Cyber security is generally an extension of the traditional information technology (IT) security that is aimed at protecting systems, applications and data that exposed to a variety of forms of attack via the internet, ranging from data theft and espionage to corruption of data and denial of service attacks. There is a need for an increase in cyber security research due to losses from sabotage being experienced by nations, businesses and individuals from various cybercrime attacks. This paper takes a look at the applications digital watermarking to the process of protection in cyber space called cyber watermarking particularly focusing on theft of information (identity & credit card theft).The methodology of the research is through literature search and case study. The rest of the paper presents a brief overview of the digital watermarking and issues in cyber security.