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DBIR Report 2023 - Small Medium Business (SMBs) Data Breaches Business
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You may now close this message and continue to your article. — said no one ever (except math teachers),In certain prior reports, we have compared and contrasted small and medium businesses (SMBs) against large organizations to determine whether the attack surface differed significantly between them. Increasingly, both SMBs and large companies are using similar services and infrastructure and that means that their attack surfaces share more in common than ever before. This has led to a convergence of attack profiles regardless of the size of the organization. However, what is very different is the ability of organizations to respond to threats due to the number of resources they can deploy in the event that they are attacked. The tables on the right illustrate the fact that SMBs and large organizations have increasingly become similar to each other. This phenomenon began several years ago, and by now there is so little difference based on organizational size that we were hard-pressed to make any distinctions whatsoever. Therefore, this year we decided to look at these a bit differently by looking at the implementation of security controls for various size SMBs (smaller, midsize and larger) and how they may overlap or differ. In past reports we have discussed the research we conduct with regard to controls—in particular, the work we have done with MITRE to map VERIS to ATT&CK. This year, we would like to take this research a bit more into the real world and apply it to how you would use these mappings with the appropriate CIS Implementation Group protective controls. 699 incidents, 381 with confirmed data disclosureSystem Intrusion, Social Engineering and Basic Web Application Attacks represent 92% of breachesExternal (94%), Internal (7%), Multiple (2%), Partner (1%) (breaches)Financial (98%), Espionage (1%), Convenience (1%), Grudge (1%) (breaches)Credentials (54%), Internal (37%), Other (22%), System (11%) (breaches),. At a glance for SMB496 incidents, 227 with confirmed data disclosureSystem Intrusion, Social Engineering and Basic Web Application Attacks represent 85% of breachesExternal (89%), Internal (13%), Multiple (2%), Partner (2%) (breaches)Financial (97%), Espionage (3%), Ideology (2%), Convenience (1%), Fun (1%) (breaches)Internal (41%), Credentials (37%), Other (30%), System (22%) (breaches),. At a glance for large organizations,Let's assume you're a startup — company in its infancy. You have very, very limited resources for implementing security controls of any kind. Your IT person is also your security person is also your Jack- (or Jill-) of-all-trades who wears many hats and never sleeps. The first step is to see which controls are recommended for your level of security maturity and resources. But where to begin? We like the CIS Critical Security Controls Navigator as a good starting point. It breaks down each of the CIS Controls into small, easy-to-consume chunks and then maps them to various security standards that an organization may want to comply with as their adopted standard. You will see that they are broken into three Implementation Groups, and each one is geared to the organization's maturity level. Since we're at the beginning here, we will start with Implementation Group 1 (IG1). While these are all good controls and should be on the road map, let's take a more threat-centric approach in our scenario. You can see in Tables 3 and 4 that regardless of an organization's size, they are going to face the System Intrusion pattern most commonly. In last year's report, we mapped the Controls to the pattern and showed which were most commonly going to help you in an attack. The result in IG1 shows Controls 14 (89%), 11 (80%) and then 5 (67%). When you drill further into the Sub- Controls, more granularity should guide you in your quest for maturing your organization's security posture. Each organization will need to customize and prioritize according to its own risk profile and tolerance, but it is at least a place to begin. Once the most likely suspects are accounted for, move onto the next mostly likely attack pattern you may be facing and determine how to handle that. Using data-driven information on your most probable risk areas is a defensible strategy toward prioritizing controls with few resources. Hopefully after some progress is made, your Jack-/Jill-of-all-trades can go back to sleeping at night. Establish and maintain a security awareness program to influence behavior among the workforce to be security conscious and properly skilled to reduce cybersecurity risks to the enterprise. Establish and maintain data recovery practices sufficient to restore in-scope enterprise assets to a preincident and trusted state. Use processes and tools to create, assign, manage and revoke access credentials and privileges for user, administrator and service accounts for enterprise assets and software. CIS Implementation Group 1 Controls for Incident Classification Patterns most commonly encountered by SMBs,You've been at this a while. You're not tiny, but you're not quite at the enterprise level just yet. You have been working diligently at maturing your processes in both IT operations and in information security. You have put in place the Controls in IG1 and are now eyeing IG2 to take your company to the next level of protection. With that in mind, let's take a look at the IG2 controls that cover the Social Engineering