Connect with us

Security

Equifax rating outlook decimated over cybersecurity breach

Published

on

Apple and Cisco team up on cybersecurity insurance
Apple and Cisco are now offering insurance policies to companies to protect them financially against cyber attacks.

Moody’s has cut its rating outlook for Equifax in consideration of a disastrous security breach which led to the theft of over 146 million user records.

The capital markets and investment firm decided to reduce its Equifax outlook from stable to negative this week, as first reported by CNBC.

A 2017 data breach is the cause of the financial fallout. Individuals from the US, Canada, and the United Kingdom were informed that their information had been exposed, potentially including the theft of names, social security numbers, birthdates, home addresses, and partial driving license details.

A well-known vulnerability in Apache Struts, CVE-2017-5638, was blamed for the intrusion.

See also: Equifax, FICO launch Data Decision Cloud as credit scores meld with marketing, compliance, customer experience

The Apache Struts Project Management Committee said at the time the attackers behind the breach “either used an earlier announced vulnerability on an unpatched Equifax server or exploited a vulnerability not known at this point in time.” Equifax revealed an unpatched system was at fault, despite the bug’s disclosure and a patch being made available two months before the data breach occurred.

In other words, the data breach was preventable, a fact that haunts Equifax to this day.

The failure to patch the problem has been an expensive lesson for the company, not just in terms of its battered reputation, but in cold, hard cash and results on the balance sheet.

Moody’s cited a legal expenditure charge of $690 million in the first quarter as a reason for the downgrade. However, the cost to Equifax is far more substantial, with Q1 2019 earnings also revealing $786.8 million in general costs due to the data breach, $82.8 million in data security costs, $12.5 million in legal fees, and $1.5 million in product liability charges, as noted by IT Pro.

CNET: Instagram website leaked phone numbers and emails for months, researcher says

“We are treating this with more significance because it is the first time that cyber has been a named factor in an outlook change,” Joe Mielenhausen, a Moody’s spokesperson told CNBC. “This is the first time the fallout from a breach has moved the needle enough to contribute to the change.”

The financial ramifications of lax patch processes are now proving to be an ongoing strain and burden on Equifax. The company is also facing class-action lawsuits and regulatory scrutiny — which may, in turn, lead to additional fines and penalties in the future.

These problems have a knock-on impact which has now entered investor territory, as traders and shareholders will often examine rating outlooks and creditworthiness reports provided by companies such as Moody’s to ascertain the long-term prospects of an organization.

Cyber risk and cyber insurance are relatively new entrants to investor considerations but ones that cannot be ignored.

TechRepublic: Arm suspends cooperation with Huawei, endangering mobile and server business

The consequences of a major security incident or data breach can now have a long-term financial impact for a victim company and so the responsibility now lies on corporations to strengthen their security practices as much as possible to mitigate the risk of attack — as well as reduce the risk to investors.

Equifax serves as a lesson in why boards should sign up to proactive security defense rather than consider security as a budgetary afterthought. However, despite the credit rating company’s efforts to improve its security and prevent such a data breach from ever happening again, the millions of dollars now spent on shoring up security is also a financial burden and one that Moody’s cannot ignore.

“Beyond 2020, infrastructure investments are likely to remain higher than they had been before the 2017 breach,” the company added.

ZDNet has reached out to Equifax and will update if we hear back. 

Previous and related coverage


Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0


Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Security

Retrospective thoughts on KubeCon Europe 2022

Published

on

I’m not going to lie. As I sit on a plane flying away from Valencia, I confess to have been taken aback by the scale of Kubecon Europe this year. In my defence, I wasn’t alone the volume of attendees appeared to take conference organisers and exhibitors by surprise, illustrated by the notable lack of water, (I was told) t-shirts and (at various points) taxis.

Keynotes were filled to capacity, and there was a genuine buzz from participants which seemed to fall into two camps: the young and cool, and the more mature and soberly dressed.

My time was largely spent in one-on-one meetings, analyst/press conferences and walking the stands, so I can’t comment on the engineering sessions. Across the piece however, there was a genuine sense of Kubernetes now being about the how, rather than the whether. For one reason or another, companies have decided they want to gain the benefits of building and deploying distributed, container-based applications.

Strangely enough, this wasn’t being seen as some magical sword that can slay the dragons of legacy systems and open the way to digital transformation the kool-aid was as absent as the water. Ultimately, enterprises have accepted that, from an architectural standpoint and for applications in general, the Kubernetes model is as good as any available right now, as a non-proprietary, well-supported open standard that they can get behind.

