6 encryption mistakes that lead to data breaches (2024)

The REAL problem with encryption:
you’re doing it wrong!

Encryption has made itself famous lately by helping bad guys hide secrets from good guys. If the most powerful supercomputers in the world can't break the mathematical laws of encryption, how can the FBI, NSA and CIA decipher the terrorist communications they intercept?

But there's a flip-side to this question that rarely gets discussed:

If encryption is so unbreakable, why do businesses and governments keep getting hacked?

If terrorists can download an app from the app store that uses encryption to protect their chat messages from the NSA, why couldn't the US Office of Personnel Management, The Home Depot, Target, JPMorgan and Citi Bank (just to name a few) use the same encryption to protect their customer data from hackers? Why do these data breaches keep happening when unbreakable encryption is readily available?

The answer is simple: almost everyone is doing encryption wrong.

There has been an explosion of new healthcare, financial and government applications over the past few years resulting in more and more cryptography being added to backend applications. In more cases than not, this crypto code is implemented incorrectly [1], leaving organizations with a false sense of security that only becomes evident once they get hacked and end up in the headlines.

Mistake #1: Assuming your developers are security experts

"But my company is different," you might be thinking. "Our engineers are brilliant." Unfortunately, even the brightest software developers are usually not security experts. Security experts are mostly found in IT. They're system administrators, pen testers and CISOs; they're not writing code (unless you count scripts written to break into a system).

Software developers are really good at figuring things out; just look at StackOverflow – a massive community of developers helping each other solve challenging problems. So they're not likely to admit to having limited expertise when tasked with something they haven't done before. "I can figure it out," is a common mantra of a good software developer. I should know … I've been coding since I was eight and I say this all the time.

Unfortunately, when it comes to implementing encryption correctly—you don't get a second chance. While a typical developer mistake might cause an error on a web page, a mistake in your data security pipeline can leave all of your sensitive data at risk. Worst of all, you won't find out about the mistake for months or even years until your organization gets hacked. And by then, it's too late.

Mistake #2: Believing that regulatory compliance means you’re secure

"Our application is PCI compliant. So our data is secure," is another misconception that leads to data breaches. Sure, HIPAA, PCI, CJIS and other regulatory compliance rules require that your sensitive data be protected. But they don't go into much detail about how you should do that. Some don’t even specifically mention encryption at all.

There are a lot of ways to get data security wrong and these regulatory guidelines don't hold your hand to make sure you get it right. Even worse, many development teams adding encryption to their code call it a day once they achieve the minimum security needed for a regulatory checkmark. This "checkmark" mentality toward data security is dangerous.

Mistake #3: Relying on cloud providers to secure your data

With the growth of cloud computing more and more server-side applications have moved from server rooms to data centers spread across the globe run by the likes of Amazon, Microsoft and Google. These tech giants are investing hundreds of millions of dollars in cybersecurity to position themselves as “THE” secure cloud. All of this leads a lot of organizations to assume that any data stored by these providers is ironclad. This is a risky assumption.

The physical infrastructure powering most cloud providers is secure and some even offer encryption options. However, they always recommend that developers encrypt their sensitive data before storing it in the cloud. Amazon Web Services (AWS) even includes the diagram below to stress that data encryption is the customer’s responsibility, not theirs:

AWS Shared Responsibility Model (credit: AWS)

As you can see, a massive amount of data security responsibilities are shouldered upon you. And this is true of any cloud provider.

Mistake #4: Relying on low-level encryption

Protecting your sensitive data with low-level encryption solutions such as disk or file encryption can seem like a tempting one-click-fix. However, many organizations rely solely on these solutions which is downright dangerous.

For starters, disk encryption only kicks in when the server is turned off. While the server is on, the operating system goes about decrypting sensitive data for anyone who is logged in…including the bad guys.