pattern, which is the second largest threat for SMBs. The first two controls are the same main categories as they were for System Intrusion, Control 5 (100%) and Control 14 (100%). However, the third control is different for this pattern:,An Incident Response Management plan is key to all areas of security but perhaps especially so when it comes to Social Engineering attacks for a few reasons. Many of these attacks, such as pretexting, tend to escalate quickly and can have a high impact. Perhaps just as importantly, employees need to feel secure in the knowledge that they have a place they can report these incidents to when they occur because the sooner they report them, the more quickly you can address them. Now let's pivot to look at the larger organizations in the SMB area. To clarify, we are still writing with regard to SMBs, we simply mean the larger companies that still fall into that category (<1,000 employees). When your company reaches this point, there are more resources available to throw at problems, whether in the form of more people, more technology options or just plain more cash, and bringing those resources to bear can yield substantial benefits. At this level you have already tackled IG1 and IG2 and are ready for IG3 controls. These Controls mature along with your organization. Therefore, let us examine the IG3 Controls with regard to the third most common pattern for SMB: Basic Web Application Attacks. The first, Control 17 (100%), we talked about in the section above, but Controls 16 (100%) and 18 (100%) we have not yet discussed. Control 16 is certainly timely, considering the SolarWinds case from last year's report and the Log4j impact discussed in this year's report, so we should have no problem seeing the relevance of this Control. Sub-Controls 16.2: Establish and Maintain a Process to Accept and Address Software Vulnerabilities, 16.4: Establish and Manage an Inventory of Third-Party Software Components, and 16.5: Use Up-to-Date and Trusted Third-Party Software Components would have gone a long way to defending against both of those cases. Once an entity has reached the larger end of the SMB scale, Control 18 also comes into play. Establishing penetration testing capabilities and incorporating their findings into the security processes can only improve the information security posture of a larger SMB. This is basically real-world testing of your controls to make sure they are performing how you expect them to. Like backups, only controls that have been tested and verified should be trusted. Now that you've already looked at the Controls and prioritized them, you know what you're most likely to be hit with and you're working your way through to the end—your ducks are almost all in a row. You have balanced preventive and detective capabilities and are on your way to being able to not only detect when something bad has happened but also respond quickly and appropriately. You have moved from the basics of putting your plan together to implementing a road map. A few final things to consider at this point: Are you looking at aligning with a particular compliance framework? Do you track metrics around security in your environment? Do your efforts result in ongoing improvements to your security posture, or do they just provide a point-in-time snapshot that says, "I was good at this moment, but then things changed"? There is quite a bit you can do when you use good information about what is happening in your organization to steer your security strategy. Report after report, and study after study, shows that many attacks are successful because network owners did not know their enterprise assets, the software they had running and where their critical data was. Knowing your environment is foundational to any cybersecurity program, so they encompass the first three controls of the CIS Critical Security Controls (Controls). After all, you can't protect what you don't know you have. After understanding your environment, you can prioritize where to apply and which controls to implement across your enterprise. At CIS we know that this will take time and resources, which is why we have prioritized the Controls and supporting Safeguards to help you plan your security improvement program. We do this through Implementation Groups (IGs). There are three IGs and are based on the risk profile and resources an enterprise has available to them to implement controls. Each IG builds upon the previous one. So IG2 builds upon IG1 and IG3 comprises all the Controls and Safeguards. We describe a typical IG1 enterprise as small to medium-sized with limited IT and cybersecurity expertise to dedicate toward protecting IT assets and personnel. The principal concern of this enterprise is to keep the business operational, as they have a limited tolerance for downtime. The sensitivity of the data that they are trying to protect is low and principally surrounds employee and financial information. Safeguards selected for IG1 should be implementable with limited cybersecurity expertise and aimed to thwart general, non-targeted attacks. These Safeguards will also typically be designed to work in conjunction with small or home office commercial off-the-shelf (COTS) hardware and software. But no matter the size or complexity of your business, we recommend that all organizations begin with IG1. We also refer to IG1 as Essential Cyber Hygiene because it provides the actions necessary for an organization to defend itself against the major attack types being used by cybercriminals. IG1 is not just another list of good things to do; it's an essential set of steps that helps all enterprises defend against real-world threats. And it provides a strong foundation for your cyber maturity growth, or as your security needs change. This is a strong claim, but we back it up with our use of the best-available summaries of attacks (like the Verizon DBIR), and an open, shared methodology (the CIS Community Defense Model v2.0,Again, there is that refocusing thing we keep talking about. 