Detection and understanding: getting cyber security off the back burner

BY James Williams

A “worrying” number of UK businesses have no formal plan to protect themselves from a cyber attack – a position that has improved little since last year – according to a new survey from the Institute of Directors (IOD) and Barclays bank.

The survey, ‘Cyber security: Ensuring business is ready for the 21st century’, reveals that although 94 percent of UK businesses believe that the security of their IT software is crucial for protection, only 56 percent have a system in place to preserve their data and devices.

In addition, only 44 percent of survey respondents said their company provided cyber awareness training schemes for staff, a figure deemed to be a “significant problem”. Pointedly, the survey states that the key cyber security vulnerability is human error, and that such errors become ever more likely in the absence of training or clear guidelines as to what constitutes appropriate good practice.

Furthermore, despite the number of cyber attacks that over the last year, as many as 40 percent of survey respondents admitted that they would not know who to contact to report online fraud – an unawareness which will become much more acute in May 2018 when the new General Data Protection Regulation (GDPR), which makes companies much more accountable for their customers’ data, comes into force.

“Cyber criminals attack systems, data and networks virtually without intervention and traditional defences are no longer adequate”, said Troels Oerting, group chief information security officer at Barclays. “For the financial sector in particular, the game has changed. Barclays has already implemented a strong protection for our business and we will continue to adapt to the rapid change in cyber space.

As part of its bid to tackle the cyber security issue, the UK government has taken a number of positive steps in the last year to protect business and consumers, with the opening of the National Cyber Security Centre (NCSC) one of the more high-profile initiatives. By bringing together several different agencies and placing the NCSC within the Government Communications Headquarters (GCHQ), the aim is that UK authorities will be well-placed to detect and understand cyber threats. That said, the survey makes clear that the ultimate responsibility for businesses in the UK will always lie in the boardroom.

Mr Oerting concluded: “For centuries, society and banks have steered through unprecedented events. Cyber crime is another challenge, and it too can be managed by implementing a strong strategy built on resilience and intelligence.”

Report: Cyber security: Ensuring business is ready for the 21st century                    

Millennials key to worldwide cyber security workforce shortage, says new study

BY Fraser Tennant

A severe shortage of talent in the information security workforce is looming, with employers needing to look to millennials to fill the gap, according to new research from the Center for Cyber Safety and Education, published this week.

The research, part of the Centre’s eighth Global Information Security Workforce Study (GISWS), which includes feedback from over 19,000 information security professionals worldwide, indicates that employers must look to millennials to fill the projected 1.8 million information security workforce gap that is estimated to exist by 2022. This is a 20 percent rise from the 1.5 million worker shortfall forecast by the GISWS in 2015.

The publication of the GISWS coincides with a major initiative to tackle the UK skills deficit due to a lack of millennials recruited into the field: the National Cyber Security Centre, which was officially opened this week in London.

"Supporting and developing the next generation of cyber security talent is essential to the future of the industry,” said Richard Horne, cyber security partner at PwC. “We are on track to recruit more than 1000 technology specialists over the next four years at both graduate and experienced levels. It is important to help graduates experience the many different paths a career in this field could follow by offering a rotation programme around our teams, ranging from threat intelligence and incident detection and response to security transformation programmes and legal and regulatory compliance.”

The 2017 GISWS features a series of reports and analyses focusing on millennial respondents, with key takeaways for employers and hiring managers as to how they should go about attracting and retaining the millennial workforce. These include: (i) millennials value career development opportunities and are more likely to pay for them, if not offered by their employers; (ii) they are more likely to aspire to become security consultants than move into managerial roles within an organisation; and (iii) salaries were not the highest priority for millennials, but they do receive higher salary increases than other generations.

Mr Horne continued: “Cyber security roles can often be seen as purely technical but today's well-rounded cyber security expert has a diverse skillset, with not only technical knowledge but also wider business skills like creativity, organisation, relationship-building and communication."

With addressing the impending information security workforce shortage clearly a major concern, David Shearer, chief executive of the Center for Cyber Safety and Education, is confident that millennials “are the future of cyber security and hold the key to filling the information security workforce gap".

Report: Meet the Millennials – the Next Generation of your Information Security Workforce

Cyber attack aftermath a big issue for global organisations

BY Fraser Tennant

Global organisations are more adept than ever at detecting a cyber attack but are struggling to cope with the aftermath of a breach, according to a new survey by EY.

In ‘Path to cyber resilience: Sense, resist, react’, EY’s 19th Global Information Security Survey (GISS) 2016-17, some of the most compelling cyber security issues facing businesses in today’s digital ecosystem are examined, with respondents indicating that cyber security threats, such as malware, phishing, cyber security to steal financial information, or cyber attacks to steal intellectual property or data, are on the rise.

EY’s findings show that although 50 percent of the 1735 global organisations surveyed said they could detect a sophisticated cyber attack – due to investments in cyber threat intelligence to predict what they can expect from an attack, continuous monitoring mechanisms, security operations centres (SOC) and active defence mechanisms – 86 percent said that, despite these investments, their cyber security function does not fully meet their organisation's needs.

