What Apple has Done for Cybersecurity Awareness

Cyber Security Investing
Security Investing

Apple’s standoff with the FBI over privacy has increased cybersecurity awareness.

Apple (NASDAQ:AAPL) and the FBI are at loggerheads this week over the FBI’s request to access the iPhone of San Bernardino shooter Syed Farook. The standstill is representative of the tension between personal privacy and security, and highlights several issues in the cybersecurity market today. 
Last Tuesday, Apple CEO Tim Cook released a public letter explaining the company’s hesitance to comply with the FBI’s request to gain access to Farook’s iPhone. He said, “we have worked hard to support the government’s efforts to solve this horrible crime. We have no sympathy for terrorists.” He then went on to outline the various ways that Apple has complied with FBI requests: the company recognizes valid subpoenas, search warrants and requests for available data.
However, according to Cook, the FBI’s latest request is substantially different in nature than these previous requests. The Guardian explains that the FBI is operating under the All Writs Act, a 227-year old law that compels third parties to assist authorities in their investigations. It is usually a measure of last resort, and Apple is arguing that the FBI is misusing this legislation.
Cook said in his letter, “the U.S. government has asked us for something we simply do not have, and something we consider too dangerous to create. They have asked us to build a backdoor to the iPhone.” Essentially, the government is requesting a new version of the iPhone operating system that circumvents several important security features in order to access iPhone content. In the wrong hands, said Cook, that could be very dangerous indeed.


Put simply: “while the government may argue that its use would be limited to [the San Bernardino case], there is no way to guarantee such control.” Thus, the question of cybersecurity has been brought to the fore. With so much potentially sensitive data at stake, where should the line be drawn between personal privacy and national security?

Issue of data security

In his letter, Cook notes that iPhone users store an incredible amount of personal data on their phones — from photographs and music to financial and health information. This information needs to be safeguarded against cyber attacks. He states that “customers expect Apple and other technology companies to do everything in our power to protect their personal information, and at Apple we are deeply committed to safeguarding their data.” Currently, the company encrypts customers’ data to protect their information. Indeed, not even Apple can gain access to this data.
However, if the company concedes to the All Writs Act and offers a way to unlock the iPhone, the government “would have the power to reach into anyone’s device to capture their data. The government could extend this breach of privacy and demand that Apple build surveillance software to intercept your messages, access your health records or financial data, track your location, or even access your phone’s microphone or camera without your knowledge.” Therefore, the case for personal data security appears very compelling. The other side, however, is the idea of national security, which brings its own weight to the conversation.

Increasing cybersecurity awareness

What is made most clear in this debate is the importance of cybersecurity in the modern world. These struggles between data privacy and security are becoming more and more common. In fact, Apple counsel Marc Zwillinger has said that the US Department of Justice has sought access to iPhones under the All Writs Act at least 11 times in the last six months. The frequency of these requests indicates that everyday citizens and formal organizations alike need to take steps to project their privacy and security.


Since Apple released its open letter, the PureFunds ISE Cyber Security ETF (ARCA:HACK) has gone up by more than 7.5 percent. Meanwhile, other prominent cybersecurity stocks have also seen growth over the past week — FireEye (NASDAQ:FEYE), one of the most prominent public cybersecurity companies, saw 28.17-percent growth over the same period. TSX Venture-listed Oculus VisionTech (TSXV:OVT) was also a significant gainer last week, with 37.25-percent growth since the release of Cook’s letter.
Companies big and small are clearly seeing a response from the Apple-FBI struggle. Cybersecurity awareness has skyrocketed in response to this standstill, and cyber investors are profiting from this renewed attention.
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Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.
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