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Data breaches affect millions of people in the U.S. each year

0

100

200

300

400

500

600

700

800

0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Records breached, millions

Records breached (left)

Number of breaches (right)

Number of breaches

Source: Privacy Rights Clearinghouse.

* Data for 2015 to March 4, 2015.

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Hacking or malware breaches account for significantly more

disclosed records per attack in the U.S.

0 100,000 200,000 300,000 400,000 500,000 600,000

Unknown or other

Unintended disclosure

Stationary device

Insider

Payment card fraud

Portable device

Hacking or malware

Average number of records disclosed per breach

Average (2005-2014)

Source: Privacy Rights Clearinghouse.

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The United States and China were the top sources of

malicious Internet security threats in 2013

Country/Region 2013 rank 2013 average (percent) United States 1 20.3

China 2 9.4

India 3 5.1

Netherlands 4 3.5

Germany 5 3.3

Russia 6 2.6

United Kingdom 7 2.6

Brazil 8 2.5

Taiwan 9 2.5

Italy 10 2.3

Source: Symantec.

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Reported cybersecurity incidents at federal agencies

increased by 782 percent between 2006 and 2012 Incidents reported to the U.S. Computer Emergency Readiness Team

5,503

11,911

16,843

29,999

41,776 42,854

48,562

0

10,000

20,000

30,000

40,000

50,000

60,000

2006 2007 2008 2009 2010 2011 2012

Number of incidents

Source: Government Accountability Office.

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Organizational errors, insider abuse and mismanagement add

to European data breaches by external hackers

42

22 13 11

10 2

87

0 6 2 5

0 0

10

20

30

40

50

60

70

80

90

100

Stolen byhackers

Exposed online Missing orstolen hardware

Insider abuse ortheft

Administrativeerror

Unspecified

Percent

Share of records breached

Share of incidents

Source: Center for Media, Data and Society.

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Commercial organizations were targets in half of European

breaches but lost 84 percent of compromised records

Percent of incidents by target

Other 25%

Commercial 51% Government

24%

Percent of records lost by target

Other 7%

Commercial 84%

Government 9%

Source: Center for Media, Data and Society.

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Cyber attacks tax the national economy EVERY DAY

Commerce suffering now (infrastructure not so much) Almost 3% of GDP, or $455 billion of damage (2013)

Current cyberattacks are broad based, targeting identity, credentials, and financial info for financial gain

Small businesses are exposed, too

– Data breaches at major banks and retail chains provide ammunition

– Small businesses are heavily dependent on Internet

– Inadequate expertise and resources to defend and respond

In 2014 enterprises spent $71 billion on cybersecurity, growing 7.9% over 2013 (Gartner)

Networks are strategic to business operations Interconnected and interdependent

Network evolution is similar to electric grid evolution in the last century

– Islands of networks becoming interconnected, resulting in interdependence

– Weak link failures trigger a domino effect

Evolution of modern digital networks similar (Target, Home Depot, JPMorgan, Sony)

– RedSeal survey corroborates

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Seventy-four percent of executives believe cyber attacks can

cause serious damage

Serious damage 74%

Moderate damage 21%

Very little damage 3%

No damage 1%

“I believe cyber attacks on the U.S. can cause …”

100% = 350 respondents

Source: RedSeal 2015 Cybersecurity Domino Effect Study

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Profitability, Growth and Brand Equity Most at Risk

41

43

45

51

80

0 10 20 30 40 50 60 70 80 90

Internal/organizational disruption or chaos

Business downtime

A big hit on employee productivity

Serious brand damage

Serious impacts to business profitability and growth

% of respondents

I believe cyber attacks on U.S. networks can cause . . .

Source: RedSeal 2015 Cybersecurity Domino Effect Study

100% = 350 respondents

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Cyberattacks on one network will have significant ripple effect

– majority finding

32

40

41

47

56

59

64

0 10 20 30 40 50 60 70

Negative effects or chaos on a global level

Negative effects or chaos on a national level

Negative effects or chaos on a state level

Negative effects or chaos on a local level

National vulnerabilities

Security domino effect with other areas affected

Further business-related security vulnerabililties

What other areas do you think may be affected by the resulting ripple effects of cyberattacks on one network?

Source: RedSeal 2015 Cybersecurity Domino Effect Study

100% = 350 respondents % of respondents

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The challenge

Network complexity and attack sophistication exceeds understanding

Source:: RedSeal.

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Identify attack paths including lateral movement

Source:: RedSeal.

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Executive Network Security Index

• You cannot manage what you do not

measure.

• Answers the question – Is my network

getting safer over time?

• Based on a sophisticated,

complete and rigorous analysis

of the whole network, its

components and its policies

• FICA style risk index, or Percentage

• Trend data over time

• iPhone and Android

Source:: RedSeal.