Can you believe that data can make you a millionaire?
If you look into the capital value of Facebook and Twitter, their rising stock value clearly casts its reflection on their revenues. The former social handle made 25 times more dollars than projections. On the other hand, the latter micro-blogging site yielded almost twice the expected revenue, according to an article on snuff.co.nz.
How do firms pull out revenue from data?
These are one of the prominent data resources. They are the most useful and attractive handles for the online users. While capitalizing on their data mining of the personal data & promotional adverts, these networks feed millions of dollars into their financial metrics. But, this golden phase was terminated.
Like legitimate firms, hackers crunch data to make money out of them. Amid eminent data-crunchers, Facebook and Google are the forerunners. They collect, analyze sell the gold-like data chunks pertaining to the goal of a particular organization.
But, compromised data penalized FB. Consequently, its market capitalization value dived above $120 billion during the end of July, 2018. Twitter’s shares also plummeted. Consequently, it registered 15.5 percent loss in its market value. It simply was an outcome of tragic violation of right to data privacy. The Cambridge Analytica (CA) case brought FB’s Mark Zuckerberg under scanner of the US data security council.
Booming Cyber Security Exchange Traded Fund
Amid digitization, the organizations in multiple domains have showed their concern on the data security. Its result directly boosted the revenue of the cyber security companies. Also, the threat of hacking is on the surge. So, it was an obvious boom in the market value of a popular ETF (Exchange Traded Fund). It raised by almost 20%. Palo Alto Networks and Qualys are the key contributors that added massively in the cyber security ETF. Together, their contribution is 40% in all during 2018, according to the investing.com.
How do cyber criminals hack data?
The concern of cyber security is on a rise along with the steady soaring of hacker’s malicious attempts. Equinox, Yahoo, Ticketmaster UK and Adidas are among the best known victims of the cybercrime. While breaching their security, the cyber spies broke into their users account. Their motto was to steal their usernames, emails ids, and passwords. Subsequently, they pulled out millions to billions of dollars by deploying software. This software put in their credentials to the banks online or financial institutions to unlock and rob them up.
What do hackers do to data?
The expert hackers pulled out extortion amount in the form of bitcoins so that no one could nab them ever. Ransomware, like wannacry, spares a little to no choice for re-gaining an access to their datasets. It massively generates the need of the effective security software. Thereby, opting for the encryption of data has become a need of the hour. Still, some reputed firms stay mum to avoid stigma to their market reputation.
How does a government control such data breaches?
But now, it’s a punishable offence to pay off ransom without revealing the hacking incident to the data subjects. The European Union has introduced the GDPR (General Data Protection Regulation) directives to secure the rights of the users. The firms would have to inform the data subjects about the hacking within 72 hours of the offence occurrence. The incident must be reported for initializing the detection program by the cyber cell.
In case, they fail to inform within requisite time, they shall have to pay a fat share out of their net profit. It’s a penalty to impose a stiff fine on the data vendors and firm owners. Also, they could be put behind the bar. However, it squarely depends on the quantum of the cybercrime.
Although these directives are mandatorily launched in the Europe, yet many big players of data and technology in Asia have also introduced the proximal norms of data security.
Mark Zuckerberg Invests in Data Security:
A few months ago when the CA scam surfaced the headlines, FB’s CEO Zuckerberg was alleged for mishandling the data. It was last year when he announced to double its security staff. To sail across cyber threats, it was essential. But, he failed to fulfill his commitment. As a result, the watchdog of data protection probed him. He declaimed that it was solely his fault.
In a closure, it’s mandatory to bet on data protection. It’s the most favourable source of earning bread and butter for industries, like eCommerce, transport and finance etc.. To gain lucrative, enterprises are ready to invest in the tech security funds. Thereby, their stocks are skyrocketing in terms of revenue. Its outcome can be seen through the spike in their market capital value in NASDAQ.