Network Perimeter Obsolete

70% of security incidents now happen via stolen credentials [https://x.com/i/status/2031319648210235532]—the network perimeter is obsolete, says Darktrace's 2026 Report.

Attackers are shifting from exploiting vulnerabilities to simply logging in with stolen credentials. In the Americas, almost 70% of cyber incidents start with compromised accounts, highlighting how cloud and SaaS have moved the cyber defense frontline to the user. This trend is fueled by the increasing sophistication of phishing attacks, including a rise in QR code-based attacks. Darktrace detected 32 million phishing emails globally in 2025, with over 8.2 million targeting high-value individuals. Traditional perimeter defenses are becoming obsolete as attackers bypass them by compromising identities. This requires a shift towards security measures that understand context and intent, rather than relying on static controls. AI is also playing a role in accelerating credential abuse. Attackers are using AI to scale targeted and credible-looking activity that blends into normal behavior, making intrusions harder to detect. To combat this, companies are increasing adoption of AI-powered defense platforms. Security spending is predicted to reach $699.39 billion by 2034, driven by the need to upgrade security and AI workloads.

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