Cyber security has emerged as one of the hottest growth sectors over the last 12 months. As enterprises, government agencies, banks and video game companies continue to be plagued by cyber attacks, online security has become a major concern for all.
According to a recent report from cyber security firm Trustwave, since Oct 21, 2013 till date, hackers have gained access to data of almost 1.6 million accounts from different websites globally.
The affected sites include Facebook (FB - Analyst Report) , Google , Twitter (TWTR - Analyst Report) , Yahoo (YHOO - Analyst Report) , LinkedIn (LNKD - Analyst Report) and ADP (ADP - Analyst Report) . It is significant to note that most of the attacks were targeted toward social media websites which generally maintain a huge database of user details.
Per the Trustwave report, Facebook was the worst affected website, with thefts of 318,121 passwords. Although ADP was the least affected (7.978 passwords stolen), the firm noted that the theft of payroll services accounts detail can have serious financial implications.
In response to the breach, Facebook has already advised its users to activate login approvals and login notifications in their security settings. However, the recent breach has not only put current cyber security solutions under scanner, but also the habit of using a simplistic password that can be easily guessed.
We believe that strict vigilance from all sectors is the need of the hour. Efforts to improve coordination within the private sector are also increasing. Additionally, training and education on security matters are equally important to develop a preventive mechanism against cyber attacks.
Amid the growing number of cyber attacks, corporations and companies are looking for stricter and more stringent cyber security measures to plug the loopholes in the system. While new security solutions may not be the permanent answer to the hacking problem, it will serve as a first step to solving this complex problem.
Most significantly, spending on developing cyber security solutions is expected to continue to rise. According to ABI Research, global cyber security spending in critical infrastructure areas is expected to increase $4.25 billion over 2012 to $46.0 billion in 2013.
Further, as per a research conducted by ReportsnReports.com, global cyber security spending is expected to reach $165.0 million by 2023. We believe that this increasing spending will encourage companies such as EMC Corp, Akamai (AKAM - Analyst Report) and CheckPoint Software (CHKP - Analyst Report) to develop new solutions, in turn driving their top-line growth, going forward.
Both, Akamai and CheckPoint carries a Zacks Rank #3 (Hold).