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The Public/Private Pendulum Keeps Swinging

They say the grass is always greener on the other side, and I guess for some folks it is. Most private companies (those which believe they have sustainable businesses, anyway) long for the day when they will be able to trade on the public markets. They know where the Ferrari deal is, and seem to dismiss the angst of Sarbanes-Oxley. On the other hand, most public companies would love the freedom of not having to deal with the quarterly spin cycle and those pesky shareholders who want growth now. Two examples in the security space show the pendulum in action this week. First is Tripwire’s IPO filing. I love S-1 filings because companies must bare their innards to sell shares to public investors. You get to see all sorts of good stuff, like the fact that Tripwire has grown their business 20-30% annually over the past few years. They’ve been cash flow positive for 6 years, and profitable for the last two (2008 & 2009), although they did show a small loss for Q1 2010. Given the very small number of security IPOs over the past few years, it’s nice to see a company with the right financial momentum to get an IPO done. But as everyone who’s worked for a public company knows, it’s really about growth – profitable growth. Does 20-30% growth on a fairly small revenue base ($74 million in 2009) make for a compelling growth story? And more importantly for company analysis, what is the catalyst to increase that growth rate? In the S-1, Tripwire talks about expanding product offerings, growing their customer base, selling more stuff to existing customers, international growth, government growth, and selective M&A as drivers to increase the top line. Ho-hum. From my standpoint, I don’t see anything that gets the company from 20% growth to 50% growth. But that’s just me, and I’m not a stock analyst. Being publicly listed will enable Tripwire to do deals. They did a small deal last year to acquire SIEM/Log Management technology, but in order to grow faster they need to make some bolder acquisitions. That’s been an issue with the other public security companies that are not Symantec and McAfee – they don’t do enough deals to goose growth enough to make the stock interesting. With Tripwire’s 5,400 customers, you’d figure they’ll make M&A and pumping more stuff into their existing base a key priority once they get the IPO done. On the other side of the fence, you have SonicWall, which is being taken private by Thoma Bravo Group and a Canadian pension fund. The price is $717 million, about a 28% premium. SonicWall has been public for a long time and has struggled of late. Momentum seems to be returning, but it’s not going to be a high flyer any time soon. So the idea of becoming private, where they only have to answer to their equity holders, is probably attractive. This is more important in light of SonicWall’s new push into the enterprise. They are putting a good deal of wood behind this Project SuperMassive technology architecture, but breaking into the enterprise isn’t a one-quarter project. It requires continual investment, and public company shareholders are notoriously impatient. SonicWall was subject to all sorts of acquisition rumors before this deal, so it wouldn’t be surprising to see Thoma Bravo start folding other security assets in with SonicWall to make a subsequent public offering, a few years down the line, more exciting. So the pendulum swings back and forth again. You don’t have to be Carnac the Magnificent to figure there will be more deals, with the big getting bigger via consolidation and technology acquisitions. You’ll also likely see some of the smaller public companies take the path of SafeNet, WatchGuard, Entrust, Aladdin, and now SonicWall, in being taken private. The only thing you won’t see is nothing. The investment bankers have to keep busy, don’t they? Share:

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Incite 6/2/2010: Smuggler’s Blues

