2009 security mega trends & emerging threats

2009 Security Mega Trends Survey

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Ponemon Institute© Private & Confidential Document

Independently conducted by Ponemon Institute LLC

November 2008

About the study

• The 2009 Security Mega Trends Survey was conducted by Ponemon Institute and sponsored by Lumension to better understand if certain publicized IT risks to personal and confidential data are or should be more or less of a concern for organizations.

• We asked respondents in IT operations and IT security to consider how eight Security Mega Trends affect organizations today and

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how eight Security Mega Trends affect organizations today and during the next 12 to 24 months.

• Based on interviews with IT experts in operations and information security, we selected the following eight Mega Trends for this study: cloud computing, virtualization, mobility and mobile devices, cyber crime, outsourcing to third parties, data breaches and the risk of identity theft, peer-to-peer file sharing and Web 2.0

Security Mega Trends

Mega Trend 1: Cloud computing

• Cloud computing refers to distributed computing solutions owned by third-parties on data center locations outside the end-user company’s IT infrastructure. The demand for cloud computing is expanding quickly, especially as the cost of remote connectivity decreases.

Mega Trend 2: Virtualization

• Virtualization technology allows end-users to access multiple secure networks from a single computer, wherein the PC or laptop essentially acts as a hardware authentication token. With one computer, the end-user is able to gain access to

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authentication token. With one computer, the end-user is able to gain access to separate virtual devices or machines. Virtualization makes server and operating system deployments more flexible and improves the use of storage and systems resources.

Mega Trend 3: Mobility

• Organizations are dependent upon a mobile workforce with access to information no matter where they work or travel. Employees can use the following mobile devices when they travel or work at home: laptops, VPNs, PDAs, cell phones and memory sticks. The opportunity to work from home or other locations is a benefit to many employees. In addition, mobility can increase employees’ productivity and as a result improve the organization’s bottom line.


Mega Trend 4: The external threat of organized cyber criminal syndicates

• The black market for personal records makes data theft an attractive crime for thieves

around the world. Cyber crime usually describes criminal activity in which the

computer or network is an essential part of the illegal criminal activity. This term also

is used to include traditional crimes in which computers or networks are used to

enable the illicit activity.

Mega Trend 5: Outsourcing to third parties

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Mega Trend 5: Outsourcing to third parties

• Organizations outsource sensitive and confidential customer and employee data to

vendors and other third parties to reduce processing costs and improve operating

efficiencies. These purposes can include (but are not limited to): marketing and sales

campaigns, software application development, call center operations, and mortgage

and other credit application processing.

Mega Trend 6: Data breaches involving personal information are increasing

• The Federal Trade Commission reports that the number one consumer complaint it

receives concerns the theft of identity. It addition to potential fines, organizations risk

the loss of customer confidence and trust. Some experts believe that identity theft

crimes will increase substantially over the next several years.


Mega Trend 7: Peer-to-peer file sharing

• P2P file sharing networks allow a group of computers to connect with each other and directly access files from one another's hard drives. P2P file sharing networks started with Napster by enabling Internet users to share music files. P2P file-sharing networks can cause inadvertent transfers and disclosures of documents that reside on an organization’s computers and laptops. File sharing networks where inadvertent file sharing typically occurs include networks. For example, a sales representative downloads a peer-to-peer music sharing application onto his company assigned

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downloads a peer-to-peer music sharing application onto his company assigned notebook computer. This P2P file sharing network exposes confidential business documents contained on his computer.

Mega Trend 8: Web 2.0

• Web 2.0 refers to a plethora of Internet tools that enhance information sharing and collaboration among users. These concepts have led to the evolution of web-based communities and hosted services, such as social networking sites, wikis and blogs. This term does not refer to an update to any technical. Unsupervised monitoring of employees’ use of Web 2.0 applications can result in the loss of critical confidential business data on the Internet. The other risk is that damaging information can be posted about an organization that can negatively affect its reputation.

Two Samples

• Our study utilized two separate sampling

frames (panels) built from

conference, association and professional

certification lists.

• Web-based survey responses were

captured on a secure extranet platform.

• We utilized two separate samples of U.S.

