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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / JULY 21, 2003; VOL. 2 NO. 29

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THE THREE MOST COSTLY MISTAKES IN NETWORK SECURITY
By Scott Palmquist, VP, Product Management, CipherOptics

While millions are spent today securing intranets, running leased lines, restricting access to IT assets, and strategically concealing network cabling, relatively little is thought about or spent on what happens to network data once it leaves the network end. Whether data is on its way to a client, a partner or another trusted network, unencrypted data is neither secure nor protected. A looming liability that threatens the heart of enterprise networks both small and large, this security hole is partially attributable to some fundamental misconceptions in today's network security market.

These misconceptions include questions of whether dedicated leased network lines are vulnerable, what virtual private networks (VPNs) do to prevent hackers from eavesdropping, and if firewalls do anything to protect network data in transit. The answers to these questions give a peek into the soft underbelly of virtually all current unencrypted network systems.

The Three Costly Mistakes in Network Security

What are today's costliest mistakes in network security? See if these three situations ring true:

Mistake #1: "Our leased lines are safe-only we have access to them." Lines- even fiber-optic lines-can be tapped using means that are not detectable to the receiver. Once only available to well-funded intelligence organizations, monitoring systems are now available to the average hacker for less than $1,000. It takes just one unscrupulous person to tap a line.

Mistake #2: "Our VPNs are secure." No network is truly secure if data is interpretable to anyone who manages to intercept it. While providing logical traffic separation techniques and ensuring quality of service, VPNs provide no protection for the data once it is actually in transit. Truly private networks require the use of data encryption, such as the IPSec protocol, to encrypt all IP traffic-making data useless to those who do not have the key to decode it.

Mistake #3: "Our system has a firewall-we're already protected." Excellent for their purpose-keeping unauthorized users and hackers out of an organization's secure intranet-firewalls do nothing to protect data once it has passed through the firewall on its way out of the network. Supplementing an existing firewall with an encryption appliance can both improve the performance and the security of any intranet.

Encrypt Everything

The security gap created by these misconceptions force a look at network security from a new point-of-view; that is, that no one can be certain that a line is secure. And while billions can be spent in time, effort, and money on ways to achieve "secure" lines, network and security managers have another option-making the data on their lines useless to anyone outside the organization.

Eliminating the need to "trust the line" for complete security is where Internet Protocol Security (IPSec) encryption comes in. IPSec is the encryption of traffic on an IP network. A simple and cost-effective solution for many of the security deficits in most of today's network traffic, IPSec encryption offers the essential elements of confidentiality, authentication, and integrity of secure network data traffic.

The History and Future of Encryption

Encryption isn't new. Numeric encryption has been around since the ancient Greeks. Modern encryption systems had their beginnings when the telegraph and radio brought electronic data transmission into play, along with the need to keep that data secret from those who might listen in.

In the 1970's, the Data Encryption Standard (DES) algorithm was introduced. This standard broke data into pieces and then encrypted and decrypted each piece using a 56-bit key to perform mathematical transformations on them. DES was widely used until computers became powerful enough that a brute-force method of simply applying all of the possible keys to decrypt the data became easily possible.

DES was followed by the current standard, Triple DES (3DES), which uses three 56-bit keys and three DES operations, which results in the equivalent of one 168-bit key. 3DES is a much more secure method, requiring literally billions of times longer to break with the same brute-force methods.

In anticipation of the needs for stronger encryption methods in the future, newer standards are already being developed. The Advanced Encryption Standard (AES), which uses 128-, 192- or 256-bit keys, has been developed via an open competition initiated by the National Institute of Standards and Technologies (NIST). This new standard provides another considerable jump in encryption security.

At Encryption's Side

While encryption alone renders data in transit uninterpretable to anyone who might intercept it, complimentary technologies exist to improve the overall security provided by any encryption system.

One such technology is authentication, or the capability to ensure that data senders and receivers are identifiable. It's important to know that your data is going to or coming from a trusted source. One of the most popular forms of authentication is Public Key Infrastructure (PKI). It is used to verify the sender and receiver of data so that both parties know with whom they are communicating.

Once communication with a trusted source is established, it's equally important to ensure that the data has not been tampered with in transit. By using a class of cyberattack called the "man in the middle attack", unsecured data is subject to alteration by a malicious third party while in transit on unsecured lines. The industry standard codes to solve this issue are the MD5 and SHA-1 Message Authentication Codes. They create a unique fingerprint for each packet of data based on its contents. Only the sender and receiver, who share the common keys, can correctly calculate this fingerprint-which becomes incorrect if the packet is altered in transit.

Examining each packet for encryption/decryption also allows packet filtering technologies to examine them right at the edge of a secure network. With the proper security policy in place, troublesome and unsecure applications, such as online gaming and music sharing, can be disallowed with the resultant packets dropped.

Real-World Application

Across Different Sectors Encryption technology has grown and improved as the various areas needing the technology have grown and changed. Different industries and enterprises might have different reasons for needing IPSec encryption, but the applications themselves are not hard to find.

Security is an ever-present concern at all levels of government and the military. The safety of our nation and its people requires the utmost care is taken in protecting the information that federal, state, and local governments need to run on a daily basis. IPSec encryption is an important and simple method to achieve the confidentiality requirements demanded by government organizations. Law enforcement is another area where network security is essential and where IPSec can help.

With identity and credit card theft as rampant as ever and new legislation such as the Gramm-Leach-Bliley (GLB) Act adding to the security requirements being placed on financial institutions, IPSec encryption becomes an ideal solution for financial institutions needing to secure the immense number of transactions and transmissions that are a part of daily financial operations. IPSec encryption enables the remote backup and disaster recovery storage systems required by financial organizations and promotes network security along the crucial network lines between national, regional, and local banking centers.

In medicine, patient records, billing information-even x-rays-are now being transmitted across the Internet, and the trend will only grow with time. With patient confidentiality and financial security in mind, IPSec encryption can keep pace with the growing needs of the healthcare community and can help ensure compliance with the federal government's Health Insurance Portability and Accountability Act (HIPAA).

IPSec encryption protects our nations vital infrastructure while also supporting the 24/7 operations so vital to the utility industries. With the global threat of terrorism a constant concern, the need to protect vital operational information from outside sources is more important than ever. Encryption systems are now available with throughput to match the needs of this demanding sector, ensuring all communications are secure.

The Risk-Return

Like all business decisions, network security is a matter of evaluating the risk versus the costs involved with mitigating that risk. Can you afford to risk having your critical data exposed and unprotected, available to anyone who can get it?

In the past, encryption systems could not keep up with the rapid advancements in computer speed, and were overlooked as a possible solution. Today, that's changed. Encryption systems now operate at full-duplex gigabit Ethernet speed and with minimal latency, providing IPSec encryption to network and security managers who want to close the holes left in their network security plans.

In this increasingly real-time, data-dependent, Internet-based economy, no organization can afford to leave their data unprotected. Encrypting IP traffic provides an end-to-end, cost-effective, and technologically complete step towards achieving complete network security in today's networked environment.

About The Author

Scott Palmquist is the vice president of Product Management for CipherOptics. CipherOptics is the developer of the Security Gateway™, a new network security encryption appliance. The Security Gateway plugs right into most networks and provides 3DES -- and soon AES -- IPSec encryption at full-duplex gigabit speed. Able to be installed in various network configurations from point-to-point to remote storage to intranet compartmentalization, the Security Gateway is a flexible and low-cost solution to the issue of network line security. You can reach Scott at scottp@cipheroptics.com or at (919) 865-7323.

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