Choosing the Right Data Security Solution

Ulf Mattsson, CTO

ProtegrityJune 7th, 2012

2

20 years with IBM Research & Development and Global Services

Started Protegrity in 1994 (Data Security)

Inventor of 25 patents – Encryption and Tokenization

Member of• PCI Security Standards Council (PCI SSC)

• American National Standards Institute (ANSI) X9

• International Federation for Information Processing (IFIP) WG 11.3 Data and Application Security

• ISACA , ISSA and Cloud Security Alliance (CSA)

Ulf Mattsson, CTO Protegrity

Agenda

03

Data Breaches

Data Protection Trends

Encryption versus Tokenization

Vault-based Tokenization versus Vaultless Tokenization

Case studies

Summary

WE KNOW THAT DATA IS

UNDER ATTACK

4

Albert Gonzalez: 20 Years In US Federal Prison

5Source: http://www.youtube.com/user/ProtegrityUSA

US Federal indictments:

1. Dave & Busters 2. TJ Maxx 3. Heartland HPS

• $140M in breach expenses

Source: http://en.wikipedia.org/wiki/Albert_Gonzalez

6

What about Breaches & PCI? Was Data Protected?

Based on post-breach reviews. Relevant Organizations in Compliance with PCI DSS. Verizon Study

%3: Protect Stored Data

7: Restrict access to data by business need-to-know

11: Regularly test security systems and processes

10: Track and monitor all access to network resources and data

6: Develop and maintain secure systems and applications

8: Assign a unique ID to each person with computer access

1: Install and maintain a firewall configuration to protect data

12: Maintain a policy that addresses information security

2: Do not use vendor-supplied defaults for security parameters

4: Encrypt transmission of cardholder data

5: Use and regularly update anti-virus software

9: Restrict physical access to cardholder data

0 10 20 30 40 50 60 70 80 90 100

WHAT TYPES OF DATA

ARE UNDER ATTACK NOW?

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8

What Data is Compromised?

By percent of records. Source: 2012, http://www.verizonbusiness.com/Products/security/dbir/

Authentication credentials (usernames, pwds, etc.)

Sensitive organizational data (reports, plans, etc.)

Bank account numbers/data

System information (config, svcs, sw, etc.)

Copyrighted/Trademarked material

Trade secrets

Classified information

Medical records Medical

Unknown (specific type is not known)

Payment card numbers/data

Personal information (Name, SS#, Addr, etc.)

0 20 40 60 80 100 120%

9

Today “Hacktivism” is Dominating

Unknown

Unaffiliated person(s)

Former employee (no longer had access)

Relative or acquaintance of employee

Organized criminal group

Activist group

0 10 20 30 40 50 60 70

By percent of records Source: 2012, http://www.verizonbusiness.com/Products/security/dbir/

%

10

Source: 2012, http://www.verizonbusiness.com/Products/security/dbir/, http://en.wikipedia.org/wiki/Timeline_of_events_involving_Anonymous

Growing Threat of “hacktivism”

Attacks by Anonymous include• 2012: CIA and Interpol • 2011: Sony, Stratfor and HBGary

Federal

April 2011 May 2011 Jun 2011 Jul 2011 Aug 2011

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Time

Impact $

Source: IBM 2012 Security Breaches Trend and Risk Report

Some Major Data Breaches

Attack Type

Lost 100 million passwords and personal details stored in clear

Spent $171 million related to the data breach

Sony's stock price has fallen 40 percent

For three pennies an hour, hackers can rent Amazon.com to wage cyber attacks such as the one that crippled Sony

Attack via SQL Injection

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The Sony Breach & The Cloud

Q1 2011 Q2 2011 Q3 2011

13

SQL Injection Attacks are Increasing

25,000

20,000

15,000

10,000

5,000

Source: IBM 2012 Security Breaches Trend and Risk Report

WHAT IS SQL INJECTION?

14

What is SQL Injection?

Application

SQL Command Injected

Data Store

15

16

New Industry Groups are Targets

Information

Other

Health Care and Social Assistance

Finance and Insurance

Retail Trade

Accommodation and Food Services

0 10 20 30 40 50 60

By percent of breaches Source: 2012, http://www.verizonbusiness.com/Products/security/dbir/

%

The Changing Threat Landscape

Source: http://www.csoonline.com/article/602313/the-changing-threat-landscape?page=2

Some issues have stayed constant:• Threat landscape continues to gain sophistication

• Attackers will always be a step ahead of the defenders

We are fighting highly organized, well-funded crime syndicates and nations

Move from detective to preventative controls needed

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How are Breaches Discovered?

Unusual system behavior or performance

Log analysis and/or review process

Financial audit and reconciliation process

Internal fraud detection mechanism

Other(s)

Witnessed and/or reported by employee

Unknown

Brag or blackmail by perpetrator

Reported by customer/partner affected

Third-party fraud detection (e.g., CPP)

Notified by law enforcement

0 10 20 30 40 50 60 70

By percent of breaches . Source: 2012, http://www.verizonbusiness.com/Products/security/dbir/

%

WHERE IS DATA LOST?

