Yesterday, cybersecurity startup Area 1 announced a first-of-its-kind ‘pay-per-phish’ pricing model after it closed a $32m funding round.
As cybercrime increases, well-funded cybersecurity startups are popping up left and right — but their clients are proving more difficult to reel in.
The problem of phishing, or stealing personal digital information — not to be confused with ‘fishing’ (removing marine creatures from water) or ‘Phish-ing’ (following a jam band across the country) — costs American businesses $500m+ per year.
And, though it’s expected to bring in $114B this year, it seems the cyber-security industry has outpaced consumer need — pulling in a 100% increase in funding despite just a 12.4% increase in client spending.
High, flat-rate fees for cybersecurity services scare off many clients who are uncertain that cybersecurity systems even work (thanks for ruining it for everyone, MacKeeper).
But, Area 1’s ‘pay-per-phish’ model charges $10 for every phish caught, eliminating both skepticism about cybersecurity’s effectiveness and confusion about its price.
Today, only Area 1 offers phish a la carte. But with phishing on the rise, competitors will likely adjust to phishing’s new market price.