Hacker Group Lulz Security Announces Disbandment; Are Your Stock Holdings Still Protected?

Activist hacker group Lulz Security announced its supposed disbandment on a file-sharing website this weekend, ending its 50-day cyber attack campaign. Throwing "a shout-out to all of our battlefleet members and supporters across the globe," the statement noted: "Thank you for sailing with us. The breeze is fresh and the sun is setting, so now we head for the horizon." Lulz Security has gained notoriety in recent months as its attacks have exposed corporations and governments to embarrassing lapses in data security. Sony SNE, among others, was hit particularly hard. Its online gaming network was brought down for weeks after a cyber attack exposed personal user data. In its statement, Lulz Security continued its record of taunting authorities. "For the past 50 days we've been disrupting and exposing corporations, governments, often the general population itself, and quite possibly everything in between, just because we could. All to selflessly entertain others — vanity, fame, recognition, all of these things are shadowed by our desire for that which we all love." The statement is a prime example of a hacker credo that isn't driven by financial motivation. These anonymous computer users conduct their attacks for the simple reason that they can. It's a game of cat and mouse, and exposing the opposition is an emerging form of attack for activist hackers. As the internet world digests the announcement, investors should be asking themselves whether their stock holdings are protected from future cyber attacks. While it's impossible to know where hackers will strike next, it's possible to protect hard-earned assets from a new security lapse. Here are a few bullet points to consider for your portfolio: 1. Explore diversification on a constant basis. While excessive asset movement (buying and selling new securities on a regular basis) is not encouraged, constantly examining your portfolio's exposure to one company is always important. Be careful not to overload on one particular security. 2. Always question your investment assumptions. Is a particular stock holding vulnerable because it has sensitive Intellectual Property? Does a company you own have a strong internet presence? 3. Is your stock a higher target? Some corporations are more susceptible to attack because they aren't liked. A poor track record or an unpopular corporate mission could make a company more likely to receive the wrong kind of interest. 4. Find new ways to profit off of the hacker movement. New technology and consulting companies are popping up to take advantage of the need for more computer security. Check out stocks that could see business growth from the fear of new attacks.