Moving one level up to file encryption, you run into a popular feature called SQL Transparent Data Encryption (TDE) used to encrypt Microsoft and Oracle database files with a single click of a switch. Just like disk encryption, however, this security feature is complely bypassed by a hacker who manages to login to your database. Only the file that stores your database on the physical drive is encrypted so, unless Tom Cruise is rappelling into the data center to steal your physical drive, this isn't going to give you much protection.

Mistake #5: Using the wrong cipher modes and algorithms

Take a look at this Wikipedia list of cryptographic algorithms. Now take a look at the different block cipher modes to choose from. Here's a StackOverflow post on which mode to use with AES. Are we having fun yet??? The point is, there are a lot of variations for a developer to choose from when being asked to "encrypt our sensitive data please."

A common question I get when telling a developer about Crypteron's encryption and key management platform is, "doesn't every application framework come with an encryption library?" Sometimes I just ask them to take a look at the documentation for mcrypt, the encryption library for PHP. Spoiler: it's not pretty. There is a lot of misleading information on the Internet and A LOT of ways to get it wrong:

  • Using random numbers that are not cryptographically secure (or, in the case of the Sony PS3 hack, a constant)
  • Using AES-ECB mode for data larger than 128 bits
  • Reusing an Initialization Vector (IV) multiple times which can nullify the entire encryption process itself
  • Using deterministic encryption to make sensitive data searchable without factoring for dictionary attacks.

These examples are just a small snapshot of the vast number of encryption pitfalls. It’s OK if you don’t understand them – most developers don’t either.

Mistake #6: Getting key management wrong

I've saved the biggest mistake for last. Failure to handle key management properly is, hands down, the most common way that sensitive data ends up in the hands of hackers even if it was encrypted correctly. This is the equivalent to buying the best lock in the world and then leaving the key under the doormat. If hackers get your encrypted data and your encryption key, it's game over. Let's go over some key management failures.

Storing the key under the mat

Let's assume that all of your sensitive data is now encrypted and signed properly. Where do you put your encryption key? Some common choices:

  • In the database - BAD
  • On the file system - BAD
  • In an application config file - BAD

Don't forget, we have to assume that the hackers have already broken into your database and application server so you can't store your key there. But most developers do.

Leaving the key unprotected

Even once you find a separate place to store the key, you're still not done because hackers might break in there too. So you need to encrypt your encryption key itself with another encryption key, typically called a Key Encryption Key (KEK), which you then need to store in an entirely different location. For even more security, you can go one level higher and secure your KEKs with a Master Encryption Key and a Master Signing Key. Developers rarely add this many layers of encryption. But they should.

Fetching the key insecurely

Even with three layers of encryption protecting your data, there is still the challenge of transferring the key to your app securely. Ideally this involves authentication between your app and the key management server as well as delivery over an encrypted connection...a fourth layer of encryption. There are also performance considerations such as securely caching the key in memory which can be tricky. These complexities are easy to get wrong.

Using the same key for all your data

Do you use the same key for your house, your car and your office? Of course not. So why would you use one encryption key for all of your sensitive data? You should break up your data into multiple security partitions each with its own encryption key. This is a challenge since it requires you to intelligently determine which key to fetch every time you encrypt and decrypt data. So most developers skip this step.

Never changing the key

Everyone knows that it's a good idea to change the locks every once in awhile and the same is true for encryption. This is called key rotation and it's not trivial. It requires maintaining multiple versions of each encryption key and matching it to the corresponding version of encrypted data. In certain cases, you should migrate your existing data from the old key to the new key...which is even more complicated. So again, most developers skip this step entirely and never change their encryption keys.

Strong data security IS possible

This article isn't meant to be all doom-and-gloom. In fact, it's just the opposite. People are starting to become desensitized to all of the data breaches that keep happening. There is a new sense that getting hacked is inevitable and no data is ever safe. But that's not the case. It IS possible to perform encryption correctly and drastically decrease your chances of getting hacked. If we learn from our mistakes, educate ourselves on data security, and avoid reinventing the wheel, then encryption can be our strongest ally in the fight against hackers.