Given the craziness of my schedule, I don’t see a lot of movies in the theater anymore. Hard to justify the cost of a babysitter for a movie, when we can sit in the house and watch movies (thanks, Uncle Netflix!). But the Boss does take the kids to the movies because it’s a good activity, burns up a couple hours (especially in the purgatory period between the end of school and beginning of camp), and most of the entertainment is pretty good. Though it does give me some angst to see two credit card receipts from every outing. The first is the tickets, and that’s OK. The movie studios pay lots to produce these fantasies, so I’m willing to pay for the content. It’s the second transaction, from the snack bar, that makes me nuts. My snack bar tab is usually as much as the tickets. Each kid needs a drink, and some kind of candy and possibly popcorn. All super-sized, of course. And it’s not even the fact that we want to get super sizes of anything. That’s the only option. You can pay $4 for a monstrous soda, which they call small. Or $4.25 for something even bigger. If you can part with $4.50, then you get enough pop to keep a village thirst-free for a month. And don’t get me started on the popcorn. First of all, I know it’s nutritionally terrible. They may use different oil now, but in the portions they sell, you could again feed a village. But don’t think the movie theaters aren’t looking out for you. If you get the super-duper size, you get free refills of both popcorn and soda. Of course, you’d need to be the size of an elephant to knock down more than two gallons of soda and a feedbag of popcorn, but at least they are giving something back. So we’re been trying something a bit different, born of necessity. The Boss can’t eat the movie popcorn due to some food allergies, so she smuggles in her own popcorn. And usually a bottle of water. You know what? It works. It’s not like the 14 year old ticket attendant is going to give me a hard time. I know, it’s smuggling, but I don’t feel guilty at all. I’d be surprised if the monstrous soda cost the theater more than a quarter, but they charge $4. So I’m not going to feel bad about sneaking in a small bag Raisinettes or Goobers with a Diet Coke. I’ll chalk it up to a healthy lifestyle. Reasonable portions and lighter on my wallet. Sounds like a win-win to me. – Mike. Photo credits: “Movie Night Party” originally uploaded by Kid’s Birthday Parties Incite 4 U Follow the dollar, not the SLA – Great post by Justin James discussing the reality of service level agreements (SLAs). I know I’ve advised many clients to dig in and get preferential SLAs to ensure they get what they contract for, but ultimately it may be cheaper for the service provider to violate the SLA (and pay the fine) than it is to meet the agreement. I remember telling the stories of HIPAA compliance, and the reality that some health care organizations faced millions of dollars of investment to get compliant. But the fines were five figures. Guess what they chose to do. Yes, Bob, the answer was roll the dice. Same goes for SLAs, so there are a couple lessons here. 1) Try to get teeth in your SLA. The service provider will follow the money, so if the fine costs them more, they’ll do the right thing. 2) Have a Plan B. Contingencies and containment plans are critical, and this is just another reason why. When considering services, you cannot make the assumption that the service provider will be acting in your best interest. Unless your best interest is aligned with their best interest. Which is the reality of ‘cloud’. – MR It just doesn’t matter – I’m always pretty skeptical of poorly sourced articles on the Internet, which is why the Financial Times report of Google ditching Microsoft Windows should be taken with a grain of salt. While I am sometimes critical of Google, I can’t imagine they would really be this stupid. First of all, at least some of the attacks they suffered from China were against old versions of Windows – as in Internet Explorer 6, which even isolated troops of Antarctic chimpanzees know not to touch. Then, unless you are running some of the more-obscure ultra-secure Unix variants, no version of OS X or Linux can stand up to a targeted attacker with the resources of a nation state. Now, if they want some diversity, that’s a different story, but the latest versions of Windows are far more hardened than most of the alternatives – even my little Cupertino-based favorite.– RM Hack yourself, even if it’s unpopular… – I’ve been talking about security assurance for years. Basically this is trying to break your own defenses and seeing where the exposures are, by any means necessary. That means using live exploits (with care) and/or leveraging social engineering tactics. But when I read stories like this one from Steve Stasiukonis where there are leaks, and the tests are compromised, or the employees actually initiate legal action against the company and pen tester, I can only shake my head. Just to reiterate” the bad guys don’t send message to the chairman saying “I IZ IN YER FILEZ, READIN YER STUFFS!” They don’t worry about whether their tactics are “illegal human experiments,” they just rob you blind and pwn your systems. Yes, it may take some political fandango to get the right folks on board with the tests, but the alternative is to clean up the mess later. – MR Walk the walk – A while back we were talking about getting started in security over at The Network Security Podcast, and one bit of consensus was that you should try

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FireStarter: In Search of… Solutions

