Refinance rates were mixed, but one key rate climbed higher.

Last year, the path tolower mortgage ratesseemed relatively straightforward: Official inflation would go down, theFederal Reservewould cut interest rates and the cost of borrowing would gradually ease in 2025.But now, housing market experts aren't so certain."Mortgage rates are not going to come down as much as we had expected, and affordability will still be a challenge," said Lisa Sturtevant, chief economist at real estate agency Bright MLS.High mortgage rates aren't the only reason why homeownership has become a challenge. As mortgage rates soared in 2022, home prices hit record highs and an inventory shortage persisted.Though mortgage rates have fallen from their 8% peaks, the decline has been slow and gradual. Over the past 12 months, the average 30-year fixed mortgage rate has fluctuated between 6.5% and 7.5%. Most housing economists had expected mortgage rates to drop to 6% by the end of 2024, moving into the mid-5% range in 2025. But mortgage rates recently jumped back up toward 7%.Now, forecasts show average 30-year fixed mortgage rates hovering around the mid-6% range for a while. Logan Mohtahsami, lead analyst at HousingWire, expects rates to range between 5.75% and 7.25% throughout the coming year.Many economists say President-elect Donald Trump'sproposed policies, which include tax cuts and sweeping tariffs, could stimulate demand, increase deficits and cause inflation to reheat. That could prompt the Fed to delay future rate reductions, keepingfinancing rates higher for longer.Trump promised that mortgage rates would return to their pandemic-era lows of around 3% under his administration, but that's unlikely to happen. Mortgage rates typically only fall that low during severe economic downturns. In fact, given the ongoing strength of the economy, the Federal Reserve isprojecting fewer interest rate cutsnext year.Even so, the Fed doesn't set mortgage rates directly, and neither does the White House lenders do. Mortgage interest rates are closely tied to the 10-year Treasury bond yield, and bond market investors drive yields higher or lower based on what they believe will happen in the future, not what's happening now."While there is uncertainty on the extent of the inflation impact of Trump's policies, higher inflation expectations tend to lead to higher bond yields and mortgage rates," saidBeth Ann Bovino, chief economist at U.S. Bank.How much can mortgage rates change in one year?Mortgage rates fluctuate daily, usually by just a few basis points (one basis point is equivalent to 0.01%). The mortgage market is also prone to volatility. Over the course of a year, mortgage rates can change a lot or not very much at all.Historically speaking, the biggest swings in mortgage rates were accompanied by economic catastrophes (e.g., surging inflation, the start of a recession, etc.) that drove bond yields significantly higher or lower for a sustained period of time.In 2022, for example, mortgage rates increased from around 3% to above 7% within the span of 10 months due to surging inflation and the Fed's aggressive rate hikes. That's a 4% difference in less than a year. Compare that to 2024: The difference between this year's peak (7.33%) and bottom (6.1%) is just over 1%.Mortgage rates might move in a similarly narrow range in 2025, particularly if economic growth remains steady and future data doesn't give investors cause for concern.But a new presidential administration, shifts in the geopolitical outlook and the potential for inflation to reignite all have the power to move mortgage rates by more than 1% in either direction, said Colin Roberston, founder of the housing market site The Truth About Mortgage.For example, in the dire scenario where the US moves toward a recession and inflation falls well below target, mortgage rates could get to the 4% range, according to Matt Graham of Mortgage News Daily. "In the opposite scenario, where the economy is strong, inflation persists and national deficits increase, mortgage rates could move toward or above 8%," Graham said. What could cause mortgage rates to increase in 2025?The same reason mortgage rates surged in 2022 is also what could cause them to increase next year: inflation.Inflation is a key measure of the health of the economy and influences the Fed's decision to adjust interest rates. It also impacts the bond market, where mortgage rates are determined. High inflation curtails investor demand for longer-term bonds, causing their prices to fall and mortgage rates to increase.Trump's proposals include a universal 20% tariff on all imports with a possible 60% tariff on imports from China. If implemented, these tariffs would be inflationary, as businesses are likely to pass those costs onto consumers and raise prices. Tax cuts could also decrease fiscal revenue and raise national deficits, resulting in higher long-term bond yields.The Fed has a 2% target rate for annual inflation. If the official inflation rate moves much higher than that in 2025, the central bank is less likely to enact interest rate cuts, which could put upward pressure on mortgage rates."At the most basic level, rates are always going to be influenced by the state of the economy and inflation," said Graham.What could cause mortgage rates to decrease in 2025?Lower mortgage rates next year are still possible, but a few conditions must be met first.Assuming Trump's policies don't supercharge inflation in 2025, it would take significantly weaker economic conditions (including a declining labor market) and a drop in 10-year Treasury yields to open the door to lower rates."If the unemployment rate rises or hiring slows considerably, then borrowing costs, including mortgage rates, could fall," said Sturtevant. The Fed typically responds to economic downturns by cutting interest rates, and banks and lenders typically pass along rate cuts to consumers in less expensive longer-term loans, including mortgages.In that case, 30-year fixed mortgage rates could fall just below 6%, Mohtashami said. But it's unlikely mortgage rates can move much lower than that unless new economic policies result in a meaningfully lower government debt deficit. What else is affecting the housing market in 2025?Even if average mortgage rates were to fall by 1% in 2025, it won't make homebuying affordable for most Americans, particularly low- and middle-income households.Since 2020, home prices have increased more than 40%. And while home price growth has since slowed, it's still up 5.1% on an annual basis. Prices are expected to increase by just under 2% in 2025, said Selma Hepp, chief economist at Core Logic.Part of the reason home prices are so high is that the housing market is short roughly one to four million houses. Over the last several years, new home construction has lagged due to rising construction costs and strict zoning regulations. When homebuying demand outweighs supply, prices go up.That applies to existing home inventory, as well. As most current homeowners have interest rates below 5%, they're less inclined to sell since it would mean buying a new home at a higher rate. Both the "rate-lock effect" and the lack of new housing construction have effectively frozen the housing market.While experts expect housing inventory to improve in 2025, it will take years to make up for the ground lost.Should you wait or buy a home in 2025?If you're one of the millions of would-be homeowners waiting for rates to drop, know that the macroeconomic issues plaguing the housing market today are out of your control. Only you can determine if you're financially ready to purchase a home and handle all its expenses. "In 2025, I would not focus on mortgage rates," said Jeb Smith, licensed real estate agent and member of CNET Money's expert review board. Smith recommends prioritizing things that can lower your individual mortgage rate, like saving for a bigger down payment and boosting your credit score.Instead of trying to time the real estate market, Smith said to focus on the factors you can actually control.More on today's housing market

There has been a flurry of Switch 2-related news in recent days, but not from Nintendo itself. Now, the Mario maker has broken its silence on the week's reports.During this week's CES trades show in Las Vegas, reportedly-accurate models of Nintendo's under-wraps Switch 2 were shown off by accessories manufacturer Genki. Several images and videos of this model were subsequently shared across social media (as you can see below). It is worth noting that Genki has since said its model was built based on leaked information from the industry, and it has not seen a Switch 2 console. Nintendo has now issued a statement to Japanese newspaper The Sankei Shimbun, telling the world that those images and videos making the rounds are "not official".To see this content please enable targeting cookies. 9 Video Games That Tried (And Will Hopefully Fail) To Predict 2025. Watch on YouTubeHere's the very to the point, translated statement from the article: "The images and videos, they are not official."While this statement is fairly innocuous in a lot of ways, and not exactly surprising given we already knew it was not Nintendo itself showcasing the hardware, this marks the first acknowledgement by the company that these leaks are even happening at all.Meanwhile, Nintendo has not actually said anything about the accuracy of the third-party Switch 2 model which has been shown. To see this content please enable targeting cookies.In addition to that mock Switch 2 model, yesterday we had some further console leaks. Purported retail listings for Switch 2 MicroSD Express cards started showing up. Meanwhile, another report suggested Nintendo's upcoming console won't be compatible with the Switch 1 dock. There were also some new murmurings over the Switch 2's optical sensor.Nintendo will be sharing something official on its Switch successor soon enough, though. It previously confirmed we would receive a proper announcement before the close of the fiscal year, which ends 31st March. What we do know for sure is that the new console will be backwards compatible with Switch 1 games.

Bald headed assassin simulator Hitman: World of Assassination has amassed an impressive body count of 75 million players. Read more

Riot tells staff impacted by LA wildfires that "what matters most is taking care of yourselves and each other""The scale of loss is heartbreaking."Image credit: Riot Games News by Vikki Blake Contributor Published on Jan. 10, 2025 As hundreds of thousands of people are placed under evacuation orders, the devastating wildfires sweeping across Los Angeles are not just impacting residents but developers based in the Californian city, too.Activision Blizzard, Riot, and other video game companies have reached out to employees, with Riot telling staff to take care of themselves ahead of work."For Rioters reading this, please remember, the mission and the work will always be there. Right now, what matters most is taking care of yourselves and each other," said Riot Games CEO, A. Dylan Jadeja on LinkedIn."As a leader, you feel a responsibility to say something and to do something in moments like these. But what do you say when frankly there are no words? Nothing can be said to truly acknowledge the pain and suffering that we are witnessing unfold in the communities so many of us call home. The ongoing wildfires across greater Los Angeles have upended lives, displaced families, and devastated communities. Tens of thousands of homes are at risk, and the scale of loss is heartbreaking - more than anyone should have to bear."It's too early for anyone to know exactly what will be needed or what can be done in the aftermath of this. The reality is we are still in the middle of it. But when the time is right, Riot will be ready to stand up for Los Angeles and give back in every way we can to all of these communities that mean so much to who we are. After all, while our reach is global, the heart of Riot Games has always been in Los Angeles. Los Angeles raised us and we are proud to call this great city our home."Meanwhile, Activision Blizzard told PC Gamer that it was "actively monitoring the situation" whilst providing "resources" to those impacted by the fires."Employee safety and well-being is our top priority," an Activision spokesperson said."We're actively monitoring the situation as it is quickly evolving. We've been in contact with the employees closest to the impacted areas to confirm their safety and provide resources."Yesterday, we reported that the same disastrous fires burning across multiple districts of Los Angeles have also shut down production across Hollywood, impacting the filming of Fallout season 2 and a raft of other projects.

You can trust VideoGamer. Our team of gaming experts spend hours testing and reviewing the latest games, to ensure you're reading the most comprehensive guide possible. Rest assured, all imagery and advice is unique and original. Check out how we test and review games hereWith Marvel Rivals Season 1 now live with complete patch notes available for players to look up, dataminers have already cracked open the game to discover new goodies on their way to the game.As soon as the season launched, leakers were keen to find out exactly what developer NetEase is adding. As it turns out, the developer is already starting to adapt some of the best outfits in the history of Marvel comics.Leaked Marvel Rivals skinsShared by dataminer X0XLeak, four skin themes have been discovered inside the game files for Marvel Rivals. The game is planning to add Gothic Recursion, Clashing Lions and 60th Wedding Anniversary skins as well as one more theme.In the plans for future skin themes is the Hellfire Gala. For those out of the loop, the Hellfire Gala is an almost-annual event designed as a haven for political discussions with mutants. The fancy event sees characters from the X-Menas well as other beloved charactersdress up in high-fashion versions of their outfits.In the past, characters like Captain Marvel, Spider-Man and more have received some spectacular outfits for the event. Of course, mutants like Scarlet Witch, Wolverine and many more also benefit from some gorgeous designs.As a place for high fashion and extravagance, adapting the Hellfire Gala for Marvel Rivals is an incredibly exciting prospect. In fact, considering