Cybercrime is on the rise and as a result, there is going to be an increase in spending on cyber security in the coming years.
Cyber security is dominating headlines now more than ever now that US President Donald Trump is facing impeachment hearings as investigators trace the actions of his office dating back to his campaign into the White House.
Coupled with the fact an election is just a few months away, people are wondering just how safe online data truly is. Millions of people had a deadline of this past Tuesday in regards to a settlement over a 2017 Equifax security breach. It was one of the more famous breaches, where personal data of hundreds of millions of people was compromised.
How safe are online records? According to Risk Based Security research, more than 3,800 publicly disclosed breaches exposed a whopping 4.1 billion compromised records in the first six months of 2019. That's more than half of the Earth’s population.
“Every company has at least one employee who will click on everything.”
- Brad Smith , Microsoft President and Chief Legal Officer
Cyber security isn't just about protecting systems and data from threats but it also gives many other benefits like increased productivity, greater customer confidence and reduces the chances a company's website would crash.
According to analysis from research firm Deloitte, the number of cybersecurity professionals in Canada will rise to approximately 28,000 by 2021 (a 7% CAGR and nearly 2% of all ICT professionals).
Demand for cyber talent in Canada:
Data via research firm Gartner Inc. backed this up when it found that worldwide information security spending will exceed $124 billion this year. Even so, the report also said that just 38% of global organizations admitted they were prepared for a cyberattack. This is where many of the firms that specialize in cyber security come in to play.
A good place to begin due diligence can be looking into an ETF. Canada’s First Cyber Security ETF, the Evolve Cyber Security Index Fund (T.CYBR) invests in global companies involved in the cyber security industry through hardware and software development. It recently posted robust distribution of funds for investors.
One active stock in this space on the radar of many is CyberArk Software (NASDAQ: CYBR), a cyber data firm that recently released its Q3 2019 results , with revenue at $108.1 million, a 28% increase from Q3 2018.
It is estimated that cybercrime costs the global economy a staggering $3 trillion annually. Where there is weakness, there is opportunity and this is a clear opportunity for investors.
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