2022 DBIR, Appendix B: VERIS and Standards, p. 96,And this never really hurts, does it? If you are already a Verizon customer, we have several options to help you get the support you need. Choose your country to view contact details. Existing customers, to your business account or . These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information. 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Learn moreHarperDB Connected Golf Carts Devices
HarperDB offers an enterprise application development platform that allows companies to endlessly scale their applications while enjoying far faster performance, lower global latency and greater cost-efficiency than they could achieve using traditional approaches. Edison Interactive, the leader in connected device ecosystems, encountered significant latency challenges with its own device-agnostic cloud content management platform while attempting to innovate and scale for growth. Since implementing HarperDB's solution, Edison Interactive has been providing premium content to customers with a reduced application programming interface (API) call latency of just ten milliseconds—a fraction of the previous time. This performance enhancement breakthrough has enabled Edison Interactive to fully pursue innovative use cases that it could not before. For example, the company can now instantly serve personalized content to high-definition, touchscreen displays installed in golf carts, presenting advertisements on behalf of its clients to consumers in more than 33,000 carts across the nation. To enable these displays and signs, HarperDB provides access to API caching and machine learning on the edge. These improvements elevate the end customer experience while enriching the advertising features within the Edison Interactive platform. Edison Interactive creates and deploys custom content for hundreds of thousands of connected devices, such as mobile phones and connected televisions, across a wide range of industries. For this content to achieve its intended impact, it must be accurately targeted and promptly delivered. Otherwise, end users might receive offers or information they found irrelevant or unhelpful—and Edison Interactive's customers might lose out on opportunities to make positive impressions on their customers. The mobile application platform that Edison Interactive originally used to circulate content was highly distributed, involving many cloud-based services. Because this original architectural design was not optimized for API calls, it inadvertently created varying delays in content delivery that adversely impacted the end-user experience. Any call for content would have to travel from a device through an API and proceed to Edison Interactive's cloud network before finally returning to the device. Content in transit across the internet runs headlong into latency that could reach as high as five seconds—and perhaps higher, depending on global location. While such a delay might seem negligible to the layperson, it's an eternity for end users attempting to consume content on a smartphone or briefly glance at an advertisement displayed on a digital screen in a golf cart. Our devices are deployed a lot of times in very complex environments, like golf courses, rental vehicle centers and hospitality facilities. Latency is a big deal for us, said Nick Stanitz-Harper, CRO and co-founder of Edison Interactive. We're delivering real-time advertising, real-time location tracking, real-time weather and content and media on all types of different devices.,Not only did this latency keep Edison Interactive content from reaching its intended audience in a consistent and timely fashion, but it also prevented the mobile application platform's machine learning and artificial intelligence (AI) algorithms from being able to make crucial decisions in real time. Latency effectively serves as an obstacle for creating and delivering accurate content within the relatively short time frames required by different applications, especially when internet access at the site is spotty or inconsistent. It also obstructs revenue opportunities for Edison Interactive's customers—who rely on near real-time content delivery—and increases expenses that undermine the value Edison Interactive's services could provide to current and prospective customers. , CRO and Co-founder, Edison Interactive,To overcome these urgent business challenges, Edison Interactive began looking for innovative and scalable approaches that would enable the company to distribute its mobile application workloads closer to its end users. Since Edison Interactive and Verizon already had a strong working relationship and multiple projects in this space, it was only natural to consider a solution involving Verizon Edge services for this mission-critical initiative. Edison and Verizon have had a longstanding and very successful partnership together. We come together to create, deploy and manage creative custom content experiences for different device types, whether that be a mobile phone, a tablet or a connected television, explained Stanitz-Harper. Edison Interactive selected HarperDB's