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20

What Assets are Compromised?

By percent of records Source: 2012, http://www.verizonbusiness.com/Products/security/dbir/

POS server (store controller)POS terminal User devices

Automated Teller Machine (ATM) Regular employee/end-user People

Payment card (credit, debit, etc.) Offline dataCashier/Teller/Waiter People

Pay at the Pump terminal User devicesFile server

Laptop/Netbook Remote Access server

Call Center Staff People Mail server

Desktop/Workstation Web/application server

Database server

0 20 40 60 80 100 120%

21

Threat Action Categories

EnvironmentalError

MisusePhysical

SocialMalwareHacking

0 20 40 60 80 100 120

By percent of records Source: 2012, http://www.verizonbusiness.com/Products/security/dbir/

%

Hacking and Malware are Leading

Thieves Are Attacking the Data Flow

Application Application

22

THIS IS A CATCH 22!

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How can we Secure The Data Flow?

RetailStore

Bank

Payment

Network

9999 9999

Corporate

Systems

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WHAT HAS THE INDUSTRY

DONE TO SECURE DATA?

25

26

1970 2000 2005 2010

High

Low

TCO

Strong EncryptionAES, 3DES

Format Preserving EncryptionDTP, FPE

Vault-based Tokenization

Vaultless Tokenization

Input Value: 3872 3789 1620 3675

!@#$%a^.,mhu7///&*B()_+!@

8278 2789 2990 2789

8278 2789 2990 2789

Format Preserving

Greatly reduced Key Management

No Vault

8278 2789 2990 2789

What Has The Industry Done?

Use of Enabling Technologies

Access controls

Database activity monitoring

Database encryption

Backup / Archive encryption

Data masking

Application-level encryption

Tokenization

1%

18%

30%

21%

28%

7%

22%

91%

47%

35%

39%

28%

29%

23%

Evaluating Current Use

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WHAT IS THE DIFFERENCE

BETWEENVAULT-BASED AND

VAULTLESS TOKENIZATION?

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We Started with Vault-Based Tokenization …

Issues with Vault-based Tokenization

Foot

prin

t is

Lar

ge

and

Exp

andi

ng

Reliability

issues –

Prone to

collisions

Distribution is

Practically impossible

High Availability

and Disaster Recovery

is complex, expensive

replication required

Adversely impact

latency, performance

& scalability

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Vault-based Tokenization Server

Vault-lessTokenization

Server

Evolution

Miniaturization of the Tokenization Server

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Protegrity Tokenization Differentiators

Vault-based Tokenization Vaultless TokenizationFootprint Large, Expanding. Small, Static.

High Availability, Disaster Recovery

Complex, expensive replication required.

No replication required.

Distribution Practically impossible to distribute geographically.

Easy to deploy at different geographically distributed locations.

Reliability Prone to collisions. No collisions.

Performance, Latency, and Scalability

Will adversely impact performance & scalability.

Little or no latency. Fastest industry tokenization.

Extendibility Practically impossible. Unlimited Tokenization Capability.

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External Validation for Protegrity Vaultless Tokenization

“The Protegrity tokenization scheme offers excellent security, since it is based on fully randomized tables. This is a fully distributed tokenization

approach with no need for synchronization and there is no risk for collisions.“

Prof. Dr. Ir. Bart PreneelKatholieke University Leuven, Belgium *

* The Katholieke University Leuven in Belgium is where Advanced Encryption Standard (AES) was invented.

Bart Preneel is a Belgian cryptographer and cryptanalyst. He is a professor at Katholieke Universiteit Leuven, president

of the International Association for Cryptologic Research

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SPEED&

SECURITY

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10 000 000 -

1 000 000 -

100 000 -

10 000 -

1 000 -

100 -

Transactions per second

I

Format

Preserving

Encryption

Speed of Different Protection Methods

I

Vaultless

Data

Tokenization

I

AES CBC

Encryption

Standard

I

Basic

Data

TokenizationSpeed will depend on

the configuration

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I

Format

Preserving

Encryption

Security of Different Protection Methods

I

Vaultless

Data

Tokenization

I

AES CBC

Encryption

Standard

I

Basic

Data

Tokenization

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High

Low

Security Level

CASESTUDIES

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Case Study: Large Chain Store

Why? Reduce compliance cost by 50%• 50 million Credit Cards, 700 million daily transactions

• Performance Challenge: 30 days with Basic to 90 minutes with Vaultless Tokenization

• End-to-End Tokens: Started with the D/W and expanding to stores

• Lower maintenance cost – don’t have to apply all 12 requirements

• Better security – able to eliminate several business and daily reports

• Qualified Security Assessors had no issues• “With encryption, implementations can spawn dozens of

questions”

• “There were no such challenges with tokenization”