A holy grail of technology marketing is to define a product category. Back in the olden days of 1998, it was all about establishing a new category with interesting technology and going public, usually on nothing more than a crapload of VC money and a few million eyeballs. Then everything changed. The bubble popped, money dried up, and all those companies selling new products in new categories went bust. IT shops became very risk averse – only spending money on established technologies. But that created a problem, in that analysts had to sell more tetragon reports, which requires new product categories. My annoyance with these product categories hit a fever pitch last week when LogLogic announced a price decrease on their SEM (security event management) technology. Huh? Seems they dusted off the SEM acronym after years on the shelf. I thought Gartner had decreed that it was SIEM (security information and event management) when it got too confusing between the folks who did SEM and SIM (security information management) – all really selling the same stuff. Furthermore, log management is now part of that deal. Do they dare argue with the great all-knowing oracles in Stamford? Not that this expanded category definition is controversial. We’ve even posted that log management or SIEM isn’t a stand-alone market – rather it’s the underlying storage platform for a number of applications for security and ops professionals. The lesson most of us forget is that end users don’t care what you call the technology, as long as you solve their problems. Maybe the project is compliance automation or incident investigation. SIEM/Log Management can be used for both. IT-GRC solutions can fit into the first bucket, while forensic toolkits fit into the latter. Which of course confuses the hell out of most end users. What do they buy? And don’t all the vendors say they do everything anyway? The security industry – along with the rest of technology – focuses on products, not solutions. It’s about the latest flashing light in the new version of the magic box. Sure, most of the enterprise companies send their folks to solution selling school. Most tech company websites have a “solution” area, but in reality it’s always an afterthought. Let’s consider the NAC (network access control) market as another example. Lots of folks think Cisco killed the NAC market by making big promises and not delivering. But ultimately, end users didn’t care about NAC – they cared about endpoint assessment and controlling guest access, and they solved those problems through other means. Again, end users need to solve problems. They want answers and solutions, but they get a steady diet of features and spiels on why one box is better than the competitors. They get answers to questions they don’t ask. No wonder most end users turn off their phones and don’t respond to email. Vendors spin their wheels talking about product category leadership. Who cares? Actually, Rich reminded me that the procurement people seem to care. We all know how hard it is to get a vendor in the wrong quadrant (or heaven forbid no quadrant at all) through the procurement gauntlet. Although the users are also to blame for accepting this behavior, and the dumb and lazy ones even like it. They wait for a vendor to come in and tell them what’s important, as opposed to figuring out what problem needs to be solved. From where I sit, the buying dynamic is borked, although it’s probably just as screwy in other sectors. So what to do? That’s a good question, and I’d love your opinion. Should vendors run the risk of not knowing where they fit by not identifying with a set of product categories – and instead focus on solutions and customer problems? Should users stop sending out RFPs for SIEM/Log Management, when what they are really buying is compliance automation? Can vendors stop reacting to competitive speeds and feeds? Can users actually think more strategically, rather than whether to embrace the latest shiny upgrade from the default vendor? I guess what I’m asking is whether it’s possible to change the buying dynamic. Or should I just quiet down, accept the way the game is played, and try to like it? Share:

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The Hidden Costs of Security

When I was abroad on vacation recently, the conversation got to the relative cost of petrol (yes, gasoline) in the States versus pretty much everywhere else. For those of you who haven’t travelled much, fuel tends to be 70-80% more expensive elsewhere. Why is that? It comes down to the fact that the US Government bears many of real costs of providing a sufficient stream of petroleum. Those look like military, diplomatic, and other types of spending in the Middle East to keep the oil flowing. I’m not going to descend into either politics or energy dynamics here, but suffice it to say we’d be investing a crapload more money in alternative energy if US consumers had to directly bear the full brunt of what it costs to pull oil out of the Middle East. With that thought in the back of my mind, I checked out one of Bejtlich’s posts last weekend which talked about the R&D costs of the bad guys. Basically these folks run businesses like anyone else. They have to invest in their ‘product’, which is finding new vulnerabilities and exploiting them. They also have to invest in “customer service,” which is basically staying invisible once they are inside to avoid detection. And these costs are significant, but compared to the magnitude of the ‘revenue’ side of their equation, I’m sure they are happy to make the investment. Cyber-fraud is big business. But what about other hidden costs of providing security? We had a great discussion on Monday with the FireStarter talking about value/loss metrics, but do these risk models take into account some of the costs we don’t necessarily see as part of security? Like our network traffic. How much bandwidth is wasted on reconnaissance traffic looking for holes in our perimeters? What about the amount of your inbound pipe congested with spam, which you need to analyze and then drop. One of the key reasons anti-spam services took off is because the bandwidth demand of spam was transferred to the service provider. What would we do differently if we had to allocate those hidden costs to the security team? I know, at the end of the day it’s all just overhead, but what if? Would it change our behavior or our security architectures? I suspect we’d focus much more on providing clean pipes and having more of our security done in the cloud, removing some of these hidden costs from our IT stack. That makes economic sense, and we all know most of what we do ultimately is driven by economics. How about the costs of cleaning up an incident? Yes, there are some security costs in there from the standpoint of investigation and forensics, but depending on the nature of the attack there will be legal and HR resources required, which usually don’t make it into the incident post-mortem. Or what about the opportunity cost of 1,000 folks losing their authentication tokens and being locked out of the network? Or the time it takes a knowledge worker to jump through hoops to get around aggressive web filtering rules? Or the cost of false positives on the IPS that block legitimate business traffic and break critical applications? We know how big the security budget is, but we don’t have a firm grasp of what security really costs our businesses. If we did, what would we do differently? I don’t necessarily have an answer, but it’s an interesting question. As we head into Memorial Day weekend here in the US, we need to remember obviously, all the soldiers who give all. But we also need to remember the ripple effect of every action and reaction to the bad guys. Every time I go through a TSA checkpoint in an airport, I’m painfully aware of the billions spent each month around the world to protect air travel, regardless of whether terrorists will ever attack air travel again. I guess the same analogy can be used with security. Regardless of whether you’re actually being attacked, the costs of being secure add up. Score another one for the bad guys. Share:

