2009 Security Mega Trends Survey Independently conducted by Ponemon Institute LLC Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 1 Ponemon Institute LLC The Institute is dedicated to advancing responsible information management practices that positively affect privacy and data protection in business and government. The Institute conducts independent research, educates leaders from the private and public sectors and verifies the privacy and data protection practices of organizations. Ponemon Institute is a full member of CASRO (Council of American Survey Research Organizations. Dr. Ponemon serves as CASRO’s chairman of Government & Public Affairs Committee of the Board. The Institute has assembled more than 50 leading multinational corporations called the RIM Council, which focuses the development and execution of ethical principles for the collection and use of personal data about people and households. The majority of active participants are privacy or information security leaders. Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 2 About the Study • We asked respondents in IT operations and IT security to consider how eight Security Mega Trends affect their organizations today and during the next 12 to 24 months. • Based on pre-survey interviews with IT experts, we selected the following eight Mega Trends: cloud computing, virtualization, mobility and mobile devices, cyber crime, outsourcing to third parties, data breaches and the risk of identity theft, peer-to-peer file sharing and Web 2.0 • We learned what survey respondents believe to be the biggest threats to a company’s sensitive and confidential data over the next 12 to 24 months. Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 3 Security Mega Trends Mega Trend 1: Cloud computing • Cloud computing refers to solutions owned by third-parties on data center locations outside the end-user company’s IT infrastructure. The demand for cloud computing is expanding quickly, especially as the cost of remote connectivity decreases. Mega Trend 2: Virtualization • Allows end-users to access multiple secure networks from a single computer, wherein the PC or laptop essentially acts as a hardware authentication token. With one computer, the end-user is able to gain access to separate virtual devices or machines. Virtualization makes server and operating system deployments more flexible and improves the use of storage and systems resources. Mega Trend 3: Mobility • Organizations are dependent upon a mobile workforce with access to information no matter where they work or travel. Typically, employees use the following: laptops, VPNs, PDAs, cell phones and memory sticks. Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 4 Security Mega Trends Mega Trend 4: The external threat of organized cyber criminal syndicates • Cyber crime usually describes criminal activity in which the computer or network is an essential part of the illegal criminal activity. This term also is used to include traditional crimes in which computers or networks are used to enable the illicit activity. Mega Trend 5: Outsourcing to third parties • Organizations outsource sensitive and confidential customer and employee data to vendors and other third parties to reduce processing costs and improve operating efficiencies. Mega Trend 6: Data breaches involving personal information are increasing • The Federal Trade Commission reports that the number one consumer complaint is the theft of identity. It addition to potential fines, organizations risk the loss of customer confidence and trust. Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 5 Security Mega Trends Mega Trend 7: Peer-to-peer file sharing • P2P file sharing networks allow a group of computers to connect with each other and directly access files from one another's hard drives. P2P filesharing networks can cause inadvertent transfers and disclosures of documents that reside on an organization’s computers and laptops. Mega Trend 8: Web 2.0 • Web 2.0 refers to a plethora of Internet tools that enhance information sharing and collaboration among users. These concepts have led to the evolution of web-based communities and hosted services, such as social networking sites, wikis and blogs. Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 6 And, the biggest threats are: For the IT operations practitioner the biggest threats are: • Outsourcing sensitive data to third parties • Cyber Crime • A mobile workforce For the IT security practitioner the biggest threats are: • Data breaches • Access to cloud computing • Outsourcing sensitive data to third parties Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 7 IT Operations Mega trend risk rating today and 12 to 24 months in the future Bar Chart 1a Mega trends today and in the next 12 to 24 months by respondents in IT operations Each bar summarizes the combined percentage response for "Very High" and "High" security risks. 