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Hacking Concerns Give New Life To Cybersecurity Field

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Hacking Concerns Give New Life To Cybersecurity Field

Cybersecurity firms have been gaining notoriety over the past year, after several high profile hacking attacks took big name companies like Sony Corp (ADR) (NYSE: SNE) and Target Corporation (NYSE: TGT) to their knees. In today's world where much of a business' operations are conducted online, most firms are discussing when rather than if an attack will happen.

Growing Sector

For that reason, cybersecurity has been a popular field for new tech companies looking to fill a gap in the growing industry. During the first half of 2015, global investment in cybersecurity firms reached $1.2 billion. The figure nearly equaled 2013's annual investment of 1.54 billion, though it fell short of the $1.4 billion that was spent in the first half of 2014.

Related Link: Have Cybersecurity Stocks Peaked?

Big names like Google Capital and Blackstone Group LP (NYSE: BX) have begun to funnel money into cybersecurity firms as the field looks likely to continue growing.

Fast Changing Field

While cybersecurity is rapidly becoming a popular industry for entrepreneurs, not all new startups are created equally. As there is a high skill level required to provide the types of security features that are needed, successful startups require a founder with experience.

The field is also a dangerous one as the ever-evolving world of hacking advances quickly, often making certain types of security obsolete.

Related Link: Why You Should Care About Cybersecurity

Different Route

Some companies are hoping to use the industry's rapidly changing landscape to their advantage. For every new security program, there are several hackers working on cracking it.

That's why companies like United Continental Holdings Inc (NYSE: UAL) are turning to hackers themselves to improve their security systems. Instead of employing outside consultants, United offered a hefty reward to hackers that could find and fix any bugs in the airline's computer system.

This week, the company confirmed that it awarded two hackers with 1 million frequent flier miles each, after they uncovered potentially dangerous gaps in the firm's security system.

Image Credit: Public Domain

 

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