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Case Study: Energy Industry

Why? Reduce PCI Scope• Best way to handle legacy, we got most of it out

of PCI

– Get rid of unwanted paper copies

– No need to rewrite/redevelop or restructure business applications

– A VERY efficient way of PCI Reduction of Scope

• Better understanding of your data flow

– Better understanding of business flow

– Opportunity to clean up a few business oddities

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Case Studies: Retail

Customer 1: Why? Three major concerns solved

• Performance Challenge; Initial tokenization

• Vendor Lock-In: What if we want to switch payment processor

• Extensive Enterprise End-to-End Credit Card Data Protection

Customer 2: Why? Desired single vendor to provide data protection

• Combined use of tokenization and encryption

• Looking to expand tokens beyond CCN to PII

Customer 3: Why? Remove compensating controls from the mainframe

• Tokens on the mainframe to avoid compensating controls

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PCI DSSGUIDELINES

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Tokenization and Encryption are Different

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Source: http://www.securosis.com

Tokenization and “PCI Out Of Scope”

De-tokenization Available?

Random Number Tokens?

Isolated from Card Holder Data

Environment?

Out of Scope

Scope Reduction

No Scope Reduction

No

No:FPE

Yes

Yes

Yes No

PIIDATA

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Type of Data

Use Case

IStructured

How Should I Secure Different Data?

IUn-structured

Simple -

Complex -

PCI

PHI

PII

FileEncryption

CardHolder

Data

FieldTokenization

ProtectedHealth

Information

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Personally Identifiable Information

Flexibility in Token Format ControlsType of Data Input Token Comment

Credit Card 3872 3789 1620 3675 8278 2789 2990 2789 Numeric

Credit Card 3872 3789 1620 3675 8278 2789 2990 3675 Numeric, Last 4 digits exposed

Credit Card 3872 3789 1620 3675 3872 qN4e 5yPx 3675 Alpha-Numeric, Digits exposed

Medical ID 29M2009ID 497HF390D Alpha-Numeric

Date 10/30/1955 12/25/2034 Date - multiple date formats

E-mail Address yuri.gagarin@protegrity.com empo.snaugs@svtiensnni.snk Alpha Numeric

SSN 075672278 or 075-67-2278 287382567 or 287-38-2567 Numeric, delimiters in input

Invalid Luhn 5105 1051 0510 5100 8278 2789 2990 2782 Luhn check will fail

Binary 0x010203 0x123296910112

Alphanumeric Indicator

5105 1051 0510 5100 8278 2789 299A 2781Position to place alpha is configurable

Decimal 123.45 9842.56 Non length preserving

Multi-Merchant 3872 3789 1620 3675Merchant 1: 8278 2789 2990 2789Merchant 2: 9302 8999 2662 6345

Deliver a different token to different merchant based on the same credit card number.

What are the benefits of Tokenisation?

What are the benefits of Tokenization?

Reduces complexity of key management.

Reduces the number of hacker targets.

Reduces the remediation for protecting systems.

Reduces the cost of PCI Compliance.

Additional benefits with Protegrity Vaultless Tokenization

Infinitely Scalable

Fastest tokenization method in the world

Simplicity and Security: No replication, No collisions

Flexible and easy to deploy and distribute

Lower Total Cost of Ownership than Basic Tokenization

ABOUTPROTEGRITY

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About ProtegrityProven enterprise data security software and innovation leader

• Sole focus on the protection of data

• Patented Technology, Continuing to Drive Innovation

Growth driven by compliance and risk management• PCI (Payment Card Industry)

• PII (Personally Identifiable Information)

• PHI (Protected Health Information) – HIPAA

• State and Foreign Privacy Laws, Breach Notification Laws

• Requirements to eliminate the threat of data breach and non-compliance

Cross-industry applicability• Retail, Hospitality, Travel and Transportation

• Financial Services, Insurance and Banking

• Healthcare, Telecommunications, Media and Entertainment

• Manufacturing and Government

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What are Industry Analyst’s Saying?“Protegrity has a comprehensive approach to a range of data security

problems, while most vendors only have one stovepipe solution with no coherent strategy.”

- Scott Crawford, EMA

“I’m really impressed that you’ve expanded your Tokenization solution to include PII and HIPAA. I haven’t seen this from other vendors. It’s really nice to see that vendors are driving innovation, before there’s a big demand from customers.”

- Derek Brink, Aberdeen

“Tokenizing payment data holds the promise of improving security while reducing auditing costs, generating great demand amongst the merchant community.  Tokenization is a simple technology with a clear value proposition.”

- Adrian Lane, Analyst and CTO, Securosis

“Protegrity’s approach to tokenization is very elegant and it’s clear your solution is very fast and flexible.”

– A leading Industry Analyst Firm

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SummaryOptimal support of complex enterprise requirements

• Heterogeneous platform supports all operating systems and databases

• Flexible protectors (Database, Application, File)

• Risk Adjusted Data Protection offers the options for protection data with the appropriate strength.

• Built-in Key Management

• Consistent Enterprise policy enforcement and audit logging

Innovative• Pushing data protection with industry leading

Proven• Proven platform currently protects the worlds largest companies

Experienced• Experienced staff will be there with support along the way to

complete data protection

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Questions and Answers

Elaine EvansProtegrity Marketing

elaine.evans@protegrity.comwww.protegrity.com