Back to Home Page
Anthony Nassar, Founder & Principal, Venture Momentum, Inc.
 
  In This Issue
Featured Interview – Are Your Crown Jewels Being Hacked As We Speak?
Featured Article– The State of Nanotechnology
Sneak Preview of Next Month’s Issue
About Venture Momentum
  
May 12, 2004

Vol.1, Issue 4

Published on the second Wednesday of every month

Sign me up for this e-zine

 
  Featured Interview – Are Your Crown Jewels Being Hacked As We Speak?
 

Frederic Bret-Mounet

Today, Frederic Bret-Mounet, security expert with @stake, reveals how you can proactively build security and privacy into your systems and processes from the early concept stage and beyond.

Anthony: Fred, what do you do at @stake?

Fred: My official title is Senior Security Architect. In plain English, I’m a hacker for hire, although I'm legal - or a “white hat,” as we say in the industry. Clients hire me and my colleagues as consultants to perform 2 types of security assessments: 1) we pretend to be bad guys by launching actual attacks on their systems and exploring avenues to compromise them; or 2) we take a proactive approach and help them design secure systems by working at the architectural or design levels to insure that threats are mitigated.

The second approach is clearly the preferred one. We have studies showing that the cost of addressing security issues in an existing system is 10 times the cost of designing a system with security in mind from the start.

Anthony: What security protections are available for basic online computing?

Fred: There are 3 primary lines of defense:

  1. Hardware firewall and personal firewall
    Firewalls are sold as the holy grail of security. Unfortunately, they aren’t. They’re like the lock on the front door of your house. You wouldn’t buy a house without a lock. But everyone knows that a locksmith will get through that door very easily. That said, a firewall is definitely a must have. Firewalls are overlooked by scores of home users because they require an investment in an add-on product that isn’t typically supplied when they purchase their computing equipment.

    Hardware and personal firewalls have different scopes. A hardware firewall is used to protect a network of multiple computers. A personal (software) firewall is meant to run on your own machine for your own protection. It’s the first line of defense you would deploy in the evolution of a start-up.
     

  2. Antivirus software
    If you have a broadband connection, it’s only a matter of days before you get infected with malicious software viruses. Therefore, an antivirus is critical. Even more important is a subscription that keeps the antivirus’s detection capabilities up-to-date. Do not purchase the antivirus any other way than with a subscription that you’ll renew annually.
     
  3. Spyware removal software
    Browsers have vulnerabilities that have not been addressed yet. Attackers can install code on your hard drive called Spyware, that tracks your actions and behavior and ties up precious CPU and hard drive resources. There are several products on the market, such as Spybot and Ad-Aware, that remove Spyware. As in the case of the antivirus, Spyware removal software requires constant updating to remain effective.

Anthony: How should user behavior be altered to improve security?

Fred: Security often fails because of inadequate user behavior. One must develop best practices and habits that are both security-minded and user-friendly. Here are some examples of dos and don’ts:

  1. Avoid opening e-mails with binary attachments; these may contain malicious viruses.
     
  2. Avoid using a unique password that’s shared across all systems because a successful discovery of that password by a hacker may compromise your credentials across multiple systems, financial data, access to your computer, etc. Also, passwords that use your mother’s maiden name, child’s name, pet’s name, or any common word are not secure. There are tools that use dictionary-based attacks to compromise passwords. So if your password happens to be in the dictionary, or looks a lot like a word in the dictionary, then it can be discovered in less than a few hours.
     
  3. Don’t use your browser’s auto-complete feature for username and password credentials. While this feature is convenient, it’s not secure; your credentials can easily be retrieved from your hard drive.
     
  4. Make sure you perform a Windows® update at least once a week, and check for patches. Some updates are for functionality while others are for security. As soon as a patch is made available, the underground world tries to reverse engineer it to build an attack on those non-patched environments. It’s a race you need to keep up with.

Anthony: Do you have a recommendation on how to build a secure password?

