Data breaches boost interest in encryption, study says

Data breaches have for the first time become the main reason businesses implement encryption technology, according to a study of global encryption trends by The Ponemon Institute on behalf of security firm Thales e-Security.

The firm found that 46 percent of the 4800 companies and tech managers questioned from around the world said that the main reason they invested in encryption was that it could lessen the impact of breaches. This beat a desire to protect brand reputation on 44 percent and the 40 percent mentioning compliance as the motivation.

Its perhaps obvious that encryption makes stolen data less useful to criminals but the growing importance placed on protecting data rather than devices shows how the technology has risen from being precautionary measure to that of a frontline defence.

Storing data without encryption, especially customer data, is increasingly unthinkable to many of the respondents, with the U.S. the most emphatic on this point, noted by 59 percent of those questioned. Curiously, some countries fall short of this enthusiasm with France in last place on 35 percent.

The reason is mainly local legislation and compliance regimes, with 61 percent of the U.S. sample reporting that unencrypted customer data would require breach notification as against 33 percent believing notification would be necessary if it was.

On the face of it this is a bit surprising; many U.S. organizations appear to believe that breach notification would not be required simply because the data had been encrypted. It is not clear that this is true although the same divide appears in all countries looked at.

The study also uncovered the usual problems with deploying encryption as well as identifying precisely where the sensitive data resides for it to be applied.

The figures also show that encryption use has doubled since the report was first compiled in 2005, and was now present in 30 percent of organizations. Not surprisingly, financial services leads the way with 43 percent making use of it.

Arguably, encryption use should be much higher. A major barrier remains the complexity of key management. This can also be hugely expensive, or at least firms believe it will be.

Encryption usage continues to be a clear indicator of a strong security posture but there appears to be emerging evidence that concerns over key management are becoming a barrier to its more widespread adoption, said Dr. Larry Ponemon, founder of the Ponemon Institute.

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Data breaches boost interest in encryption, study says

RHCSA PREP:answer to question 20 (Central Authentication Using LDAP with TLS/SSL Encryption) – Video


RHCSA PREP:answer to question 20 (Central Authentication Using LDAP with TLS/SSL Encryption)
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RHCSA PREP:answer to question 20 (Central Authentication Using LDAP with TLS/SSL Encryption) - Video

Fact or Fiction: Encryption Prevents Digital Eavesdropping

There are effective ways to encrypt data, whether it is in transit or in storage, but if that data is left in the clear at any point along its path, it is vulnerable to theft or tampering

Courtesy of Travis Goodspeed, via Flickr

Since the dawn of the Web and ubiquitous free e-mail services over the past two decades, the need to secure personal information online has been evident but often ignored. Last months exposure of the U.S. National Security Agencys PRISM program for collecting data on individuals suspected of plotting terrorist attacks, spying or other forms of malfeasance (pdf) has helped bring privacy issues back into the spotlight. In fact, the news about PRISM even encouraged some prominent Internet pioneers to condemn the practice and call for renewed efforts among Internet users and their service providers to encrypt more data, to protect it from prying eyes.

Vint Cerf, Googles chief Internet evangelist and co-developer of the TCP/IP communications protocol that makes the Internet tick, recently told The Times of London that computer scientists should devise an anti-snooping solution for the Web using encrypted communication. Cerf encouraged developers to reexamine how some of the Internets core security featuresin particular Internet Protocol Security (IPsec)were designed to enable end-to-end cryptography.

Unfortunately, cryptographys ability to thwart online surveillance or theft comes with a number of caveats and qualifications. Cerfs comments highlight a key difficulty in using encryption to protect data as it traverses the Internet and comes to rest on a computer or storage drive. Given the diversity of the digital terrain, data is rarely encrypted from start to finish. Even when data is encrypted in transit from one computer to another in a network, it often must be decrypted at each point and reencrypted when handed off to the next computer. If any of these way stationswhether a PC, a Web server or a piece of networking equipmentis not well protected, unencrypted data is left vulnerable to prying eyes.

Data at rest There are several programs available for encrypting data once it is stored on an end point like a PC or laptopincluding Microsoft BitLocker, Apple FileVault, PGPdisk and TrueCrypt. These programs typically create an encrypted volume on the hard drive or encrypt the entire hard drive using a key derived from a password that you type in as part of the start-up process.

