IT Security Upside in a Down Market

1. IT Security Upside in a Down Market Darin Andersen COO ESET, LLC

2. About ESET • Global security company • Sales in over 150 countries • North American Headquarters San Diego • INC 500 2008 and 2007 winner • Flagship Product: ESET NOD32 Antivirus • Over 70 million copies in use • “Track record” in the Enterprise

3. ESET Around the World ESET Headquarters ESET Offices ESET Partners

4. ESET Revenue Growth

5. Endpoint Security Solutions ESET NOD32 Antivirus 4: Business Edition • Protection for every endpoint in your business from viruses, spyware, malware, and all Internet-born threats. • ESET NOD32 Antivirus 4 Business Edition includes Remote Administrator, LAN update “mirror” and can be installed on servers. • ESET Smart Security is excellent for laptop computers and includes anti-spam and personal firewall. • New features in version 4: Enhanced Remote Administrator, Smarter Scanner, Removable Media Security, Host-based Intrusion Prevention System (HIPS)

6. ESET – Securing the Enterprise

7. Proactive Protection “NOD32 has the most proactive malware detection capabilities of all the products tested over the last 12 months.” – Andreas Clementi, Project Manager AV-Comparatives.org

8. Missed In-the-Wild Viruses in Virus Bulletin Tests * May 1998 – April 2009 (fewer is better)

9. Are your customers safe….really? By the time you read this, 70 new types of malwarewillbe produced. • ESET receives 100,000 new malware samples per day • Over 1.5 million new malware samples in 2008 • Zero-day attacks are increasing rapidly • Cybercriminals are growing more sophisticated and financially motivated • Traditional security solutions are not keeping up • ESET’s proactive approach

10. eCrime Trends • 41% of organizations have seen increase in cybercrime • Only 1% have seen decrease “We have already had an attack where the infection was dormant, remaining undetected, for 10 months. How many more of these are already on our computers?” Source: eCrime Survey 2009 in partnership with KPMG “…new scam targets has pushed the total of phishing e-mails from a maximum of around 400,000 a day in August to nearly 800,000 a day in November [2008].” Forbes.com, Economic Bust, Cybercrime Boom, Andy Greenberg, Nov. 19, 2008

11. Finding: The Recession • 66% of respondents agree that out-of-work IT professionals during the recession will lead to more people with technical skills joining the cybercriminal underground economy. Source: eCrime Survey 2009 in partnership with KPMG

12. Overall Threat • 79% of respondents do not believe that security software based on signature detection offers a sufficient level of protection to Internet users. Source: eCrime Survey 2009 in partnership with KPMG

13. The #1 Internal Threat • “ Theft of customer or employee data “ • “Knowledge of weak points in business/systems being deliberately exploited. What internal eCrime risks are of most concern in economic downturn? Source: eCrime Survey 2009 in partnership with KPMG

14. Growth of Malware from 1985 – 2007 Source: AVTEST.org

15. Industry Perspective “Computer security has become a more urgent issue in light of rampant online crime and mega-infections like the Conficker worm, which has ensnared up to 12 million personal computers and has helped spur security software sales.” Canadian Business Online - From The Associated Press, May 1, 2009 “Malware kits are supported by product guarantees and service level agreements.” It is real-business, support by organized crime. Emerging Cyber Threats Report for 2009 – Oct. 15, 2008

16. SMB & Enterprise Spending Trends – Main Drivers • 1st – High-profile incidents in other organizations – 42% • 2nd – Regulatory Compliance – 41% • 3rd – Fear of a major incident resulting in negative media coverage for organization – 40% Source: eCrime Survey 2009 in partnership with KPMG

17. Data Breaches • What is “Data Loss Prevention” (DLP)? • It’s about mitigating risk • Who is impacted by data breaches? • Everyone • Why do data breaches occur? • 75%-80% of data breaches are due to human error • Yankee Group report: “Anywhere Data is Powerful, Data Everywhere is Dangerous” – Phil Hochmuth Sr. Analyst

18. Data Breach Consequences • Financially catastrophic for your customers • Loss of sales • Investigation and notification costs • Fines and litigation (approx: $90 - $305/record) • Pay for credit monitoring service ($40/record) • Interruption of operations • Last – but definitely not least: Brand erosion (reputation, customer trust)

