National security needs boost sales of encryption products

Hacker and e-terrorist attacks are propelling sales of network encryption devices as the Internet increasingly becomes a target of cybervillains, according to a research report released Tuesday by the consulting company Frost & Sullivan.

With the amount of classified information being transmitted via electronic networks on the rise, agencies like the National Security Agency and international bodies such as NATO are increasing network defense spending and modernizing equipment to ensure the privacy of their information, according to the study.

The military in particular is showing an increased interest in wireless encryption.

"Corporate espionage is an ever-present threat, and defense contractors require quality encryption for sensitive information," analyst Brooks Lieske said in a press release. "The 'better safe than sorry' perspective will have a very positive influence on demand."

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