The unexpected risks of digital transformation

Sept. 5, 2024
Interconnectedness, “always on” availability, and global reach have exposed enterprises to a growing threat: cyber attacks.

No matter the industry, digital transformation has revolutionized how businesses get work done. From healthcare to finance to manufacturing to local government, digitalization has enabled countless new ways to stay connected, shop, collaborate, research, and share with customers around the corner or on the other side of the globe.

However, this interconnectedness, “always on” availability, and global reach have exposed the same enterprises to a growing threat: cyber attacks. Driven by a desire for a quick payday from the theft or encryption of sensitive personal or corporate information, cybercriminals are constantly hunting for their next victim.

The September 2023 hack of MGM Resorts is just the latest reminder of the vulnerabilities inherent in digitalization. Despite advancements in technology and security measures, cybercriminals exploited weaknesses to disrupt operations on a massive scale and achieve financial gain. Fortunately, just as the techniques and exploits cybercriminals use have evolved, so too have the foundational approaches organizations can use to protect themselves.

One proven method, known as Zero Trust, has gained traction as a formidable defensive strategy against tomorrow’s cyber threats. Unlike traditional security models that rely on perimeter-based defenses, Zero Trust operates on the principle of "never trust, always verify." Such an approach represents a fundamental shift for many cybersecurity professionals. However, the benefits of a Zero Trust security architecture can mark the difference between a brief, contained exposure and an all-out compromise.

So why does shifting to a Zero Trust security architecture make sense for today’s digital-first organizations, and how can your team get started with implementation?

This article aims to answer both of these questions so your organization can prepare for the threats of tomorrow while continuing to maximize the benefits of digital transformation.

The Cyber Risks Woven into Digital Transformation

The Confidentiality, Integrity, and Availability Triad (CIA Triad) is one of the most foundational concepts in the cybersecurity community. At its core, the CIA Triad is a framework security professionals can use to balance business operations with effective risk mitigation. By applying each element of the CIA Triad to a given security control, professionals can evaluate its effectiveness and impact on an organization's information systems.

Although the CIA Triad was introduced long before the term “digital transformation” was widely used, its concepts still provide a valuable way to understand the risks today’s businesses face. In particular, as organizations undergo digital transformation initiatives to adapt to evolving customer demands, new market forces, and technological advancements, the principles of confidentiality, integrity, and availability can guide how well current security controls mitigate risk.

Here’s a brief glimpse of digital transformation through the lens of each component of the CIA Triad:

Confidentiality

One of the primary concerns in digital transformation is the confidentiality of data. With more information generated, stored, and transmitted digitally, it becomes easier for malicious actors to steal sensitive data or for accidental leaks to expose businesses to liability.

Mitigation strategies such as data masking and using data loss prevention tools can help prevent unauthorized access and detect data theft in real time, thereby safeguarding confidentiality. However, these tools cannot eliminate the risk of data breaches.

Additionally, although these tools effectively protect data at rest and in transit, they may not address vulnerabilities arising from insider threats or sophisticated cyber attacks. 

Therefore, organizations must complement technical solutions with robust security policies, employee training and other proactive monitoring to enhance their cybersecurity posture and mitigate the evolving threats posed by digital transformation.

Integrity

Maintaining data integrity is crucial, especially in industries such as healthcare, finance, manufacturing, education, and government, where trust in data is core to the mission, often on a global, real-time scale.

Injecting bad data into these systems or sowing seeds of mistrust in the authenticity of information can lead to compromised decision-making, eroded stakeholder trust, and even regulatory noncompliance. It can also result in erroneous analyses, financial losses, compromised patient care, reputational damage, and legal repercussions.

Especially in a time of immense digitalization, ensuring data integrity is paramount to upholding the credibility and reliability of critical information systems. As organizations increasingly rely on data for decision-making, operational efficiency and service delivery, any compromise to data integrity poses significant risks.

Availability

In a time of continuous digital transformation, ensuring the availability of digital systems is crucial for maintaining seamless business operations and sustaining the momentum of transformational initiatives.

Simply put, downtime leads to productivity losses and undermines the confidence stakeholders have in the organization's ability to deliver reliable digital services. Taken further, hampered availability erodes customer satisfaction, damages reputations and hampers productivity, growth, and competitiveness in a digital marketplace.

By design, Zero Trust principles are integral to bolstering the CIA Triad. As described in the National Institute of Standards and Technology (NIST) Special Publication 800-207, Zero Trust “assumes there is no implicit trust granted to assets or user accounts based solely on their physical or network location (i.e., local area networks versus the internet) or based on asset ownership (enterprise or personally owned).”

To support confidentiality, Zero Trust can effectively hide applications and data from threats on shared networks by preventing accessibility to certain ports, accounts, and IP addresses or through other network segmentation techniques. This ensures that sensitive assets and information remain protected even if an attacker gains access to other portions of the network.

Taking this further, continuous authentication and encryption within the LAN environment can safeguard data in transit from potential nan-in-the-middle (MITM) attacks and unauthorized interception, upholding the principle of integrity. By doing so, Zero Trust solutions can support the creation of a segmented environment or secure network tunnels to contain sensitive data and applications, continuously control access to resources, and protect outbound traffic with data loss prevention (DLP) controls.

Combined, these controls bolster availability by proactively blocking threats, preventing interruptions, and maintaining application uptime.

The Power of Zero Trust In Practice

With hybrid work arrangements, cloud-based applications and databases, third-party providers and digitized services, security professionals must secure a vast attack surface. Traditionally, the emphasis has been on protecting the perimeter of a network, leaving little room for error and potentially exposing less-defended interior networks to attackers.

However, implementing Zero Trust principles takes the concept of “defense in depth” to an entirely new level. By design, Zero Trust shifts from perimeter-based security to a model in which trust is not granted based solely on network location or asset ownership. This approach mitigates the risk of unauthorized access and lateral movement by potential attackers within the network.

This proactive approach to cybersecurity also fosters a culture of security awareness and accountability across the organization. As cyber threats evolve and become increasingly sophisticated, a proactive approach to cybersecurity becomes not just a best practice, but a necessity. By embracing Zero Trust principles, organizations demonstrate their commitment to staying ahead of emerging threats and adapting to evolving security challenges.

This mindset shift encourages continuous improvement in security practices and empowers employees at all levels to play an active role in safeguarding sensitive information and critical assets. As a result, the entire organization becomes more resilient in the face of cyber threats, with a shared understanding that security is everyone's responsibility.

Bringing It All Together

The MGM hack serves as a sobering reminder of the potential consequences of cyber threats in the digital age. Despite the relatively small number of servers compromised in the incident, attackers pivoted around with ease and threatened critical systems, resulting in great financial losses for the company.

Like every other prominent attack, the cybersecurity community can use this as the impetus to make the necessary changes to their own environments.  These changes can start with conducting regular tabletop exercises that help organizations identify potential cyber risks and develop robust response plans to mitigate the impact of such incidents.

Additionally, retrofitting existing digital transformation projects with the principles outlined in NIST SP 800-207 can enhance their resilience against cyber threats, ensuring the success and sustainability of digital initiatives in the long run.

About the Author

Jaushin Lee

Dr. Jaushin Lee is the founder and CEO of Zentera Systems. He is a serial entrepreneur with many patents. He is also the visionary architect behind the CoIP Platform, Zentera's award-winning Zero Trust security overlay. Jaushin has more than 20 years of management and executive experience in networking and computer engineering through his experience with Cisco Systems, SGI, and Imera Systems.