Lexicon Financial Group Weekly Update — May 6, 2026
“Passwords are like underwear: don’t let people see it, change it very often, and you shouldn’t share it with strangers.”
From the desk of Craig Swistun, CIM, MFA-P, Portfolio Manager, Raymond James Investment Counsel, and Wayne Hendry, Client Relationship Manager, Raymond James Investment Counsel
ISSUE 227
Looking Around
According to Brett J. Goldstein, a professor at Vanderbilt University who specializes in cybersecurity and artificial intelligence, your passwords have already been compromised.
Anthropic, an artificial intelligence (AI) company headquartered in San Francisco, recently sent a shock wave through the cybersecurity world when it said its new artificial intelligence model, Claude Mythos, had exhibited an extraordinary ability to find previously unknown vulnerabilities in software. This is a hacker’s fantasy and has generated significant concern, causing Anthropic to restrict its release mainly to bigger companies to allow them time to secure their software.
But what about smaller companies, organizations, nonprofits, and everyday users like you and us? Our critical data and personal information are important, too! With emerging AI tools making our digital lives less secure, we have to take our cybersecurity practices a lot more seriously now. (1)
And to be clear, we have. We’ve introduced security measures to protect client data. Personal information is automatically encrypted when sent over email, to keep it away from prying eyes. We have never accepted trading instructions by voice or email alone, encourage clients to assign a “trusted contact person” to their account, and provide options for clients to obtain information in a secure environment.
But, Anthropic’s new AI model has taught itself to hack into software infrastructure systems that are believed to be among the most secure in history. This means that critical infrastructure around the world will be subject to intensified risk. If compromised, hacked critical infrastructure could severely affect national security, economic stability, and public health and safety. Examples here include hydro dams, nuclear reactors, and food supply. Many of these systems rely on antiquated or patchwork software. The solution is obvious – stay one step ahead of the bad actors by investing more heavily in cybersecurity.
As a form of digital warfare, an integrated cybersecurity program battles hackers —lone wolf operators, transnational criminal organizations, adversarial nations, and other entities—who perpetually probe computer networks for points of vulnerability. It anticipates and disables attempted incursions. However, this is typically a skewed contest because hackers need to be successful only once to cause great damage, while defenders must be effective one hundred per cent of the time. With automated AI cyberweapons, the odds have become even more harrowing. (2)
And it’s turned into a digital arms race. The cybersecurity market is projected to grow from USD 227.59 billion in 2025 to USD 351.92 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 9.1 per cent. Integrating cybersecurity with AI is becoming a critical trend in modern security strategies. Currently, the United States (U.S.) leads as the world’s largest and most mature cybersecurity market. (3)
Raymond James, as one of the largest financial services firms in Canada, invests heavily in cybersecurity defense. But the best defense is education. So, according to Raymond James, here are the “top five” ways cybersecurity is currently impacting individuals:
1. Deepfakes: The AI Threat to Data Privacy
This technology uses artificial intelligence to create hyper-realistic but fake videos, images, or audio.
How to Spot and Avoid Deepfakes:
Look for irregularities like unnatural blinking, poor lip-syncing, or flickering edges.
Be cautious of videos with patchy skin tones or poorly rendered details.
Verify the source of any suspicious media before taking action.
2. Social Engineering: Exploiting Human Psychology
Social engineering relies on manipulating people into sharing sensitive information or granting access. Common techniques include pretexting, baiting, and tailgating.
Unlike traditional cyber-attacks, these tactics target human vulnerabilities, not technical ones.
How to Defend Against Social Engineering:
Keep your software and operating systems updated to reduce vulnerabilities.
Limit the personal information you share online.
Stay informed about the latest social engineering tactics and train to recognize them.
3. “Phishing”
This is a deceptive cyber-attack where hackers trick people into revealing sensitive information like passwords or financial details.
These attacks often come in the form of fake emails or websites that look trustworthy. Falling victim to phishing can lead to identity theft and financial loss.
How to Protect Yourself From Phishing:
Watch for red flags like spelling errors, generic greetings, or suspicious links and attachments.
Use spam filters to block phishing emails.
Enable two-factor authentication (2FA) for extra security.
4. Ransomware
Ransomware is a form of malware that locks your data until you pay a ransom. This can lead to significant data breaches, financial losses, and downtime for businesses and individuals alike.
How to Prevent Ransomware Attacks:
Follow the 3-2-1 rule for backups:
Keep 3 copies of your data (original + two backups).
Use 2 types of storage media (e.g., cloud and external hard drive).
Store 1 backup off-site to safeguard against local disasters.
Invest in robust anti-malware software and regularly update it.
5. Identity Theft: Common Scams and Solutions
Identity theft happens when someone uses your personal information—like credit card numbers—for fraudulent purposes. Victims often face financial loss and damaged credit.
