Clark Morris wrote:
>In looking at the news, I'm wondering if encryption would have
>prevented any of the known data breaches.  I'm thinking of Equifax,
>Anthem, Target and Yahoo for starters.

The Anthem breach was the result of a phishing attack, and an internal machine 
was compromised. At that point, the bad guys are so far inside the tent that 
it's not clear what would have helped. See 
https://www.bankinfosecurity.com/new-in-depth-analysis-anthem-breach-a-9627

Target was more interesting: the POS terminal software was compromised, and so 
it was stealing data that was being passed through the payments path in the 
clear. Encryption *in the terminal* would have stopped that. See 
http://www.zdnet.com/article/anatomy-of-the-target-data-breach-missed-opportunities-and-lessons-learned/
 and lots of others (since this is an older one, there's lots out there if you 
search "target breach analysis").

Finally, Yahoo has been breached repeatedly. A bit of Googling finds focus on 
why the most recent breach was fruitful: the bad guys stole unsalted MD5-hashed 
passwords, thus allowing a rainbow table to be used against the data. This is 
so basic and obvious in the security business that I think most people at that 
point said "It doesn't matter how exactly the data was exfiltrated-Yahoo was 
just asking for it". But I'm sure there are more detailed discussions out there.

The key to making encryption be as effective as possible is to only decrypt the 
data occasionally. That means that transparent encryption, such as whole-file 
encryption in z/OS, isn't that effective. It's not useless, but it's not as 
effective as application-level encryption, simply because it means that things 
"below" the application in the stack can be breached and allow data theft (as 
opposed to what I might call "byte theft", i.e., stealing encrypted data, which 
is of no value).

Of course if the application is truly breached, all is lost-if the application 
has rights to cleartext data.

<puts on vendor hat>
Using format-preserving data protection means that many applications can 
operate on the data in its protected state, without changes. Simplest example: 
a credit card number (PAN). However many applications you have that touch PANs, 
the only ones that ever need the cleartext are the ones that ingest them from 
the outside world (web pages, customer service applications, et al.) and the 
one that passes it to the processor for authorization/settlement. And *maybe* 
some folks in fraud prevention. Otherwise, it's just a magic 15- or 16-digit 
number (soon to be more digits, o boy): all you care about is that it's 
consistent and unique, and that it looks like a PAN. So if you protect the 
middle six digits (all that PCI DSS requires) *as soon as you acquire it*, then 
several good things are true:


1)     All of the other applications are safer (note that "r"!) because they 
will never touch cleartext

2)     All of the other applications are out of PCI scope

3)     All of the other applications need no changes

4)     Data is interoperable with other systems, including ASCII systems, 
without requiring decryption before transmission

5)     The attack surface for PANs (assuming proper control of key access, 
etc., of course) is limited to the acquiring applications and the application 
that does authorization/settlement

So with relatively little effort, you've protected a lot of the system.

Again, as others have noted, defense-in-depth means you also want DASD 
encryption, you also want encrypted backups, you also may use whole-file 
encryption in cases where data has to be stored as cleartext.
<removes vendor hat>

>If one steals a database, they
>need to be able to steal the means to read it which would mean they
>have a computer compatible with the target company and the
>corresponding software.  While dumps of tape files can give probable
>hits, if the record descriptions aren't available, there is at least
>some difficultly in guessing which fields are what.  How did the
>thefts work and to what extent did the thieves appear to the system as
>valid users?

True, but any protection you're imputing there is "security by obscurity". If I 
had managed to get into Equifax and acquired a raw dump of a 10TB database, I 
think I could find a z/OS system somewhere (or build one) and figure out how to 
read it so I could monetize that dump. Or maybe I'd just do analysis and make 
some guesses.

>Are test systems, even with data masking applied to production data,
>of use to thieves?

If they have improper access to real data, sure; and if they provide a way to 
understand data flows and connections to enable attacks on production, also 
yes. That is, if a test system isn't secure "because it's just a test system", 
and that lets bad guys bang on it unnoticed until they find a hole that they 
can then use on the production system, then definitely.

>What are the risks of encryption?  Loss of password or keys seems a
>noticeable risk as does compromise of same.

Encryption mantra: "Encryption is easy; key management is hard". So definitely. 
Performance is another issue-done badly, it can be a killer, especially 
(obviously) in real-time processing: if adding encryption means that web "Buy" 
button now takes 30 seconds, folks will stop using that site. If adding 
encryption means the nightly batch window now takes 36 hours...

All good questions, and obviously you pushed some of my favorite buttons! I'll 
stop now :)
--
...phsiii

Phil Smith III
Senior Architect & Product Manager, Mainframe & Enterprise
Distinguished Technologist
Micro Focus (Voltage)

phs...@microfocus.com
T 703-476-4511
M 703-568-6662
Herndon, VA

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