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5	Major	Application	Risks	
To	Secure	and	Audit
PRESENTED	BY:
KYLE	LAI
PRESIDENT	&	CISO
KLC	CONSULTING
7/21/2017
KLC	CONSULTING	PUBLIC	INFORMATION
KLC	CONSULTING	PUBLIC	INFORMATION 2
About	Me
Kyle	Lai
• Certified	Security	Professional	(CISSP,	CSSLP,	CISA,	CIPP/US,	CIPP/G,	ISO	27001	LA)
• 25+	years	in	IT			|			20	years	in	Information	Security	(Pentest,	Third-party	Risk,	Compliance,	Engineering…)
• Experience	in	DoD,	Financial,	Energy,	Healthcare,		High	Tech,	Consulting…
• Have	consulted	at	Microsoft,	PwC,	Boeing,	HP,	Fidelity	Investment,	Akamai,	Cathay	Pacific	Airlines,	Leading	Oil	&	Gas	firm
• Currently	- Security	Advisory	Consultant	for	a	large	global	oil	&	energy	company
• Former	CISO	of	Pactera,	a	Global	100	IT	Consulting	firm,	A	Blackstone		/	HNA	Company
• Former	CISO	of	Brandeis	University	– Heller	School
• Author	of	SMAC	MAC	Address	Changer	Tool	– Over	2.5	million	users	worldwide
• Run	3	LinkedIn	Groups	(i.e.	Cybersecurity	Community)
LinkedIn:	https://www.linkedin.com/in/kylelai Twitter:	@KyleOnCyber
KLC	CONSULTING	PUBLIC	INFORMATION 3
Most	Devices	Are	Application	Driven
KLC	CONSULTING	PUBLIC	INFORMATION 4
Agenda
• Why	Talk	About	Application	Security?
• What	is	Application	Security?
• Risk	1:	Incomplete	Application	Asset	Inventory
• Risk	2:	Lack	of	Secure	Coding	Practice	(Training)
• Risk	3:	Security	Threat	Modeling	/	Requirements
• Risk	4:	Insufficient	Security	Testing
• Risk	5:	Lack	of	Application	Supply	Chain	Management
• Q&A
KLC	CONSULTING	PUBLIC	INFORMATION 5
Recent	Headlines
Source:	Verizon	Data	Breach	Investigation	Report	2016,	2017
WannaCry
KLC	CONSULTING	PUBLIC	INFORMATION 6
Application	Development	Trend:	DevOps
More	Frequent	Application	Releases
More	Automation	in	Continuous	Integration	/	
Continuous	Delivery	(CI/CD)
Reduce	unplanned	work	through	automation
KLC	CONSULTING	PUBLIC	INFORMATION 7
Why	Talk	About	Application	Security?
Source:	Verizon	Data	Breach	Investigation	Report	2016,	2017
…	60%	of	breaches	involved	web	applications	
either	as	asset	effected,	and/or	a	vector	to	
the	affected	asset.
It	is	quite	possible,	and	actually	common,	
for	a	breach	to	feature	a	web	application	
as	the	vector	and	the	asset	affected.	
2016
2017
33%	Jump	on	Web	
App	Related	Attack	in	
1	year!
KLC	CONSULTING	PUBLIC	INFORMATION 8
What	is	Application	Security?
Application	security,	or	“AppSec,”	is	security	
measures	to	
• protect	its	critical	data	from	internal	and	
external	threats	by	ensuring	the	security	of	all	
of	the	software	used	to	run	the	business,	
whether	built	internally,	bought	or	
downloaded.	
• help	identify,	fix	and	prevent	security	
vulnerabilities	in	any	kind	of	software	
application.
Image	Source:	Veracode
KLC	CONSULTING	PUBLIC	INFORMATION 9
Enterprise	Application	Security
1%	of	Security	Budget	Focuses	
on	Application	Security
Gartner	describes	applications	and	
security	with	the	analogy	of	a	crown	jewel	in
a	treasure	chest:
• The	sensitive	data	is	the	crown	jewel
• The	applications	are	the	treasure	chest
Note: Applications	include	more	than	just	Web	Applications.
IT	Budget	Devoted	to	Securing	Applications
KLC	CONSULTING	PUBLIC	INFORMATION 10
Risk	1:	Incomplete	Application	Asset	Inventory
• You	cannot	protect	an	application	which	is	not	accounted	for,	or	have	inaccurate	info.
• Input	and	output	of	an	application	may	come	from	other	applications…	Usually	not	tracked...