Additionally, 64 percent of organisations stated that they did not have a formal threat intelligence programme or had only an informal one at best. When it came to the matter of identifying vulnerabilities, 55 percent of respondents said they did not have vulnerability identification capabilities or had only informal capabilities. Moreover, 44 percent indicated they did not have a SOC to continuously monitor for cyber attacks.

"Organisations have come a long way in preparing for a cyber breach, but as fast as they improve, cyber attackers come up with new tricks,” said Paul van Kessel, EY global advisory cyber security leader. “Organisations therefore need to sharpen their senses and upgrade their resistance to attacks. They also need to think beyond just protection and security to 'cyber resilience' – an organisation-wide response that helps them prepare for and fully address these inevitable cyber security incidents.

When asked about any recent cyber security incidents, 57 percent of respondents said they had experienced an incident. Furthermore, 48 percent cited outdated information security controls or architecture as their highest vulnerability – a 34 percent increase on the findings of the 2015 survey.

Mr van Kessel continued: “In the event of an attack organisations need to have a plan and be prepared to repair the damage quickly. If not, they put their customers, employees, vendors and ultimately their own future, at risk."

Report: ‘Path to cyber resilience: Sense, resist, react’.

The blockchain is coming

BY Richard Summerfield

In recent years, many industries have been turned on their head by disruptive new technologies. According to a new report from EY, the blockchain is the latest development with the potential to revolutionise business practices across a wide spectrum of industries.

The report, 'Blockchain reaction: Tech plans for critical mass', identifies the blockchain’s potential uses and the threat it could pose to existing business models and practices.

“To date, blockchain has transformed only people’s thinking,” said Channing Flynn, EY’s global technology sector leader, tax services. “We don’t yet even know all the questions blockchain technology will raise, much less the answers. But waiting for the technology to take hold is too late. Now is the time to start defining the questions and influencing policy that will lead to answers.”

Cyber security could be hugely affected by the rise of the blockchain. As Paul Brody, EY’s Americas strategy leader technology sector, notes: “Blockchain shifts cyber security from depending on one to depending on many, and a large volume of people are much more trustworthy than any one individual.”

Furthermore, the blockchain has the potential to transform many industries, particularly those that rely on trusted intermediaries or that currently require strong central authorities to carry out transactions. It could replace those institutions with algorithmically based trust among peers, similar to the Bitcoin system, the most pre-eminent cryptocurrency, which has begun to flirt with the fringes of the mainstream.

Should the blockchain be fully embraced by organisations, however, it could do so much more. According to EY, the technology has the ability to disrupt business models and processes, as well as supply chains and customer relationships throughout the global economy.

With this in mind, companies that were slow to respond to the challenges and opportunities presented by the dawn of the mobile era and cloud computing need to embrace the disruptive and transformative elements of the blockchain. Failure to do so could see them pay the price down the road.

Report: Blockchain reaction: Tech companies plan for critical mass

Three-quarters of FIs hacked during last two years, claims new KPMG report

BY Fraser Tennant

A hard-hitting report released this week makes the startling claim that three-quarters (almost 8 in 10) of financial institutions (FIs) have experienced a cyber attack in the past two years, leading to many personal bank accounts being compromised.

The report, KPMG’s ‘Consumer Loss Barometer’, states that despite the financial services sector being proactive when it comes to matters of information security, more than one-third of consumers have said that their personal bank accounts have been compromised.

Furthermore, the report reveals that the vast majority of consumers would change banks if their provider of financial services did not take the proper steps to deal with the consequences of a cyber attack.  

“Financial institutions have a real opportunity to solidify trust with their customers by demonstrating that security is a strategic imperative, and that they are taking every possible precaution to protect consumers,” said Jitendra Sharma, KPMG’s advisory line of business leader, financial services. “Consumers have a lot of options in this environment, so companies must get it right as the battle for customers is fierce.”

Having surveyed 400 senior cyber security executives (including 100 operating in financial services) and 440 banking consumers, the report found that: (i) 66 percent of finance executives said their companies invested in information protection in the past year; (ii) 85 percent of executives confirmed that they have a person in their company whose sole role is to oversee matters pertaining to information security; and (iii) 37 percent of banking consumers made it known  that they would move to a new financial services provider if their bank refused to cover their losses.

In addition, consumers indicated that they would like their bank to guarantee to cover losses, issue frequent communications and updates and provide a free credit report in the event of a cyber security incident. KPMG also found that the financial services sector is the most proactive of all the sectors surveyed, with many FI’s investing heavily in information protection.  

“It is encouraging to see that financial institutions are clearly making the investment in information security and are ahead of their peers from other sectors,” said Charles Jacco, advisory principal, financial services at KPMG. “But in order to retain loyal customers and attract new ones, they will need to continue demonstrating their commitment and ability to protect their customer’s assets and to put their minds at ease.”

Report: Consumer Loss Barometer