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
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
). 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
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
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,
) to develop new solutions, in turn driving their top-line
growth, going forward.
Both, Akamai and CheckPoint carries a Zacks Rank #3 (Hold).
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