Equifax Data Breach Reveals CyberSec ETFs Opportunity

In a digitized age, concerns over data protection or ways to shield against something like the massive Equifax data breach could fuel growth for cybersecurity firms and related ETFs. On Friday, the ETFMG Prime Cyber Security ETF (HACK) was up 0.4% and the First Trust Nasdaq Cybersecurity ETF (CIBR) was 0.3% higher as investors turned to cybersecurity stocks in the wake of the Equifax snafu. The consumer credit score provider was involved in a data breach in which hackers may have stolen personal details of up to 143 million Americans, which was among the largest hacks ever recorded, Reuters reports. Equifax (EFX) shares plunged 13.7% in response to the news that names, social security numbers, birthdays, addresses and driver’s license numbers of almost half the U.S. population was compromised. ”Another day, another dumpster fire in cyber security,” Ryan Kalember, senior vice president of the cyber security firm Proofpoint, told Reuters. Related: What’s up With The Kind of New Cybersecurity ETF A string of big hacks have been making headline news, such as those disclosed by Yahoo last year that affected a billion and half a billion accounts. "The motives for hacking can be very different with each incident, but tend to be concentrated on disruption or financial gain," Kris Monaco, managing partner at Level ETF Venture, the index provider for HACK, said in an emailed note. "Credit card and personal data are the lifeblood of every hacking scheme, so criminals were obviously focusing on a rich target like Equifax. However, the recent reports regarding hackers penetrating US energy companies show that it may not always be about money. As every aspect of our lives continues to become digitized in some way, every device will become a target and every data point will become a prize." Monaco was referring to the recent event where hackers gained direct access to U.S. power grid controls and obtained the ability to induce blackouts in America at will, Wired reports. For more information on the tech sector, visit our technology category . Read more on ETFtrends.com