As someone deeply entrenched in the field of cybersecurity and encryption, I can attest to the critical importance of secure data protection in an increasingly interconnected world. My extensive experience in the realm of information security allows me to shed light on the nuanced challenges organizations face when implementing encryption protocols.

The article aptly addresses the pervasive misconception that encryption alone guarantees invulnerability. The truth is, encryption is only as robust as its implementation, and a series of common mistakes often undermine its effectiveness. Let's dissect the key concepts discussed in the article:

1. Mistake #1: Assuming your developers are security experts

The article rightly emphasizes the distinction between software developers and security experts. While developers excel in problem-solving, they may lack the specialized knowledge required for secure encryption implementation. This disconnect can result in vulnerabilities that remain unnoticed until a breach occurs.

2. Mistake #2: Believing that regulatory compliance means you’re secure

Regulatory compliance is a baseline, not a comprehensive security strategy. Meeting industry standards like PCI, HIPAA, or CJIS is essential, but it doesn't ensure foolproof encryption. Organizations must go beyond compliance, adopting robust encryption practices tailored to their specific needs.

3. Mistake #3: Relying on cloud providers to secure your data

Cloud providers offer secure infrastructures, but the responsibility for encrypting sensitive data often lies with the organizations themselves. Assuming that data stored in the cloud is automatically secure is a risky assumption that can lead to vulnerabilities.

4. Mistake #4: Relying on low-level encryption

Depending solely on low-level encryption solutions such as disk or file encryption is insufficient. These measures may offer a false sense of security, as they can be bypassed when the server is active or when a hacker gains access to the system.

5. Mistake #5: Using the wrong cipher modes and algorithms

The vast array of cryptographic algorithms and cipher modes can overwhelm developers. Choosing the wrong algorithm or mode introduces vulnerabilities. It highlights the importance of informed decisions in selecting encryption methods tailored to the specific requirements of the organization.

6. Mistake #6: Getting key management wrong

Key management is the linchpin of successful encryption. Storing encryption keys in insecure locations, neglecting to protect them adequately, or using the same key for all data are critical errors. Proper key management, including encryption of encryption keys, secure key transfer, and periodic key rotation, is paramount.

In conclusion, the article underscores that encryption is not a one-size-fits-all solution; it requires meticulous attention to detail. By acknowledging these common mistakes, organizations can enhance their data security posture and thwart potential cyber threats. Embracing a proactive approach, continuous education, and leveraging established best practices can indeed make encryption a formidable ally in safeguarding sensitive information.

6 encryption mistakes that lead to data breaches (2024)

FAQs

6 encryption mistakes that lead to data breaches? ›

The most common types of data breaches are: Ransomware. Phishing. Malware.

What are the threats to data encryption? ›

Below are several common issues faced by organizations of all sizes as they attempt to secure sensitive data.
  • Accidental Exposure. ...
  • Phishing and Other Social Engineering Attacks. ...
  • Insider Threats. ...
  • Ransomware. ...
  • Data Loss in the Cloud. ...
  • SQL Injection. ...
  • Data Discovery and Classification. ...
  • Data Masking.

What are the three 3 kinds of data breach? ›

The most common types of data breaches are: Ransomware. Phishing. Malware.

What are the problems with data breaches? ›

Depending on the type of data involved, the consequences can include destruction or corruption of databases, the leaking of confidential information, the theft of intellectual property and regulatory requirements to notify and possibly compensate those affected.

What is the #1 cause of security breaches? ›

The vast majority of data breaches are caused by stolen or weak credentials. If malicious criminals have your username and password combination, they have an open door into your network.

What is the biggest cause of data breaches? ›

Although hacking attacks are frequently cited as the leading cause of data breaches, it's often the vulnerability of compromised or weak passwords or personal data that opportunistic hackers exploit. Statistics show that four out of five breaches are partially attributed to the use of weak or stolen passwords.