19. Data Breaches – Case Study: Hanaford Bros. • Chain of events: • Physical access and auditing • Malware installed on key servers • Data Interception • Middleware configuration • 4.2M customer records copied “in flight”

20. Data Breach Consequences (cont’d) • Regulatory Compliance • HIPAA • Sarbanes Oxley (SARBOX) • Graham Leach Bliley (GLBA)

21. Data Loss Prevention Architectures • Data at rest • Data in motion • Data on mobile and removable devices • Network-based • Host-based

22. Cyber Risk – Guiding Your Customers • What is cyber risk? • The risks, liabilities and solutions associated with processes and interactions resulting from business activities conducted through computer networks.

23. Cyber Risk (cont’d) • To determine how to lower the risk profile of a company at least three areas need to be evaluated: •  What is at risk (customer information, IP, etc)? • What the threat vectors are (e.g. employees, competition, malware)? • Consequences of failure (regulatory compliance issues, brand damage, consumer confidence)

24. Managing Cyber Risk • Risk management plan requires senior management buy-in • Requires a collaborative approach (team-based) • Outline new and existing applications and operations • Assess security and privacy risk controls • Review business continuity plans • Policies.. a necessary evil! • Technology is what we use to enforce policy

25. Mobile Threats • The growth of malware targeting a specific platform is dependent on a key factor: the market penetration of the specific platform. • Other factors: • The popularity of a platform to engage in commerce as well as its ability to be “always-connected“ • Availability of development tools • Well-documented APIs (knowledge of the "inner-workings" of the kernel, security mechanisms and network stack) • There will be approximately 4B (billion) mobile phones in use by EOY ‘08. This is a very tempting target for cybercriminals to leverage!

26. Malware • The evolution of malware • More targeted – spear phishing • Increasingly complex – self-modifying, encrypted, etc. • Pre-installed • Sophisticated social engineering • Decrease in email-borne malware • Lower barrier to entry

27. Malware (cont’d) • Examples • Spear phishing – Oak Ridge Nat’l Labs • Storm Worm • USB (autorun.inf) • Password stealing trojans

28. Malware: Bottom Line • Gaming-related malware is prevalent and expensive to the victim (identities and assets stolen and re-sold) • Autorun is dangerous and can be embedded in off-the-shelf/retail devices! • PUAs and spyware are a plague and a curse • Heuristics and Behavior Analysis Rule!

29. Mobile Threats (cont’d) • The value of an executive's mobile device: • 1,000-5,000 contacts • customer details • business partner's information • colleagues / friends' home numbers • 100-200+ appointments • customer leads • pending business activities • 200+ internal company emails with sensitive corporate data • pending partnerships, lawsuits, M&A data • pending business activities • sensitive data masquerading as calendar events / contacts • ATM, credit card, banking, brokerage info • poorly obscured ID's, PIN codes and passwords

30. Best Practices - Businesses • Inventory your assets. • Know how many computers you have • How they connect to your network and Internet • Audit is essential • Know that all assets are protected • Protection is current and audited • Use business assets for business only • Clearly define policies for acceptable use of company resources • Hire a consultant to help secure your business • Make security education priority http://www.securingourecity.org

31. Securing Our eCity – www.securingourcity.org

32. Takeaways • Cyber security is everyone’s responsibility • DLP is more than just marketing – the numbers speak! • No business is immune to data breaches or cyber risk • Risk assessment goal – reducing the risk to an acceptable level • Technology controls require well-written policies • Patch management process • The prevalence of malware continues to steadily rise • Antivirus is a key component to a security strategy • While early, the mobile threat exists – it’s not if, but when

33. Proactive Protection Precise Detection Support Services Fast Scanning Lightweight Footprint ESET in the Enterprise

34. Partner with ESET is Good for your Customers • ESET offers proactive approach to security • ThreatSense (Advanced Heuristic) • Transparent Performance • Best of breed • Smallest footprint • Minimal CPU • Centralized Management • Manages 3-400,000 computers • Agile Security • Integrated approach • Secure methodology requires layers • Server level, desktop, laptop and mobile Partner  Protect Profit

35. Than k youDarin Andersen, COOESET, LLCe: dandersen@eset.com m: 619-302-4013