A cyber-attack on Facebook’s (FB – Free Report) security system last week leaked personal information of more than 50 million account holders worldwide. Hackers exploited the social media network’s “view as” feature to gain access to user accounts. This is the biggest security breach in the social media giant’s 14-year history.
This is basically the result of not focusing on the potential issues, especially when the social media giant had faced security breach issues in the past. The approach so far has been to address the threats that have already taken place. The current incident demonstrates that cybersecurity breaches may occur despite millions invested in this area. Therefore, it requires companies like Facebook to take measures to recover from cyber attacks along with cybersecurity investments. And cyber insurance is the only way to help them recover from huge losses caused by the cyber-attacks.
Focus on Recovery From Cyber Attacks
Risk management has become a crucial strategy for businesses because of ever-increasing corporate data breaches. Security breaches and hacks not only pose a threat to the technical aspects of a company but also inflict negative sentiment for the business and result in financial losses.
Despite the precautionary measures taken by businesses, security breaches take place as hackers come up with new ways to execute their plans.
Cyber insurance could reduce financial risks associated with performing business online. The segment is fast becoming a necessity, given the ever increasing cybersecurity threats. Therefore, it is advisable to keep some cyber insurance stocks in your watch list.
Before we move to the stocks, let’s take a look at why cyber insurance industry is set to thrive in the years ahead.
Cyber Crimes on the Rise
Apart from Facebook, Expedia’s (EXPE – Free Report) Orbitz and Under Armour’s (UAA – Free Report) MyFitnessPal app were also victims of cyber attacks earlier this year.
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