• Owner	of	the	application	is	usually	not	accurately	documented	due	to	personnel	movement...
• Some	of	the	following	might	be	missing	in	the	asset	inventory:
• Type	of	application:	custom	developed,	Commercial	Off	The	Shelf	(COTS),	or	open	source	software?
• Is	it	a	key	components	of	other	applications?		(i.e.	Oracle	Database,	SAP,	SQL	Server)
• Is	it	internal	use	only,	external	use	only,	and	both?
• Is	it	used	on	servers,	desktops,	mobile,	infrastructure,	etc.?
• Owner	name
• What	type	of	data	is	collected	/	handled	/	processed?	
• Any	PII,	PHI,	Privacy	Information?
• What	is	the	data	classification	- highly	confidential,	confidential,	internal,	public,	etc.…?
KLC	CONSULTING	PUBLIC	INFORMATION 11
Risk	1:	Recommendation
• Automated	scan	for	new	web	applications	discovery
• Establish	and	continuously	update	application	asset	inventory	via	tools
• Update	ownership	information	as	owner	changes
• Define	list	of	information	to	be	gathered	for	each	application	(might	use	for	app	
risk	evaluation	as	well)	,	such	as:
• Custom	developed,	COTS,	Open-Source
• Data	classification
• Number	of	users
• Internal,	external	(Internet),	both
• Mobile
• Technology	stack	(if	developed	internally)
• Relationship	with	other	applications
KLC	CONSULTING	PUBLIC	INFORMATION 12
Risk	2:	Lack	of	Secure	Coding	Practice	(Training)
Source:	Sonatype	DevSecOps	Community	Survey	2017
KLC	CONSULTING	PUBLIC	INFORMATION 13
Risk	2:	Lack	of	Secure	Coding	Practice	(Training)	cont.
• Developers	do	not	have	adequate	training	on	secure	
coding	practices
• Developers	are	not	familiar	with	the	OWASP	Top	10	
vulnerabilities
• Developers	not	familiar	with	secure	coding	practice	in	new	
environment	or	for	new	technologies,	i.e.	Cloud	based	platforms
• Companies	limit	the	budget	for	secure	coding	training
• Developers	want	to	do	a	good	job	but	not	
empowered	to	do	so
• Fixing	code	during/post	production	costs	100	times	
more	than	fixing	code	during	the	design	phase	(Risk)
• DevOps	Movement – Automation	with	Increased	app	
release	frequency,	making	secure	coding	practice	and	
app	security	training	more	critical
KLC	CONSULTING	PUBLIC	INFORMATION 14
Risk	2:	Recommendations
• Continue	to	train	the	developers	on	Secure	Coding	Practice	(in	class	or	CBT)
• Existing	development	languages	and	platforms
• New	development	languages,	platform,	technologies,	i.e.	Cloud	specific	security	features
• Ensure	developers	understand	the	OWASP	Top	10	vulnerabilities,	and	how	
to	code	properly	to	avoid	them
• OWASP	Top	10	Web	Application	Vulnerabilities
• OWASP	Top	10	Mobile	Application	Vulnerabilities
• OWASP	Top	10	IoT	Vulnerabilities
• Provide	security	tools	(i.e.	Interactive	Application	Security	Testing	(IAST)	
tool)	to	your	developers;	enable	them	to	check	and	fix	their	code	security	
issues	during	the	development	phase.
KLC	CONSULTING	PUBLIC	INFORMATION 15
OWASP	Top	10	Web	App	Vulnerabilities
KLC	CONSULTING	PUBLIC	INFORMATION 16
OWASP	Top	10	Mobile	App	Vulnerabilities
KLC	CONSULTING	PUBLIC	INFORMATION 17
OWASP	Top	10	IoT	Vulnerabilities
KLC	CONSULTING	PUBLIC	INFORMATION 18
Risk	3:	Security	Threat	Modeling	/	Requirements
• What	are	the	safety	code	requirements	to	build	a	car?	(Defined)
• What	are	the	safety	code	requirements	to	build	a	house?	(Defined)
• What	are	security	coding	requirements	to	build	an	application???
OR
KLC	CONSULTING	PUBLIC	INFORMATION 19
Risk	3:	Security	Threat	Modeling	/	Requirements
• Industry	has	no	common	security	
requirements
• Many	developers	are	not	doing	security	
threat	modeling	–
• Data	Flow	Diagram	Analysis	– Where	can	data	be	
stolen	and	system	be	hacked?
• Protocol	communication	between	systems	– Can	
someone	tamper	with	the	my	communications?
• Possible	threats	in	the	processes	–
• What	are	the	different	security	boundaries	during	
data	flow?
KLC	CONSULTING	PUBLIC	INFORMATION 20
Risk	3:	Recommendation
• Invest	the	time	to	do	
Threat	Modeling
• Develop	security	
requirements	to	
reduce	threats
• Developer	friendly	
threat	modeling	tools:	
SD	Element,	Irius Risk
• Microsoft	offers	free	
Threat	Modeling	Tool
(A	bit	more	technical)
KLC	CONSULTING	PUBLIC	INFORMATION 21
An	Example	of	SD	Element	(Commercial	Tool)
KLC	CONSULTING	PUBLIC	INFORMATION 22
An	Example	of	Microsoft	Threat	Modeling	Tool	2016
KLC	CONSULTING	PUBLIC	INFORMATION 23
Risk	4:	Insufficient	Security	Testing
• Many	companies	do	not	perform	enough	application	security	
• Static	Code	Analysis	(SAST)	– Scan	your	source	code
• Dynamic	Analysis	(DAST)	– Scan	your	web	application
• Interactive	Testing	(IAST)	– Developers	to	test	code	interactively	in	
the	development	environment
• Runtime	App	Self-Protection	(RASP)	- Intercept	and	scan	app	request	traffic
• Mobile	App	Security	Testing	– Test	mobile	application	binary,	API,	and	
back-end	server	interaction
KLC	CONSULTING	PUBLIC	INFORMATION 24
Risk	4:	Recommendation
• Invest	in	experienced	security	professional
• Invest	in	application	security	testing	tools
• If	funding	is	very	limited,	invest	in	either	IAST	or	DAST	to	start	with,	to	get	the	most	value
• Expand	the	toolset	as	the	application	security	program	matures
Sorry,	This	One	Is	Not	Cheap…
KLC	CONSULTING	PUBLIC	INFORMATION 25
Risk	5:	Lack	of	Application	Supply	Chain	Management
A	recent	survey	2,292	IT	
professionals	found	that	80	- 90%	
of	an	application	now	consists	of	
component	parts.
386	applications	found	similar	
results	with	82% of	the	
applications	built	from	open	
source	components.	
Source:	2017	State	of	The	Software	Supply	Chain	by	Sonatype
KLC	CONSULTING	PUBLIC	INFORMATION 26
Risk	5:	Lack	of	Application	Supply	Chain	Management
Source:	Sonatype	DevSecOps	Community	Survey	2017
• Companies	are	using	open	source	components	but	only	6	out	of	10	
organizations	have	an	open	source	governance	policy	in	place
• Increasing	use	of	open	source	/	third-party	components	makes	tracking	of	
bill	of	materials difficult!
• If	there’s	a	new	vulnerability	found	in	an	open	source	or	third-party	
component,	would	you	know	if	any	of	your	application	is	impacted?
KLC	CONSULTING	PUBLIC	INFORMATION 27
Risk	5:	Lack	of	Application	Supply	Chain	Management
Source:	2017	State	of	The	Software	Supply	Chain	by	Sonatype
KLC	CONSULTING	PUBLIC	INFORMATION 28
Risk	5:	Recommendation
• Establish	an	authorized	list	of	open	source	components
• Make	sure	to	establish	an	asset	management	process	for	open	source
• Establish	an	Open	Source	policy	(if	not	done	already)	-
• Evaluate	needs	and	benefits
• Ensure	no	equivalent	software	already	been	deployed	in-house
• Verify	there	is	an	active	user	community	supporting	the	application.
• Perform	quality	and	security	testing	and	validation
• Defined	quick	approval	process
• If	budget	allowed,	investigate	into	tools	to	manage	open	source	components	(i.e.	
Free:	OWASP	Dependency	Checker;	Commercial:	Black	Duck,	Sonatype)
KLC	CONSULTING	PUBLIC	INFORMATION 29
Note:	How	Mature	is	Your	Application	Security	Program
• Building	Security	In	Maturity	Model	(BSIMM)
• Measure	maturity	of	Software	Security	Initiatives
• http://www.bsimm.com
• Free	tool	to	assess	yourself
Source:	Sonatype
KLC	CONSULTING	PUBLIC	INFORMATION 30
Q&A
Source:	Sonatype
Kyle	Lai
CISO
KLC	Consulting
Klai	[@]	klcconsulting.net	
@KyleOnCyber
https://www.Linkedin.com/in/kylelai
Thank	you!

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