Most data in the cloud is exposed says Thales/Ponemon study

Cloud securityA new study into encryption and key management suggests that nearly of all the companies in the world are planning to make a potentially fatal security mistake.

If the new global study is an accurate gauge of global trends, 84% of companies across the world are about to commit sensitive data to the cloud by 2018. However, only 37% of the same survey sample has an encryption plan or strategy.

With consultant PwC recently declaring that cloud computing is attracting the attention of the world’s cyber criminals and attracting a mini-boom in hacking attacks, the lack of data encryption could prove fatally negligent.

The Global Encryption Trends report, commissioned by Thales Security and conducted by IT security think-tank Ponemon, revealed that though the use of encryption is increasing, the security industry isn’t keeping pace with its criminal opponents. In the study Ponemon interviewed 5,009 individuals across multiple industry sectors in 11 of the world’s top economies, including the US, the UK, Germany, France, Brazil and Japan. If that survey is an accurate reflection of the global state of security of the cloud, there are some worrying trends, according to Thales.

While use of encryption is on the up, with nearly three times more organisations classifying themselves as extensive users in comparison with years ago, there is ‘still some way to go’, according to Thales. In 2005 a Thales study found that 16% of its global survey sample used encryption. By 2015 the proportion of encryption users had risen to 41%, of those surveyed. That still means that a minority of companies around the world are using a baseline level of cyber security, according to John Grimm, Senior Director at Thales e-Security. To make matters worse, in that time the cyber crime industry will have been far more agile and fast moving.

Other findings were that 40% of cloud data at rest is unprotected and 57% of companies don’t even know where their sensitive data resides. Sensitive data discovery ranked as the top challenge to planning and executing an encryption strategy, according to researchers.

Support for both cloud and on-premise deployment was rated the most important encryption solution and 58% of companies said they leave their cloud provider to be responsible for protecting sensitive data transferred in the cloud.

The EU General Data Protection Regulation: Prepare for change

(c)iStock.com/xijian

The EU’s wide-ranging rules on General Data Protection Regulation (GDPR) are set to significantly impact all businesses, whether in the EU or further abroad. From 2018, any organisation that collects, uses or shares personal information about European citizens will have to demonstrate compliance with the hotly contested law. This includes using various techniques to ensure that the protection of data is built into the design and infrastructure of an organisation by default.

Securing the data deluge

In an always-on, hyper-connected world, most people think of their data in terms of the live systems that hold their information. In reality, that is just the tip of the iceberg. Data is in fact being copied over and over – for development, testing, quality assurance, training, financial reporting, business intelligence and more. In addition, data is often accessed by third parties, contractors and consultants in other locations or countries often requiring only a username and password to secure access.

However, the EU GDPR will change all this. Moving forward, a software developer will need to be as security conscious as a database administrator – a concept that is likely to be foreign to them. Whilst there is already some level of data protection and ownership within organisations, the new regulations will spark an increase in the education, training and tools required to prove compliance with what is and isn’t allowed.

Introducing the carrot and stick

The new regulation cautions that any personal information needs to be “pseudonymised” so that the person is no longer identifiable, essentially introducing a ‘carrot’ and ‘stick’ approach. A ‘carrot’ recommending pseudonymisation at specific points and reducing certain obligations on those businesses that follow this approach. A ‘stick’ in the form of a threat surrounding the penalties for businesses that are non-compliant.

Moving forward, a software developer will need to be as security conscious as a database administrator – a concept likely to be foreign to them

For many enterprises, this will mean that they need to re-architect operations to accommodate a data-first approach.

Currently, Delphix estimates 90% of data resides as copies in development, testing and reporting shared environments. The first step will be understanding where all the data sits in both production and non-production. The second step will require technology that has the ability to scale and protect all data, not just those bits of information that are the most sensitive.

This will require an investment in new technologies, for example data masking, that can pseudonymise data once and ensure all subsequent copies have the same masking policies applied. However, in the event of a data breach, the cost of these investments is likely to pale in significance when compared to the potential fines of 4 per cent of global turnover.

Conclusion

Given the ever-increasing occurrence and severity of data breaches, it’s becoming more and more important that customers feel their vendors are advocating a data-first approach. This means setting a data protection strategy that covers the entire organisation and reduces the risks to any individuals that are victim of a data breach.

By advocating the adoption of precautionary measures, the EU GDPR goes some way toward ensuring personal information is protected or rendered useless for any successful cyber-criminals that breach fortress walls. It also better protects organisations from the fallout that any data breach has on their finances, resources or reputation.

Big data and IoT expected to raise more than £300bn to UK economy by 2020

(c)iStock.com/Piotr Adamowicz

Big data analytics and the Internet of Things (IoT) are expected to add £322 billion to the UK economy by 2020, according to research released by the Centre for Economics and Business Research (Cebr) and analytics provider SAS.

The research, which builds upon a previous report from Cebr on big data analytics adoption, argues big data and analytics will contribute £40bn per year between 2015 and 2020. Back in 2012, Cebr argued the value of ‘data equity’ was at 0.7% of the UK’s gross domestic product, a figure which is expected to rise to 2.2% by 2020. IoT is expected to reach £81bn by 2020, to 0.7% of GDP. Overall, the market for the two by 2020 is expected to be twice the size of combined education, NHS, and defence budgets for 2015.

“Collecting and storing data is only the beginning,” said Cebr CEO Graham Brough, adding: “It is the application of analytics that allows the UK to harness the benefits of big data and the IoT. Our research finds that the majority of firms have implemented between one and three big data analytics solutions.”

“The combined benefits of IoT and big data will fuel our economy like nothing else,” said Mark Wilkinson, SAS regional vice president. “This report illustrates the considerable impact over the coming years of more organisations embracing big data and IoT to improve decision making that affects efficiency, risk management and new business opportunities.”

The telecoms industry currently has the highest rate of big data and IoT adoption, at 67% and 61% respectively, yet healthcare is expected to struggle in both big data analytics (52%) and IoT (26%).

Other research has examined how IoT will infiltrate workplace habits. A report from Webroot and IO argued that more than half of UK businesses polled plan to employ a ‘chief IoT officer’ in the coming year.

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