Get All Access for $5/mo

Why Competitors Should Collaborate More on Cyber Security Issues More companies should follow the lead of a financial industry consortium that shares information to avoid security risks.

By Eric Basu Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

A decade or so ago firms would not disclose any cyber attacks unless compelled to by regulations for fear of decreasing their stock prices and spooking customers all the way to their rivals.

This type of an approach winds up doing far more harm than good as the pervasiveness and frequency of attacks continue to be commonplace. Just ask players in the retail sector where leaders like Target, Home Depot and TJ Maxx fell victim to very high-profile breaches.

Related: NSA Chief Warns Chinese Cyber Attacks Could Shut U.S. Infrastructure

What's more, these activities aren't limited to just the big fellows. Every organization is vulnerable to an attack. Some firms believe themselves to be too small to be viewed as worthy of effort by a virtual thief. The opposite is quite true. Smaller companies are often easier targets.

Thankfully, the idea of sharing best practices amongst rivals is becoming far more openly accepted. Doing so will bring about a united environment where everyone, including competitors, will join forces and resources to thwart the growing, sophisticated networks of professional cyber criminals. The ability to share information is key to mitigating "zero day" attacks, custom-developed or newly discovered exploits that have no available security defenses.

One great example of this trend happened just last week, when Soltra, a new cyber security organization, was formed as a joint venture between two financial services groups to create a software program that shares information about security threats between more than 100 banks. This is akin to putting up quarantine stations that keep infected people from spreading a pandemic. It severely decreases the ability of the hackers to work undetected and steal massive amounts of information.

Related: 519 Million Reasons Why Your Financial Records Are in a Hacker's Hands

Other organizations have founded similar information-sharing repositories over the last five to eight years. These platforms typically have the following characteristics:

Access is very securely controlled and limited to only "need to know" people.

Sometimes access is prohibited. The only access allowed is in person at a terminal.

Access is limited to an industry group or subgroup with similar threats and business concerns regarding hackers.

The security of these systems themselves is key. Imagine if a hacker entered into a system and were able to determine all the flaws that had previously been discovered. It could shave man years of time off the hacker's quest to find another way in.

It's difficult to stay ahead of the constantly evolving cyber threats in today's world. Hackers are often more cunning and resourceful than the efforts applied to stop them. Effectively countering this pandemic will come about when industry players -- competitors and partners alike -- share data and solutions to the benefit of all.

The resulting counterforce will leverage decades of expertise in a strategic and focused commitment to reversing the exponential trend of damaging cyber attacks.

For the future I see more and more of these islands of information sharing appearing to deal with the exponentially increasing threat.

Related: Is Your Company's Data Safe in the Cloud? (Infographic)

Eric Basu

CEO of Sentek Global

Eric Basu is the CEO of Sentek Global, a provider of government and commercial cybersecurity and information technology solutions. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

How to Close the Trust Gap Between You and Your Team — 5 Strategies for Leaders

Trust is tanking in your workplace. Here's how to fix it and become the boss your team needs to succeed.

Health & Wellness

Get a Year of Unlimited Yoga Class Downloads for Only $23 Through June 17

Regular exercise has been proven to increase energy and focus, both of which are valuable to entrepreneurs and well-known benefits of yoga.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Business News

'Passing By Wide Margins': Elon Musk Celebrates His 'Guaranteed Win' of the Highest Pay Package in U.S. Corporate History

Musk's Tesla pay package is almost 140 times higher than the annual pay of other high-performing CEOs.

Starting a Business

I Left the Corporate World to Start a Chicken Coop Business — Here Are 3 Valuable Lessons I Learned Along the Way

Board meetings were traded for barnyards as a thriving new venture hatched.

Business Culture

Why Remote Work Policies Are Good For the Environment

Remote work policies are crucial for ESG guidelines. Embracing remote work can positively impact your business and employees.