How did Israel become a leader in cybersecurity?

They call it the 8200 Unit, an elite part of the Israeli Defense Force that is becoming the training ground for some of the hottest cybersecurity companies in the world.

The 8200 Unit is part of the country's intelligence division, and veterans from that unit have given rise to a booming cybersecurity industry. Currently, there are more than 400 cybersecurity companies active in Israel, a country that is only slightly larger than the state of New Jersey. Many of those companies are working with automakers to tackle a host of security issues with connected and self-driving cars.

"Israel is without a doubt a complex country, but as far as cybersecurity goes, we are ahead of most of the countries in the world, and we have been ahead of most of the countries in the world for the past 20 years," said Yuval Diskin, former director of Israel's internal security service and chairman of Cymotive. "It all started because of the government that realized that threats to our security are out there not just on a military level regarding the people — but also in cyberspace."

Israel faces hundreds of cyberattacks each month on government websites and data systems. This year, the Israel Defense Forces issued a rare press release concerning the 8200 Unit, claiming the group prevented an ISIS air attack against a Western country in 2017.

The Israeli army, intelligence agency Mossad and domestic security agency Shabak focus on recruiting young computer wizards with strong language skills when they join the armed forces at the mandatory age of 18.

"Every year, people full of energy, hunger and exceptional abilities enter the unit," said an unnamed 8200 Unit officer in the press release announcing the thwarted ISIS attack. "They bring with them a lot of power and extraordinary ways of thinking, so we are able to handle problems that weren't able to be solved until now."

And then at the end of their service, hundreds of those computer experts leave the armed forces after their nearly three years working on cybersecurity.

"They are very young, and they are already cyberexperts," Diskin said. Coupled with an entrepreneurial attitude, they often go to college, and then start their own companies. "We are entrepreneurs by nature. We have a lot of chutzpah, and we want to get things done fast."

Unlike most of the global auto industry, Israeli auto tech companies that specialize in cyberdefense are young — most of the companies were formed after 2010.

Here's a sample of recently formed or acquired automotive cybersecurity companies.

CYMOTIVE: Volkswagen announced in 2016 it was forming a new company, Cymotive, with Diskin and Tamir Bechor, a cybersecurity expert. Cymotive focuses on software that protects self-driving cars, connected vehicles and smart mobility applications.

TOWERSEC:Harman International purchased TowerSec, which focuses on protecting networks for connected and self-driving cars, for $70 million.

ARGUS:In 2017, Continental announced it was purchasing then-4-year-old Argus Cyber Security for $400 million. Argus, which provides security for over-the-air updates, was founded by three former military friends, Ofer Ben-Noon, Yaron Galula and Oron Lavi.

And in May, Skoda Auto DigiLab, the technology incubator operated in Tel Aviv by Skoda Auto and Israeli vehicle importer Champion Motors, announced a collaboration with four Israeli startups, one of which is XM Cyber, formed by a group of people including Tamir Pardo, who was director of Mossad from 2011 to 2016.

Daimler and General Motors have r&d centers in Israel, which specialize in cybersecurity, and Skoda and Renault are reportedly actively looking for companies to acquire or partner with.

Within the next two years, investment in Israeli cybersecurity companies may triple.

Diskin said he is not surprised by the interest in Israel's cybersecurity resources.

"Israel has invested enormous resources and has trained the manpower to specialize in cyber threats of all shapes and sizes," he said. "Even the police have employees who are among the best in the world as far as cybersecurity goes."