American companies welcome next year’s budget for Cyber security. Massachusetts cyber security firms applauded President Barack Obama proposed $14 billion allocation toward cybersecurity initiatives in his 2016 budget. If approved, the federal government would spend more money on intrusion detection and prevention capabilities, as well as on cyber offensive measures.
Waltham-based defense contractor Raytheon, whose government clients already use the firm for its cybersecurity capabilities and expertise, believes the cybersecurity industry is expected to grow even faster in the coming years.
A study by technology research firm Gartner, predicts that by 2020, 75 percent of large-scale companies’ security budgets will be allocated to cyber-related rapid detection and response approaches. “Given the confluence of knowledge and entrepreneurship in the region around Big Data, Internet of Things, and security, Massachusetts companies are poised to be major leaders in solving security challenges and likely suppliers to government security programs.” This, according to Jen Ellis, senior director of public affairs for Boston-based IT security company Rapid7.
According to HomeLand Security News Wire, recent stories of hacks against U.S. private sector firms have led the federal government to increase its efforts to protect consumer information. “These days, you can’t turn on the TV or scan your news feed without hearing about another breach causing huge losses of personal information, including credit card data and passwords,” a government source is quoted as saying.
Credit card Chip
Government efforts to improve credit card security include the mandate that government-issued credit cards will have a chip built into them for better security against fraud. The current cards with a magnetic stripe will be phased out. “The chip by itself will dramatically reduce counterfeit fraud, which is the most predominant fraud type today,” said Oliver Manahan, MasterCard’s vice president of emerging payments.