how good the outfits are, open-world dress-up game Infinity Nikki might have some competition.With two members of the Fantastic Four now in the game for the first half of Eternal Night, players have even more content to discover in Marvel Rivals. Alongside learning how to play Doom Match properly, theres a bunch of new team compositions to get used to.For more Rivals news, read about the games leaked capture the flag mode or maybe read about the upcoming addition of Ant-Man/Iron-Man villain Ultron in a future update.Marvel RivalsPlatform(s):macOS, PC, PlayStation 5, Xbox Series S, Xbox Series XGenre(s):Fighting, ShooterRelated TopicsMarvel Rivals Subscribe to our newsletters!By subscribing, you agree to our Privacy Policy and may receive occasional deal communications; you can unsubscribe anytime.Share

Silverhand ScreenCyberpunk 2077 fan film offers an extra Johnny Silverhand ending that naturally includes an Arasaka heist, and a key dev on Cyberpunk 2 thinks it's pretty coolAn "incredibly ambitious and complex project" aimed at giving your brain buddy yet another chance to kick his favourite corp's hornet's nest.Image credit: CD Projekt News by Mark Warren Senior Staff Writer Published on Jan. 10, 2025 Warning: Spoilers for Cyberpunk 2077 lie ahead.Even if you've elected to become Night City's Johnny-no-mates, Cyberpunk 2077's main story always has at least a couple of ending options to chuck at you when you end up sitting on that rooftop at its main story's climax. That's not stopped one fan from deciding to throw another one into the mix, having devised an extra adventure for their V and Johnny Silverhand to have in an hour-long Machinima film.This project is the work of a cosplayer and virtual photographer who goes by the handle Valerie Silverhand - just in case you were wondering which of the game's characters they like - who's long been a staple of the Cyberpunk community. With this creation, they've even managed to earn a congratulations from the associate game director currently working on Cyberpunk's sequel at CD Projekt.To see this content please enable targeting cookies. Their fan film, entitled Black Dog, was teased via a cool trailer late last year, and has now been released in full on YouTube. It's about an hour long, and has been put together via Machinima using assets from Cyberpunk, augemented using some mods and custom cinematics used to convey its original story.It's also important to note that the film seemingly uses some AI voices to give lines to the various characters from the base game it includes - the likes of Silverhand, Judy, Viktor Vektor, you get the idea. Valerie Silverhand writes in a disclaimer at the beginning of the video - which also emphasises that the project isn't associated with or endorsed by CD Projekt itself - that "AI voice tools were used for fan content purposes only, and not used for profit or with intent to exploit voice actors."That might well put you off the fan film, but at least they're being up front of it so folks can make that call for themselves, given this kind of AI use is arguably more of a moral grey area than it being used to mimic VAs' voices for commercial projects, which is definitely an issue with the potential to impact actors' livelihoods.Watch on YouTubeAnyway, to avoid spoilers in case you do go ahead and watch, here's a bit of the setup for the film's plot given early on in it: "A year has passed since V breached Arasaka corporation's data fortress of Digital Souls known as Mikoshi. Upon rejecting the dicotomy offered by the rogue AI, Alt Cunningham, V and Johnny Silverhand leave Mikoshi together in hopes of finding another solution." Things then kick off with V having learned of "a secret Arasaka cryo vault" that's "rumoured to store Saburo Arasaka's most private collection".As alluded to earlier Cyberpunk sequel associate game director Paweł Sasko appears to have gotten a kick out of the movie, having tweeted "Incredibly ambitious and complex project, very proud of you! Congratulations." in response to Valerie Silverhand's post about it.If you're after more fan-made additions to Cyberpunk 2077's main story, we recently reported on a modder who's added a whole new intro sequence and lifepath to it.

