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Thoughts on Data Breach History

Rich May 4, 2010 6 Comments

I’ve been writing about data breaches for a long time now – ever since I received my first notification (from egghead.com) in 2002. For about 4 or 5 years now I’ve been giving various versions of my “Involuntary Case Studies in Data Breaches” presentation, where we dig into the history of data breaches and spend time detailing some of the more notable ones, from breach to resolution. 2 weeks ago I presented the latest iteration at the Source Boston conference (video here), and it is materially different than the version I gave at the first Source event. I did some wicked cool 3D visualization in the presentation, making it too big to post, so I thought I should at least post some of the conclusions and lessons. (I plan to make a video of the content, but that’s going to take a while). Here are some interesting points that arise when we look over the entire history of data breaches: Without compliance, there are no economic incentives to report breaches. When losing personally identifiable information (PII) the breached entity only suffers losses from fines and breach reporting costs. The rest of the system spreads out the cost of the fraud. For loss of intelectual property, there is no incentive to make the breach public. Lost business is a myth. Consumers rarely change companies after a breach, even if that’s what they claim when responding to surveys. I know of no cases where a lost laptop, backup tape, or other media resulted in fraud, even though that’s the most commonly reported breach category. Web application hacking and malware are the top categories for breaches that result in fraud. SQL injection using xp_cmdshell was the source of the biggest pre-TJX credit card breach (CardSystems Solutions in 2004: 40 million transactions). This is the same technique Albert Gonzales used for Heartland, Hannaford, and a handful of other companies in 2008. We never learn, even when there are plenty of warning signs. Our controls are poorly aligned with the threat – for example, nearly all DLP deployments focus on email, even though that’s one of the least common vectors for breaches and other losses. The more a company tries to spin and wheedle out of a breach, the worse the PR (and possibly legal) consequences. We will never be perfect, but most of our security relies on us never making a mistake. Defense in depth is broken, since every layer is its own little spear to the heart. Most breaches are discovered by outsiders – not the breached company (real breaches, not lost media). The history is pretty clear – we have no chance of being perfect, and since we focus too much on walls and not not enough on response, the bad guys get to act with near impunity. We do catch some of them, but only in the biggest breaches and mostly due to greed and mistakes (just like meatspace crime). If you think this is interesting, I highly recommend you support the Open Security Foundation, which produces the DataLossDB. I found out only a handful of hard-working volunteers maintains our only public record of breaches. Once I get our PayPal account fixed (it’s tied to my corporate credit card, which was used in some fraud – ironic, yes, I know!) we’ll be sending some beer money their way. Share:

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Database Security Fundamentals: Encryption

Adrian Lane May 4, 2010 5 Comments

Continuing our theme of quick and effective database security measures, we now move into the data protection phase. The most common (and potentially most effective) security measure for data at rest is encryption. Since we are shooting for fast and effective, we are looking at some form of transparent encryption. Almost every database has transparent encryption built in, and it is effective for securing data files and archives from snooping. Several vendors also offer forms of transparent encryption at the OS/file system level, which behave in a very similar manner, so we will consider those options as well. It’s ironic that I am writing this post today, as I just completed the final editorial sweep through the Securosis Database Encryption & Tokenization paper. Rich and I will be releasing it tomorrow (Cinco de Mayo), so if you want a much deeper dive into the technology tradeoffs and variations, check it paper out when it becomes available (Shameless plug: If you are interested in sponsoring the paper, let us know). There are a handful of business reasons to use data encryption for databases: to buttress access controls in order to protect against unwanted insider access, to protect data at rest, or to comply with an industry or government regulation. Only the last two are covered by transparent encryption, as the former requires encryption at the application layer. Application level encryption requires code changes, database changes, and application recertification, so I exclude it from this Fundamentals series. Encryption embedded within disk drives is transparent, and it protects files on the disk as well. However, purchasing encrypted drives is a significant investment, does not protect exports or tape archives, and does not protect databases moving around virtual environments. Since we are focused on quick wins here, I am limiting the discussion to transparent database options – either using native database capabilities, or through OS/file system support. Native database encryption features are embedded within the database. The encryption operations are handled behind the scenes, with no changes to the tables, columns, indices, or queries. Enabling the feature is at most an add-on package, but in some cases as simple as a handful of DDL statements. The database encrypts the data just prior to writing to disk, and decrypts when processing authenticated queries for encrypted data. Key management is either handled internally (with keys stored within system tables and only accessible by DBAs), or externally (with a dedicated key management server). Internal key storage is easier to manage, and simpler in disaster recovery scenarios, at the expense of weaker security. In either case, keys are used without the end user interaction (or even knowledge). File/OS encryption works by intercepting the database’s writes to disk and encrypting data blocks before storing them. Conversely, data is decrypted as the database requests information from disk. Keys are stored within key management services embedded within the encryption product rather than the database, or provided by external key management products. Keep in mind that this type of product can applied to on specific folders where the data is stored and not just database files. File/OS encryption is attractive for its ability to address both database non-database data security issues. Two options are not a lot, but both transparent options are effective and offer the same business benefits. The choice comes down to four factors, in order of importance: performance, cost, versatility, and comfort level. How much does the solution impact transactional throughput? How much does it cost? How many different problems does it solve? How easy is it to use? Or at least this should be the order of importance, but from experience I know some people reverse that order because they know the database and are comfortable with a particular UI. If you are the sole DBA, how comfortable you are with the interface, or how easy it is for to use, will be the biggest factor because your time is more important than the other factors. If you have been using Sybase for years and are happy with their tools, odds are you will choose that. Regardless, if you have the opportunity, running a couple performance benchmarks is very handy for getting an idea of how much impact encryption will have. It may be 3%, or 12%. Nobody notices 3%, but 12% may mean calls from users. Run some basic performance tests between a) your unaltered database, b) the database vendor’s solution active, and c) an external tool. Understanding the impact on typical database transaction processing really helps with decision making. Get some pricing estimates from vendors. If there are others in your IT organization who already use file/OS encryption, ask them about usage and performance. Yes, this makes this a two-day task instead of a one-day implementation, but it’s worth it. Testing setup and execution will take at least a day, but will give you greater confidence in your decision and make the final rollout a lot easier. Select: The question of what type of transparent encryption to select – internal database native or external file/OS – is a murky one. Weigh your options and make your selection. Acquire the tool or licence. Define Scope: Column level, table level, or entire database? Understand what data you will apply encryption to, read the documentation, and generate your configuration scripts. Configure & Install: Once you have reached this step, you should be able to implement database encryption within an afternoon. Obviously, the first step in the process is to make sure you have a verified backup prior to the installation process. Once you have installed or configured the encryption engine, the first major step will be to generate the keys. Select a good passphrase (not password) to protect the keys. Produce a verified backup of the key archive. If the keys are stored in a system table, take a fresh backup of the database. If the keys are in an external key management service, before you go any further, make sure you have that backed up and can restore

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