Tech security spending to rise in wake of attacks

Big companies and government agencies likely will have to rethink their approach to tech security in the wake of the disbanding of hacktivist group LulzSec, security analysts say.

Spending on information technology security already is growing faster than spending on general technology. And corporate and government tech buyers will have to dole out even more to defend against profit-minded cyberthieves and spies looking to swipe state and corporate secrets.

In fact, global spending on security products and services is expected to reach $71 billion by 2014, up from $55 billion today, according to Lawrence Pingree, research director for Gartner.

The recent hacking escapades of LulzSec underscore how hacktivists, motivated by the desire to express an ideology, have shaped a new kind of threat that's gaining steam.

• STORY: Businesses, governments, people caught in hacker crossfire

• STORY: LulzSec says it's disbanding

"We're seeing loose communities of like-mind people combine their abilities and harness the power of crowds," says Jonthan Penn, strategy analyst at Forrester Research. "This is the dark side of the same kinds of things we're seeing support the popular uprising in the Middle East."

Saturday, LulzSec cut short cyberattacks that included a burst of hacks following the June 21 arrest of 19-year-old Ryan Cleary of Essex, England, accused of operating the group's communications server.

Over a 50-day period the gang disrupted websites and stole data from the likes Sony, PBS and Fox and Nintendo as well as agencies ranging from the FBI and CIA to the Brazilian government and Arizona Department of Public Safety. Then as abruptly as it arrived, LulzSec closed up shop."LulzSec disintegrated because they are afraid," says Luis Corrons, research director of PandaLabs. "This case is really important for law enforcement agencies, as they cannot afford to have criminals running free after so much damage has been done."

If captured and convicted, LulzSec members likely will face stiff sentences, says Josh Shaul, chief technology officer of Application Security. But members appear to be dispersed around the globe, making jurisdiction complex. "It is difficult to pinpoint a single person or group of individuals who may be responsible," says John D'Arcy, information technology professor at University of Notre Dame.

Whatever happens, LulzSec is expected to help tech security suppliers gain a more sympathetic ear from prospective customers. Penn says LulzSec's spree heightens the concerns raised by the celebrated case of U.S. Army Private Bradley Manning, who is being prosecuted for releasing Pentagon and U.S. embassy documents to the anti-secrecy group, Wikileaks.

Security companies remind tech buyers that in addition to new hardware and software, they need to be "educated on the potential repercussions of a data breach," says Pat Clawson, CEO of security firm Lumension. "Without education, we will never gain any ground."