Sample description IT Operations IT Security

Total sampling frames 14,518 11,506

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• We utilized two separate samples of U.S.

participants:

– IT operations: 825 (5.7% response)

– IT security: 577 (5.0% response)

• Less than 1% rejection rate because of

reliability failures.

• Respondents in both groups were asked

to complete the same survey instrument.

• Margin of error is ≤ 3% on all adjective or

yes/no responses for both samples

Bounce-back 3,957 2,109

Total returns 915 658

Rejected surveys 90 81

Final sample 825 577

Response rate 5.7% 5.0%

The SurveyExample: Cloud Computing


Cloud computing refers to distributed computing solutions owned by third-parties on data centerlocations outside the end-user company’s IT infrastructure. Consumers of cloud computing servicespurchase capacity on-demand and are not concerned with the underlying technologies usedto increase computing capacity.

The demand for cloud computing is expanding quickly, especially as the cost of remote connectivitydecreases. The services that can be delivered from the cloud have expanded Web applications to

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decreases. The services that can be delivered from the cloud have expanded Web applications toinclude storage, raw computing capability, and access to any number of specialized applications orservices.

Q1a. How familiar are you with cloud computing?� Very familiar� Familiar� Not familiar

Q1b. Does your organization access cloud computing resources or applications?� Yes� No� Unsure

The Survey – ContinuedExample: Cloud Computing

What are the security implications?

Experts say the use of cloud computing increases information security risks because the end-user’sorganization is unable to control the data management environment.•Q1c. Do you believe that cloud computing increases the information security risks within yourcompany?

� Yes� No (Go to Q2a)

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� No (Go to Q2a)

Q1d. If yes, what is the most significant security risk associated with cloud computing? Please checkonly one choice:

� Inability to assess or verify the security of data centers in the cloud� Inability to protect sensitive or confidential information� Inability to restrict or limit use of cloud computing resources or applications� Third parties might be able to access private files without authorization� Information may not be properly backed up� Downtime as a result of cloud computing failure� Other (please specify)

The Survey – ContinuedExample: Cloud Computing


Q1e. If yes, please rate the security risk presented by cloud computing withinyour organization today.

� Very low� Low� Moderate� High

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� High� Very high

Q1e. If yes, please rate the security risk presented by cloud computing in yourorganization within the next 12 to 24 months.

� Very low� Low� Moderate� High� Very high

Mega TrendsComparison of IT Operations and IT Security Samples – Current Outlook

Line Graph 1a

Security mega trends as perceived today for both samplesEach point reflects the percentage responses for very high or high security risks at presentt

50%

60%

70%

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0%

10%

20%

30%

40%

50%

Cloud

computing

Virtualizat ion M obility M obile devices Cyber crime Outsourcing Data breach P2P f ile sharing Web 2.0 M alware

IT Operations IT Security

Mega TrendsComparison of IT Operations and IT Security Samples – Future Outlook

Line Graph 1b

Security mega trends as perceived 12 to 24 months for both samplesEach point reflects the percentage responses for very high or high security risks at presentt

70%

80%

90%

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0%

10%

20%

30%

40%

50%

60%

Cloud

computing

Virtualizat ion M obility M obile devices Cyber crime Outsourcing Data breach P2P f ile sharing Web 2.0 M alware


IT OperationsMega trend risk rating today and 12 to 24 months in the future

Bar Chart 1a

Mega trends today and in the next 12 to 24 months by respondents in IT operations

Each bar summarizes the combined percentage response for "Very High" and "High" security risks.

47%

47%

48%

50%

47%

49%

45%

50%

Mobility

Cyber crime

Mobile devices

Outsourcing

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22%

25%

31%

35%

39%

44%

24%

18%

35%

36%

42%

40%

0% 10% 20% 30% 40% 50% 60%

Malware

Virtualization

Web 2.0

P2P file sharing

Cloud computing

Data breach

Risk as perceived today Risk as perceived in the next 12 to 24 months

IT SecurityMega trend risk rating today and 12 to 24 months in the future

Bar Chart 1b

Mega trends today and in the next 12 to 24 months by respondents in IT security

Each bar summarizes the combined percentage response for "Very High" and "High" security risks.