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Incite 5/26/2010: Funeral for a Friend

I don’t like to think of myself as a sentimental guy. I have very few possessions that I really care about, and I don’t really fall into the nostalgia trap. But I was shaken this week by the demise of a close friend. We were estranged for a while, but about a year ago we got back in touch and now that’s gone. I know it’s surprising, but I’m talking about my baseball glove, a Wilson A28XX, vintage mid-1980’s. You see, I got this glove from my Dad when I entered little league, some 30+ years ago. It was as big as most of my torso when I got it. The fat left-handed kid always played first base, so I had a kick-ass first baseman’s glove and it served me well. I stopped playing in middle school (something about being too slow as the bases extended to 90 feet), played a bit of intramural in college, and was on a few teams at work through the years. A few of my buddies here in ATL are pretty serious softball players. They play in a couple leagues and seem to like it. So last year I started playing for my temple’s team in the Sunday morning league with lots of other old Jews. I dug my glove out of the trunk, and amazingly enough it was still very workable. It was broken in perfectly and fit my hand like a glove (pun intended). It was like a magnet – if the ball was within reach, that glove swallowed it and didn’t give it up. But the glove was showing signs of age. I had replaced the laces in the webbing a few times over the years, and the edges of the leather were starting to fray. Over this weekend the glove had a “leather stroke”, when the webbing fell apart. I could have patched it up a bit and probably made it through the summer season, but I knew the glove was living on borrowed time. So I made the tough call to put it down. Well, not exactly down, since the leather is already dead, but I went out and got a new glove. Like with a trophy wife, my new glove is very pretty. A black leather Mizuno. No scratches. No imperfections. It even has a sort-of new-car smell. I’ll be breaking it in all week and hopefully it’ll be ready for practice this weekend. For an anti-nostalgia guy, this was actually hard, and it will be weird taking the field with a new rig. I’m sure I’ll adjust, but I won’t forget. – Mike Photo credits: “Leather and Lace” originally uploaded by gfpeck Incite 4 U I want to personally thank Rich and the rest of the security bloggers for really kicking it into gear over the past week. Where my feed reader had been barren of substantial conversations and debate for (what seemed like) months, this week I saw way too much to highlight in the Incite. Let’s keep the momentum going. – Mike. Focus on the problem, not the category – Stepping back from my marketing role has given me the ability to see how ridiculous most of security marketing is. And how we expect the vendors to lead us practitioners out of the woods, and blame then when they find another shiny object to chase. I’m referring to NAC (network access control), and was a bit chagrined by Joel Snyder’s and Shimmy’s attempts to point the finger at Cisco for single-handedly killing the NAC business. It’s a load of crap. To be clear, NAC struggled because it didn’t provide must-have capabilities for customers. Pure and simple. Now clearly Cisco did drive the hype curve for NAC, but amazingly enough end users don’t buy hype. They spend money to solve problems. It’s a cop-out to say that smaller vendors and VCs lost because Cisco didn’t deliver on the promise of NAC. If the technology solved a big enough problem, customers would have found these smaller vendors and Cisco would have had to respond with updated technology. – MR I can haz your ERP crypto – Christopher Kois noted on his blog that he had ‘broken’ the encryption on the Microsoft Dynamics GP, the accounting package in the Dynamics suite from the Great Plains acquisition. Encrypting data fields in the database, he noticed odd behavioral changes when altering encrypted data. What he witnessed was that if he changed a single character, only two bytes of encrypted data changed. With most block ciphers, if you change a single character in the plaintext, you get radically different output. Through trial and error he figured out the encryption used was a simple substitution cipher – and without too much trouble Kois was able to map the substitution keys. While Microsoft Dynamics does run on MS SQL Server, there are some components that still rely upon Pervasive SQL. Christopher’s discovery does not mean that MS SQL Server is secretly using the ancient Caesar Cipher, but rather that some remaining portion Great Plains does. It does raise some interesting questions: how do you verify sensitive data has been removed from Pervasive? If the data remains in Pervasive, even under a weak cipher, will your data discovery tools find it? Does your discovery tool even recognize Pervasive SQL? – AL Blame the addicts – When I was working at Gartner, nothing annoyed me more than those client calls where all they wanted me to do was read them the Magic Quadrant and confirm that yes, that vendor really is in the upper right corner. I could literally hear them checking their “talked to the analyst” box. An essential part of the due diligence process was making sure their vendor was a Leader, even if it was far from the best option for them. I guess no one gets fired for picking the upper right. Rocky DeStefano nails how people see the Magic Quadrant in his Tetragon of Prestidigitation post. Don’t blame the analyst