Virtualisation-based options and platform stacks are too heavyweight; serverless architectures are more applicable to specific use cases. So, if you want to build an application and you want it to be future-safe, the Kubernetes target is the one to aim for.

Whether to adopt Kubernetes might be a done deal, but how to adopt certainly is not. The challenge is not with Kubernetes itself, but everything that needs to go around it to make resulting applications enterprise-ready.

For example, they need to operate in compliance environments; data needs to be managed, protected, and served into an environment that doesn’t care too much about the state; integration tools are required with external and legacy systems; development pipelines need to be in place, robust and value-focused; IT Operations need a clear view of what’s running whereas a bill of materials, and the health of individual clusters; and disaster recovery is a must.

Kubernetes doesn’t do these things, opening the door to an ecosystem of solution vendors and (often CNCF-backed) open source projects. I could drill into these areas Service Mesh, GitOps, orchestration, observability, and backup but the broader point is that they are all evolving and coalescing around the need. As they increase in capability, barriers to adoption reduce and the number of potential use cases grows.

All of which puts the industry at an interesting juncture. It’s not that tooling isn’t ready: organizations are already successfully deploying applications based on Kubernetes. In many cases, however, they are doing more work than they need developers need insider knowledge of target environments, interfaces need to be integrated rather than using third-party APIs, higher-order management tooling (such as AIOps) has to be custom-deployed rather than recognising the norms of Kubernetes operations.

Solutions do exist, but they tend to be coming from relatively new vendors that are feature rather than platform players, meaning that end-user organisations have to choose their partners wisely, then build and maintain development and management platforms themselves rather than using pre-integrated tools from a singe vendor.

None of this is a problem per se, but it does create overheads for adopters, even if they gain earlier benefits from adopting the Kubernetes model. The value of first-mover advantage has to be weighed against that of investing time and effort in the current state of tooling: as a travel company once told me, “we want to be the world’s best travel site, not the world’s best platform engineers.”

So, Kubernetes may be inevitable, but equally, it will become simpler, enabling organisations to apply the architecture to an increasingly broad set of scenarios. For organisations yet to make the step towards Kubernetes, now may still be a good time to run a proof of concept though in some ways, that sip has sailed perhaps focus the PoC on what it means for working practices and structures, rather than determining whether the concepts work at all.

Meanwhile and perhaps most importantly, now is a very good moment for organisations to look for what scenarios Kubernetes works best “out of the box”, working with providers and reviewing architectural patterns to deliver proven results against specific, high-value needs these are likely to be by industry and by the domain (I could dig into this, but did I mention that I’m sitting on a plane? ).

Jon Collins from Kubecon 2022

Kubernetes might be a done deal, but that doesn’t mean it should be adopted wholesale before some of the peripheral detail is ironed out.

The post Retrospective thoughts on KubeCon Europe 2022 appeared first on GigaOm.

Continue Reading

Security

Retrospective thoughts on Kubecon

Published

on

I’m not going to lie. As I sit on a plane flying away from Valencia, I confess to have been taken aback by the scale of Kubecon Europe this year. In my defence, I wasn’t alone the volume of attendees appeared to take conference organisers and exhibitors by surprise, illustrated by the notable lack of water, (I was told) t-shirts and (at various points) taxis.

Keynotes were filled to capacity, and there was a genuine buzz from participants which seemed to fall into two camps: the young and cool, and the more mature and soberly dressed.

My time was largely spent in one-on-one meetings, analyst/press conferences and walking the stands, so I can’t comment on the engineering sessions. Across the piece however, there was a genuine sense of Kubernetes now being about the how, rather than the whether. For one reason or another, companies have decided they want to gain the benefits of building and deploying distributed, container-based applications.

Strangely enough, this wasn’t being seen as some magical sword that can slay the dragons of legacy systems and open the way to digital transformation the kool-aid was as absent as the water. Ultimately, enterprises have accepted that, from an architectural standpoint and for applications in general, the Kubernetes model is as good as any available right now, as a non-proprietary, well-supported open standard that they can get behind.

Virtualisation-based options and platform stacks are too heavyweight; serverless architectures are more applicable to specific use cases. So, if you want to build an application and you want it to be future-safe, the Kubernetes target is the one to aim for.

Whether to adopt Kubernetes might be a done deal, but how to adopt certainly is not. The challenge is not with Kubernetes itself, but everything that needs to go around it to make resulting applications enterprise-ready.

For example, they need to operate in compliance environments; data needs to be managed, protected, and served into an environment that doesn’t care too much about the state; integration tools are required with external and legacy systems; development pipelines need to be in place, robust and value-focused; IT Operations need a clear view of what’s running whereas a bill of materials, and the health of individual clusters; and disaster recovery is a must.

