Apple Inc. (AAPL), JPMorgan Chase & Co. (JPM): A Spec Play in the Rising Cyber Security Market

Page 1 of 2

Cyber security is being discussed by many, including politicians in Washington. An executive order was issued in February by President Obama, that directs development of “voluntary cyber standards for privately-held assets considered critical to national security” by our government, according to Bloomberg.

The Department of Homeland Security is set to investigate which industries will be subject to the executive order. Obvious no-brainers would be banking and telecommunications, as well as technology companies. Cyber attacks seem to be increasing as well, with Virginia Democrat Mark Warner elaborating that, “There’s more and more recognition, industry by industry, that the sheer volume of threats can’t be hidden anymore.”

The banks

Numerous banks around the nation have already experienced cyber attacks. The latest bank to experience a pesky cyber attack was JPMorgan Chase & Co. (NYSE:JPM), where a denial-of-service attack prevented access to some customers from their main banking site. While this disruption was more of an annoyance than a major problem, JPMorgan Chase & Co. (NYSE:JPM) has also warned investors that cyber attacks may become more frequent.

JPMorgan Chase & Co. (JPM)

Wells Fargo & Co (NYSE:WFC) knows what it’s like. Their site experienced problems caused by hackers for four days in December. Other banks, such as U.S. Bancorp (NYSE:USB) and Bank of America Corp (NYSE:BAC), have been attacked in a similar fashion as well. Apparently JPMorgan Chase & Co. (NYSE:JPM) was the first on a list of nine banks in a new string of attacks, linked to an Islamic terrorist group, Izz ad-Din al-Qassam. Even the Federal Reserve has been under cyber attack.

Tech companies

Tech companies are being targeted more frequently as well. Apple Inc. (NASDAQ:AAPL) fell victim to attacks back in February. The hackers apparently hacked some employees’ Mac computers when these employees visited a website for software developers. This website was infected with Malware, designed specifically to attack Macs, and it infected the Mac computers by exploiting a flaw in Java software used as a plug-in on Web browsers.

Apple Inc. (NADSAQ:AAPL)

Courtesy: Apple Inc. (NASDAQ:AAPL) Press Info

This same malicious software was apparently also responsible for hacking Facebook Inc (NASDAQ:FB) as well. The shift from hackers focusing strictly on PCs and moving to Macs also may take away some of Apple’s security image, as Apple Inc. (NASDAQ:AAPL) security expert Charlie Miller explained that (in reference to the Mac OS X Operating system), “The only thing that was making it safe before is that nobody bothered to attack it. That goes away if somebody bothers to attack it.”

How to invest

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!