Morgan Stanley Proves Cybersecurity Is Still An Issue

Morgan Stanley MS is the latest firm to suffer an information security breach; this week the company cautioned that one of its employees had stolen data from around 350,000 of the firm’s brokerage accounts. The data was later discovered up for sale online, something officials say could spark a new wave of hacking scams involving the compromised data.

Related Link: Did Apple Pay Just Become Easier To Hack?

2015's First Major Hack

The Morgan Stanley attack represents the first large data-stealing scheme of 2015, suggesting that companies’ struggle with hacking attacks in 2014 is set to continue. The rise in cyber crime has opened up a wide market for cybersecurity firms, a sector that is starting to look very appealing for some investors.

The rapidly changing attack patterns have made it difficult for companies to protect themselves and the threat of a costly security breach like 2014’s attacks on Home Depot Inc HD and Target Corporation TGT cost firms millions in damage repair, not to mention a loss of trust from their customers.

What This Means For Security Businesses

For that reason, big companies like Juniper Networks, Inc. JNPR and Cisco Systems, Inc. CSCO are growing their security businesses. Cisco acquired Sourcefire at the end of 2013 in order to improve its cybersecurity offerings, and the company fully integrated Sourcefire products by the end of 2014.

Smaller firms like Cyberark Software Ltd CYBR and FireEye Inc FEYE have inserted themselves into smaller niche markets, making them more valuable to companies with specific needs. Cyberark’s business focus is on protecting firms from hackers that create a “back door” into a company’s network and come in and out of their data system for a period of time, while FireEye focuses on the broader challenges that publicly traded companies face.

Related Link: Sony Hires FireEye To Clean Up Hacking Mess

This year, firms will likely increase their spending on security products as high profile cases like Sony Corp (ADR)’s SNE breach in December spark copy-cat attacks. The rise of mobile pay systems will also present a new challenge for corporations as they attempt to keep up with consumer preferences while still protecting their data’s integrity.