation and price target data.
The global financial impact of cybercrimes could reach $13.82 trillion by 2028 from $9.22 trillion in 2024, estimated the Economic Research Institute for ASEAN and East Asia.
The need for municipalities and other government entities to act rather than react remains paramount, warns Newmark.
“I think a lot about this,” said Newmark. “I’ve started to fund networks of smart volunteers who can help people protect infrastructure, particularly [for] the small companies and utilities across the country who are responsible for most of our electrical and power supplies, transportation infrastructure, [and] food distribution.”