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Gaming the Tetragon

Rich highlighted a great post from Rocky DiStefano of Visible Risk in today’s Incite: Blame the addicts – When I was working at Gartner, nothing annoyed me more than those client calls where all they wanted me to do was read them the Magic Quadrant and confirm that yes, that vendor really is in the upper right corner. I could literally hear them checking their “talked to the analyst” box. An essential part of the due diligence process was making sure their vendor was a Leader, even if it was far from the best option for them. I guess no one gets fired for picking the upper right. Rocky DeStefano nails how people see the Magic Quadrant in his Tetragon of Prestidigitation post. Don’t blame the analyst for giving you what you demand – they are just giving you your fix, or you would go someplace else. – RM Rocky is dead on – there are a number of constituencies that leverage information like the Magic Quadrant, and they all have different perspectives on the report. I don’t need to repeat what Rocky said, but I want to add a little more depth about each of the constituencies and provide some anecdotes from my travels. To be clear, Gartner (and Forrester, for that matter) place all sorts of caveats on their vendor rankings. They say not to use them to develop a short list, and they want clients to call to discuss their specific issues. But here’s the rub: They know far too many organizations use the MQ as a crutch to support either their own laziness and stupidity, or to play the game and support decisions they’ve already made. Institutionally they don’t care. As Rich pointed out, (most of) the analysts hate it. But the vendor rankings represent enough revenue that they don’t want to mess with them. Yes, that’s a cynical view, but at the end of the day both of the big IT research shops are public companies and they have to cater to shareholders. And shareholders love licensing 10-page documents for $20K each to 10 vendors. Rocky uses 3 cases to illuminate his point, first a veteran information security professional, and those folks (if they have a clue) know that they’ve got to focus their short list on vendors close to the Leader Quadrant. If not, they’ll spend more time justifying another lesser-ranked vendor than implementing the technology. It’s just not worth the fight. So they don’t. They pick the best vendor from the leader quadrant and move on. This leads us to the second case, the executive, who basically doesn’t care about the technology, but has a lot of stuff on his/her plate and figures if a vendor is a leader, they must have lots of customers calling Gartner and their stuff can’t be total crap. Most of the time, they’d be right. And the third case is vendors. Rocky makes some categorizations about the different quadrants, which are mostly accurate. Vendors in the “niche” space (bottom left) don’t play into the large enterprise market, or shouldn’t be. Those in the “challenger” quadrant (top left) are usually big companies with products they bundle into broad suites, so the competitiveness of a specific offering is less important. Those in the “visionary” sector (bottom right) delude themselves into thinking they’ve got a chance. They are small, but Gartner thinks they understand the market. In reality it doesn’t matter because the vast majority of the market – dumb and/or lazy information security professionals – see the MQ like this: In most enterprise accounts the only vendors with a chance are the ones in the leader quadrant, so placement in this quadrant is critical. I’ve literally had CEOs and Sales VPs take out a ruler and ask why our arch-nemesis was 2mm to the right of our dot. 2 frackin millimeters. You may think I’m kidding, but I’m not. So many of the high-flying vendors make it their objective to spend whatever resources it takes to get into the leader quadrant. They have customers call into Gartner with inquiries about their selection process (even though the selection is already made) to provide data points about the vendor. Yes, they do that, and the vendors provide talking points to their clients. They show up at the conferences and take full advantage of their 1on1 meeting slots. They buy strategy days. To be clear, you cannot buy a better placement on the MQ. But you can buy access, which gives a vendor a better opportunity to tell their story, which in many cases results in better placement. Sad but true. Vendors can game the system to a degree. Which is why Rich, Adrian, and I made a solemn blood oath that we at Securosis would never do a vendor ranking. We’d rather focus our efforts on the folks who want advice on how to do their job better. Not those trying to maximize their Tetris time. Share:

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A Phish Called Tabby

Thanks to Aza Raskin, this week we learned of a new phishing attack, dubbed “tabnabbing” by Brian Krebs. It opening a tab (unbeknownst to the user), changes the favicon, and does a great job of impersonating a web page – or a bank account, or any other phishing target. Through the magic of JavaScript, the tabs can be controlled and the attack made very hard to detect since it preys on the familiarity of users with common webmail and banking interfaces. So what do you do? You can run NoScript in your Firefox browser and to prevent the JavaScript from running (unless you idiotically allowed JavaScript on a compromised page). Another option is leveraging a password manager. Both Rich and I have professed our love for 1Password on the Mac. 1Password puts a button in your browser, and when logging in brings up a choice of credentials for that specific domain to automatically fill in the form. So when I go to Gmail, logging in is as easy as choosing one of the 4 separate logins I use on google.com domains. Now if I navigate to the phishing site, which looks exactly like Gmail, I’d still be protected. 1Password would not show me any stored logins for that domain, since presumably the phisher must use a different domain. This isn’t foolproof because the phisher could compromise the main domain, host the page there, and then I’m hosed. I could also manually open up 1Password and copy/paste the login credentials, but that’s pretty unlikely. I’d instantly know something was funky if my logins were not accessible, and I’d investigate. Both of these scenarios are edge cases and I believe in a majority of situations I’d be protected. I’m not familiar with password managers on Windows, but if they have similar capabilities, we highly recommend you use one. So not only can I use an extremely long password on each sensitive site, I get some phishing protection as a bonus. Nice. Share:

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Lessons from LifeLock’s Lucky 13

Much of the buzz around the security industry this week revolved around Wired’s story about LifeLock’s CEO getting his identity stolen not once (which we knew about), but an additional 12 times. Guess 13 is not Todd Davis’ lucky number. Obviously the media blitz posting this guy’s Social Security number on buses, TV, and other mass media made this guy target #1. And the reality is no identity protection network is going to be foolproof for a pretty simple reason. The companies issuing credit don’t always check for fraud alerts, so a fraud alert may not be triggered when a new account is opened. Even if you are religiously monitoring your credit, you are blind until the fraudulent account shows up where you can see it. But what’s troubling to me is the guy didn’t know about the issues until a collection agency came after him. I’m concerned for several reasons, and the blame can be directed everywhere. First to LifeLock, how do you not see 12 new accounts? Hard to believe that none of the accounts showed up on Davis’ credit history. If not, what is the point of their identity protection service again? Also note that none of the 13 transactions were for big numbers. A couple hundred here, a couple hundred there. That’s been my personal experience as well. The fraudsters don’t try to milk personal accounts of thousands at a time because that will set off alarms. They don’t want to be discovered until they are long gone. More disturbing is how the merchants handle most of these situations. In the crazy search for growth at any cost, they cut corners. It’s as simple as that. They don’t check credit ahead of time (or they would have seen the fraud lock). They don’t report new credit accounts to the bureaus (which would have triggered a credit monitoring alert). And they don’t verify addresses when sending bills (which would have shown an inconsistency on the original application). Amazingly enough, a collection agent finds the guy within a hour, but the companies can’t do that over a year. I guess I shouldn’t be surprised, since these big companies just build a ‘shrinkage’ number into their models. They figure a certain percentage of their customers will not pay, either for legitimate or fraudulent reasons. And I guess that’s cheaper than setting up the right processes to prevent a portion of that fraud. Ultimately it’s just economics, but it’s still very disturbing. Buyt if I allowed myself to get into a funk every time a big company did something stupid and harmful, I’d be even grumpier than I already am. So I need to let that go. Though there are things we can and should do to minimize the damage of identity theft. (Try to) Prevent it: OK, you can’t really prevent it. But you can act proactively to minimize your attack surface. That means setting up your own fraud alerts (since the credit bureaus and their lobbyists succeeded in killing the ability for a service to do this for you) and use a credit monitoring service (I use Debix, but there are lots out there). Accept it: Understand that it will happen and there is likely nothing you can do. Getting upset won’t help. You need to be focused and contain the damage. Contain it: As we always say, you need an incident response plan for your business in the event of a breach, but you need a personal incident response plan as well. Who do you call? What steps do you take? Those should be documented and in a place you can get to quickly. You need to act fast, and having a documented process reduces emotion and lets you make the decisions when you’re clear-headed and not rushing. Confirm it: The credit bureaus are a hassle to deal with, but you have to stay on top of them to make sure your credit rating is properly cleaned. The three you need to worry about are Experian, Equifax, and TransUnion. That means checking your credit rating on an ongoing basis and keeping all documentation on the fraudulent use of your accounts. Finally, don’t post personal information on the side of a bus. We know how that turns out. Share:

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Incite 5/19/2010: Benefits of Bribery