50% 50% Outsourcing 45% Mobile devices 48% 49% 47% Cyber crime 47% 47% Mobility 40% Data breach Cloud computing 39% 44% 42% 36% 35% P2P file sharing Web 2.0 31% 18% Virtualization 35% 25% 24% 22% Malware 0% 10% Risk as perceived today Sponsored by Lumension Ponemon Institute© Private & Confidential Document 20% 30% 40% 50% 60% Risk as perceived in the next 12 to 24 months Page 8 IT Security Mega trend risk rating today and 12 to 24 months in the future Bar Chart 1b Mega trends today and in the next 12 to 24 months by respondents in IT security Each bar summarizes the combined percentage response for "Very High" and "High" security risks. Data breach 65% 66% Cyber crime 65% 48% Mobility 77% 60% 59% 59% Outsourcing 61% 58% Cloud computing 50% 48% Mobile devices 44% 46% P2P file sharing Web 2.0 41% 39% Malware 41% 39% 25% Virtualization 0% 10% 20% Risk as perceived today Sponsored by Lumension Ponemon Institute© Private & Confidential Document 29% 30% 40% 50% 60% 70% 80% 90% Risk as perceived in the next 12 to 24 months Page 9 Two Samples • • • • • • Our study utilized two separate sampling frames (panels) built from conference, association and professional certification lists. Web-based survey responses were captured on a secure extranet platform. We utilized two separate samples of U.S. participants: – IT operations: 825 (5.7% response) – IT security: 577 (5.0% response) Less than 1% rejection rate because of reliability failures. Respondents in both groups were asked to complete the same survey instrument. Margin of error is ≤ 3% on all adjective or yes/no responses for both samples Sample description IT Operations IT Security Total sampling frames 14,518 11,506 Bounce-back 3,957 2,109 915 658 90 81 825 577 5.7% 5.0% Total returns Rejected surveys Final sample Response rate Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 10 Mega Trends Comparison of IT Operations and IT Security Samples – Current Outlook Line Graph 1a Security mega trends as perceived today for both samples Each point reflects the percentage responses for very high or high security risks at presentt 70% 60% 50% 40% 30% 20% 10% 0% Cloud computing Virtualization M obility M obile devices Cyber crime IT Operations Sponsored by Lumension Ponemon Institute© Private & Confidential Document Outsourcing Data breach P2P file sharing Web 2.0 M alware IT Security Page 11 Mega Trends Comparison of IT Operations and IT Security Samples – Future Outlook Line Graph 1b Security mega trends as perceived 12 to 24 months for both samples Each point reflects the percentage responses for very high or high security risks at presentt 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cloud computing Virtualization M obility M obile devices Cyber crime IT Operations Sponsored by Lumension Ponemon Institute© Private & Confidential Document Outsourcing Data breach P2P file sharing Web 2.0 M alware IT Security Page 12 Mega Trend: Outsourcing Causes Data Breach Bar Chart 2 Security risks due to outsourcing Each bar is the percentage of respondents who selected the noted information security risk Sensitive or confidential information may not be properly protected 60% 56% 32% Unauthorized parties might be able to access private files without authorization 23% 4% Increased threat of social engineering and cyber crimes 10% IT Operations Information may not be properly backed up 2% 3% Inability to properly identify and authenticate remote users 1% 3% 0% Sponsored by Lumension Ponemon Institute© Private & Confidential Document 10% 20% 30% 40% IT Security 50% 60% 70% Page 13 Cyber Crime Experience Bar Chart 3 Did your organization have a cyber attack? 100% 92% 90% IT Operations IT Security 80% 70% 60% 55% 50% 40% 32% 30% 20% 13% 5% 10% 3% 0% Yes Sponsored by Lumension Ponemon Institute© Private & Confidential Document No Don't know Page 14 Mega Trend: Cyber Crime Will Increase Bar Chart 4 Security risks due to cyber crime Each bar is the percentage of respondents who selected the noted information security risk 40% Attack will cause business interruption 61% Attack will result in the loss of sensitive or confidential business information including trade secrets 29% 24% IT Operations Attack will cause the loss of information about employees or customers, thus requiring data breach notification IT Security 29% 14% 0% 10% Sponsored by Lumension Ponemon Institute© Private & Confidential Document 20% 30% 40% 50% 60% 70% Page 15 Most Risky Mobile Devices Bar Chart 5 Most risky mobile devices Each bar is the percentage of respondents who selected the device as their highest risk 38% Laptop computers 48% PDAs and other handheld devices 18% 19% 24% Insecure wireless networks 14% IT Operations IT Security 15% USB memory sticks 11% 5% Cellular phones 8% 0% 10% Sponsored by Lumension Ponemon Institute© Private & Confidential Document 20% 30% 40% 50% 60% Page 16 Mega Trend: Mobile Workforce Increases Security Risk Bar Chart 6 Security risks due to a mobile workforce Each bar is the percentage of respondents who selected the noted information security risk 62% 59% Inability to properly identify and authenticate remote users 16% 19% Information may not be properly backed up Third parties might be able to access private files without authorization 11% 10% Sensitive or confidential information may not be properly protected 2% 6% 3% 0% Ponemon Institute© Private & Confidential Document IT Security 9% Increased threat of social engineering and cyber crimes Sponsored by Lumension IT Operations 10% 20% 30% 40% 50% 60% 70% Page 17 Confidence in the Ability to Prevent Data Loss Bar Chart 7 How confident are you that your current security practices are able to prevent customer and employee data from being lost or stolen? 