As the advent of the Internet of Things (IoT) continues to increase data exponentially, cyber-attacks and data breaches persist at alarming rates and effectiveness.
These circumstances create a need that has fostered a booming business for contractors whose business services and products are designed to assist corporations with defending against hackers and nefarious intruders.
The recent data breach against Target stores resulted in customers’ credit and debit card information being stolen. According to reports, hackers who attacked the credit card payment system of Neiman Marcus belong to a sophisticated Russia-based organization that has been attacking more than 100 retailers over the course seven plus years. Attempts to shut down this criminal network have failed thus far.
Many defense companies who have been defending government computers from security threats are now expanding their business model to the private sector and tailoring their offerings to assist companies that need to protect confidential, proprietary digital data.
In fact, defense firms market themselves as being better equipped than other cybersecurity companies. The logic is that if you can help the U.S. government hack-in, you are equally qualified to prevent similar hacks from infiltrating your business.
The types of services offered to defend against hacking varies. Some companies sell software aimed at detecting malicious computer code and implementing antivirus programs. Others offer consulting services on preventing cyber-attacks in specific industries or markets.
Security analysts for traditional tech companies argue that it is unclear or otherwise unproven whether defense firms offer better protection than they do, but it is evident that defense firms are more expensive to retain. As a result, these defense firms are often only within reach of larger companies such as multi-national banks and conglomerates , while the commercial tech companies are used by more mainstream businesses.
One consideration for multinational companies is that the contractors’ cybersecurity programs may be so strong that the programs cannot be legally exported to certain countries.
Still, you can expect to see defense firms increasing their cybersecurity offerings and the overall industry of defending against hacking to steadily expand. And like most “new” things and offerings, price points are likely to be scaled over time and with increased competition to be more affordable.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
