Millions in UK at risk of cyber-attacks as Windows 10 ends updates, Which? finds

Microsoft's impending discontinuation of Windows 10 support next week will leave millions of global users, including an estimated 5 million in the UK, vulnerable to cyber-attacks due to ceased security updates, with 26% of users reportedly planning to continue using the unsupported OS. This significant security exposure for both consumers and businesses is expected to drive a hardware refresh cycle, potentially boosting PC manufacturers as an estimated 13% of current devices will require replacement, while also contributing to e-waste and increasing cybersecurity expenditures for organizations.

Analysis

About 5 million British computer users risk becoming vulnerable to cyber-attacks and scams after Microsoft next week stops updating its decade-old Windows 10 system, consumer campaigners have warned. One in four of an estimated 21 million UK people using a device that runs the Windows 10 software intend to continue using it after updates cease and so will be at risk of online security breaches including malware and viruses, according to a survey by Which? More than a third of those who are not planning to take action and therefore risk becoming vulnerable are people aged over 55. The move is also predicted to add to the e-waste mountain with millions of PCs worldwide predicted to become obsolete if they cannot be updated and many customers taking the opportunity to buy new hardware. Microsoft is encouraging consumers to use recycling initiatives. The issue affects hundreds of millions of consumers and businesses using Windows 10 globally. Industry estimates suggest as many as 13% of computers currently running the software will need to be replaced. For the other devices, the solution is relatively simple and involves upgrading to Windows 11 if a PC supports it. Alternatively Microsoft is offering a one-year extension to Windows 10 to give users time to assess alternatives. But the survey by Which? found that while 39% of current users would update their Windows package, 26% said they intended to continue using version 10 after updates ceased. “Millions of people may be unprepared for the phasing out of Windows 10 next week,” said Lisa Barber, the editor of Which? Tech magazine. “If you have a home laptop or PC running Windows, now is the time to check which version you’re using and if it’s Windows 10 or older, make a plan of action. If you don’t act, you could become more vulnerable to hackers and scams.” In a blog, Yusuf Mehdi, a Microsoft executive vice-president, said that after security and feature updates and technical support for Windows 10 PCs stopped, devices would be “more vulnerable to cyber-threats, such as malware and viruses.” “Applications running on Windows 10 may no longer be supported, as the platform is no longer receiving feature updates,” he said. “As a result, some apps may experience decreased functionality.” Microsoft's impending cessation of Windows 10 support next week introduces substantial cybersecurity risks for millions of global users, with an estimated 5 million British users becoming vulnerable to cyber-attacks. A significant 26% of current Windows 10 users in the UK intend to continue operating the unsupported system, increasing their exposure to malware and other threats. This strategic shift by Microsoft carries a strongly negative sentiment of -0.65 for the platform's immediate user base. The transition is expected to catalyze a hardware refresh cycle, as approximately 13% of all Windows 10 devices globally will require replacement. This demand could benefit PC manufacturers, but it concurrently exacerbates the issue of electronic waste, aligning with ESG concerns. Microsoft's stated intention to end security and feature updates also implies decreased application functionality for continued Windows 10 users. Organizations, including businesses and consumers, face increased cybersecurity expenditures and operational challenges. While Microsoft offers a one-year extension or an upgrade path to Windows 11, the scale of the unsupported user base underscores significant market disruption. This event highlights technology lifecycle management as a critical factor for investor consideration.

Key Decisions for Investors

• Investors should closely monitor PC hardware sales figures in the coming quarters for potential uplift, particularly for manufacturers catering to enterprise and consumer upgrade cycles.
• Assess the potential for increased demand and revenue growth in the cybersecurity sector, as organizations and individuals will likely bolster their defenses against newly exposed vulnerabilities.
• Consider the long-term ESG implications for Microsoft, including e-waste generation and potential reputational impact from user dissatisfaction, which could affect investor sentiment.