June 2000

Securing your electronic assets

Guarding digital assets is a new security ball game for companies. But the repercussions of not doing it properly can be very costly

    

When a large international corporation decided to set up an Intranet, or private network of inter-connected computers, to share information between offices, it appeared to have done all the right things to secure its data.
  The company set up a firewall, a set of programs designed to protect the resources of a network from users of other systems, and issued passwords to its offices. But there was one risk factor it overlooked: its own employees. “The human factor is definitely the weakest link in any security system,” says Manuel Beltran, chief technology officer of Online Labs Inc, a Los Angeles-based Internet company that specialises in security and computer forensics. “With programs like PC Anywhere, for instance, the Intranet becomes immediately available to anyone with a modem who can hit the right number.” Add that to e-mail communication and you have a problem, he says.
     “The days of viewing security from the perspective of ‘securing the perimeter’ are over,” says Erik Laykin, founder of OnlineSecurity.Com. “This practice has kept tacticians and strategists busy since before the time of the Roman Empire. Now we have a new frontier to contemplate; that of the ‘Internally Integrated Asset Matrix’ ( I.AM ).”
     Roughly speaking I.AM should be understood as the structure by which digital assets are distributed throughout the Internet and through localized systems such as corporate Intranet networks, Laykin explains. “In today’s age of information technology, purveyors of information want users to access content and data through the use of the international telecommunications network. However, that very act constitutes the fundamental risk issue facing companies in their quest to protect their digital assets,” he says.
     “As fundamental as the changes have been for the distribution of information over the past five years, the same fundamental axis shifts will take place in the policies and procedures adopted by companies, individuals and governments in the securing of their digital assets,” believes James Gordon, executive vice-president of OnlineSecurity.Com.
     Max Smith, a reformed hacker, and now a consultant for OnlineSecurity.Com says a range of procedures must be put in place to provide comprehensive security. “While firewall products can erect barriers to traffic, the software can do nothing to protect the traffic in transit or to monitor employee access. To provide the most complete protection in a security framework, a company must have policies, monitoring and enforcement. As an active hacker in the underground community, I rarely encountered a system that I could not crack in some manner.”
Constant vigilance on the part of each company doing business (not just on the web but any kind of digital activity at all) is also vital to security, the industry experts believe.
     “One company pulled its files nightly to determine where certain individuals (staff members) were spending their time and to make a decision about whether or not these individuals were compromising security,” Beltran says. “That is how you figure out if you have a problem.”
     “Responsibility rests at home for each and every computer/Internet user. The world of tomorrow will resemble a ‘digital’ town square, where neighbours can greet each other, albeit electronically. In this world of instant access to all and from all people, social structures and laws will develop, and will bring a degree of common sensibility and respect which people will adhere to around the globe. This will be the result because the price of ‘acting out’ and getting caught will be too high, just as the price of acting out in the town square context may be too high when you know all of the townsfolk and they are your neighbours.”

Early days of the Internet

The rapid surge of Internet usage by the mid-1990s gave rise to a sweeping change in how information systems were built. Corporations quickly adapted Intranets, which allow employees to share company information and computing resources.
     Now, Intranet servers are far more numerous than Internet servers, with industry analysts predicting there will be five million of the former against less than one million of the latter by the end of this year.
     Intranets can operate in a number of ways. They may consist of many interlinked local area networks, a small network of computers that share the resources of a single server within a small geographic area (such as an office building). Or, in the case of big companies with multiple offices, they may employ a wide area network, connecting staff via a private or public phone line.
     Efficiency, ease-of-use, the ability to lower costs and gain a competitive advantage all make digital business the only viable option now. But how does a company really protect its data?
     To be truly secure, the approach must be to allow computers within the Intranet system to mutually authenticate or approve one another. And security administrators must be allowed to exercise almost surgical control over network traffic allowed in and out of each system, Beltran says. This can be aided by the establishment of so-called internal firewalls, protective barriers within an outer firewall that help to further isolate sensitive data and provide security administrators with the ability to directly control what data should be accessible to each party using the system. Beltran emphasizes though “the biggest risk is not in the transmission of the data but in the securing of it.”
     If information is being passed over a telephone or cable line, then it must be encrypted. However the downside is that securing data with encryption keys can slow down communication.
     This performance problem can be overcome by increasing transmission bandwidth, though that is a relatively expensive solution. “Opening up the pipe, so to speak, will allow for faster communication with encryption,” Beltran says. “Of course, that will also increase the cost of your overheads.”
     “While some mid-sized companies invest moderate amounts for establishing and monitoring their security systems, most credible systems are of sufficient size as to rival the cost of say, opening a new office branch, hiring a couple of new executives, or running a full page ad in Time magazine,” Laykin says.
     However as Beltran points out, the amount spent on security is unlikely to be anything like the costs resulting from lost or stolen data. “For less than the price of a new BMW a company can have a good security model and can protect data that is potentially worth millions of dollars in business to it.”