Tech Funds Profit on Cyber Attack Fears

Companies are spending billions to improve their cyber security - good news for firms developing this technology, and the funds that invest in them

Holly Black 19 June, 2017 | 3:57PM
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A high profile cyber-attack on the NHS and a computer system meltdown at British Airways have put cyber security stocks firmly in the spotlight. But experts who have been tracking the trend say the real momentum in the sector started with an attack on US retail group Target (TGT) in 2014.

There are around 180,000 recorded data breaches across the world every day. Given an estimated 70% of cyber breaches go undetected, the true scale of this problem is colossal.

Not only do organisations who suffer security breaches undertake severe reputational damage, new legislation set to come into force next year could impose fines on companies which do not do enough to protect themselves – and their customers. From 2018, listed companies will be forced to reveal any cyber security breach, no matter how big or small, and firms are spending billions to avoid any potential situation.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alphabet Inc A2,786.17 USD0.00Rating
Amazon.com Inc3,376.07 USD0.00Rating
CyberArk Software Ltd179.09 USD0.00
Liontrust Global Technology C GBP Acc4.15 GBP0.59Rating
Microsoft Corp310.11 USD0.00Rating
Mimecast Ltd70.57 USD0.00
Palo Alto Networks Inc486.55 USD0.00Rating
Pictet-Security I dy GBP333.17 GBP-0.24Rating
Polar Capital Global Tech Inc103.35 USD0.29Rating
Proofpoint Inc  
Target Corp258.73 USD0.00Rating

About Author

Holly Black  is Senior Editor, Morningstar.co.uk