deloitte on technology No Such Thing as Hacker-proof Security breaches breakdown Top causes of data breaches1 Total number of vulnerabilities identified1,2 30 HACKERS 40% Percent change -30 6000 ACCIDENTAL LEAK 23% 4000 HARD DRIVE THEFT OR LOSS 23% INSIDER THEFT 8% 2000 OTHER 6% Vulnerabilities 2006 2007 2008 2009 2010 2011 2012 Based on a study of global cyber activity, hackers continue to be responsible for the largest number of data breaches. The general trend of vulnerabilities that allow attackers to compromise availability, confidentiality, or integrity of a computer system is upward. For 2012, there were approximately 101 new vulnerabilities each week. Average cost mix of attacks and remediation time in U.S.3 Percent of total cost 0% 20% 40% 60% 80% 100% 60 30 Average days to remediate Malicious code Denial of services Web-based attacks Stolen devices Malicious insiders Botnets & malware Phishing Viruses, & social & trojans engineering In 2012, the average amount of time needed to resolve a cyber attack was 24 days with an average total cost of $591,780 during this period, a 42% increase from 2011’s average cost. From repair to prevention to prediction The evolution of defense Cyber intelligence: A broader landscape Perimeter defense Classic security controls like firewalls, antivirus, and intrusion detection systems to defend against noisy, opportunistic hackers Defense in-depth Introduction of intrusion prevention systems and encryption, investment in securing access on the inside Cyber security What happened, and how do I fix it? Cyber intelligence Cyber forensics Who did it,when, and why? Cyber intelligence Security viewed as a smoke detector, not a fire truck, with proactive agendas based on risk and value, and the addition of cyber analytics, forensics, and logistics Cyber analytics Where and how might the next attack occur? Cyber logistics What are the risk vectors in supply and operations? Despite business investments in cyber security, the “bad guys” may still get in, and the “good stuff” may still get out. It’s likely time to round out defense-in-depth and move from cyber security to cyber intelligence. Percentage of long-dwell breaches4 Intrusion to containment time in breach investigations5 80 0-30 days 66% 9% 60 5% 31-90 days 14% 91-180 days 40 27% 181-365 days 25% 20 2 years 20% Percent Pre-2008 2008 2009 2010 2011 2012 According to a study examining the time from initial compromise to detection, the percent of breaches that remain undiscovered for months or more has been increasing since 2010. Like Cold War sleepers, long-dwell hackers remain until the value and opportunity of an attack ripens. 3+ years In 2012, the average time from initial breach to detection was 210 days – 35 days longer than in 2011. Well resourced, highly organized, and adaptive hackers are increasingly staging multi-dimensional, persistent and sustained security breaches, seeking IP and operational intelligence. Cyber security inspired by other disciplines The castle walls6 Botnets as bird flu7,8 Environment Agent In his presentation at FedTalks 2013, Dr. Patrick Dowd, the CTO and Chief Architect of the NSA, spoke about the dangers of uneven cyber, in which the castle wall is 2 feet high in some places, and 100 feet in others. Enterprises should even out their cyber security in order to minimize opportunities for hackers to access data. Host In a presentation on the evolving nature of cyber threats, Ben Hammersley, a leading Internet technologist, said that the correct metaphor for cyber security threats isn’t border-based but viral: We should start thinking of “botnets as bird flu” and focus on the origin of an attack rather than perimeter defense and counterattacks. Gladwell’s “Three Rules”9 “The Law of the Few” Nation-state-sponsored hackers have a rare set of advantages: resources, influence, and knowledge “The Stickiness Factor” Cyber breaches have shifted away from smash-and-grab attacks as long-term dwells prove more effective “The Power of Context” The postdigital world of ubiquitous connectivity and ill-prepared enterprises enables cyber attacks In his book “The Tipping Point," Malcolm Gladwell presents the theory that any change in the “Three Rules of Epidemics” can cause a tipping point in a movement. Recent developments in the cyber world in the three change agents are presenting hackers with new opportunities to attack. Faced with this tipping point, organizations need to aggressively quarantine detected incidents at the earliest possible time, allowing the threat to be understood and traced from a controlled environment where business risk has been contained. The future of cyber Cyber big ideas Cyber Common Operating Picture (COP) Integrates, visualizes and automates the cybersecurity framework and increases information sharing and insight from captured data Hyperconnected risk management framework Enables near real-time sharing of cyber threat information, produces and tracks reports, reduces risks through consultation Privacy office of the future Uses new techniques like analytics and design thinking to foster a culture of privacy and transparency and promote compliance Digital Identities10 Creates identity ecosystems inside and outside organizations, embeds identity programs into core services, validates users in real time Cyber human capital Expands pipeline of qualified cybersecurity candidates, improves high cybersecurity proficiency, establishes a cybersecurity reserve program National cyber incentives program Leverages incentives such as tax breaks, preference programs, and subsidies to promote cyber development The question is not if you will be attacked, but when — and how you will deal with it. Cyber intelligence involves a combination of prevention, early detection, and rapid response. BOTTOM LINE For more information please visit www.deloitte.com/us/techtrends2013. SOURCES 1 Symantec Corporation, “Internet Threat Security Report 2013,” April 2013. 2 Symantec Corporation, “Internet Threat Security Report 2012,” April 2012. 3 Ponemon Institute, “2012 Cost of Cyber Crime Study: United States,” October 2012. 4 Verizon, “2013 Data Breach Investigations Report,” 2013. 5 Trustwave, “2013 Global Security Report,” Nicholas J. Percoco, 2013. 6 Cory Bennett, Inside NSA’s data protection, cloud strategy, http://fedscoop.com/inside-nsas-data-protection-cloud-strategy (June 12, 2013). 7 Kenneth Corbin, Cybersecurity Isn't a Border-based Threat, it's a Viral Threat, http://www.cio.com/article/711526/Cybersecurity_Isn_t_a_Border_based_Threat_it_s_a_Viral_Threat (July 19, 2012). 8 Principles of Epidemiology in Public Health Practice, Centers for Disease Control and Prevention, http://www.cdc.gov/osels/scientific_edu/ss1978/lesson1/Section8.html (May 18, 2012). 9 Malcolm Gladwell, The Tipping Point (New York: Little, Brown & Company, 2000) 10 Additional information is available in Deloitte Consulting LLP (2012), "Tech Trends 2012: Elevate IT for digital business", www.deloitte.com/us/techtrends2012, Chapter 8. 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