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Photo: Jaap Arriens/NurPhoto via Getty Images

Area 1 Security, a California-based anti-phishing cybersecurity firm, announced Tuesday it is introducing a "pay-per-phish" model under which customers only pay when Area 1 actually foils a phishing attempt. Each caught phish — a seemingly innocuous email that contains malicious software or attachments — will cost the customer $10.

The big picture: This year, global spending on cybersecurity products is expected to reach $114 billion, a 12.4% increase over last year, per Gartner, but companies are not seeing results from their investment. The pay-per-phish model tries to change the security market's incentives by structuring rates around outcomes.

Why it matters: Area 1 CEO Oren Falkowitz tells Axios he fears companies frustrated by security programs with high price tags and poor results could simply drop their guard, degrading collective security.

Driving the market: Many cybersecurity solutions charge blanket fees for protection even if they can't guarantee a better cybersecurity posture. Area 1's bet is that their model will encourage constant product improvement and increase its customers' confidence.

What's next: It remains to be seen if this business model is sustainable and whether other companies will follow suit.

By the numbers:

  • There were 264,483 email phishing attempts in the second quarter of this year reported to the Anti-Phishing Working Group, compared with 53,081 reported to the group just 5 years ago.
  • The $10 charge is per individual email that Area 1 manages to quarantine before it lands in a user's inbox.
  • But there's a limit to the payout: If one company is hit with a wave of phishing attempts that Area 1 successfully blocks, $10 per phish might become prohibitively expensive. As a result, Area 1 has placed a cap on payouts, Falkowitz says. This could make a difference in a worst case scenario.

Go deeper

Broncos and 49ers the latest NFL teams impacted by coronavirus crisis

From left, Denver Broncos quarterbacks Drew Lock, Brett Rypien and Jeff Driskel during an August training session at UCHealth Training Center in Englewood, Colorado. Photo: Justin Edmonds/Getty Images

The COVID-19 pandemic has thrown the NFL season into chaos, with all Denver Broncos quarterbacks sidelined, the San Francisco 49ers left without a home or practice ground and much of the Baltimore Ravens team unavailable, per AP.

Driving the news: The Broncos confirmed in a statement Saturday night that quarterbacks Drew Lock, Brett Rypien and Blake Bortles were identified as "high-risk COVID-19 close contacts" and will follow the NFL's mandatory five-day quarantine, making them ineligible for Sunday's game against New Orleans.

Updated 11 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: WHO: AstraZeneca vaccine must be evaluated on "more than a press release."
  2. Politics: McConnell temporarily halts in-person lunches for GOP caucus.
  3. Economy: Safety nets to disappear in DecemberAmazon hires 1,400 workers a day throughout pandemic.
  4. Education: U.S. public school enrollment drops as pandemic persists.
  5. Cities: Surge in cases forces San Francisco to impose curfew — Los Angeles County issues stay-at-home order, limits gatherings.
  6. Sports: NFL bans in-person team activities Monday, Tuesday due to COVID-19 surge — NBA announces new coronavirus protocols.
  7. World: London police arrest more than 150 during anti-lockdown protests — Thailand, Philippines sign deal with AstraZeneca for vaccine.

Tony Hsieh, longtime Zappos CEO, dies at 46

Tony Hsieh. Photo: FilmMagic/FilmMagic

Tony Hsieh, the longtime ex-chief executive of Zappos, died on Friday after being injured in a house fire, his lawyer told the Las Vegas Review-Journal. He was 46.

The big picture: Hsieh was known for his unique approach to management, and following the 2008 recession his ongoing investment and efforts to revitalize the downtown Las Vegas area.