Carry On

Sound Advice from Schneier on Security

Bruce Schneier

• Publisher: Wiley
• Year: 2013
• Print ISBN: 9781118790816
• eBook ISBN: 9781118790823
• Edition: 1
• Topic: Computer Science
• Subtopic: Cyber Security
• Index: Computer Science

Up-to-the-minute observations from a world-famous security expert

Bruce Schneier is known worldwide as the foremost authority and commentator on every security issue from cyber-terrorism to airport surveillance. This groundbreaking book features more than 160 commentaries on recent events including the Boston Marathon bombing, the NSA's ubiquitous surveillance programs, Chinese cyber-attacks, the privacy of cloud computing, and how to hack the Papal election. Timely as an Internet news report and always insightful, Schneier explains, debunks, and draws lessons from current events that are valuable for security experts and ordinary citizens alike.

• Bruce Schneier's worldwide reputation as a security guru has earned him more than 250, 000 loyal blog and newsletter readers
• This anthology offers Schneier's observations on some of the most timely security issues of our day, including the Boston Marathon bombing, the NSA's Internet surveillance, ongoing aviation security issues, and Chinese cyber-attacks
• It features the author's unique take on issues involving crime, terrorism, spying, privacy, voting, security policy and law, travel security, the psychology and economics of security, and much more
• Previous Schneier books have sold over 500, 000 copies

Carry On: Sound Advice from Schneier on Security is packed with information and ideas that are of interest to anyone living in today's insecure world.

Chapter 1

The Business and Economics of Security

Consolidation: Plague or Progress

Originally published in Information Security, March 2008

This essay appeared as the second half of a point/counterpoint with Marcus Ranum.

We know what we don't like about buying consolidated product suites: one great product and a bunch of mediocre ones. And we know what we don't like about buying best-of-breed: multiple vendors, multiple interfaces, and multiple products that don't work well together. The security industry has gone back and forth between the two, as a new generation of IT security professionals rediscovers the downsides of each solution.

The real problem is that neither solution really works, and we continually fool ourselves into believing whatever we don't have is better than what we have at the time. And the real solution is to buy results, not products.

Honestly, no one wants to buy IT security. People want to buy whatever they want—connectivity, a Web presence, email, networked applications, whatever—and they want it to be secure. That they're forced to spend money on IT security is an artifact of the youth of the computer industry. And sooner or later the need to buy security will disappear.

It will disappear because IT vendors are starting to realize they have to provide security as part of whatever they're selling. It will disappear because organizations are starting to buy services instead of products, and demanding security as part of those services. It will disappear because the security industry will disappear as a consumer category, and will instead market to the IT industry.

The critical driver here is outsourcing. Outsourcing is the ultimate consolidator, because the customer no longer cares about the details. If I buy my network services from a large IT infrastructure company, I don't care if it secures things by installing the hot new intrusion prevention systems, by configuring the routers and servers as to obviate the need for network-based security, or if it uses magic security dust given to it by elven kings. I just want a contract that specifies a level and quality of service, and my vendor can figure it out.

IT is infrastructure. Infrastructure is always outsourced. And the details of how the infrastructure works are left to the companies that provide it.

This is the future of IT, and when that happens we're going to start to see a type of consolidation we haven't seen before. Instead of large security companies gobbling up small security companies, both large and small security companies will be gobbled up by non-security companies. It's already starting to happen. In 2006, IBM bought ISS. The same year BT bought my company, Counterpane, and last year it bought INS. These aren't large security companies buying small security companies; these are non-security companies buying large and small security companies.

If I were Symantec and McAfee, I would be preparing myself for a buyer.

This is good consolidation. Instead of having to choose between a single product suite that isn't very good or a best-of-breed set of products that don't work well together, we can ignore the issue completely. We can just find an infrastructure provider that will figure it out and make it work—who cares how?

Prediction: RSA Conference Will Shrink Like a Punctured Balloon

Originally published in Wired News, April 17, 2008

Last week was the RSA Conference, easily the largest information security conference in the world. More than 17,000 people descended on San Francisco's Moscone Center to hear some of the more than 250 talks, attend I-didn't-try-to-count parties, and try to evade over 350 exhibitors vying to sell them stuff.

