Why Some Small Businesses Love Hack Attacks

Inc. | Oct 7, 2014

For Aaron Lee, problems with his JP Morgan Chase business bank account started in mid-September, just a few weeks before the nation’s largest bank announced to the world that information related to 80 million of its consumer accounts and 7 million business accounts had been hacked.

A number of Silicon Valley startups are working on solutions, including some that have developed behavioral analytics tools that can crunch big data to do things like identify normal worker behavior, and flag abnormal activity that could be related to a security breach.

In fact, many of the people who start these new companies hail from federal entities such as the National Security Agency and Central Intelligence Agency, says Ray Rothrock, a venture capitalist who jumped ship from Venrock Ventures to run security company RedSeal Networks in February.