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Myths & Realities
of Cloud Data Security

Michael J. Krouze
Chief Technology Officer
Charter Solutions, Inc.
© 2012
“All our knowledge has its origins
in our perceptions.”
- Leonardo da Vinci

“The first step toward change is
awareness. The second step is acceptance.”
- Nathaniel Branden

“The thing about quotes on the internet is
you can not confirm their validity.”
- Abraham Lincoln

Copyright © 2013, Charter Solutions, Inc.

2.
We don’t use the cloud.

Copyright © 2013, Charter Solutions, Inc.

3.
Copyright © 2013, Charter Solutions, Inc.

4.
• Files are encrypted at rest
• Files are encrypted during transit
• Provide “business” version that
allows multiple user access control
• Strict policy and technical access
controls that prohibit employee
access

• Users can have weak passwords
• Files are ‘synced’ to multiple
devices
• API allows programs to access
your files (with permission)

• Always use strong passwords
• Encrypt files before you put them there and only share key with the other
people who should see that file
• Never give permission for API access

Copyright © 2013, Charter Solutions, Inc.

5.
Yes, your organization uses
the cloud… you just may not
know it.

Copyright © 2013, Charter Solutions, Inc.

6.
The cloud simply cannot
be secure.
The cloud isn't safe.

If it's on the Internet, it's
more vulnerable to
hackers.

Data stored in the cloud is
more vulnerable.

My provider has my
security covered.
Copyright © 2013, Charter Solutions, Inc.

Private cloud
computing is secure
by default.

7.
Security is a Shared Responsibility
On-Premise

On-Premise
(hosted)

IaaS

PaaS

SaaS

Application

Application

Application

Application

Application

Services

Services

Services

Services

Services

OS

OS

OS

OS

OS

VM

VM

VM

VM

VM

Server

Server

Server

Server

Server

Storage

Storage

Storage

Storage

Storage

Network

Network

Network

Network

Network

Organization has Control
Copyright © 2013, Charter Solutions, Inc.

Organization Shares Control
with Vendor

Vendor has Control
8.
Industry Groups Targeted
Accommodation and Food Services
Retail Trade
Finance and Insurance

Health Care and Social Assistance
Information
Other
0

10

20
30
40
% of Breaches

50

60

Source: 2012 Data Breach Investigations Report (Verizon/USSS)
Copyright © 2013, Charter Solutions, Inc.

9.
Who’s Behind Data Breaches?
External Agents

Internal Employees

Business Partners

0

20

40
60
% of Breaches

80

100

Source: 2012 Data Breach Investigations Report (Verizon/USSS)
Copyright © 2013, Charter Solutions, Inc.

10.
Threat Agent Change Over Time
100
90

% of Breaches

80
70
60
50
40
30
20
10
0
'04-'07

2008
External

2009
Internal

2010

2011

Partner

Source: 2012 Data Breach Investigations Report (Verizon/USSS)
Copyright © 2013, Charter Solutions, Inc.

11.
How Do Breaches Occur?
Hacking

Malware

Physical Attacks

Social Tactics

Priviledge Misuse

0

20

40
60
% of Breaches

80

100

Source: 2012 Data Breach Investigations Report (Verizon/USSS)
Copyright © 2013, Charter Solutions, Inc.

12.
Attack Commonalities

97%
96%
94%
92%
85%
79%

Avoidable through simple or
intermediate controls
Were not highly difficult
Of all data compromised involved
servers
Were discovered by a third party
Took weeks or more to discover
Were targets of opportunity
Source: 2012 Data Breach Investigations Report (Verizon/USSS)

Copyright © 2013, Charter Solutions, Inc.

13.
Hacking Methods
Default/guessable credentials
Stolen login credentials
Brute force/dictionary attacks
Exploit backdoor
Exploit insufficient authentication
SQL Injection
Remote file inclusion
Abuse of functionality

Unknown
0

10

20
30
40
% of Breaches

50

60

Source: 2012 Data Breach Investigations Report (Verizon/USSS)
Copyright © 2013, Charter Solutions, Inc.

14.
Not Just About Data Encryption

Public Network

SSL Encrypted

Application

Private Network

Clear Text Data
Database

Storage System

OS File System

Encrypted at Rest
Copyright © 2013, Charter Solutions, Inc.

15.
It’s not that the cloud isn’t secure…
It’s that you need to think differently
about how to secure it

Copyright © 2013, Charter Solutions, Inc.

16.
My datacenter is more secure
than the cloud.

Copyright © 2013, Charter Solutions, Inc.

17.
A little obvious after the
last myth

Security is often taken for granted
behind the firewall

Copyright © 2013, Charter Solutions, Inc.

18.
Data Breaches by Hosting Location
Internal

External

Co-located

Mobile
0

10

20

30

40
50
% of Breaches

60

70

80

90

Source: 2012 Data Breach Investigations Report (Verizon/USSS)
Copyright © 2013, Charter Solutions, Inc.

19.
Your datacenter (on-premise or
cloud) is only as secure as you
make it!
Both can be equally secure or
insecure.

Copyright © 2013, Charter Solutions, Inc.

20.
Concluding thoughts…

Copyright © 2013, Charter Solutions, Inc.

21.
Understand your data risks
& security needs

Establish a set of cloud-specific
security processes / policies

Copyright © 2013, Charter Solutions, Inc.

22.
Review cloud vendors closely to
ensure their sphere of control
aligns with your cloud-specific
processes / policies

Implement, monitor, react,
review, improve

Copyright © 2013, Charter Solutions, Inc.

