Hackers LOVE a Good Shutdown
The U.S. is constantly under cyberattack.
Last year, Director of National Intelligence Dan Coats’ assessment to the Senate Intelligence Committee iterated the same.
Since then not much has changed, except for an increase in the amount of attacks. NBC News reported yesterday: “Since the government shut down on Dec. 21, nearly half of the Cybersecurity and Infrastructure Security Agency workforce has been furloughed, while the rest has been working without pay, according to a release from the Committee on Homeland Security.”
This Is a Serious, Serious Problem
Between rogue states like North Korea, lone-wolf hackers and well-orchestrated attacks by Russian, Iranian and Chinese cyber warriors, cybersecurity is of the utmost importance to national security.
The world is becoming more and more interconnected. As artificial intelligence, cloud computing, the internet of things and other technologies grow, we’re only going to become more dependent on interconnected systems and software.
But this makes us all the more vulnerable to cyberattacks and even more so during this record-long government shutdown.
TechCrunch notes this increased vulnerability in a recent report: “When our nation’s cyber centers are not actively monitoring and protecting our most valuable assets and critical infrastructure, threats magnify and vulnerabilities become further exposed.”
This risk is amplified as politicians on both sides squander opportunities to get the government back up and running.
The NBC report specifically notes “some of the best and brightest federal cybersecurity employees could leave their jobs and seek one of the many more lucrative openings in the private sector.”
This means even after the shutdown ends, we’ll be playing cybersecurity catch-up with second-stringers for a while.
The obvious impact to you is that your personal data are at risk. Government websites could be hacked a lot more easily as security protocols fail to get updated.
Netcraft reported in mid-January that as of the 16th, 130 different web security certificates had expired on various government websites. As the shutdown continues, this number will increase significantly.
Even worse, the aforementioned furloughed Cybersecurity and Infrastructure Security Agency employees are responsible for “efforts to protect and defend critical infrastructure, as it pertains to industries like energy, finance, agriculture, transportation and defense,” as reported by TechCrunch.
Great news, right?
Thankfully There’s a Silver Lining
It’s a target-rich environment for cybersecurity stocks.
Cyber stocks are bouncing back after the recent correction and look like they have lot of upside potential left when looking at the chart for the PureFunds ISE Cyber Security ETF (HACK).
As you can see above, HACK has recently recovered enough to move above its 50-day moving average. And as we move through January we can see the price action is starting to coil like spring, which very often leads to a big move to the upside.
We need more cyber protections than ever, and fast.
Overall demand in the space should be a boon for this sector. Now and for the long run.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily