Cyber Stocks On The Move With Massive Federal Government Data Breach

Hackers in China are suspected of breaking into U.S. government computer networks to download a trove of data on federal government workers. Data housed in the Office of Personnel Management and the Interior Department was compromised.

Experts suggest that the data might be used for a phishing attack - where hackers email workers a link that contains malicious software. If a worker clicks on the link, it would enable the hackers a back door into additional federal systems. One such possibility is that hackers will disguise a malicious email as coming from the Office of Personnel Management, which would increase the likelihood that a federal worker clicks on it.

Cybersecurity stocks are marching higher in the wake of the news - with Cyberark Software Ltd CYBR is leading the way, up 5.4 percent on the trading session at last price. FireEye Inc FEYE gained 4.8 percent and Palo Alto Networks Inc PANW added 2.3 percent.

The industry has seen strong gains this year as nearly every week another corporation or government entity announces it was subject to an attack. Cyberark has added 63 percent, FireEye gained 58 percent and Palo Alto Networks rose 41 percent, year to date.

Additionally, earlier this week, the government passed new surveillance measures. Lobbyists expect that clearing that bill will pave the way for Congress action on the Cybersecurity Information Sharing Act (CISA).