Talk to the exhibitors, though, and the most common complaint is that the attendees aren't buying.

It's not the quality of the wares. The show floor is filled with new security products, new technologies, and new ideas. Many of these are products that will make the attendees' companies more secure in all sorts of different ways. The problem is that most of the people attending the RSA Conference can't understand what the products do or why they should buy them. So they don't.

I spoke with one person whose trip was paid for by a smallish security firm. He was one of the company's first customers, and the company was proud to parade him in front of the press. I asked him whether he walked through the show floor, looking at the company's competitors to see if there was any benefit to switching.

“I can't figure out what any of those companies do,” he replied.

I believe him. The booths are filled with broad product claims, meaningless security platitudes and unintelligible marketing literature. You could walk into a booth, listen to a five-minute sales pitch by a marketing type, and still not know what the company does. Even seasoned security professionals are confused.

Commerce requires a meeting of the minds between buyer and seller, and it's just not happening. The sellers can't explain what they're selling to the buyers, and the buyers don't buy because they don't understand what the sellers are selling. There's a mismatch between the two; they're so far apart that they're barely speaking the same language.

This is a bad thing in the near term—some good companies will go bankrupt and some good security technologies won't get deployed—but it's a good thing in the long run. It demonstrates that the computer industry is maturing: IT is getting complicated and subtle, and users are starting to treat it like infrastructure.

For a while now I have predicted the death of the security industry. Not the death of information security as a vital requirement, of course, but the death of the end-user security industry that gathers at the RSA Conference. When something becomes infrastructure—power, water, cleaning service, tax preparation—customers care less about details and more about results. Technological innovations become something the infrastructure providers pay attention to, and they package it for their customers.

No one wants to buy security. They want to buy something truly useful—database management systems, Web 2.0 collaboration tools, a company-wide network—and they want it to be secure. They don't want to have to become IT security experts. They don't want to have to go to the RSA Conference. This is the future of IT security.

You can see it in the large IT outsourcing contracts that companies are signing—not security outsourcing contracts, but more general IT contracts that include security. You can see it in the current wave of industry consolidation: not large security companies buying small security companies, but non-security companies buying security companies. And you can see it in the new popularity of software as a service: Customers want solutions; who cares about the details?

Imagine if the inventor of antilock brakes—or any automobile safety or security feature—had to sell them directly to the consumer. It would be an uphill battle convincing the average driver that he needed to buy them; maybe that technology would have succeeded and maybe it wouldn't. But that's not what happens. Antilock brakes, airbags and that annoying sensor that beeps when you're backing up too close to another object are sold to automobile companies, and those companies bundle them together into cars that are sold to consumers. This doesn't mean that automobile safety isn't important, and often these new features are touted by the car manufacturers.

The RSA Conference won't die, of course. Security is too important for that. There will still be new technologies, new products and new startups. But it will become inward-facing, slowly turning into an industry conference. It'll be security companies selling to the companies who sell to corporate and home users—and will no longer be a 17,000-person user conference.

How to Sell Security

Originally published in CIO, May 26, 2008

It's a truism in sales that it's easier to sell someone something he wants than a defense against something he wants to avoid. People are reluctant to buy insurance, or home security devices, or computer security anything. It's not they don't ever buy these things, but it's an uphill struggle.

The reason is psychological. And it's the same dynamic when it's a security vendor trying to sell its products or services, a CIO trying to convince senior management to invest in security or a security officer trying to implement a security policy with her company's employees.

It's also true that the better you understand your buyer, the better you can sell.

Why People Are Willing to Take Risks

First, a bit about Prospect Theory, the underlying theory behind the newly popular field of behavioral economics. Prospect Theory was developed by Daniel Kahneman and Amos Tversky in 1979 (Kahneman went on to win a Nobel Prize for this and other similar work) to explain how people make trade-offs that involve risk. Before this work, economists had a model of “economic man,” a rational being who makes trade-offs based on some logical calculation. Kahneman and Tversky showed that real people are far more subtle and ornery.

Here's an experiment that illustrates Prospect Theory. Take a roomful of subjects and divide them into two groups. Ask one group to choose between these two alternatives: a sure gain of $500 and 50 percent chance of gaining $1,000. Ask the other group to choose between these two alternatives: a sure loss of $500 and a 50 percent chance of losing $1,000.