59%

60%

65%

66%

59%

48%

77%

65%

Outsourcing

Mobility

Cyber crime

Data breach

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29%

39%

39%

46%

48%

58%

25%

41%

41%

44%

50%

61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Virtualization

Malware

Web 2.0

P2P file sharing

Mobile devices

Cloud computing

Risk as perceived today Risk as perceived in the next 12 to 24 months

Mega Trend: Outsourcing Causes Data Breach

Bar Chart 2

Security risks due to outsourcing

Each bar is the percentage of respondents who selected the noted information security risk

56%

32%

60%

Unauthorized parties might be able to access private files

Sensitive or confidential information may not be properly

protected

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3%

3%

10%

23%

1%

2%

4%

0% 10% 20% 30% 40% 50% 60% 70%

Inability to properly identify and authenticate remote users

Information may not be properly backed up

Increased threat of social engineering and cyber crimes

without authorization


Cyber Crime Experience

Bar Chart 3

Did your organization have a cyber attack?

92%

80%

90%

100%


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55%

13%

32%

5% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No Don't know

Mega Trend: Cyber Crime Will Increase

Bar Chart 4

Security risks due to cyber crime


61%

40%Attack will cause business

interruption

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14%

24%

29%

29%

0% 10% 20% 30% 40% 50% 60% 70%

Attack will cause the loss of

information about employees

or customers, thus requiring

data breach notification

Attack will result in the loss of

sensitive or confidential

business information

including trade secretsIT Operations IT Security

Most Risky Mobile Devices

Bar Chart 5

Most risky mobile devices

Each bar is the percentage of respondents who selected the device as their highest risk

48%

18%

38%

PDAs and other handheld

Laptop computers

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8%

11%

14%

19%

5%

15%

24%

18%

0% 10% 20% 30% 40% 50% 60%

Cellular phones

USB memory sticks

Insecure wireless networks

PDAs and other handheld

devices


Mega Trend: Mobile Workforce

Increases Security Risk

Bar Chart 6

Security risks due to a mobile workforce


59%

16%

62%Inability to properly identify and authenticate remote users

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3%

6%

10%

19%

9%

2%

11%

16%

0% 10% 20% 30% 40% 50% 60% 70%

Increased threat of social engineering and cyber crimes

Sensitive or confidential information may not be properly

protected

Third parties might be able to access private files without

authorization



Confidence in the Ability to Prevent Data Loss

Bar Chart 7

How confident are you that your current security practices are able to prevent

customer and employee data from being lost or stolen?

40%

32%35%

40%

45%

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12%

23%

12% 13%

4%

12%

30%32%

22%

0%

5%

10%

15%

20%

25%

30%

35%

Very confident Confident Somew hat confident Not confident Uncertain


Mega Trend: Data Breach on the Rise

Bar Chart 8

Security risks due to a data breachEach bar is the percentage of respondents w ho selected the noted information security risk

35%

32%Loss of customer or employee information, thus requiring notif ication

of victims

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17%

21%

24%

5%

14%

46%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Unauthorized parties gain access to private accounts

