Daily Tech Digest - July 30, 2023

What Is Data Strategy and Why Do You Need It?

Developing a successful Data Strategy requires careful consideration of several key steps. First, it is essential to identify the business goals and objectives that the Data Strategy will support. This will help determine what data is needed and how it should be collected, analyzed, and used. Next, it is important to assess the organization’s current data infrastructure and capabilities. This includes evaluating existing databases, data sources, tools, and processes for collecting and managing data. It also involves identifying current gaps in skills or technology that need to be addressed. Once these foundational elements are in place, organizations can begin to define their approach to Data Governance. This involves establishing policies and procedures for managing Data Quality, security, privacy, compliance, and access. It may also involve developing a framework for decision-making that ensures the right people have access to the right information at the right time. Finally, organizations should consider how they will measure success in implementing their Data Strategy. 


Battling Technical Debt

Technical debt costs you money and takes a sizable chunk of your budget. For example, a 2022 Q4 survey by Protiviti found that, on average, an organization invests more than 30% of its IT budget and more than 20% of its overall resources in managing and addressing technical debt. This money is being taken away from building new and impactful products and projects, and it means the cash might not be there for your best ideas. ... Technical debt impacts your reputation. The impact can be huge and result in unwanted media attention and customers moving to your competitors. In an article about technical debt, Denny Cherry attributes performance woes by US airline Southwest Airlines to poor investment in updating legacy equipment, which caused difficulties with flight scheduling as a result of "outdated processes and outdated IT." If you can't schedule a flight, you're going to move elsewhere. Furthermore, in many industries like aviation, downtime results in crippling fines. These could be enough to tip a company over the edge.


‘Audit considerations for digital assets can be extremely complex’

Common challenges when auditing crypto assets include understanding and evaluating controls over access to digital keys, reconciliations to the blockchain to verify existence of assets, considerations around service providers in terms of qualifications, availability and scope, and forms of reporting, among others. As the technology is rapidly evolving, the regulatory standards do not yet capture all crypto offerings. Everyone is operating in an uncertain regulatory environment, where the speed of change is significant for all participants. If you take accounting standards, for example, a common discussion today is how to measure these assets. Under IFRS, crypto assets are generally recognized as an intangible asset and recorded at cost. While this aligns with the technical requirements of the standards, it sometimes generates financial reporting that may not be well understood by users of the financial information who may be looking for the fair value of these assets.


Does AI have a future in cyber security? Yes, but only if it works with humans

One technique that has been around for a while is rolling AI technology into security operations, especially to manage repeating processes. What the AI does is filter out the noise, identifies priority alerts and screens these out. The other thing it is capable of is capturing this data and being able to look for any anomalies and joining the dots. Established vendors are already providing capabilities like this. Here at Nominet, we have masses of data coming into our systems every day, and being able to look at correlations to identify malicious and anomalous behaviour is very valuable. But once again we find ourselves in the definition trap. Being alerted when rules are triggered is moving towards ML, not true AI. But if we could give the system the data and ask it to find us what looked truly anomalous, that would be AI. Organisations might get tens of thousands of security logs at any point in time. Firstly, how do you know if these logs show malicious activity and if so, what is the recommended course of action? 


Moody’s highlights DLT cyber risks for digital bonds

The body of the paper warns of the cyber risks of smaller public blockchains, which are less decentralized and hence more vulnerable to attacks. It considers private DLTs are more secure than similar (small) sized public blockchains because they have greater access controls. Moody’s acknowledges that larger Layer 1 public blockchains such as Ethereum are far harder to attack, but upgrades to the network carry risks. A major challenge is the safeguarding of private keys. In reality the most significant risks relate to the platforms themselves, bugs in smart contracts and oracles which introduce external data. It notes that currently many solutions don’t have cash on ledger, which reduces the attack surface. In reality this makes them less attractive to attack. As cash on ledger becomes more widespread, this enables greater automation. Manipulating smart contract weaknesses could result in unintended payouts and other vulnerabilities. Moody’s specifically mentions the risks associated with third party issuance platforms such as HSBC Orion, DBS, and Goldman Sachs’ GS DAP.


