AI scams posing increased threat, warns Darktrace

CHARLIE CONCHIE

CYBERSECURITY firm Darktrace yesterday warned of a rise in AI threats after reporting a plunge in profits in the first half of its financial year.

In a trading update on the six months to the end of December, the firm said operating profit had fallen 91.6 per cent to $577,000 (£487,000) compared to the same period in 2021.

Bosses said the fall was down to an “elevated share-based payment and associated employer tax charges” relating to a block of share grants it made when it floated in 2021, but claimed the fluctuation would settle.

The firm also warned over the shifting cybersecurity landscape. Citing the rise of ChatGPT and new “hacktivist” threats, the firm said scams were becoming increasingly sophisticated as criminals capitalise on AI tools.

However, Darktrace CEO Poppy Gustaffson said the firm would ensure its customers were protected against the “threats of tomorrow”.

“We’ve built our whole product set around the notion of defending against threats never seen before through our AI’s bespoke understanding of each individual organisation,” she said.

Revenues at the firm rose 35.8 per cent despite a “noticeable second quarter slowdown” in new business.

The results come after a tricky period for the feted cybersecurity outfit, whose shares have tumbled below their IPO price this year amid questions over its financial processes and controls.

Darktrace announced at the end of last month it would call in EY to inspect its financial processes and controls in a bid to settle investor nerves.

Gustaffson said the business

“continues to deliver against a challenging macro-economic backdrop”, citing the strong yearon-year revenue growth.

Bosses doubled down on their revenue and earnings before deductibles targets for the year.

Shares closed down marginally.

Darktrace boss Gustaffson warned scammers were increasingly employing AI