Don’t blink – you might miss it. No I’m not talking about my prowess in the bedroom, but the school year. It’s hard to believe, but Friday is the last day of school here in Atlanta. What the hell? It feels like a few weeks ago we put the twins’ name tags on, and put them on the bus for their first day of kindergarten. The end of school also means it’s summertime. Maybe not officially, but it’s starting to feel that way. I do love the summer. The kids do as well, and what’s not to love? Especially if you are my kids. There is the upcoming Disney trip, the week at the beach, the 5-6 weeks of assorted summer camp(s), and lots of fun activities with Mom. Yeah, they’ve got it rough. Yet we still face the challenge of keeping the kids grounded when they are faced with a life of relative abundance. Don’t get me wrong, I know how fortunate I am to be able to provide my kids with such rich experiences as they grow up. But XX1 got our goats over the weekend, when one of her friends got an iPod touch for her birthday. Of course, her reaction was “Why can’t I have an iPod touch, all my friends have them?” Thankfully the Boss was there, as I doubt I would have responded well to that line of questioning. She calmly told XX1 that with an attitude like that, she’ll be lucky if we don’t take away all her toys. And that she needs to be grateful for what she has, not focused on what she doesn’t. To be clear, not all of her friends have iPod touches. She is prone to exaggeration, like her Dad. What she doesn’t know is our plan to give her a hand-me down iPhone once we upgrade this summer. (Of course I’m upgrading, come on, now!) I think we need to tie it to some kind of achievement. Maybe if she works hard on her school exercises over the summer. Or is nice to her sister (yes, that is a problem). Or whatever kind of behavior we want to incent at any given time. There’s nothing like having a big anchor over her head to drag out every time she misbehaves. That’s right, it’s a bribe. I’m sure there are better ways than bribery to get the kids to do what we want. I’m just not sure what they are, and nothing we’ve tried seems to work like putting that old carrot out there and waiting for Pavlov to work his magic. – Mike. Photo credits: “Unplug for safety” originally uploaded by mag3737 Incite 4 U Where is the Blog Love? – I’m going to break the rules and link to one of my own posts. On Monday I called out the decline of blogging. Basically, people have either moved to Twitter or left the community discussion completely. Twitter is great, but it can’t replace a good blog war. In response, Andy the IT Guy, DanO, and LoverVamp jumped back on the scene. These are 3 sites I used to read every day (and still do, when they are updated) and maybe we can start rebuilding the community. Why is that important? Because blogs provide a more nuanced, permanent archive of knowledge with more reasoned debate than Twitter, however wonderful, can sustain. – RM Critical Infrastructure Condition Critical – We all take uninterrupted power for granted. Yet, we security folks understand how vulnerable the critical infrastructure is to cyber-attacks. Dark Reading has an interesting interview with with Joe Weiss, who has written a book about how screwed we are. A lot of the discussions sound very similar to every other industry that requires the regulatory fist of God to come crashing down before they fix anything. And NERC CIP is only a start, since it exempts the stuff that is really interesting, like networks and the actual control systems. Unfortunately it will take a massive outage caused by an attack to change anything. But we all know that because we’ve seen this movie before. – MR Desktop, The Way You Want It – I am a big fan of desktop virtualization, and I am surprised it has gotten such limited traction. I think people view it ass backwards. The label “dumb terminal” is in the back of people’s minds, and that not a progressive model. But desktop virtualization is much, much more than a refresh of the dumb terminal model. The ability to contain the work environment in a virtual server makes things a heck of a lot easier for IT, and benefits the employee, who can access a fully functional desktop from anywhere inside – and possibly outside – the company. Citrix giving each employee $2,100 to buy their own computer for work is a very smart idea. The benefits to Citrix are numerous. Every employee gets to pick the computer they want, for better or worse, and they are now invested in their choice, rather than considering a work laptop to be a disposable loaner. The work environment is kept safe in a virtual container, and employees still get fully mobile computing. Every user becomes a tester for the company’s desktop virtualization environment, bringing diverse environments under the microscope. And it shows how they can blend work and home environments, without compromising one for the other. This is a good move and makes sense for SMB and enterprise computing environments. – AL Security 5.0 – HTML5 is coming down the pipe, and Veracode has some great advice on what to keep an eye on from a security perspective. Not to show my age, but I remember hand-coding sites in HTML v1, and how exciting it was when things like JavaScript started appearing. Any time we have one of these major transitions we see security issues crop up, and as you start leveraging all the new goodness it never hurtss to start looking at security early in

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Understanding and Selecting SIEM/LM: Business Justification

