Ponemon Institute is pleased to present the findings of The Economic Value of Prevention in the Cybersecurity Lifecycle, sponsored by Deep Instinct. The cybersecurity lifecycle is the sequence of activities an organization experiences when responding to an attack. The five high-level phases are prevention, detection, containment, recovery and remediation.
We surveyed 634 IT and IT security practitioners who are knowledgeable about their organizations’ cybersecurity technologies and processes. Within their organizations, most of these respondents are responsible for maintaining and implementing security technologies, conducting assessments, leading security teams and testing controls.
“If we could quantify the cost savings of the prevention of attacks, we would be able to increase our IT security budget and debunk the C-suite’s myth that AI is a gimmick. I believe AI is critical to preventing attacks.” — CISO, financial services industry.
The key takeaway from this research is that when attacks are prevented from entering and causing any damage, organizations can save resources, costs, damages, time and reputation.
To determine the economic value of prevention, respondents were first asked to estimate the cost of one of the following five types of attacks: phishing, zero-day, spyware, nation-state and ransomware. They were then asked to estimate what percentage of the cost is spent on each phase of the cybersecurity lifecycle, including prevention. Because there are fixed costs associated with the prevention phase of the cybersecurity lifecycle, such as in-house expertise and investments in technologies, there will be a cost even if the attack is stopped before doing damage. For example, the average total cost of a phishing attack is $832,500 and of that 82 percent is spent on detection, containment, recovery and remediation. Respondents estimate 18 percent is spent on prevention. Thus, if the attack is prevented the total cost saved would be $682,650 (82 percent of $832,500).
Seventy percent of respondents (34 percent + 36 percent) believe the ability to prevent cyberattacks would strengthen their organization’s cybersecurity posture. However, 76 percent of respondents (40 percent + 36 percent) say they have given up on improving their ability to prevent an attack because it is too difficult to achieve.
The following are the most noteworthy findings from the research.
- Organizations are most effective in containing cyberattacks. Fifty-five percent of respondents say their organizations are very or highly effective at containing attacks in the cybersecurity lifecycle. Less than half of respondents (46 percent) say their organizations are very or highly effective in preventing cyberattacks. Organizations are also allocating more of the IT security budget to technologies and processes in the containment phase than in the prevention phase.
- Prevention of a cyberattack is the most difficult to achieve in the cybersecurity lifecycle. Eighty percent of respondents say prevention is very difficult to achieve followed by recovery from a cyberattack. The reason for the difficulty is that it takes too long to identify an attack. Other reasons are outdated or insufficient technologies and lack of in-house expertise. The technology features considered most important are the ability to prevent attacks in real-time and based on different types of files.
- Automation and advanced technologies increase the ability to prevent cyberattacks. Sixty percent of respondents say their organizations currently deploy AI-based or plan to deploy AI for cybersecurity within the next 12 months. Sixty-seven percent of respondents believe the use of automation and advanced technologies would increase their organizations’ ability to prevent cyberattacks. Further, 67 percent of respondents expect to increase their investment in these technologies as they mature.
- Deep learning is a form of AI and is inspired by the brain’s ability to learn. In the context of this research, deep learning is defined as follows: once a human brain learns to identify an object, its identification becomes second nature. Deep learning’s artificial brains consist of complex neural networks and can process high amounts of data to get a profound and highly accurate understanding of the data analyzed. The top three reasons to incorporate a deep- learning-based-solution are to lower false positive rates, increase detection rates and prevent unknown first-seen cyberattacks.
- Perceptions that AI could be a gimmick and lack of in-house expertise are the two challenges to deployment of AI-based technologies. Fifty percent of respondents say when trying to gain support for the adoption of AI there is internal resistance because it is considered a gimmick. This is followed by the inability to recruit personnel with the necessary expertise (49 percent of respondents).
- Organizations are making investments in technology that do not strengthen their cybersecurity budget based on the wrong metrics. Fifty percent of respondents say their organizations are wasting limited budgets on investments that don’t improve their cybersecurity posture. The primary reasons for the failure are system complexity, personnel and vendor support issues. Another reason is that most organizations are using return on investment (ROI) to justify investments and is not based on the technology’s ability to increase prevention and detection rates.
- IT security budgets are considered inadequate. Only 40 percent of respondents say their budgets are sufficient to achieve a strong cybersecurity posture. The average total IT budget is $94.3 million and of this 14 percent or approximately $13 million is allocated to IT security. Nineteen percent or approximately $2.5 million will be allocated to investments in enabling security technologies such as AI, machine learning, orchestration, automation, blockchain and more.
With the exception of the exploitation phase of the kill chain, zero-day attacks are very difficult to prevent in the cyber kill chain. The cyber kill chain is a way to understand the sequence of events involved in an external attack on an organization’s IT environment. Understanding the cyber kill chain model is considered helpful in putting the strategies and technologies in place to “kill” or contain the attack at various stages and better protect the IT ecosystem. Following are the 7 steps in the cyber kill chain:
- Reconnaissance: the intruder picks a target, researches it and looks for vulnerabilities
- Weaponization: the intruder develops malware designed to exploit the vulnerability
- Delivery: the intruder transmits the malware via a phishing email or another medium
- Exploitation: the malware begins executing on the target system
- Installation: the malware installs a backdoor or other ingress accessible to the attacker
- Command and Control (C2): the intruder gains persistent access to the organization’s systems/network
- Actions on Objective: the Intruder initiates end goal actions, such as data theft, data corruption or data destruction
Respondents were asked to rate the difficulty in preventing a zero-day attack in every phase of the cyber kill chain on a scale of 1 = not difficult to 10 = very difficult. Figure 16 presents the very difficult responses (7+ on the 10-point scale). The most difficult phase to prevent the zero-day attack is the command and control phase (80 percent) in which the intruder gains persistent access to the organization’s systems/network followed by the delivery phase of the kill chain (78 percent).
Read the full report by visiting Deep Instinct’s website