Blizzard developers have returned from holiday to deliver some news for all Diablo 4 players eager to hear more about the games next season. Season 7 is kicking off the day Season 6 ends - on January 21 - so its time for the team to reconvene and spill some beans. Read more

Its a new year, but drama in the WordPress community keeps going. Automattic, the company that runs WordPress.com, said that it would reduce its contribution to WordPress core, the open-source project that acts as the backbone of most of Automattics products and ensures the longevity of WordPress as a technology and community.Automattic CEO and WordPress co-creator Matt Mullenweg has been in a kerfuffle with WP Engine since September last year over the very issue of contribution to WordPress as an open-source and community project.iIn a blog post, the company said that it would reduce the number of hours it commits to the Five For the Future program to match rival hosting provider WP Engines contribution in terms of the number of weekly hours.As part of this reset, Automattic will match its volunteering pledge with those made by WP Engine and other players in the ecosystem, or about 45 hours a week that qualify under the Five For the Future program as benefitting the entire community and not just a single company. These hours will likely go towards security and critical updates, Automattic said in the latest blog post.The company added that it will redirect the resources to the ongoing legal battle against WP Engine.At an event last year, Mullenweg called WP Engine cancer to WordPress, pointing out a large stake owned by private equity firm Silver Lake in the company and a lack of contribution from the hosting provider to support sustainable growth. In the new blog post, Automattic called out this fact again.WP Engines historically slim contributions underscore the imbalance that must be addressed for the health of WordPress. We believe in fairness and shared responsibility, and we hope this move encourages greater participation across all organizations that benefit from WordPress, Automattic said.Automattic contributes around 2,560 hours per week, as per Five for The Futures dashboard. This number is already significantly less than the 3,900 hours per week the company contributed in September. Its not clear if this reduction is because of the companys shrinking headcount or a general strategy shift.The companys new blog post also sarcastically noted that members of the community have considered working on commercial products like WordPress.com, Pressable, WPVIP, Jetpack, and WooCommerce as contributing to WordPress. So engineers will focus on building those products instead of contributing to WordPress core. Automattic is also under pressure to perform better on a financial point of view. In December, BlackRock marked down its investment in Automattic by 10% and this wasnt the first markdown. Overall, the investment firm has devalued its investment by more than 50%.The new directive related to contributions to the community project wasnt the only decision related to WordPress.org. Earlier this week, Thijs Buijs, a WordPress core contributor and the person who led the sustainability team, decided to step down as a representative. The sustainability team focused on the longevity of WordPress through social, economic, and environmental aspects.According to a Slack screenshot posted on Reddit, Buijs disagreed with Mullenwegs approach to advancing WordPress. In response, Mullenweg disbanded the sustainability Slack channel while saying, Today, I learned we have a sustainability team. Notably, Mullenweg initiated this channels idea during an event in 2022.Mullenwegs approach to the legal battle with WP Engine has attracted calls for a different kind of leadership in the WordPress world. Last month, Joost de Valk, the creator of Yoast, a popular WordPress SEO tool, outlined a plan to make a federated approach to the WordPress repository for decentralized access to assets like plug-ins and themes.You can contact this reporter atim@ivanmehta.comor on Signal: @ivan.42

sankai/Getty ImagesThe cybersecurity landscape of 2024 was marked by devastating ransomware attacks, artificial intelligence (AI)-powered social engineering, and state-sponsored cyber operations that caused billions in damages. As 2025 kicks off, the convergence of AI, geopolitical instability, and evolving attack surfaces presents an even more complex threat environment.Security professionals are bracing for what could be the most challenging year yet in cyber defense as threat actors leverage increasingly sophisticated tools and tactics. Based on current threat intelligence and emerging attack patterns, here are five significant cybersecurity predictions that will likely shape 2025.1. Ransomware will become data destruction and manipulationRansomware is no longer just about extortion -- it's becoming a tool for systemic disruption.Also: The Best of CES 2025 awards are in, as selected by ZDNET and the rest of CNET GroupRansomware attacks have become a fixture of the cybersecurity threat landscape, with organizations paying millions to recover encrypted data. However, the nature of these attacks is changing. This year, ransomware groups will move beyond encryption and data theft, targeting the integrity of critical data itself.This evolution could include attacks that corrupt sensitive databases, modify financial records, or disrupt the operations of entire industries. Imagine the implications of altered medical records in a hospital or