database platform, which would be integrated with the Verizon 5G with AWS Wavelength and 4G LTE connectivity, for rapid content delivery at the edge. This integration allowed the company to use HarperDB's application development platform and SQL/NoSQL persistence engine on high-performance AWS servers integrated at the edge of the Verizon 5G/4G LTE network. One of the reasons why we initially became interested in what Verizon was doing is when you look at where the Internet of Things (IoT) is going, Verizon had made smart investments and had experience in AWS technologies while enhancing the Verizon network and capabilities. We saw that as an intelligent move and very forward-thinking in how to make IoT possible, explained Stephen Goldberg, CEO of HarperDB. With this solution in place, Edison Interactive was able to simplify its complex technology stack and reduce the complexity of its mobile application platform, increasing reliability in the process. From Edison Interactive's perspective, using Mobile Edge Computing (MEC) powered by Verizon 5G Edge and AWS Wavelength was a key to reducing latency and dramatically improving the end-user experience. We chose HarperDB, from a distributed database perspective, to utilize and leverage the power of mobile edge computing in order to reduce and drive down that latency to provide a better user experience for our customers, said Stanitz-Harper. The migration was straightforward, and the parties involved were able to carry it out relatively quickly. We rebuilt the existing APIs and moved them into HarperDB Custom Functions. Then, we were able to point the mobile application on the digital screen to HarperDB basically by changing a setting from one URL to another. From there, because HarperDB is a managed service that runs on public MEC, which we have already deployed, we were able to scale to all of the public MEC locations across the United States with a little bit of scripting and a lot of button clicking, said Goldberg. Because Edison's environment works in these constrained environments, we performed a series of rolling updates to the existing devices in those locations. We were able to make that migration from the existing architecture onto HarperDB and public MEC in a pretty short amount of time, he added. The project took about six months to complete, with the initial improvements coming online in the space of just three to four months. Using HarperDB's Custom Functions development platform, Edison Interactive was able to create an API caching layer that could reduce latency from five seconds down to 20 milliseconds or fewer—a 250x improvement in latency. Edison was now able to deliver premium content to customers in hard-to-reach places with a reduced API call latency of five milliseconds, just a fraction of the previous time required. Our latency and customer experience have dramatically improved, said Stanitz-Harper. These enhancements had an immediate impact. It's amazing to have that real-time advertising taking place on a golf course, for example, where there's spotty connectivity sometimes, and we're all over the country. We're in almost every state, serving about 450-500 golf courses now. The ability to deliver real-time advertising, real-time content and real-time location tracking has expanded our potential to drive additional advertising revenue into the solution, he added. Edison Interactive's customers and their end users have already provided glowing reviews about the improvements. Our customer satisfaction level is very high. The end users are all extremely happy with the improved end-user experience and reduced latency. On the other side, the brands and the agencies are also very happy with the near real-time delivery and the expanded capabilities on the advertising front. So, everybody's very happy, explained Stanitz-Harper. In addition to resolving the critical latency issue and improving both customer and end-user satisfaction levels, the advanced architecture provided by HarperDB enabled impressive performance gains and improved reliability. By shifting computing and application workloads directly to the edge for better and faster decision-making, Edison Interactive eliminated the need to transport massive amounts of data from where it was generated onward to the cloud for eventual analysis. , CEO, HarperDB,With HarperDB solutions in collaboration with Verizon 5G Edge with AWS wavelength in place, Edison Interactive was also able to realize significant cost savings while also unlocking a lower total cost of ownership (TCO) compared to traditional application architectures. In addition to unlocking a cost savings of 50–60% over the previous solution, Edison Interactive was able to use HarperDB's data storage to replicate its cache across the globe in less than 100 milliseconds. This update reduced the number of total calls to the source API by 99%, which in some cases reduced the costs involved with those API providers. Edison Interactive was able to avoid a significant upgrade cost on the client device that would have been required to replace their existing hardware. For example, instead of moving to a cloud-first data architecture, the company now uses MEC to accelerate its mobile content delivery and add life to its existing hardware. In addition to avoiding the increased costs and performance limitations that often come with cloud-first data architectures in these scenarios, Edison Interactive is now able to scale its mobile application platform to enable a wider range of compelling and impactful use cases. With HarperDB's solution