Fred: The best technique to generate a secure password is to create a memorable sentence and pick, for example, the first letter of each word or some mnemonic way of recalling what that password is. Use a mix of lower and upper case letters, numbers, and perhaps special characters. Many systems don’t allow you to go that far. So you have to work within their limits. But that’s the ideal scenario. Never use less than 6 characters, ideally 8 or 10.

For example: “We were married at 11 a.m. in Paris in April” could produce the following password - Wwm@11iPi4. Such a password can be easy to remember, but hard to compromise by a dictionary attack.

If you have many passwords to manage, there are tools called password stores to store all those sets of credentials. You use a cryptographic passphrase to log into that software and decrypt your other passwords. You are left with only one password to remember.

Anthony: How can a concept stage entrepreneur working from a home office protect valuable Intellectual Property (IP) from being hacked?

Fred: IP is probably the most valuable asset in a concept-stage start-up. Make sure you use all the basic tools mentioned earlier (firewall, antivirus and Spyware removal) as primary lines of defense. Other guidelines to protect your IP are:

  1. Back-up at a minimum once a month, preferably weekly, and store the back-up in a safe location - not in your desk drawer. These back-ups are used for disaster recovery in the case of fire, earthquake or other disaster, so choose a secure location.
     
  2. Use encryption to protect your data in case your computer is lost or stolen. Windows® XP and PGP® provide file encryption. Forgetting your password means that you will no longer be authorized to access your data. You will therefore lose that information forever if you forget the encryption password. So make sure that when you use encryption, you have a way of retrieving that information. Note that while the use of passwords with basic office software products may prevent casual eavesdropping, it’s not secure, because these products were not designed with security in mind. Most of these do not provide cryptographic strength encryption and one can find tools to recover the content without a password.
     
  3. As you collaborate with partners and consultants, remember that e-mail is not a secure method of communication. Therefore, do not send sensitive information by e-mail. You can secure this type of information through PGP® which integrates with your e-mail application and requires that a) your recipient also uses PGP® and b) a public key be shared between the people who are exchanging data (the private key is unique and is only known to its user).
     
  4. FTP is not a secure transport layer. Do not drop files containing sensitive information on the FTP server for other people to pick up.

Anthony: How safe is wireless connectivity?

Fred: Wireless is not secure because it is similar to a broadcasting radio station that everyone can listen to. There are ways to protect wireless communications so that only authorized people are able to understand what’s being broadcasted, but it’s still broadcast-based.

I’ve seen quite a few companies and government agencies take a proactive step and ban wireless networks. We would walk around their buildings with wireless sniffers to detect the presence of wireless networks, and could find rogue wireless networks that their employees had actually deployed.

The first line of defense in wireless environments is WEP (wired equivalent privacy). WEP is a built-in security mechanism in the WiFi protocol to ensure confidentiality. Unfortunately it’s been broken due to design and implementation flaws. With a handful of days’ worth of traffic, it’s possible to retrieve the unencrypted content. From a start-up perspective, if you have a wireless network, you’re probably going to be tied to using WEP, because right now, that’s the only realistic offering in the home/small business arena. At the very least, go with WEP 128 bits. Ideally, you want to use WPA, the replacement of WEP, if your hardware supports it. WPA uses dynamic keys which change every 20 minutes or so. So if your key is compromised, the attacker has access to only 20 minutes worth of traffic.

If you’re using WEP, make sure you change your passphrase at least every month. This is usually a hassle, because you need to copy it on all the machines on the network, but it’s basically the only way to keep your network secure.

I think wireless computing is a convenience that is here to stay and is very hard to resist. Personally, I have been on a wireless network for 3 years now and I would never go back to a wired environment.

Anthony: Do you consider security to be a business enabler?

Fred: Security was perceived as a business disabler during the dotcom boom, because of its high cost and adverse impact on overall system performance and time to market. Since then, people began to realize how critical security was as websites were compromised and private information was disclosed at large.