Kubernetes doesn’t do these things, opening the door to an ecosystem of solution vendors and (often CNCF-backed) open source projects. I could drill into these areas Service Mesh, GitOps, orchestration, observability, and backup but the broader point is that they are all evolving and coalescing around the need. As they increase in capability, barriers to adoption reduce and the number of potential use cases grows.

All of which puts the industry at an interesting juncture. It’s not that tooling isn’t ready: organizations are already successfully deploying applications based on Kubernetes. In many cases, however, they are doing more work than they need developers need insider knowledge of target environments, interfaces need to be integrated rather than using third-party APIs, higher-order management tooling (such as AIOps) has to be custom-deployed rather than recognising the norms of Kubernetes operations.

Solutions do exist, but they tend to be coming from relatively new vendors that are feature rather than platform players, meaning that end-user organisations have to choose their partners wisely, then build and maintain development and management platforms themselves rather than using pre-integrated tools from a singe vendor.

None of this is a problem per se, but it does create overheads for adopters, even if they gain earlier benefits from adopting the Kubernetes model. The value of first-mover advantage has to be weighed against that of investing time and effort in the current state of tooling: as a travel company once told me, “we want to be the world’s best travel site, not the world’s best platform engineers.”

So, Kubernetes may be inevitable, but equally, it will become simpler, enabling organisations to apply the architecture to an increasingly broad set of scenarios. For organisations yet to make the step towards Kubernetes, now may still be a good time to run a proof of concept though in some ways, that sip has sailed perhaps focus the PoC on what it means for working practices and structures, rather than determining whether the concepts work at all.

Meanwhile and perhaps most importantly, now is a very good moment for organisations to look for what scenarios Kubernetes works best “out of the box”, working with providers and reviewing architectural patterns to deliver proven results against specific, high-value needs these are likely to be by industry and by the domain (I could dig into this, but did I mention that I’m sitting on a plane? ).

Jon Collins from Kubecon 2022

Kubernetes might be a done deal, but that doesn’t mean it should be adopted wholesale before some of the peripheral detail is ironed out.

The post Retrospective thoughts on Kubecon appeared first on GigaOm.

Continue Reading

Security

Defeating Distributed Denial of Service Attacks

Published

on

It seems like every day the news brings new stories of cyberattacks. Whether ransomware, malware, crippling viruses, or more frequently of late—distributed denial of service (DDoS) attacks. According to Infosec magazine, in the first half of 2020, there was a 151% increase in the number of DDoS attacks compared to the same period the previous year. That same report states experts predict as many as 15.4 million DDoS attacks within the next two years.

These attacks can be difficult to detect until it’s too late, and then they can be challenging to defend against. There are solutions available, but there is no one magic bullet. As Alastair Cooke points out in his recent “GigaOm Radar for DDoS Protection” report, there are different categories of DDoS attacks.

And different types of attacks require different types of defenses. You’ll want to adopt each of these three defense strategies against DDoS attacks to a certain degree, as attackers are never going to limit themselves to a single attack vector:

Network Defense: Attacks targeting the OS and network operate at either Layer 3 or Layer 4 of the OSI stack. These attacks don’t flood the servers with application requests but attempt to exhaust TCP/IP resources on the supporting infrastructure. DDoS protection solutions defending against network attacks identify the attack behavior and absorb it into the platform.

Application Defense: Other DDoS attacks target the actual website itself or the web server application by overwhelming the site with random data and wasting resources. DDoS protection against these attacks might handle SSL decryption with hardware-based cryptography and prevent invalid data from reaching web servers.

Defense by Scale: There have been massive DDoS attacks, and they show no signs of stopping. The key to successfully defending against a DDoS attack is to have a scalable platform capable of deflecting an attack led by a million bots with hundreds of gigabits per second of network throughput.

Table 1. Impact of Features on Metrics
[chart id=”1001387″ show=”table”]

DDoS attacks are growing more frequent and more powerful and sophisticated. Amazon reports mitigating a massive DDoS attack a couple of years ago in which peak traffic volume reached 2.3 Tbps. Deploying DDoS protection across the spectrum of attack vectors is no longer a “nice to have,” but a necessity.

In his report, Cooke concludes that “Any DDoS protection product is only part of an overall strategy, not a silver bullet for denial-of-service hazards.” Evaluate your organization and your needs, read more about each solution evaluated in the Radar report, and carefully match the right DDoS solutions to best suit your needs.

Learn More About the Reports: Gigaom Key Criteria for DDoS, and Gigaom Radar for DDoS

The post Defeating Distributed Denial of Service Attacks appeared first on GigaOm.

Continue Reading

Trending