Diminished reputation as a result of negative media coverage

Sensitive or confidential information that ends up in the hands of

cyber criminals and identity thieves


Security Risks Due to Data Breach

Bar Chart 9

Security risks due to a data breach


24%

29%

40%

17%

Inability to assess or verify the security of data centers in the cloud

Inability to restrict or limit use of cloud computing resources or

applications

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3%

12%

13%

18%

24%

0%

29%

1%

13%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


Inability to protect sensitive or confidential information

Dow ntime as a result of cloud computing failure

Third parties might be able to access private f iles w ithout

authorization


Mega Trend: P2P File Sharing

Causes Security Risk

Bar Chart 10

Security risks due to P2P file sharing applications


41%

55%Use of P2P w ill result in the loss

of sensitive or confidential

business information including

trade secrets

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2%

20%

30%

3%

16%

20%

0% 10% 20% 30% 40% 50% 60%

Use of P2P w ill cause business

interruption

Use of P2P w ill cause the loss of

information about employees or

customers, thus requiring data

breach notif ication

Use of P2P w ill increase the risk

of malw are or virus infection


Mega Trend: Web 2.0 Use Increases Security Risk

Bar Chart 11

Security risks due to Web 2.0


34%

64%Use of Web 2.0 will result in the loss of sensitive or

confidential business information including trade secrets

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12%

23%

26%

4%

14%

13%

0% 10% 20% 30% 40% 50% 60% 70%

Use of Web 2.0 will cause business interruption

Use of Web 2.0 will increase the risk of malware or virus

infection

Use of Web 2.0 will cause the loss of information about

employees or customers, thus requiring data breach

notification


Mega Trend: Virtualization

Bar Chart 12

Security risks due to virtualization


49%

33%

48%

Third parties might be able to

access private files without

Inability to properly identify

and authenticate users to

multiple systems

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1%

9%

10%

28%

0%

3%

11%

33%

0% 10% 20% 30% 40% 50% 60%

Information may not be

properly backed up

Sensitive or confidential

information may not be

properly protected

Increased threat of social

engineering and cyber crimes

access private files without

authorization


Implications

• Organizations are faced with a plethora of security threats to their confidential and sensitive data assets. We asked IT operations and security practitioners to rank those they believe have a high or very high risk to sensitive and confidential information. Based on the risks associated with each of these threats, we believe organizations should consider the following solutions:

– Create and enforce policies that ensure access to private data files is restricted to authorized parties only.

– Secure corporate endpoints to protect against data leakage and malware.

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– Secure corporate endpoints to protect against data leakage and malware.

– Make sure third parties who have access to your sensitive and confidential information take appropriate security precautions.

– Train employees and contractors to understand their responsibility in the protection of data assets.

– Ensure that mobile devices are encrypted and that employees understand the organizations’ policies with respect to downloading sensitive information and working remotely.

– Understand precautions that should be taken when traveling with laptops, PDAs and other data bearing devices.

Conclusion

• We believe the findings from this study provide organizations with guidance on which threats are more critical than others to address. IT operations and IT security professionals identified outsourcing of sensitive information to third parties, external threat of organized cyber criminal syndicates, a mobile workforce, data breaches and

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cyber criminal syndicates, a mobile workforce, data breaches and access to cloud computing as the most significant

Samples’ Organizational Characteristics

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Samples’ CombinedIndustry Distribution

Pie Chart 1

Industry distribution of the combined IT operations and IT security samples

17%

5%

5%

3%2%2%2%1% Financial services

Government

Pharma & Healthcare

Education

Defense

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11%

9%

8%6%

6%

6%

6%

6%

5%

Technology & Software

Hospitality & Leisure

Retail

Professional Services

Telecom

Manufacturing

Research

Energy

Airlines

Entertainment

Transportation

Sample CharacteristicsThe mean experience level for the IT operations sample

is 8.9 years and for the IT security sample is 9.4 years.

Table 2

What organizational level of respondents IT Operations IT Security

Senior Executive 1% 0%

Vice President 2% 2%

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Director 21% 24%

Manager 24% 26%

Associate/Staff/Technician 45% 39%

Consultant 4% 6%

Other 2% 3%

Total 100% 100%

Table 3aGeographic location Pct%

Northeast 20%

Mid-Atlantic 19%

Midwest 19%

Table 3b.Organizational headcount Pct%.

Less than 500 people 2%

500 to 1,000 people 4%

1,001 to 5,000 people 12%

Sample Characteristics60% of respondents are male and 40% female.

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Midwest 19%

Southeast 13%

Southwest 14%

Pacific 17%

Total 100%

1,001 to 5,000 people 12%

5,001 to 25,000 people 29%

25,001 to 75,000 people 34%

More than 75,000 people 19%

Total 100%

Ponemon Institute LLC

� The Institute is dedicated to advancing responsible information management

practices that positively affect privacy and data protection in business and

government.

� The Institute conducts independent research, educates leaders from the private

and public sectors and verifies the privacy and data protection practices of

organizations.

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� Ponemon Institute is a full member of CASRO (Council of American Survey

Research Organizations. Dr. Ponemon serves as CASRO’s chairman of

Government & Public Affairs Committee of the Board.

� The Institute has assembled more than 50 leading multinational corporations

called the RIM Council, which focuses the development and execution of ethical

principles for the collection and use of personal data about people and

households.

� The majority of active participants are privacy or information security leaders.

2009 security mega trends & emerging threats

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