Over the course of the last few years, I’ve noticed that security has become an important component of an increasing number of business applications including networks, software, processes and business environments. Currently, there’s mounting pressure from the financial and healthcare sectors on their vendors/partners to be security conscious. Many financial institutions require from their vendors that their business plan include a security aspect covering the obvious disaster and recovery/business resumption plan, data confidentiality, etc. In addition, most major financial institutions perform security audits on their vendors and partners because they know that they are only as secure as their weakest link, which is the one they have the least control over.

Pressure is also mounting on the compliance side, putting more emphasis on security. For example, the Gramm-Leach-Bliley Act ("GLB Act") imposes restrictions on financial institutions with respect to the disclosure of personal financial information. HIPAA (Health Insurance Portability and Accountability Act) also has security-related requirements which affect the healthcare industry. In California, SB 1386 requires institutions collecting certain personal information (such as SSN, driver license, bank information) to protect it from theft, and notify people when their personal information has been compromised.

To highlight where we are in the security lifecycle, I’d like to go back to the example of the house with a lock. We are now at the stage where the buyer of the house would not accept the house without locks, when during the dotcom boom, the buyer would have probably taken the house without doors. Security now needs to be built both into systems and processes from the ground up. Much like when the government instituted the building code to regulate construction, we are at a stage where laws are put into place to define acceptable practices with respect to digital security.

Anthony: What words of wisdom do you have for today’s early stage start-up entrepreneurs?

Fred: Network security has become a commodity nowadays; there’s not much to be improved upon in this area. Growth is currently being experienced in applications security and security outsourcing. If I were to create a start-up, I would probably concentrate on a product/service that increases user security by changing his/her habits.

Think about security at the business plan stage, especially if you are in the software/technology space. Security can be a differentiator. Today it may give you a slight advantage over your competitors. In six months or a year, it will be expected from everyone.

To find out more about security, check www.securityfocus.com (great site for up-to-date vulnerability information), www.atstake.com, and www.isc2.org. The last site belongs to an organization that delivers CISSP certification (Certified Information System Security Professional). Employers are often requiring the CISSP certification which is recognized worldwide.

Bio

Frederic Bret-Mounet, CISSP
Senior Security Architect, @stake

Frederic is a seasoned software engineer with 8 years of experience, 6 of those in information technology consulting. His professional experience includes application programming and security consultancy with an emphasis on Web application design and implementation for Fortune 500 companies.

Prior to working with @stake, Fred was part of a consulting company where he completed multiple assignments with both dot-com and financial clients.

His expertise covers a broad range of technical and managerial areas including end to end knowledge of web and client/server architectures, MFC, C++, VB, COM, Java and wireless networking (802.11). Fred is CISSP certified.

 
  Featured Article– The State of Nanotechnology

This article is available to subscribers of Propel Your Venture only.

 
  Sneak Preview of Next Month’s Issue

A Lesson in Bootstrapping. In next month's interview, Christopher Frothinger, CEO of InfoCentricity, will tell how he built his team and products, and acquired marquee customers with a very modest amount of funding.

 
  About Venture Momentum

Venture Momentum, Inc. is a financial management firm that assists early stage venture entrepreneurs in building a strong financial organization and laying the foundation for successful fund raising. To learn more, give me a call at 1.415.897.0195 or visit http://www.venturemomentum.com

 

Disclaimer: The information in the e-zine (the "Information") is current as of the date of the issue shown at the top of the e-zine. The Information is intended solely to illustrate general concepts and guidelines on various business subjects. It may not apply to specific situations. The Information does not constitute accounting, financial, tax, legal or other professional advice. You are urged to consult with a qualified professional who can understand your specific situation and advise you accordingly. No Information creates a warranty. All Information and links to other websites are provided on an ‘as-is’ basis without any warranties, express or implied, including warranties of merchantability or fitness for a particular purpose. In no event shall Venture Momentum, Inc., its authors, publishers, contributors and editors be liable for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever arising out of your use of this e-zine, the Information, and/or links to other websites regardless of the cause of action.
 
Copyright ©2004 Venture Momentum, Inc. All rights reserved.

All marks are the property of their respective owners.

Back to Home Page