How to Protect Against Identity Theft:
Use strong, unique passwords and a password manager.
Check your financial statements regularly for unauthorized transactions.
Shred sensitive documents before disposing of them.
The goal is always to stay one step ahead of the hackers, as it is critical that we do so. At the same time, it seems like significant capital will continue to be invested in keeping systems and private information safe and secure.
Read and Watch
Want deeper insight into topics in your Weekly Update? Then, read and/or right click:
Statistics Canada says real GDP rose 0.2 per cent in February
Voters will judge Trump on the economy - how is it doing?
Iran war: How exposed are European economies?
Japan’s fragile recovery meets rising oil prices
Why Moody’s has raised China’s credit outlook amid Iran war shocks
Looking Back
The month of April saw markets rebound from a turbulent time during March.
The S&P/TSX Composite Index (TSX) performed strongly in April as for the month it was up 3.65 per cent, thanks to solid corporate earnings offsetting the war-related oil supply shock that has rattled markets and sent crude prices to four-year highs. This is the TSX’s biggest daily percentage gain since late March and it has recaptured much of March’s decline. In domestic economic news last Thursday, Canada’s economy grew by 0.2 per cent in February from January, while a preliminary estimate pointed to annualized growth of 1.7 per cent for the first quarter, which would slightly eclipse the Bank of Canada’s 1.5 per cent forecast. (4)
However, the TSX dipped last Friday, as losses for resource shares offset gains for technology, and investors weighed prospects of diplomatic progress in the Iran war. For the week, it was down 0.04 per cent while it has advanced 6.9 per cent since the start of the year. (5)
Major stock markets in the U.S. largely shrugged off the stream of mixed headlines about the war in the Middle East and a surprisingly hawkish Federal Reserve (Fed) policy meeting to post solid gains. Large-cap stocks outpaced small-caps, and value outperformed growth as another increase in oil prices lifted the energy sector. The S&P 500 Index returned over 10 per cent for the month of April – its best monthly performance since November 2020. Treasuries were under selling pressure for most of the week, as rising energy prices and inflation concerns primarily drove the increase in yields (bond prices and yields move in opposite directions).
The pan-European STOXX Europe 600 Index ended last week broadly flat as it edged up 0.10 per cent in local currency terms. The corporate earnings season continued to show signs of positive earnings momentum. The ongoing stalled negotiations between Iran and the U.S., and the on-and-off closure of the Strait of Hormuz and a higher oil price have kept sentiment in check. The European Central Bank (ECB) held its key rate at two per cent, at its meeting last Thursday. However, officials did acknowledge that the risks to the eurozone’s economy had “intensified” as a result of the conflict in the Middle East and that the governing council had discussed “at length and in depth” a potential interest rate rise.
Japan’s equity markets ended last week with mixed performance, as heightened currency volatility was a key market driver during the week, including a sharp yen rebound that was widely attributed to suspected official intervention. At the same time, evolving Bank of Japan (BoJ) policy expectations also influenced markets, as the central bank held rates steady but signaled further tightening.
China’s stock markets ended the holiday-shortened week broadly stable. Market sentiment was supported by Moody’s revision of China’s credit outlook to “stable” from “negative” while affirming its A1 rating, citing resilience in growth and fiscal capacity despite domestic and external headwinds. Although it expects the government’s debt burden to increase, it believes downside risks are contained, as low interest rates and high domestic savings will help limit debt-servicing costs. It also highlighted that China’s large and diversified economy, coupled with increased competitiveness in higher value-added sectors, will offset pressures from an aging population. (6)
The opinions expressed are those of Craig Swistun and not necessarily those of Raymond James Investment Counsel which is a subsidiary of Raymond James Ltd. Statistics and factual data and other information presented are from sources believed to be reliable, but their accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Raymond James advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters.
Your Passwords Are Probably Screwed, Brett J. Goldstein, The New York Times, April 28, 2026
Six Reasons Claude Mythos Is an Inflection Point for AI—and Global Security, Gordon M. Goldstein, Council on Foreign Relations, April 15, 2026
Cybersecurity Market Surges to $351.92 billion by 2030 | CAGR 9.1%, MarketsandMarkets™, Yahoo Finance, April 13, 2026
TSX posts biggest daily gain in a month, boosting April rally, The Globe and Mail, April 30, 2026
TSX erases weekly gain as energy and metal mining shares fall, Tharuniyaa Lakshmi and Fergal Smith, Reuters, May 1, 2026
Global markets weekly update - Major central banks keep rates on hold amid war uncertainty, T. Rowe Price, May 1, 2026
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Looking to Learn?
If you want to know more about some of the topics we wrote about this week, just click on the links below:
Anthropic | History, Controversies, & Claude AI
