This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Upside Potential With Cybersecurity Stocks

NEW YORK ( TheStreet) -- The ever-changing world of cybersecurity seems to only receive much publicity after a huge database has been hacked and millions of account numbers have been stolen.

It makes our blood run cold to be reminded that our identity and our most personal financial information can be "served up" by those who know how to steal from trusted online sources.

I'm going on record right here and right now: This is an enormous investment opportunity that few analysts and even fewer investors seem to be excited about.

As a result, this will be the first of two articles that will explore this topic and "serve up" some potentially lucrative investment ideas. Yes, I'll be naming names and highlighting the companies that have, in my opinion, the best upside potential.

At the close of the latest federal income-tax reporting year we had yet another shocking example of how seriously we have the take this ongoing threat. A fraud of immense proportions was executed in cyberspace by a group of identity thieves who targeted the storage servers of none other than the Internal Revenue Service.

According to an article at Investment U a full-blown cyberscam has shocked taxpayers and apparently the Treasury department. The article reported the following details:

"The scammers electronically file a false tax return with an ill-gotten, legitimate Social Security number, filing before the actual taxpayer and claiming a refund. When the real taxpayer submits his return electronically, he is then notified the return cannot be filed because there has been another return already submitted with the same Social Security number."

If that doesn't make you cringe, read on.

"Scared yet? Sounds like a pretty intricate techno-savvy scheme, doesn't it? Guess again. The Social Security numbers are typically purchased from someone with legitimate access to valid numbers. There's little that's high-tech about it -- it's just your basic lack of integrity with personal information. Once a valid Social Security number and name are acquired, the e-filing is fairly straightforward."

It speaks to the need to even screen tax-filings using cybersecurity filters that may require special PINs and Usernames to protect us.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MANT $33.49 0.75%
SYMC $19.58 0.41%
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs