Watch for an increasing trend in the portion of venture capital financing being allocated to these types of companies by private venture capital firms and governmental intelligence agencies.
Cybercrime, including sensitive data theft, IT systems security breaches, firewall penetration, backdoor computer comandeering (for espionage -- secret monitoring -- and for robotic enslavement of computers and entire networks), and identity theft all continue to rise in terms of incident frequency and severity of damage per incident on average. This is attributable to:
1) an increase in personal and business computer reliance and e-commerce, with the use of passwords, recorded credit and personal information on visited sites and;
2) a corresponding rise in the level of technological savvy (on the part of hackers, crackers, skimmers, phishers and other cyber-trained individuals and organizations internationally);
3) an increase in the access to sensitive data on a large scale by corruptible financial executives and their administrative staffs (in the private sector) and by certain computer technicians, programmers, developers and other experts (in the public sector);
4) an improved and broadened aftermarket for the ready purchase and sale of sensitive data and stores of personal financial information;
5) a perceived increase in the 'quick turn' profitability of these "black hat" activities in a difficult economy; and
6) a perceived decrease in the likelihood of being found, prosecuted and punished for the commission of these activities, though improved 'cloaking' techniques, IP routing techniques, and multi-jurisdictional organizational configurations, making enforcement more challenging due to various treaties, differences in the laws, and a lack of coordination and cooperation in any truly collaborative effort on the part of all nations.
Small businesses, healthcare providers, and governmental data respositories are the primary targets of these increasingly aggressive attacks. The ultimate victims tend to be the individuals whose identities and sensitive data are stolen and used for the commission of secondary crimes. The beneficiaries of these criminal activities are the thieves and invaders, as well as the secondary users of the stolen data.
Timeframe: Expect a dramatic increase in media coverage, advertising and investment in applied biometrics companies, many of which are currently private and closely-held, but which may be acquirable by larger, cash-rich firms, or which may be very attractive, timely candidates for Initial Public Offerings (IPOs), during the next 24 months. Regardless of the vagaries of the capital markets, these companies may be very good strategic portfolio choices.
Action: Start identifying and tracking the emergence (progress) of these applied biometrics firms immediately. Expect a great deal of activity, and, hopefully, opportunity.
Douglas E Castle
http://Links4Life.com
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