Cyber Resilience Act: EU Regulators Must Strike the Right Balance to Avoid Open Source Chilling Effect

The good news is that developers are willing to work with regulators in fine-tuning the act. And why not get them involved? They know the industry, count deep insights into prevailing processes and fully grasp the intricacies of open source. Additionally, open source is too lucrative and important to ignore. One suggestion is to clarify the wording. For example, replace “commercial activity” with “paid or monetized product.” This will go some way to narrowing the act’s scope and ensuring that open-source projects are not unnecessarily targeted. Another is differentiating between market-ready software products and stand-alone components, ensuring that requirements and obligations are appropriately tailored. Meanwhile, regulators can provide funding in the legislation to actively support open source. For example, Germany grants resources to support developers in maintaining open-source software projects of strategic importance. A similar sovereign tech fund could prove instrumental in supporting and protecting the industry across the continent.


Organizational Resilience And Operating At The Speed Of AI

The challenge becomes—particularly for mid-market organizations that may not have the resources of their larger competitors—how to corral resources to ensure they can effectively incorporate AI. If businesses are to achieve the kind of organizational resilience that is necessary to build sustainable enterprises, they must accept that AI and automation will fundamentally change company structures, culture and operations. Much of this will require investment in “intangible goods, such as business processes and new skills,” as suggested in the Brookings Institute article, but I would like to add one additional imperative: data gravity. ... To operate at the speed of AI, systems must be able to access all the information within an organization’s disparate IT infrastructure. That data must be secure, have integrity and be without bias. AI requires data agility. Therefore, organizations should employ a data gravity strategy whereby all the data within an organization is consolidated into a central hub, creating a single view of all the information. 


As Ransomware Monetization Hits Record Low, Groups Innovate

With ransomware profits in decline, groups have been exploring fresh strategies to drive them back up. While groups such as Clop have shifted tactics away from ransomware to data theft and extortion, other groups have been targeting larger victims, seeking bigger payouts. Some affiliates have been switching ransomware-as-a-service provider allegiance, with many Dharma and Phobos business partners adopting a new service named 8Base, Coveware says. Numerous criminal groups continue to wield crypto-locking malware. The most number of successful attacks it saw during the second quarter involved either BlackCat or Black Basta ransomware, followed by Royal, LockBit 3.0, Akira, Silent Ransom and Cactus. One downside of crypto-locking malware is that attacks designed to take down the largest possible victims, in pursuit of the biggest potential ransom payment, typically demand substantial manual effort, including hands on keyboard time. Groups may also need to purchase stolen credentials for the target from an initial access broker, pay penetration testing experts or share proceeds with other affiliates.


How Indian organisations are keeping pace with cyber security

Jonas Walker, director of threat intelligence at Fortinet, said the digitisation of retail and the rise of e-commerce makes those sectors susceptible to payment card data breaches, supply chain attacks and attacks targeting customer information. “Educational institutions also hold a wealth of personal information, including student and faculty data, making them attractive targets for data breaches and identity theft,” he added. But enterprises in India are not about to let the bad actors get their way. Sakra World Hospital, for example, has segmented its networks and implemented role-based access, endpoint detection and response, as well as zero-trust capabilities for its internal network. It also conducts vulnerability assessments and penetration tests to secure its external assets. “Zero-trust should be implemented on your external security appliances as well,” he added. “The notification system should be strong and prompt so that action can be taken immediately to mitigate any cyber security risk.”


How Can Blockchain Lead to a Worldwide Economic Boom?

The inherent trustworthiness of distributed ledgers is a key factor here in that they greatly enhance critical economic drivers like supply chain management, land ownership, and the distribution of government and non-government services. At the same time, blockchain’s support of digital currencies provides greater access to capital, in large part by side-stepping the regulatory frameworks that govern sovereign currencies. And perhaps most importantly, blockchain helps to stymie public corruption and the diversion of funds away from their intended purpose, which allows capital and profits to reach those who have earned them and will put them to more productive uses. None of this should imply that blockchain will put the entire world on easy streets. Significant challenges remain, not the least of which is the cost to establish the necessary infrastructure to support secure digital ledgers. Multiple hardened data centers are required to prevent hacking, along with high-speed networks to connect them.



Quote for the day:

"Leadership is a privilege to better the lives of others. It is not an opportunity to satisfy personal greed." -- Mwai Kibaki

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