Overnight Cybersecurity: Cyber boom hits Wall Street

Cyber boom hits Wall Street March 9, 2015 By Cory Bennett and Elise Viebeck Welcome to OVERNIGHT CYBERSECURITY, your daily rundown of the biggest news in the world of hacking and data privacy. We're here to connect the dots as leaders in government, policy and industry wrap their arms around cyberthreats. What lies ahead for Congress, the administration and the latest company under siege? Whether you're a consumer, a techie or a D.C. lifer, we're here to give you ... THE BIG STORIES: --CYBER BOOM HITS WALL STREET: Intensifying concerns about cybersecurity are fueling major gains on Wall Street for technology firms that diagnose and protect against corporate hacks. Security companies such as CyberArk, Palo Alto Networks and FireEye are seeing their stock values rise, as nervous corporate executives seek advice and software that will protect them against data breaches. This rapidly expanding area of the tech world is poised to reach new heights this year, with global spending on cybersecurity projected to rise to $77 billion. "I think cyber is a once-in-a-multi-decade investment opportunity because you only have about 8 percent of enterprises and governments worldwide that have upgraded to next-generation security," said Daniel Ives, an analyst with FBR Capital Markets. For the rest of the story, check back at The Hill tomorrow morning. --WHITE HOUSE WANTS MORE WHITE HAT HACKERS: A White House tech jobs training initiative announced Monday will focus on filling the thousands of vacant cybersecurity jobs across the country. The TechHire initiative, which includes a $100 million grant program, aims to fill tech jobs more broadly. But the administration said it identified "cybersecurity in particular as an emerging area of growth." Indeed, studies show demand for cybersecurity professionals is growing at a rate more than three times faster than demand for other information technology jobs. Companies and government agencies frequently cite a shortage of available cybersecurity hires as a main barrier to defending their networks. To read our full piece, click here. --THE RISE OF ISRAEL'S CYBER MARKET: PayPal's reported $60 million purchase of Israeli cybersecurity firm CyActive is the latest example of the growing influence of the Israeli cyber market on the U.S. The number of Israeli cyber firms has exploded in recent years. "I wouldn't be lying if I said I saw two new cybersecurity startups a week," said Israeli-based venture capitalist Adam Fisher of Bessemer Venture Partners. In total, there are over 200 locally-launched cyber startups in Israel, a country with just over 8 million citizens. But it's hard to keep track because of industry's brisk growth, Fisher said. Israel has quickly become the world's second largest exporter of cyber products, generating roughly $3 billion in 2013 exports. To read our full piece, click here. --EMAIL SECURITY AND 2016: In recent weeks, the early frontrunners from each party -- former secretary of State Hillary Clinton (D) and former Florida Gov. Jeb Bush (R) -- have displayed a lack of awareness of standard email security and privacy procedures. "People just don't even think about it," said Darren Hayes, a digital forensics and computer security expert at Pace University. "It's hard to think of a case where somebody got it right." Once Bush and Clinton officially declare their expected presidential campaigns, both will almost certainly set up new private email services, raising questions about whether the government should be providing digital security to presidential candidates before they reach the White House. To read our full piece, click here. UPDATE ON CYBER POLICY: THERE'S STILL NO WORD on the expected markup this week of the Senate Intelligence Committee's cybersecurity bill. Observers thought the measure, which would increase cyber threat data sharing between the private sector and intelligence agencies, could have moved as early as Tuesday. That won't happen, but a markup later this week could still be in the works, sources told The Hill. Senate Intelligence Committee Ranking Member Dianne Feinstein (D-Calif.) told The Hill on Monday that the cyber bill remained the committee's top priority. "Our first effort is the cyber bill and that's occupied most of our time," she said. The bill's reception -- privacy advocates and the White House are opposed but industry is mostly on board -- will serve as a crucial test of whether lawmakers can actually pass the cyber info-sharing legislation they've been promising this year. LIGHTER CLICK: THINK HILLARY CLINTON went to great lengths to hide her emails? Then you haven't read up on the former U.S. ambassador to Kenya. Scott Gration, who resigned his post in 2012, would apparently work out of a bathroom in the U.S. embassy in Nairobi, Kenya, because it was the only place he could use an unsecured network and his personal computer to conduct business over a Gmail account. (Ars Technica) A LOOK AHEAD: --TUESDAY: The Armed Forces Communications and Electronics Association (AFCEA) will hold a two-day conference on homeland security issues. The event will include a keynote address by Deputy Homeland Security Secretary Alejandro Mayorkas, a roundtable of chief information officers from leading government agencies, and several panels on cybersecurity, infrastructure threats and the "Internet of Things." --WEDNESDAY: The Brookings Institution will host a book discussion on "The Future of Violence: Robots and Germs, Hackers and Drones". --THURSDAY: The Information Technology and Innovation Foundation (ITIF) will host a panel of experts to discuss the debate over technological backdoors and what it means for consumers, the tech industry and law enforcement. The event is titled Crypto Wars 2.0: Has the United States Abandoned the Policy of "Secure by Design"? --FRIDAY: At a Council on Foreign Relations (CFR) event, CIA Director John Brennan will discuss the spy agency's historic shake-up that will bring more focus on cyber espionage. HEARD AROUND TOWN: Advocates for chip-and-pin technology are launching a new effort to inform consumers about the advantages of using the system for point-of-sale purchases. Consumer Policy Solutions, which is behind the campaign, hopes to bring chip-and-pin to the center of data security discussions and convince banks and card issuers to embrace the technology. "Congressional recognition of chip and PIN by champions such as Senator Amy Klobuchar [D-Minn.] and Senator Mark Warner [D-Va.] and through the planned 'Cyber Week' in March brings us one step closer to institutionalizing these protections once and for all," Consumer Policy Solutions President Debra Berlyn said in a statement. The campaign is centered on a new website -- ProtectMyData.org. IN CASE YOU MISSED IT: Links from our blog, The Hill, and around the Web. Hackers claiming affiliation with the Islamic State in Iraq and Syria (ISIS) this weekend infiltrated a series of disparate and odd small businesses -- a racetrack, a Goodwill center and a cocktail bar. (The Hill) Developers behind the online anonymity software Tor are trying to move away from U.S. government funding. (The Hill) Egyptian cyber surveillance has actually gotten more intrusive and oppressive since the country's populist uprising during the Arab Spring. (The Intercept) The movement to let companies strike back against hackers is growing, but many warn it sets a dangerous precedent and could be politically destabilizing. (The Guardian) Security guru Bruce Schneier's latest: "We can't easily tell the difference between a couple of guys in a basement apartment and the North Korean government with an estimated $10 billion military budget. And that ambiguity has profound implications for how countries will conduct foreign policy in the Internet age." (Schneier on Security) John Carlin, head of the Justice Department's National Security Division, lays out the DOJ's strategy to making hacking not worth it. (Christian Science Monitor) Chinese Foreign Minister Wang Yi on Sunday: "Both China and the U.S. are big countries on the Internet, and have common interests on cybersecurity issues. I hope cyberspace can become a new area in which China and the U.S. can work together, not a new source of friction." (China Daily) INYMI: The PlayStation Network, the victim of several recent cyberattacks, is hit "literally every day," by hackers, said Sony president of worldwide studios Shuhei Yoshida. (Game Informer) We’ll be working to stay on top of these and other stories throughout the week, so check The Hill’s cybersecurity page early and often for the latest. And send any comments, complaints or cyber news tips our way, viacbennett@thehill.com or eviebeck@thehill.com. And follow us at@cory_bennett and @eliseviebeck. 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