Unicorn Startups Outpace Corporate Giants on Domain Security, CSC Finds

Cybercrime
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WILMINGTON, DE — Billion-dollar startup unicorns are outperforming some of the world’s largest corporations on key measures of domain security, even as dangerous gaps persist that could expose them to escalating cyber threats, according to CSC’s Domain Security Report 2026.

The annual report found that unicorns — privately held companies valued at more than $1 billion — scored higher than Forbes Global 2000 companies in five of eight domain security capabilities analyzed. The findings suggest that younger, tech-driven firms are often quicker to adopt foundational protections, though many still fall short on advanced safeguards needed as they scale.

CSC’s analysis examined the security posture of Global 2000 companies based on their adoption of critical domain protections, including registrar choice, registry lock, certificate authority authorization records, DNS redundancy, DNS security extensions, sender policy framework, DomainKeys Identified Mail, and domain-based message authentication, reporting, and conformance. Now in its sixth year, the report also compared these practices with those of the world’s top 100 unicorns to assess whether emerging companies are better equipped to manage domain risk.

While unicorns generally clustered in the middle range of domain risk scores, the report found they often lack more sophisticated defenses. Only 1% of unicorns employ DNS redundancy, and nearly 90% rely on a single cloud infrastructure, creating potential single points of failure. CSC said this vulnerability may be tied to the widespread use of consumer-grade registrars, which frequently do not offer enterprise-level security options such as registry lock.

“Domain names, DNS, and brand trust are fundamental to our online presence,” said Vincent D’Angelo, senior director at CSC. “Long-overlooked dependencies will compound cyber risks as new AI and IT stacks emerge. It’s encouraging to see unicorns adopting strong domain security practices early, yet much work remains.”

The report noted that most unicorns analyzed are IT-focused companies, many operating in artificial intelligence. Their domain management is often handled by technically sophisticated teams, which may explain stronger adoption of DNS-based protections. However, CSC warned that as these firms grow, failure to implement advanced security measures could leave them vulnerable to domain hijacking, phishing, and brand impersonation.

Among the Global 2000, CSC identified notable gains in the semiconductor and banking sectors, which posted the largest year-over-year improvements in overall domain security scores. The company attributed those gains to rapid advances in artificial intelligence and financial technology, combined with tighter cybersecurity requirements from governments and regulators.

The report also highlighted a widening threat landscape. CSC found that 88% of web domains resembling Global 2000 brand names through the use of homoglyphs are owned by third parties, an 8% increase from the previous year. Such domains are commonly used in phishing schemes, fraudulent advertising, and other cybercrime tactics.

Adoption of DMARC showed the fastest growth among security measures, rising from 39% in 2020 to 80% in 2025. CSC said the surge reflects both the growing sophistication of phishing attacks and the impact of new regulations, including the European Union’s Network and Information Security 2 directive, which took effect in October 2024.

Looking ahead, CSC warned that shrinking life cycles for SSL and TLS digital certificates beginning in 2026 will force many organizations to rethink domain management strategies as cyber threats become more efficient and regulatory scrutiny increases.

The full Domain Security Report 2026 is available at https://www.cscdbs.com/en/resources/domain-security-report-2026/. More information on CSC’s domain security services can be found at https://www.cscdbs.com.

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