These two trade-offs are very similar, and traditional economics predicts that whether you're contemplating a gain or a loss doesn't make a difference: People make trade-offs based on a straightforward calculation of the relative outcome. Some people prefer sure things and others prefer to take chances. Whether the outcome is a gain or a loss doesn't affect the mathematics and therefore shouldn't affect the results. This is traditional economics, and it's called Utility Theory.

But Kahneman's and Tversky's experiments contradicted Utility Theory. When faced with a gain, about 85 percent of people chose the sure smaller gain over the risky larger gain. But when faced with a loss, about 70 percent chose the risky larger loss over the sure smaller loss.

This experiment, repeated again and again by many researchers, across ages, genders, cultures and even species, rocked economics, yielded the same result. Directly contradicting the traditional idea of “economic man,” Prospect Theory recognizes that people have subjective values for gains and losses. We have evolved a cognitive bias: a pair of heuristics. One, a sure gain is better than a chance at a greater gain, or “A bird in the hand is worth two in the bush.” And two, a sure loss is worse than a chance at a greater loss, or “Run away and live to fight another day.” Of course, these are not rigid rules. Only a fool would take a sure $100 over a 50 percent chance at $1,000,000. But all things being equal, we tend to be risk-averse when it comes to gains and risk-seeking when it comes to losses.

This cognitive bias is so powerful that it can lead to logically inconsistent results. Google the “Asian Disease Experiment” for an almost surreal example. Describing the same policy choice in different ways—either as “200 lives saved out of 600” or “400 lives lost out of 600”—yields wildly different risk reactions.

Evolutionarily, the bias makes sense. It's a better survival strategy to accept small gains rather than risk them for larger ones, and to risk larger losses rather than accept smaller losses. Lions, for example, chase young or wounded wildebeests because the investment needed to kill them is lower. Mature and healthy prey would probably be more nutritious, but there's a risk of missing lunch entirely if it gets away. And a small meal will tide the lion over until another day. Getting through today is more important than the possibility of having food tomorrow. Similarly, it is better to risk a larger loss than to accept a smaller loss. Because animals tend to live on the razor's edge between starvation and reproduction, any loss of food—whether small or large—can be equally bad. Because both can result in death, and the best option is to risk everything for the chance at no loss at all.

How to Sell Security

How does Prospect Theory explain the difficulty of selling the prevention of a security breach? It's a choice between a small sure loss—the cost of the security product—and a large risky loss: for example, the results of an attack on one's network. Of course there's a lot more to the sale. The buyer has to be convinced that the product works, and he has to understand the threats against him and the risk that something bad will happen. But all things being equal, buyers would rather take the chance that the attack won't happen than suffer the sure loss that comes from purchasing the security product.

Security sellers know this, even if they don't understand why, and are continually trying to frame their products in positive results. That's why you see slogans with the basic message, “We take care of security so you can focus on your business,” or carefully crafted ROI models that demonstrate how profitable a security purchase can be. But these never seem to work. Security is fundamentally a negative sell.

One solution is to stoke fear. Fear is a primal emotion, far older than our ability to calculate trade-offs. And when people are truly scared, they're willing to do almost anything to make that feeling go away; lots of other psychological research supports that. Any burglar alarm salesman will tell you that people buy only after they've been robbed, or after one of their neighbors has been robbed. And the fears stoked by 9/11, and the politics surrounding 9/11, have fueled an entire industry devoted to counterterrorism. When emotion takes over like that, people are much less likely to think rationally.

Though effective, fear mongering is not very ethical. The better solution is not to sell security directly, but to include it as part of a more general product or service. Your car comes with safety and security features built in; they're not sold separately. Same with your house. And it should be the same with computers and networks. Vendors need to build security into the products and services that customers actually want. CIOs shou...

Table of contents

• Cover
• Chapter 1: The Business and Economics of Security
• Chapter 2: Crime, Terrorism, Spying, and War
• Chapter 3: Human Aspects of Security
• Chapter 4: Privacy and Surveillance
• Chapter 5: Psychology of Security
• Chapter 6: Security and Technology
• Chapter 7: Travel and Security
• Chapter 8: Security, Policy, Liberty, and Law
• References
• Introduction