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3 Cyber Security Stocks to Focus on Following Facebook Breach

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Cyber-attacks have become recurrent with major corporate giants falling prey to criminal hackers. The recent Facebook security breach has been the talk of the town since September, when the company announced that accounts of about 50 million users were hacked.

Last week, Facebook reported  that the graveness of the attack was less than what the company had initially estimated. Although 50 million accounts were hacked, hackers were able to steal personal information of about 30 million users, a CNBC report cited. The attacks were carried out via access tokens that allow users to log into their accounts without providing passwords every time.

The nature of the recent cyber breaches demand an unconventional approach each time to detect the possible threats. While most technology giants and companies focus on fixing and building immunity to the existing security issues, it is necessary to learn of probable new risks and how to tackle these.

Given the persistent cyber-attacks it’s a good idea to focus on some cyber security stocks that are most likely to benefit from the rising security breach issues.

Facebook’s Security Violation

According to Guy Rosen, vice-president of Product Management at Facebook, hackers used an automated method to gain control of some 400,000 accounts. Using these, they gained access tokens of 30 million users, thus compromising their accounts.

Of these, 14 million users had their username, gender, locale/language, relationship status, religion, hometown, self-reported current city, birth date, types of devices used to access Facebook, education, work, the last 10 places they visited or were tagged in, people, pages or websites they follow, and the 15 most recent searches. For 15 million people, hackers were able to obtain name and contact details while no information was stolen of the remaining 1 million people.

How to Avert a Data Breach

Earlier this year, Under Armour’s (UAA - Free Report) MyFitnessPal app and Expedia’s (EXPE - Free Report) Orbitz were victims of cyber-attacks too. Orbitz had a data theft that affected 880k customer credit cards and MyFitnessPal’s security breach compromised as many as 150 million accounts, exposing sensitive information such as names, email addresses and passwords.

While one can never be fully immune to a cyber-attack, precautions such as data encryption and putting to use cyber security software could help. Encryption is extremely affective to secure information on your server and system, which doesn’t expose information to hackers even when the system has been compromised.

3 Cyber Security Stocks in Focus

Qualys, Inc. (QLYS - Free Report) offers cloud security and compliance solutions that help organizations identify security risks to their information technology infrastructures and protect their IT systems and applications from cyber-attacks. The company carries a Zacks Rank #3 (Hold) and its earnings are expected to grow 11.2% for 2018.

Okta, Inc. (OKTA - Free Report) is an identity provider for the enterprise. The company carries a Zacks Rank #3 and offers single sign-on, mobility management, adaptive multi-factor authentication, lifecycle management, universal directory, complete authentication, user management, application programming interface access management and developer tools etc. Okta’s earnings are expected to grow 38.9% for the current year.

CyberArk Software Ltd. (CYBR - Free Report) provides information technology security solutions. The company offers services that protect organizational privileged accounts from cyber security breaches. CyberArk carries a Zacks Rank #1 (Strong Buy) and its earnings could grow 26.7% in 2018.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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