tampered financial data at a multinational bank. The risks extend beyond monetary losses, threatening lives and destabilizing trust in institutions."Ransomware payloads themselves haven't changed that much. We've seen some minor tweaks and improvements," Dick O'Brien, principal intelligence analyst at Symantec Threat Hunter Team by Broadcom, notes. "However, genuine innovations have occurred in the ransomware attack chain. Your average, successful ransomware attack is a complex, multi-stage process that involves a wide range of tools and a fair amount of hands-on keyboard activity on the part of the attackers."Also: Is prompt engineering a 'fad' hindering AI progress?O'Brien credits the change to evolving tools and tactics. "The main trend has been the move away from malware. The majority of tools used by attackers these days are legitimate software," he explains. "In many attacks, the only malware we see is ransomware, which is introduced and run at the last minute."Recent studies, including insights from the Cybersecurity and Infrastructure Security Agency (CISA), emphasize the growing sophistication of ransomware operators leveraging AI and automation to launch faster, more targeted attacks.What organizations can doImplement advanced backup and disaster recovery strategies.Prioritize data integrity checks to ensure tampered data is detected.Invest in endpoint detection and response (EDR) tools to quickly identify and isolate threats.2. AI-powered attacks will outpace human defensesAI is revolutionizing industries, and that includes cybercrime. In 2025, adversaries will harness AI to craft highly targeted phishing campaigns, develop advanced malware, and identify system vulnerabilities at unprecedented speeds. These AI-driven attacks will challenge even the most advanced cybersecurity teams, as the sheer volume and sophistication of threats will outpace manual defenses.Also: How to protect yourself from phishing attacks in Chrome and FirefoxOne example of this emerging threat is the use of generative AI to create deepfake audio and video, which can be used to bypass identity verification systems or spread misinformation. In 2024, several high-profile incidents demonstrated how convincing deepfake technology has become, and its potential for abuse in cyberattacks is only growing."The cybercrime adversary community is opportunistic and entrepreneurial, and they have been quick to adopt and deploy new technologies [...] the use of deepfakes, artificial intelligence, and LLMs is the next step in this evolution as attackers seek to establish trust with the victim at the initial stages of the attack via social engineering," says Alex Cox, LastPass' director of information security. "They most commonly achieve this by pretending to be a decision maker for the targeted firm, thereby putting known authority behind the attacker's requests."AI-powered attacks are perilous because they scale effortlessly. An attacker can program an AI system to identify weak passwords across thousands of accounts in minutes or to scan an entire corporate network for vulnerabilities far faster than a human could.What organizations can doDeploy AI-driven defensive tools that monitor networks in real-time.Train employees to recognize sophisticated phishing attempts, even AI-crafted.Collaborate with industry partners to share intelligence on emerging AI-driven threats.The cat-and-mouse game of cybersecurity is entering a new, faster phase, where AI is the primary technology deployed by both red and blue teams.3. Critical infrastructure will be an early targetIn 2024, attacks on critical infrastructure made headlines, from European energy grids to water systems in the United States. This trend will accelerate in 2025 as nation-states and cybercriminal groups focus on disrupting the systems that societies depend on most. These attacks are often aimed at causing maximum chaos with minimal effort and are increasingly weaponized in geopolitical conflicts.Also: Technologist Bruce Schneier on security, society and why we need 'public AI' modelsAging systems and fragmented security protocols exacerbate the risks to critical infrastructure. For example, many energy grids rely on legacy technologies never designed to withstand modern cyberattacks. Meanwhile, the growing interconnectivity of operational technology (OT) and information technology (IT) creates new vulnerabilities."As I've spoken to water companies and utilities, I've found that many lack the basics in their industrial cyber programs," warns Ian Bramson, vice president of global industrial cybersecurity at Black & Veatch. "They haven't established visibility into their OT networks or the control over their environments to prevent, detect, or respond to attacks."Bramson urges leaders to view industrial cyber -- what he calls "the networks, equipment, and devices that impact safety and uptime (i.e., operational continuity)" -- as a matter of safety. "Virtual attacks on these can have significant real-world physical impacts. Making cyber a safety concern mandates action and prioritizes resources. All utilities take safety seriously. Extending that to cyber gives it the priority it needs. Ultimately, it's public welfare and employee safety that make OT mission-critical for water utilities."What organizations can doPartner with government agencies like CISA to identify and mitigate vulnerabilities.Segment OT and IT networks to limit the impact of breaches.Invest in continuous monitoring and real-time threat detection for critical systems.Protecting