enabling reduced latency and better performance, Edison Interactive can now begin exploring exciting use cases that were previously out of reach. We've got loads of APIs. Right on the home screen alone, I believe we have 989 different APIs coming in from our advertising platform—from content to weather to media. But now that we have the reduced latency and the ability with HarperDB MEC using Verizon 5G Edge with AWS Wavelength inside of that platform, it gives us the opportunity to start building feature sets that can potentially change the game of recreational golf. It gives us opportunities to start thinking about ideas like digital caddies, accurate wind speeds in real time, club selections—feature sets that the everyday golfer can utilize to really improve and enhance their experience on the green grass golf course, said Stanitz-Harper. In preparation for the future, Edison Interactive now has a more flexible foundation for delivering compelling content across multiple scenarios using public MEC, private MEC or both. Compared to the previous architecture, which involved putting different components together, we now have a ubiquitous surface with which to work. This allows Edison to take that platform and then deploy it in lots of different environments. That's unique, Goldberg explained. So for a use case where you need to run something entirely on-premises, this architecture can be deployed in that model. It can also be deployed onto vehicles, golf carts, point-of-sale (POS) systems in a ubiquitous way across cloud environments and farther across premises—all while using a single platform and a single architecture, he added. With the flexibility to incorporate both public and private MEC depending on the customer requirements, Edison Interactive can now simultaneously accommodate a wider range of networking use cases—from a stadium to a stationary screen in a hotel room. In doing so, the company can help its customers enhance their offerings and reduce their time to market. Our platform can support both mobile and stationary solutions such as a television or a vehicle. Having the ability to transition across the different public and private mobile edge computing solutions provides for ultimate flexibility on our end, as well as improved and reduced timeframes to market on specific solutions through the HarperDB partnership, Stanitz-Harper explained. , CRO and Co-founder, Edison Interactive,With a modern infrastructure in place, Edison Interactive now has far greater freedom to innovate than ever before. This was all possible, in large part, due to the successful partnership that Edison Interactive, Verizon and HarperDB enjoy. When HarperDB joined as a managed service for Verizon 5G Edge with AWS Wavelength, it was really the three of us coming together and saying, 'Hey, this is a perfect use case to be able to deploy a highly reduced latency environment and really innovate from the API gateway solution to be able to improve the end-user experience. So, it was really the three of us coming together to build this and deploy it. It's been very successful, said Stanitz-Harper. Goldberg agrees: If you look at what we're doing here under the hood, it's a pretty sophisticated implementation. That's made possible by all of the pieces of this, but Verizon's investment of AWS Wavelength really makes that possible.,5G Edge can drive efficiencies, optimize costs and improve customer experience—to keep you at the forefront of business modernization. Call sales,Chat with us,Have us contact you,Get updates,Already have an account?,* Required,The information provided will be used in accordance with our terms set out in our . Please confirm you have read and understood this Notice,Verizon may wish to contact you in the future concerning its products and/or services. If you would like to receive these communications from Verizon, indicate by selecting from the dropdown menu below. Please note that you can unsubscribe or update your preferences at any time. 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Learn moreDBIR Report 2022 - SMB Data Breach Statistics Business
The information provided will be used in accordance with our terms set out in our . Please confirm you have read and understood this Notice. By submitting the form, you are agreeing to receive insights, reports and other information from Verizon and affiliated companies in accordance with our . California residents can view our . Verizon may wish to contact you in the future concerning its products and/or services. If you would like to receive these communications from Verizon, indicate by selecting from the dropdown menu below. Please note that you can unsubscribe or update your preferences at any time. Indicates a required field. The content access link will be emailed to you. You will soon receive an email with a link to confirm your access, or follow the link below. You may now close this message and continue to your article. 