45% 40% 40% 35% 32% 30% 30% 23% 25% 22% 20% 15% 12% 12% 12% 13% 10% 5% 4% 0% Very confident Confident Somew hat confident IT Operations Sponsored by Lumension Ponemon Institute© Private & Confidential Document Not confident Uncertain IT Security Page 18 Mega Trend: Data Breach on the Rise Bar Chart 8 Security risks due to a data breach Each bar is the percentage of respondents w ho selected the noted information security risk 32% Loss of customer or employee information, thus requiring notification of victims 35% 46% Sensitive or confidential information that ends up in the hands of cyber criminals and identity thieves 24% 14% Diminished reputation as a result of negative media coverage 21% IT Operations IT Security 5% Unauthorized parties gain access to private accounts 17% 0% Sponsored by Lumension Ponemon Institute© Private & Confidential Document 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Page 19 Security Risks Due to Data Breach Bar Chart 9 Security risks due to a data breach Each bar is the percentage of respondents who selected the noted information security risk 17% Inability to restrict or limit use of cloud computing resources or applications 29% 40% Inability to assess or verify the security of data centers in the cloud 24% 13% Third parties might be able to access private files w ithout authorization 18% 1% Dow ntime as a result of cloud computing failure 13% 29% Inability to protect sensitive or confidential information Information may not be properly backed up 12% 0% Sponsored by Lumension Ponemon Institute© Private & Confidential Document IT Operations 0% IT Security 3% 5% 10% 15% 20% 25% 30% 35% 40% 45% Page 20 Mega Trend: P2P File Sharing Causes Security Risk Bar Chart 10 Security risks due to P2P file sharing applications Each bar is the percentage of respondents who selected the noted information security risk Use of P2P w ill result in the loss of sensitive or confidential business information including trade secrets 55% 41% 20% Use of P2P w ill increase the risk of malw are or virus infection 30% Use of P2P w ill cause the loss of information about employees or customers, thus requiring data breach notification 16% 20% Use of P2P w ill cause business interruption IT Operations 3% IT Security 2% 0% 10% Sponsored by Lumension Ponemon Institute© Private & Confidential Document 20% 30% 40% 50% 60% Page 21 Mega Trend: Web 2.0 Use Increases Security Risk Bar Chart 11 Security risks due to Web 2.0 Each bar is the percentage of respondents who selected the noted information security risk 64% Use of Web 2.0 will result in the loss of sensitive or confidential business information including trade secrets 34% Use of Web 2.0 will cause the loss of information about employees or customers, thus requiring data breach notification 13% 26% 14% Use of Web 2.0 will increase the risk of malware or virus infection 23% IT Operations IT Security 4% Use of Web 2.0 will cause business interruption 12% 0% Sponsored by Lumension Ponemon Institute© Private & Confidential Document 10% 20% 30% 40% 50% 60% 70% Page 22 Mega Trend: Virtualization Bar Chart 12 Security risks due to virtualization Each bar is the percentage of respondents who selected the noted information security risk Inability to properly identify and authenticate users to multiple systems 48% 49% Third parties might be able to access private files without authorization 33% 28% 11% Increased threat of social engineering and cyber crimes 10% Sensitive or confidential information may not be properly protected Information may not be properly backed up 3% IT Operations 9% IT Security 0% 1% 0% 10% Sponsored by Lumension Ponemon Institute© Private & Confidential Document 20% 30% 40% 50% 60% Page 23 Recommendations • In our study, IT operations and security practitioners ranked the mega trends they believe pose a high or very high risk to sensitive and confidential information. To address these risks, we recommend the following: – Create and enforce policies that ensure access to private data files is restricted to authorized parties only. – Secure corporate endpoints to protect against data leakage and malware. – Make sure third parties who have access to your sensitive and confidential information take appropriate security precautions. – Train employees and contractors to understand their responsibility in the protection of data assets. – Ensure that mobile devices are encrypted and that employees understand the organizations’ policies with respect to downloading sensitive information and working remotely. – Understand precautions that should be taken when traveling with laptops, PDAs and other data bearing devices. Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 24 Samples’ Organizational Characteristics Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 25 Samples’ Combined Industry Distribution Pie Chart 1 Industry distribution of the combined IT operations and IT security samples 3% 2% 2% 2% 1% Financial services 17% Government 5% Pharma & Healthcare Education Defense 5% Technology & Software Hospitality & Leisure 11% 6% Retail Professional Services Telecom 6% Manufacturing 9% 6% Research Energy Airlines 8% 6% 6% Sponsored by Lumension Ponemon Institute© Private & Confidential Document Entertainment Transportation Page 26 Sample Characteristics The mean experience level for the IT operations sample is 8.9 years and for the IT security sample is 9.4 years. Table 2 What organizational level of respondents IT Operations IT Security Senior Executive 1% 0% Vice President 2% 2% Director 21% 24% Manager 24% 26% Associate/Staff/Technician 45% 39% Consultant 4% 6% Other 2% 3% 100% 100% Total Sponsored by Lumension Ponemon Institute© Private & Confidential Document Page 27 Sample Characteristics 60% of respondents are male and 40% female. Table 3a Geographic location Pct% Table 3b. Organizational headcount Pct%. Northeast 20% Less than 500 people 2% Mid-Atlantic 19% 500 to 1,000 people 4% Midwest 19% 1,001 to 5,000 people 12% Southeast 13% 5,001 to 25,000 people 29% Southwest 14% 25,001 to 75,000 people 34% Pacific 17% More than 75,000 people 19% Total 100% Sponsored by Lumension Ponemon Institute© Private & Confidential Document Total 100% Page 28