Cybersecurity investing offers investor gains–and Gen Digital will be continue to be a leader.

Here’s a look at cybersecurity threats–as they affect individual consumers–as well as a stock we think will let investors prosper in this expanding field.

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The stock is Gen Digital, symbol GEN on Nasdaq. But first, the basics of cybersecurity:

Cybersecurity is the practice of defending computers, servers, mobile devices, electronic systems, networks, and data from malicious attacks.

Notably, attacks are being launched with greater frequency and complexity, which will need to be matched by more sophisticated cyber defences.

As a result, there’s a strong opportunity for cybersecurity companies to grow.

For instance, electric vehicles (EVs) could attract new threats from computer hackers. Electric vehicles include an array of computer chips and software that control everything from their batteries and motors to cruise control and braking. They also are plugged into chargers almost daily, sending information back and forth over charging networks or the Internet. What’s more, they communicate wirelessly with the companies that made them, EV dealers, cellular and home Wi-Fi networks, and apps on their owners’ phones.

This combination of computing power and numerous online connections will present an attractive challenge of hackers as millions of EVs are projected to roll out over the next few years.

Meanwhile, here are today’s two main individual consumer threats:

Malware

Malware means malicious software. One of the most common cyber threats, malware is software that a cybercriminal or hacker has created to disrupt or damage a legitimate user’s computer.

Often spread via an unsolicited email attachment or legitimate-looking download, malware may be used by cybercriminals to make money or in politically motivated cyber-attacks.

There are several different types of malware:

• Viruses: Self-replicating programs that attach themselves to clean files and spread throughout a computer system, infecting files with malicious code.
• Trojans: A type of malware that is disguised as legitimate software. Cybercriminals trick users into uploading Trojans onto their computer where they cause damage or collect data.
• Spyware: A program that secretly records what a user does, so that cybercriminals can make use of this information. For example, spyware could capture credit card details.
• Ransomware: Malware which locks down a user’s files and data, with the threat of erasing it unless a ransom is paid.
• Adware: Advertising software that can be used to spread malware.
• Botnets: Networks of malware infected computers, which cybercriminals use to perform tasks online without the user’s permission.

Phishing

Phishing is when cybercriminals target victims with emails that appear to be from a legitimate company asking for sensitive information. Phishing attacks are often used to dupe people into handing over credit card data and other personal information.

Cybersecurity companies, for example, Gen Digital (GEN on Nasdaq) let investors directly tap rapidly growing consumer demand for protection from malware, phishing attacks via emails—and identity theft.

Investing in Consumer Cybersecurity: Gen Digital

Gen Digital, symbol GEN on Nasdaq, has been the new name of NortonLifeLock since November 2022.

The change follows NortonLifeLock’s September 2022 acquisition of European cybersecurity firm Avast plc for $8.1 billion. Avast, which was based in Prague but traded on the London Stock Exchange, primarily makes both free and premium security software for consumers such as desktop security, server and mobile-device protection.

Gen Digital now acts as the parent company for several security-related brands including Norton, LifeLock, and Avast, in addition to Avira, AVG, ReputationDefender and CCleaner, which were obtained in previous acquisitions.

Gen Digital is dually headquartered in Tempe, Arizona, and Prague, Czech Republic, following its acquisition of Avast. Its stated purpose is to “power Digital Freedom for people everywhere.”

Overall, the company now gets about 64% of its revenue from consumer security solutions such as Norton 360 Security, Avast Security offerings, Norton Secure VPN, Avira Security and other consumer-focused security services. The remaining 36% of revenues comes mostly from identity and information protection marketed as Norton 360 with LifeLock, LifeLock, and other privacy offerings.

All in all, Gen Digital lets investors directly tap rapidly growing consumer demand for protection from malware, phishing attacks via emails—and identity theft. Those two complementary offerings also help the company drive subscriber growth—and retain those subscribers— through bundling deals. Meantime, its AI initiatives are adding to the competitiveness of its products.

Gen Digital is a buy.

How do you see cybersecurity investing shaping the future of digital protection? Share your thoughts on the potential risks and rewards in this rapidly evolving sector.