Equifax Inc. stunned Wall Street and the American public last week when it reported a massive security breach, but no one should be surprised given the refusal of major corporations to adequately fund the high-tech security systems needed to protect customer information. Blinded by short-term profits, CEOs and boards have taken the easy route, slashing or redlining technology budgets while exposing shareholders to avoidable losses.
As a result, security stocks have underperformed the broad tech universe throughout this year’s historic rally, but the funding environment may be changing due to public outrage as well as major liabilities generated by this negligent decision making. Sadly, it is too early to tell if recent apologies mark the start of longer-term cybersecurity solutions or just public relations officers trying to get the issue off the front pages. (See also: New Equifax Security Breach Because Password Was ‘Admin’: BBC.)
Cybersecurity stocks are gaining ground, but corporations still aren’t allocating the funds needed to fix the problem. …read more
Read more here: Cybersecurity Stocks in Play After Equifax Hack
Category: EFX, HACK, SYMC, FEYE