It’s time to resume our series on Understanding and Selecting a SIEM/Log Management solution. We have already discussed what problems this technology solves, with Use Cases 1 & Use Cases 2, but that doesn’t get a project funded. Next we need to focus on making the business case for the project and examine how to justify the investment in bean counter lingo. End User Motivations and Business Justification Securosis has done a lot of work on the motivation for security investments. Unfortunately our research shows budgets are allocated to visceral security issues people can see and feel, rather than being based on critical consideration of risks to the organization. In other words, it’s much harder to get the CEO to sign off on a six-figure investment when you can’t directly demonstrate a corresponding drop in profit or an asset loss. Complicating matters in many cases, such as the theft of a credit card, it’s someone else who suffers the loss. Thus compliance and/or regulation is really the only way to justify investments to address the quiet threats. The good news relative to SIEM and Log Management is the technology is really about improving efficiency by enhancing the ability to deal with the mushrooming amount of data generated by network and security devices. Or being able to detect an attack designed to elude a firewall or IPS (but not both). Or even making reporting and documentation (for compliance purposes) more efficient. You can build a model to show improved efficiency, so of all security technologies – you’d figure SIEM/Log Management would be pretty straight forward to justify. Of course, putting together a compelling business justification does not always result in a funded project. Remember when money gets tight (and when is money not tight?) sometimes it’s easier to flog employees to work harder, as opposed to throwing high dollar technology at the problem. Yes, the concept of automation is good, but quantifying the real benefits can be challenging. Going Back to the Well Our efforts are also hamstrung by a decade of mis-matched expectations relative to security spending. Our finance teams have seen it all, and in lots of cases haven’t seen the tangible value of the security technology. So they are justifiably skeptical relative to yet another ROI model showing a two week payback on a multi-million dollar investment. Yes, that’s a bit facetious, but only a bit. When justifying any investment, we need to ensure not to attempt to measure what can’t be accurately measured, which inevitably causes the model to collapse under its own cumbersome processes and assumptions. We also need to move beyond purely qualitative reasoning, which produces hard to defend results. Remember that security is an investment that produces neither revenue nor fully quantifiable results, thus trying to model it is asking for failure. Ultimately having both bought and sold security technology for many years, we’ve come to the conclusion that end user motivations can be broken down pretty simply into two buckets: Save Money or Make Money. Any business justification needs to very clearly show the bean counters how the investment will either add to the top line or help improve the bottom line. And that argument is far more powerful than eliminating some shadowy threat that may or may not happen. Although depending on the industry, implementing log management (in some form) is not optional. There are regulations (namely PCI) that specifically call out the need to aggregate, parse and analyze log files. So the point of justification becomes what kind of infrastructure is needed, at what level of investment – since solutions range from free to millions of dollars. To understand where our economic levers are as we build the justification model, we need to get back to the use cases (Part 1, Part 2), and show how these can justify the SIEM/Log Management investments. We’ll start with the two use cases, which are pretty straight forward to justify because there are hard costs involved. Compliance Automation The reality is most SIEM/Log Management projects come from the compliance budget. Thus _compliance automation is a “must do” business justification because regulatory or compliance requirements must be met. These are not options. For example, if your board of directors mandates new Sarbanes-Oxley controls, you are going to implement them. If your business accepts credit cards on Internet transactions, you are going to comply with PCI data security standard. But how to you justify a tool to make the compliance process more efficient? Get our your stop watch and start tracking the time it takes you to prepare for these audits. Odds are you know how long it took to get ready for your last audit, the auditor is going to continue looking over your shoulder – asking for more documentation on policies, processes, controls and changes. The business case is based on the fact that the amount of time it takes to prepare for the audit is going to continue going up and you need automation to keep those costs under control. Whether the audit preparation budget gets allocated for people or tools shouldn’t matter. So you pay for SIEM/Log Management with the compliance budget, but the value accrues to both the security function and streamlines operations. Sounds like a win/win to us. Operational Efficiency Our next use case is about improving efficiency and this is relatively straightforward to justify. If you look back at the past few years, the perimeter defenses of your organization have expanded significantly. This perimeter sprawl is due to purpose-built devices being implemented to address specific attack vectors. Think email gateway, web filter, SSL VPN, application aware firewall, web application firewall, etc. All of which have a legitimate place in a strong perimeter. Specifically each device requires management to set policies, monitor activity, and act on potential attacks. The system itself requires time to learn, time to manage, and time to update. which requires people and additional people aren’t really in the spending plan nowadays. Operational efficiency means less time

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