The catch is that users have to actively set up these programs. They dont run by default, and many people dont even know these programs exist.

In motion Data in transit within the network can be encrypted using a number of different approaches, says cryptographer Paul Kocher, president and chief scientist of Cryptography Research, a designer of data, computer and network security systems. A widely used example is a password-protected wi-fi network, where the password is essentially used as an encryption key or to derive encryption keys so that data going from your machine back to the router is only accessible to people who know that password. Pretty Good Privacy (PGP) and Secure/Multipurpose Internet Mail Extensions (S/MIME) are a couple of other common encryption technologies but are limited primarily to e-mail transactions.

Secure Sockets Layer (SSL) protocol offers a broader example of how data can be encrypted in transit. Kocher helped develop SSL, a cryptographic protocol used to encode communications over TCP/IP networks, for Netscape as a means to transmit private documents via the Internet in the mid-1990s. SSL uses a cryptographic system with two keysa public key to encrypt the data and a private key, known only to a messages recipient, to decipher it.

If used properly, SSL encrypts a users data from their Web browser to the Web server. The browser can use SSL, for example, to authenticate that your computer is communicating with an actual Web site as opposed to an imposter set up to steal data or spread malware. (Note that URLs requiring an SSL connection start with https instead of http.)

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Fact or Fiction: Encryption Prevents Digital Eavesdropping

‘PGP’ encryption has had stay-powering but does it meet today’s enterprise demands?

PGP encryption, as industry old-timers know, started out as "Pretty Good Privacy" invented by Phil Zimmermann in 1991, and since then, was sold on to various corporate owners until it ended in the hands of Symantec in 2010. While it is a widely used vintage brands, does PGP public-key encryption still meet today's enterprise demands, given the rise of cloud computing and mobile?

Enterprise managers are somewhat mixed on that, though PGP, over two decades old, is so well known that Symantec, which dropped the PGP moniker in favor of "Symantec Encryption," still reminds everyone it's "powered by PGP technology." In addition, there's "OpenPGP," the IETF standard that was championed by Phil Zimmermann, that can be implemented by companies without licensing.

Symantec declines to discuss how many customers it has exactly in the PGP realm, but it does point out that Symantec has invested resources in developing what it inherited with PGP. For example, Symantec offers client app software for both Apple iOS and Google Android devices as part of its Desktop Email Encryption. Symantec says its email encryption encrypts e-mail directly from an end user machine. The result, according to Symantec, is encrypted mail is delivered directly to a user's device and they use the Symantec Mail Encryptor App to reply.

+Also on Network World: The weirdest, wackiest and coolest sci/tech stories of 2013 | The worst security SNAFUs of 2013 +

But despite this kind of PGP-related development work, one sticking point is managing the digital certificates needed for end-to-end encryption and decryption, especially when it comes to sharing files securely between two separate companies as outside business partners.

"It's too problematic," says Yuval Illuz, associate vice president and head of global infrastructure and IT operations at network equipment company ECI Telecom about digital certificate management among business partners. "It's not something you need today. You change suppliers all too often."

Illuz said his company has migrated off the PGP-based Symantec Encryption e-mail and filing sharing software that the firm once used for secure communications with business partners. Instead, ECI adopted a different type of exchange, the RSAccess product from Safe-T, in which two nodes are set up on each side of a firewall to support requests for sensitive data from suppliers, business partners and customers. It can also create directories for the cloud-based Dropbox service. Everything is encrypted but it doesn't depend on certificates, but strong passwords, to get information, he says.

But ECI is sticking with Symantec Encryption for some things, particularly for in-house use. "The laptop encryption for PGP, we are still using it," he says, expressing confidence about the security and manageability involved in it.

Since acquiring PGP, Symantec has released secure file-sharing with Dropbox in what it calls its File Share Encryption integration with Dropbox. Symantec says it works by simply checking a box in the management server so anything sent to Dropbox is automatically encrypted with the appropriate keys.

Not everyone, however, feels the need to migrate away from managing certificates with business partners.

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'PGP' encryption has had stay-powering but does it meet today's enterprise demands?