Companies look beyond firewalls

Cyber battle with hackers

TEL AVIV: With firewalls no longer seen as enough of a defence against security breaches, companies are looking at new tools to foil hackers trying to enter a computer network.

US and Israeli startups are leading the way, with new approaches such as "honeytraps" that lure a hacker to fake data or "polymorphic" technology that constantly changes the structure of applications running on a computer.

Some of the technology is still in the early stages and it remains to be seen whether it will be good enough to outfox the hackers.

But with corporate giants such as Sony and Twitter Inc facing high-profile hacks in recent years, companies are desperate for new ideas to make sure financial, personal and corporate data stays safe.

"We view this deception technologies as a $3 billion market over the next three years, with Israel and Silicon Valley being the epicentre of this innovation wave," said Daniel Ives, a senior technology analyst at FBR Capital Markets.

TopSpin Security, Illusive Networks, Cymmetria and GuardiCore in Israel, California-based TrapX and Attivo Networks are among a handful of start-ups forging ahead with deception technology.

Israel’s Morphisec and US Shape Security are developing "polymorphic" systems.

Many of those companies use techniques partly developed in the US and Israeli military that were taken to startups by veterans such as Gadi Evron, the head of Cymmetria and of Israel’s Computer Emergency Response Team.

TrapX Security offers DeceptionGrid, a technology using fake information that triggers a security alert.

TrapX clients include Israel’s central bank, US hospital chain HCA, Bezeq, Israel’s largest telecoms group, and Union Bank of Israel, according to Asaf Aviram, sales director for Israel and emergent markets at TrapX.

TopSpin Chief Executive Doron Kolton said his clients include one of Israel’s top five banks, a large US hospital and a mobility technology company.

The product is resold by Optiv Security in the United States and Benefit in Israel.

While still a fraction of the overall cybersecurity market, Gartner, a leading technology consultancy, sees 10 percent of businesses using deception tactics by 2018.

But Gartner analyst Laurence Pingree noted that they "have so far had only nascent adoption" as many of the companies don’t yet understand the technology. "Educating security buyers on its usefulness will be crucial," he said.

Some in the industry note that several companies including FireEye and CrowdStrike tried to launch similar products three or four years ago before pulling back although analysts say the technologies have improved greatly in the past two years.

"A lot of companies are looking at it but it’s still early days," said a security executive with a Fortune 500 company.

He said deployments were quite limited, with most trials where business test the product on a limited basis at no cost. Others said hackers may quickly be able to detect the traps.

"They will be challenged by the fact that some hackers are so sophisticated they might detect decoy servers or fake data," said Ziv Mador, head of research at Chicago-based cybersecurity firm Trustwave.

The technology could offer a second layer of defence to firewalls, which cannot always block malicious attempts, he said, and did not rule out Trustwave offering deception tools in the future.