832 incidents, 130 with confirmed data closureSystem Intrusion, Social Engineering, and Privilege Misuse represent 98% of breachesExternal (69%), Internal (34%), Multiple (3%) (breaches)Financial (100%) (breaches)Credentials (93%), Internal (4%), Multiple (3%) (breaches),When cybercrime makes the news, it is typically because a large organization has fallen victim to an attack. However, contrary to what many may think, very small organizations are just as enticing to criminals as large ones, and, in certain ways, maybe even more so. Threat actors have the "we'll take anything we can get" philosophy when it comes to cybercrime. These incidents can and have put small companies out of business. Therefore, it is crucial that even very small businesses (10 employees or less) should take precautions to avoid becoming a target. Large organizations have large resources, which means they can afford Information Security professionals and cutting-edge technology to defend themselves. Very small businesses on the other hand have very limited resources and cannot rely on a trained staff. That is why we wrote this section. If you own or manage a very small business, we offer the following recommendations or best practices. We suggest you print out or tear out this section and refer to it when a concern appears. The number one action type in our dataset for very small businesses are ransomware attacks. Ransomware is a type of malicious software that encrypts your data so that you cannot view or utilize it, and once the ransomware is triggered the threat actor demands a (frequently large) payment to unencrypt it. This is where having those offline backups come in handy. The second most common is the Use of stolen credentials. Attackers can get your credentials (username and password) via many different methods. Brute force attacks (where attackers use automation to try numerous combinations of letters, symbols and numbers to guess your credentials), various types of malware (thus the value of having an up-to-date Antivirus), reused passwords from another site that has been hacked and last but not least, social attacks such as Phishing and Pretexting. You may have heard the term "Business Email Compromise" in news articles. They typically involve Phishing and/or Pretexting, and can be quite convincing, (such as an invoice that looks like it comes from a known supplier but has a different payment account, or an email from a business partner saying they're in a pinch and need a quick payment made on their behalf). While most come in through email, criminals have also employed the telephone to convince their target that this is a legitimate request. The criminal element often run their enterprise just like a legitimate business and may even take advantage of criminal call centers (yes, these exist) to help lend credence to their ploy. Phishing is a type of social attack (usually via email) in which the attacker tries to fool you into doing something you should not, such as providing them with your user name and password or clicking on a malicious link. Examples include "click here to reset your password" or download an invoice, view the pdf attachment, verify your bank account number, etc. These attacks can be extremely realistic and are often very hard to identify. Pretexting is the human equivalent of Phishing. Typically, the threat actor attempts to create a dialog with the victim by impersonating a business partner, a bank employee, or a superior in your own organization in order to gain access to login information. The end game for Pretexting is usually the automated transfer of funds from your organization to the criminal's bank account. Watch for anything strange or out of the ordinary. For example, you might see unexpected charges on your bank statement or phone bill. Keep an eye out for transactions on your credit card that you don't recognize. You may receive comments from friends about emailed requests for them to buy a gift card. You may receive phone calls asking for your password or credit card number, or a request to change the account number or how you pay a regular vendor or client. All of these things are warning signs that something malicious might be happening. Think of your computer like a car–if it suddenly won't start, runs slower or makes a weird noise, it's time to have an expert take a look. Finally, with threats such as ransomware the threat actor will actually alert you that your data has been encrypted. Familiarize yourself with these resources, and draw up a plan for what steps you will take if you find your organization has become a victim. Plan this ahead of time instead of waiting until your company's "hair" is on fire. Even if it is just a document that contains the contact information for all of your vendors and your bank's fraud department, it is a place to start. Print it off and post it somewhere you can access it easily. Don't just keep it on your computer—it might be unavailable as part of the attack. Some planning on your part, along with a bit of educating the people most likely to encounter these kinds of attacks, can go a long way in helping to make your small company safer. If you're unsure what "offline" means here, see "What to do to avoid becoming a target" below. If you're note familiar with "phishing" or "pretexting" , it's okay. Keep reading for the definitions. This adds an additional layer to just the username and password combination. It may be a code that is texted to your registered cell phone, the use of an authenticator app like Google or Microsoft Authenticator, or the use of a little device that you plug into a USB drive when prompted. If your vendors do not offer two-factor authentication (also called multi-factor authentication or MFA), start lobbying for them to accommodate it. Not between people and not between applications or websites. A password keeper makes this easier. If you are already a Verizon customer, we have several options to help you get the support you need. Choose your country to view contact details. Existing customers, to your business account or . These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. 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