-Caveat Lector-

 http://www.wired.com/news/news/business/story/20704.html


Cracking on the Rise
by Craig Bicknell

2:00 p.m.  13.Jul.99.PDT
Setting up shop online might open a company's door to new customers, but it
also greatly boosts the odds that an uninvited guest will help himself to
company secrets, according to a survey released Tuesday.
The survey, published by Information Security magazine, found that companies
conducting business online are 57 percent more likely to suffer leaks of
proprietary information than companies that aren't on the Web.

Moreover, the rate at which computer crackers are breaching corporate
networks has nearly doubled in the last year, according to the 745 companies
polled.

"There's a real sea change in the types of breaches that e-commerce is
bringing on," said Andrew Briney, Information Security's editor-in-chief.

"There's been a real knee-jerk reaction, an assumption that most breaches
are internal, but the biggest increase by far is coming from these external
abuses."

The survey polled security managers in disparate industries and covered the
period from May 1998 to May 1999. Rates of increase are based on comparison
to figures from a similar poll conducted last year.

Security experts weren't surprised at the findings.

"We can expect more problems as e-commerce gets moving," said Peter Neumann,
a scientist with SRI International and a consultant to the President's
Commission on Critical Infrastructure Protection. "The basic computer system
and network infrastructures are very weak when it comes to security, but the
incentives for serious misuse are only beginning to emerge."

While it's extremely difficult to quantify the cost of security breaches --
most companies either don't know or won't share information on attacks --
the average loss of the 91 surveyed companies volunteering specific
financial information was US$256,000.

"It reaffirms the necessity for organizations to pay close attention to the
security needs that come with doing business in the electronic world," said
Briney.

Ironically, the vast majority of corporate respondents to the survey said
they had effectively shored up their own security problems.

"They feel confident that they have the resources to handle it, but the
numbers tell a different story," said Briney.

Still, security experts caution that those numbers can't be taken as hard
scientific evidence.

While cracker attacks are indeed on the rise, said Alan Paller, director of
research at the SANS Institute, the number of companies watching for
security breaches is also up. Thus, a higher percentage of attacks are
noted.

"It's almost like when crime reporting goes up, the amount of crime seems to
go up, too," said Paller.

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