WatchGuard hopes it is wrong in this prediction. But with more computing devices embedded in cars, phones, TVs and even medical devices, digitally dealt death is not only possible, it's plausible. Security is still often an afterthought when developing innovative technical systems. Criminals, hacktivists, and even nation-states are launching increasingly targeted cyber-attacks, resulting in the destruction of physical equipment. Most recently, a researcher even showed how to wirelessly deliver an 830 volt shock to an insecure pacemaker, proving that digital attacks can have a real-world impact.

Malware Enters the Matrix through a Virtual Door

Last year was the first real-world instance of malware that sought out virtual machines (VMs) and infected them directly. Today, there is an emergence of malicious code that can recognize when it's running in a virtual system and can act accordingly. In 2013, WatchGuard predicts attackers will create even more VM-targeted malware. It will be designed to take advantage of weaknesses found in many virtual environments, while attempting to avoid virtualized automatic threat detection systems.

It's Your Browser -- Not Your System -- that Malware Is After

WatchGuard anticipates a steep rise in browser-infecting malware in 2013. With increased adoption of cloud services like online banking, a great deal of personal and sensitive data passes through web browsers. Many antivirus solutions are focused on catching traditional malware which infects an operating system and aren't as effective at detecting browser-based infections. Now, a new type of malware has emerged. Sometimes called a Man-in-the-Browser (MitB) or browser zombie, it arrives as a malicious browser extension, plugin, helper object, or piece of JavaScript. It doesn't infect the whole system; instead it takes complete control of a browser and runs whenever the victim surfs the web.

Strike Back Gets a Lot of Lip Service, but Does Little Good (continued...)

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