By Maurice Stouse, Branch Manager and Financial Advisor
Many investors today worry about identity theft, which can mean the loss of some or, all of their assets. Identity theft is often reported to the work of a known attacker, making defense that much more difficult. It is more difficult because the known attacker might be a friend, associate or relative or family member.
What about cyber security? While you hear the term often, there does not seem to be a lot of substance provided. Just what is it and what does it mean? Should investors look to just be aware or look to cybersecurity as another area for investment?
Many people today are growing in their concern over the security for the very devices they rely so heavily upon in their everyday lives. Every time someone turns on his or her phone or logs in to a computer, the person is potentially exposed, we are told. Malware is the general term used for all sorts of malicious software that can attach to your computer or phone. There is a variety of types which include those with names like ransomware, adware, crypto ware, scareware and logic bomb.
It seems to be a repeat of an age-old pursuit: to hold something up and in this case the efforts and treasure of the user of a computer device. Ransomware has grown, and it is quite simply a program that encrypts or locks up your files until a ransom can be collected. Businesses and governments are increasingly at risk as they are bombarded daily with threats to their systems.
This is not only a national and international threat, but one that investors, for protection as well as opportunity, might take note of. The Department of Homeland Security is hard at work protecting the internet and preventing cybercrime. In 2018, the Cybersecurity and Infrastructure Agency Act was signed into law. According to a DHS release: “CISA builds the national capacity to defend against cyberattacks and works with the federal government to provide cybersecurity tools, incident response services and assessment capabilities to safeguard the ‘gov’ networks that support the essential operations of partner departments and agencies.”
Many colleges and universities today offer courses in cyber security and some offer a degree in the discipline. It is also considered a fast-growing career opportunity. The U.S. Department of Defense has also given cybersecurity much attention, not only in education, but also in training as well.
Extra caution is usually suggested for most folks in that they should consistently back up their files and, as an added measure, periodically print out copies of needed files.
Investors today can find opportunities to invest in cybersecurity in a variety of ways. There are companies that specialize in it and there are also exchange traded funds that focus on companies that specialize in cyber security. This is what is known as a growth opportunity and of course comes with commensurate risk.
Find out more about cyber security by visiting with an advisor or conducting your own research and see if this can play a part in your investment portfolio.
Maurice Stouse is a Financial Advisor and the branch manager of The First Wealth Management and Raymond James and he resides in Grayton Beach. He has been in financial services for over 32 years. His main office is located at First Florida Bank, a division of The First Bank, ANBA, 2000 98 Palms Blvd, Destin, FL 32451. Branch offices in Niceville, Mary Esther, Miramar Beach, Freeport and Panama City. Phone 850.654.8124. Raymond James advisors do not offer tax advice. Please see your tax professionals. Email: Maurice.stouse@raymondjames.com.
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