23.
Thank You!

michael.krouze@chartersolutions.com
http://www.linkedin.com/in/mjkrouze
@mjkrouze

Copyright © 2013, Charter Solutions, Inc.

24.

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Myths & Realities of Cloud Data Security

  • 1. Myths & Realities of Cloud Data Security Michael J. Krouze Chief Technology Officer Charter Solutions, Inc. © 2012
  • 2. “All our knowledge has its origins in our perceptions.” - Leonardo da Vinci “The first step toward change is awareness. The second step is acceptance.” - Nathaniel Branden “The thing about quotes on the internet is you can not confirm their validity.” - Abraham Lincoln Copyright © 2013, Charter Solutions, Inc. 2.
  • 3. We don’t use the cloud. Copyright © 2013, Charter Solutions, Inc. 3.
  • 4. Copyright © 2013, Charter Solutions, Inc. 4.
  • 5. • Files are encrypted at rest • Files are encrypted during transit • Provide “business” version that allows multiple user access control • Strict policy and technical access controls that prohibit employee access • Users can have weak passwords • Files are ‘synced’ to multiple devices • API allows programs to access your files (with permission) • Always use strong passwords • Encrypt files before you put them there and only share key with the other people who should see that file • Never give permission for API access Copyright © 2013, Charter Solutions, Inc. 5.
  • 6. Yes, your organization uses the cloud… you just may not know it. Copyright © 2013, Charter Solutions, Inc. 6.
  • 7. The cloud simply cannot be secure. The cloud isn't safe. If it's on the Internet, it's more vulnerable to hackers. Data stored in the cloud is more vulnerable. My provider has my security covered. Copyright © 2013, Charter Solutions, Inc. Private cloud computing is secure by default. 7.
  • 8. Security is a Shared Responsibility On-Premise On-Premise (hosted) IaaS PaaS SaaS Application Application Application Application Application Services Services Services Services Services OS OS OS OS OS VM VM VM VM VM Server Server Server Server Server Storage Storage Storage Storage Storage Network Network Network Network Network Organization has Control Copyright © 2013, Charter Solutions, Inc. Organization Shares Control with Vendor Vendor has Control 8.
  • 9. Industry Groups Targeted Accommodation and Food Services Retail Trade Finance and Insurance Health Care and Social Assistance Information Other 0 10 20 30 40 % of Breaches 50 60 Source: 2012 Data Breach Investigations Report (Verizon/USSS) Copyright © 2013, Charter Solutions, Inc. 9.
  • 10. Who’s Behind Data Breaches? External Agents Internal Employees Business Partners 0 20 40 60 % of Breaches 80 100 Source: 2012 Data Breach Investigations Report (Verizon/USSS) Copyright © 2013, Charter Solutions, Inc. 10.
  • 11. Threat Agent Change Over Time 100 90 % of Breaches 80 70 60 50 40 30 20 10 0 '04-'07 2008 External 2009 Internal 2010 2011 Partner Source: 2012 Data Breach Investigations Report (Verizon/USSS) Copyright © 2013, Charter Solutions, Inc. 11.
  • 12. How Do Breaches Occur? Hacking Malware Physical Attacks Social Tactics Priviledge Misuse 0 20 40 60 % of Breaches 80 100 Source: 2012 Data Breach Investigations Report (Verizon/USSS) Copyright © 2013, Charter Solutions, Inc. 12.
  • 13. Attack Commonalities 97% 96% 94% 92% 85% 79% Avoidable through simple or intermediate controls Were not highly difficult Of all data compromised involved servers Were discovered by a third party Took weeks or more to discover Were targets of opportunity Source: 2012 Data Breach Investigations Report (Verizon/USSS) Copyright © 2013, Charter Solutions, Inc. 13.
  • 14. Hacking Methods Default/guessable credentials Stolen login credentials Brute force/dictionary attacks Exploit backdoor Exploit insufficient authentication SQL Injection Remote file inclusion Abuse of functionality Unknown 0 10 20 30 40 % of Breaches 50 60 Source: 2012 Data Breach Investigations Report (Verizon/USSS) Copyright © 2013, Charter Solutions, Inc. 14.
  • 15. Not Just About Data Encryption Public Network SSL Encrypted Application Private Network Clear Text Data Database Storage System OS File System Encrypted at Rest Copyright © 2013, Charter Solutions, Inc. 15.
  • 16. It’s not that the cloud isn’t secure… It’s that you need to think differently about how to secure it Copyright © 2013, Charter Solutions, Inc. 16.
  • 17. My datacenter is more secure than the cloud. Copyright © 2013, Charter Solutions, Inc. 17.
  • 18. A little obvious after the last myth Security is often taken for granted behind the firewall Copyright © 2013, Charter Solutions, Inc. 18.
  • 19. Data Breaches by Hosting Location Internal External Co-located Mobile 0 10 20 30 40 50 % of Breaches 60 70 80 90 Source: 2012 Data Breach Investigations Report (Verizon/USSS) Copyright © 2013, Charter Solutions, Inc. 19.
  • 20. Your datacenter (on-premise or cloud) is only as secure as you make it! Both can be equally secure or insecure. Copyright © 2013, Charter Solutions, Inc. 20.
  • 21. Concluding thoughts… Copyright © 2013, Charter Solutions, Inc. 21.
  • 22. Understand your data risks & security needs Establish a set of cloud-specific security processes / policies Copyright © 2013, Charter Solutions, Inc. 22.
  • 23. Review cloud vendors closely to ensure their sphere of control aligns with your cloud-specific processes / policies Implement, monitor, react, review, improve Copyright © 2013, Charter Solutions, Inc. 23.