Zero Trust Security: A New Approach to Cybersecurity

2024-10-01

Reading Time: 4 minutes

In today’s digital world, where cyber threats are becoming increasingly sophisticated, traditional security measures are no longer enough to protect our sensitive information. The term du jour these days seems to be “zero trust security” when it comes to cybersecurity. Zero Trust is a modern approach to cybersecurity that’s changing the way organizations safeguard their data.

As the name suggests, Zero Trust, at its core, simply means to trust no one and trust nothing. Previous understanding of how we approach the network security layers has often been compared to the “M&M” candies analogy, hard on the outside but soft on the inside. This was based on the underlying assumption that network activities and connectivity within a network are assumed to be safe and secure. Zero Trust turns this paradigm on its head and boldly claims that because nothing can be trusted, these first-order principles are necessary:

1. Verify Always: Every access request must be authenticated and authorized before granting access.
2. Least Privilege Access: Users are given only the minimum access level needed to do their job.
3. Assume Breach: The system operates under the assumption that a breach may have already occurred, continually monitoring for suspicious activity.
4. Multi-factor Authentication: Multiple forms of verification are required to prove a user’s identity.
5. Device Health: The security status of devices is checked before allowing them to access resources.

What are the benefits of Zero Trust?

While it’s difficult to quantify the immediate payout when an organization chooses to Zero Trust, experts point to these benefits as arguments for organizations to pursue zero trust security as part of their cybersecurity practice:

• Improved Security: By continually verifying every access request, Zero Trust significantly reduces the risk of data breaches.
• Better Visibility: Organizations gain a clearer picture of who is accessing what resources and when.
• Simplified Management: With a consistent security approach across all environments (on-premises, cloud, hybrid), management becomes easier
• Support for Modern Work: Zero Trust is well-suited for remote work and cloud-based services.

What is the cost to implement Zero Trust?

From a cost-to-implementation perspective, it is not clear that an organization must “spend” to adopt zero trust security. In fact, one could argue that many of the existing systems in an organization’s network are Zero Trust ready. All it takes is a change in attitude and a willingness to follow through.

All this sounds too good to be true. So why not jump on the Zero Trust security bandwagon? Adopting a Zero Trust model is not a one-time event but a journey. It involves reassessing and potentially overhauling existing security practices. Adopting Zero Trust requires a commitment from management and staff because, if not done correctly, operations can be severely impeded.

What is the cost of not implementing Zero Trust?

While implementing Zero Trust security requires investment, the cost of not doing so can be far greater. Let’s explore the potential consequences of sticking with traditional security models in today’s digital landscape:

1. Data Breaches. Without Zero Trust’s continuous verification and least privilege access principles, organizations are more vulnerable to data breaches.

• Financial Impact: The average cost of a data breach in 2021 was $4.24 million, according to IBM’s Cost of a Data Breach Report.
• Example: A health insurance company might face a breach exposing millions of customer records, leading to massive fines and legal fees.

2. Regulatory Non-Compliance. Many industries, especially finance and healthcare, have strict data protection regulations.

• Potential Fines: Non-compliance can result in hefty fines.
• Example: An insurer failing to protect customer data adequately might face millions in fines from regulatory bodies.

3. Reputational Damage. Security incidents can severely damage an organization’s reputation.

• Loss of Trust: 81% of consumers would stop engaging with a brand online following a data breach, according to a 2019 Ping Study.
• Example: An insurance company known for a major data breach might lose existing customers and struggle to attract new ones, impacting long-term revenue.

4. Operational Disruption. Cyber attacks can disrupt business operations, leading to downtime and lost productivity.

• Cost of Downtime: Depending on the size of the company, downtime can cost anywhere from $10,000 to $5 million per hour.
• Example: A ransomware attack on an insurer’s systems could halt claims processing for days, frustrating customers and causing financial losses.

5. Intellectual Property Theft. Without proper access controls, sensitive company information is at risk.

• Long-term Consequences: Loss of competitive advantage and reduced market share
• Example: An insurance company’s proprietary risk assessment algorithms could be stolen, eroding its competitive edge.

6. Increased Insurance Premiums. As cyber-attacks become more common, the cost of cyber insurance is rising.

• Premium Increases: Organizations with weak security postures face higher premiums or might struggle to get coverage at all.
• Example: An insurer without Zero Trust measures might see their own cyber insurance premiums double or triple.

7. Legal Liabilities. Organizations can face lawsuits from affected customers or partners following a breach.

• Legal Costs: Beyond regulatory fines, legal battles can drag on for years, incurring significant costs.
• Example: A class-action lawsuit by customers whose data was exposed could result in multimillion-dollar settlements.

8. Missed Business Opportunities. In an increasingly security-conscious world, robust security can be a competitive advantage.

• Lost Contracts: Some clients, especially in B2B contexts, require vendors to meet specific security standards.
• Example: An insurance company might lose out on a lucrative contract with a large corporation because it can’t demonstrate adequate security measures.

We’re here to help

As cyber threats continue to evolve, so must our approach to security. Zero Trust provides a robust framework for protecting data in today’s interconnected world. By adopting the “never trust, always verify” mindset, organizations can significantly enhance their security posture and better protect their valuable data and resources.

If you have questions about implementing a Zero Trust approach or need assistance with a cybersecurity concern, JLK Rosenberger can help. For additional information, call 818-334-8626 or click here to contact us. We look forward to speaking with you soon.