What are the biggest modern threats to encryption? ›

5 Biggest Threats to Encryption
  • Quantum Computing. Quantum computing is a technological marvel that promises to revolutionize our digital landscape. ...
  • Key Security. ...
  • Blockchain and Monetary Security. ...
  • Law Enforcement Pushback. ...
  • The Human Factor. ...
  • Conclusion.
Oct 31, 2023

What's the worst problem for encryption schemes? ›

Key management: One of the biggest challenges in cryptography is managing the keys used for encryption and decryption. Key management includes generating, distributing, and storing keys securely, as well as revoking and replacing keys when necessary.

Can encrypted data be breached? ›

Can hackers see encrypted data? No, hackers cannot see encrypted data, as it is scrambled and unreadable until the encryption key (or passphrase) is used to decrypt it. However, if a hacker manages to obtain the encryption key or crack the encryption algorithm, then they can gain access to the data.

What are 5 consequences of a data breach? ›

Data breaches can affect the brand's reputation and cause the company to lose customers. Breaches can damage and corrupt databases. Data breaches also can have legal and compliance consequences. Data breaches also can significantly impact individuals, causing loss of privacy and, in some cases, identity theft.

What are the 5 steps of data breach? ›

5 Steps to Respond to a Data Breach
  • Containment. While 60% of data breaches are discovered within days, one Verizon report notes that 20% could take months to be identified. ...
  • Assessment. ...
  • Notification. ...
  • Investigation. ...
  • Remediation & Evaluation.
May 16, 2023

Which steps are most likely to result in a data breach? ›

Personal data breaches can include:
  • access by an unauthorised third party;
  • deliberate or accidental action (or inaction) by a controller or processor;
  • sending personal data to an incorrect recipient;
  • computing devices containing personal data being lost or stolen;
  • alteration of personal data without permission; and.

What are the six protection methods to data security? ›

Data Protection Techniques
  • Encryption. ...
  • Access Controls and Authentication. ...
  • Data Backup and Disaster Recovery. ...
  • Data Loss Prevention (DLP) ...
  • Intrusion Detection and Prevention Systems (IDPS) ...
  • Employee Training and Awareness.
Jun 9, 2023

What are 4 consequences of data breach? ›

When it comes to the consequences of data breach, the repercussions are far-reaching and deeply impactful. These breaches have evolved from mere cyber security issues to instigators of financial losses, reputational damage, legal troubles, regulatory fines, and a profound erosion of consumer trust.

How data breaches can be avoided? ›

Use strong passwords: The most common cause of data breaches continues to be weak passwords, which enable attackers to steal user credentials and give them access to corporate networks.

What are the four major threats in data security? ›

  • Viruses and worms. Viruses and worms are malicious software programs (malware) aimed at destroying an organization's systems, data and network. ...
  • Botnets. ...
  • Drive-by download attacks. ...
  • Phishing attacks. ...
  • Distributed denial-of-service attacks. ...
  • Ransomware. ...
  • Exploit kits. ...
  • Advanced persistent threat attacks.
Jan 29, 2024

What are the three biggest data breaches of all time? ›

These security breaches affected some of the largest organizations in the world - and millions of their users.
  • 1) Yahoo.
  • 2) Marriott Hotels.
  • 3) FriendFinder Network.
  • 4) MySpace.
  • 5) Twitter.
  • 6) Deep Root Analytics.
  • 7) MyFitnessPal / Under Armour.
  • 8) eBay.
Jun 6, 2023

What are 4 damaging after effects of a data breach? ›

Some of the more damaging consequences of data breach include:
  • Data Breach Consequences: The Toll on Financial Loss. ...
  • Consequences of Data Breach: The Impact on Reputational Damage. ...
  • Data Breach Consequences: The Disruptive Effect of Operational Downtime. ...
  • Consequences of Data Breach: Legal Implications and Actions.

What are common types of data breaches? ›

The 7 Most Common Types of Data Breaches and How They Affect Your Business
  • Stolen Information.
  • Ransomware.
  • Password Guessing.
  • Recording Keystrokes.
  • Phishing.
  • Malware or Virus.
  • Distributed Denial of Service (DDoS)

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