critical infrastructure isn't just a cybersecurity priority -- it's a matter of national security.4. Supply chain attacks will escalateThe interconnected nature of global business has created a perfect storm for supply chain attacks. These breaches exploit vulnerabilities in third-party vendors, allowing attackers to infiltrate multiple organizations through a single entry point. In 2025, experts expect these attacks to grow in frequency and sophistication.One notable example is the SolarWinds cyber attack, which compromised thousands of organizations by targeting a widely used software provider. Similarly, the Kaseya ransomware attack highlighted how small vendors can serve as gateways to larger enterprises. Supply chain attacks are insidious because they exploit trusted relationships between companies and their vendors, often going undetected for months.Also: Anthropic flags AI's potential to 'automate sophisticated destructive cyber attacks'Governments and regulatory bodies are taking notice. In 2024, new guidelines for supply chain security were introduced in both the US and the European Union, emphasizing the need for transparency and accountability. However, compliance alone won't be enough to stop attackers who are constantly evolving their methods.As Matti Pearce, vice president of information security, risk, and compliance at Absolute Security, explains: "CISOs will need innovative detection and monitoring techniques to uncover unauthorized AI applications that might not be directly observable on network traffic. Focusing on user education and providing secure, approved AI tools will be central strategies in mitigating these risks [...] because the rise in the use of AI is outpacing securing AI, you will see AI attacking AI to create a perfect threat storm for enterprise users.""Today, the security industry still doesn't know how to protect AI well," Pearce continues. "Human error -- not malicious adversaries -- will be the reason for this expected conflict. With the increased adoption of AI, we can expect to see AI poisoning in the already vulnerable supply chain. In addition, a critical AI flaw will be the entry point for a potentially new and novel attack that will go undetected and cause significant economic disruption."What organizations can doConduct thorough security audits of all third-party vendors.Implement zero-trust principles to limit the impact of compromised partners.Use threat intelligence to identify and respond to supply chain vulnerabilities proactively.The security of your supply chain is only as strong as its weakest link.5. The cybersecurity workplace skills gap will deepenThe cybersecurity industry is facing a significant talent shortage. According to a report by ISC, the number of unfilled cybersecurity jobs over 3.4 million globally in 2024 is expected to grow in 2025. This workforce gap presents a significant challenge as the demand for skilled professionals rises.Also:You can boost your cybersecurity skills for free with this new initiativeThe shortage isn't just about numbers -- it's about expertise. Many organizations struggle to find employees with specialized skills in threat intelligence, AI-driven defenses, and cloud security. As a result, overburdened teams are at greater risk of burnout, leading to higher turnover rates and further exacerbating the problem."A shift in the balance of power is underway in the criminal underworld, requiring human solutions," says O'Brien. "Historically, the operators of large ransomware families stood at the top of the cybercrime food chain. They franchised their businesses using the ransomware-as-a-service (RaaS) business model, where "affiliate" attackers leased their tools and infrastructure in exchange for a cut of ransom payments."However, this business model's unintended consequence has been placing more power in the hands of affiliates, who can quickly migrate to rival operations if one is shut down. Ransomware operations are now competing with one another for affiliates, offering increasingly better terms for their business."Also: 'Scam yourself' attacks just increased over 600% - here's what to look forTo address this crisis, organizations are turning to creative solutions. Upskilling programs and internal training initiatives are helping existing employees transition into cybersecurity roles. Additionally, automation and AI handle repetitive tasks, freeing human analysts to focus on strategic decision-making.What organizations can doInvest in training and mentorship programs to develop internal talent.Partner with universities and coding boot camps to build a pipeline of skilled workers.Embrace diversity initiatives to attract candidates from underrepresented groups.Closing the cybersecurity talent gap isn't just an industry challenge -- it's a societal imperative.What these predictions mean for 2025The cybersecurity challenges of 2025 are daunting, but they are not insurmountable. Organizations can defend against innovative cyber threats using a multilayered approach that combines technological solutions with human expertise.AI-powered defensive tools provide real-time network surveillance, while strict segmentation between operational and information technology systems protects critical infrastructure. Zero-trust security principles and thorough vendor audits help mitigate supply chain vulnerabilities. By investing in cybersecurity training programs to address the talent shortage, organizations can leverage human ingenuity to work around vulnerabilities proactively.Featured