Why Companies Are Boosting Their AppSec Budgets for 2023

When the global average total cost of a data breach touches $4.35M without adequate security measures in place, organizations are misconfigured security controls, incomplete data, or inaccuracies in the threat detection algorithm, leading to an evolving threat landscape of attacks such as data breaches, malware infections, and other critical OWASP top 10 risks..

Application security testing continues to be a necessary spend for organizations. Application security testing helps identify vulnerabilities in software applications before attackers can exploit them. 

What is AppSec and why is it important?

AppSec, or application security, refers to the practice of securing software applications from cyber threats and vulnerabilities. It involves identifying and addressing application security risks to protect sensitive data, prevent business disruption, and maintain customer trust.

The increase in spending on AppSec is a clear sign of growing awareness of the risks that software security poses to organizations. It is expected to rise by about 25% in the next few years. This will capture $7.5 billion in 2023 spending. Thriving on the surging need to shift to cloud-based delivery models, Gartner identified Application Security as the second-fastest category.

Application Security methodologies proactively identify and address vulnerabilities. The following come as additional bonuses.

Maintaining business continuity: If an application is compromised, it can disrupt business operations, resulting in lost revenue, damage to reputation, and legal liabilities. AppSec helps ensure the continuity of business operations by identifying and mitigating security risks.

Meeting regulatory requirements: AppSec helps organizations comply with regulations (regulatory requirements, such as GDPR, HIPAA, and PCI-DSSetc.) by identifying and addressing application vulnerabilities.

Managing third-party risks: Many organizations rely on third-party applications to perform critical business functions. AppSec helps manage third-party risks by identifying and addressing vulnerabilities in these applications.

The Growing Threat Landscape

In recent years, there has been a significant increase in the frequency and sophistication of cyber attacks to gain unauthorized access to networks, steal data, and disrupt business operations. 

The increasing frequency and sophistication of cyber attacks in the form of 

Ransomware attacks, supply chain attacks, Advanced persistent threats (APTs), Phishing attacks and Internet of Things (IoT) attacks, etc. thrive on poor security controls, making them easy targets for attackers.

Recent high-profile data breaches that turned heads

Costa Rica Government Data Breach

In May 2022, it was reported that the Costa Rican government had suffered a data breach caused by the infamous Conti gang in the information systems of the state-owned Banco de Costa Rica, which allowed attackers to gain access to the government’s central database.

The Conti Ransomware group forced the Costa Rica government to declare a state of emergency after they accessed the government’s systems and stole highly valuable data. The group demanded $20 million for the return of the data, leaving the Costa Rica government scrambling to find a solution to tackle the daily loss of US$30 million.

T Mobile Data Breach

In July 2022, T-Mobile announced that it had suffered a data breach in early 2021 that exposed the personal information of over 54 million customers. The breach was caused by a cyberattack that targeted the company’s systems, resulting in the “unauthorized access” and theft of sensitive data.

T-Mobile announced that it had reached a settlement agreement with the plaintiffs in the lawsuit. The settlement, which amounted to $350 million, was intended to fund claims submitted by class members, pay the legal fees of plaintiffs’ counsel, and cover the costs of administering the settlement.

Revolut Data Breach

In August 2020, it was reported that Revolut, a UK-based digital banking and payments company, had suffered a data breach that exposed the personal information of more than 50,000 customers. 

Although the company said it affected less than 1% of its customer base, it goes without saying that the stolen information could be used for identity theft or other malicious activities.

The recent data breaches have highlighted the need for companies to prioritize AppSec and take proactive steps to protect their systems and customer data.

Compliance and Regulations

The regulatory environment around data breaches has been tightening up in recent years. Here’s a more detailed explanation of this regulatory environment and the demands placed on companies to protect customer data:

1. Data protection regulations: Many countries have enacted data protection regulations to protect citizens’ personal data privacy. For example, the General Data Protection Regulation (GDPR) in the European Union requires companies to implement measures to ensure the security and confidentiality of personal data. Similarly, the California Consumer Privacy Act (CCPA) and the recently enacted California Privacy Rights Act (CPRA) set out specific requirements for companies handling personal data in California.
2. Industry standards: Besides regulatory requirements, many industries have established standards for data protection. For example, the Payment Card Industry Data Security Standard (PCI DSS) outlines specific requirements for companies that handle payment card data to ensure the security of that data.
3. Brazilian General Data Protection Law (LGPD): The law was passed in 2018 and came into effect in 2020, establishing a framework for the protection of personal data in Brazil. 
4. Personal Information Protection Law (PIPL): The new data privacy law was passed in China in 2021 and will come into effect in November 2021, governing the collection, processing, and storage of personal information of Chinese residents.

4: The Cost of AppSec

It is crucial for organizations to prioritize application security and take proactive measures to protect against security threats and ensure compliance with applicable regulations.

1. Financial costs: Attacks or failure to comply with regulations can lead to financial losses due to the theft of sensitive information or the interruption of business operations. This can result in lost revenue, legal costs, fines, and other expenses associated with remediation and recovery.

2. Reputational damage: Attacks or failure to comply with regulations can damage an organization’s reputation and erode customer trust. This can lead to:

• a loss of customers
• difficulty attracting new customers, and 
• long-term damage to the brand. 

3. Operational disruption: Attacks or failure to comply with regulations can disrupt business operations, leading to lost productivity and revenue. This can also result in damage to critical infrastructure, such as IT systems or industrial control systems, which may take time and resources to repair or replace.

4. Regulatory non-compliance: Failure to comply with regulatory requirements can result in fines and penalties, as well as damage to an organization’s reputation. It can also lead to increased scrutiny from regulatory bodies, making it more difficult to operate in regulated industries. 

Different areas where companies can invest in AppSec

There are different areas where companies can invest in AppSec, and the costs associated with each can vary depending on the size of the organization, the level of expertise required, and the scope of the engagement.

1. Security training and education: One area where companies can invest in AppSec is through training and education for developers about secure coding practices, threat modeling, and vulnerability management. The cost of this investment can vary depending on the size of the organization and the level of training required.

2. Security testing tools: The cost of security testing tools can vary depending on the level of sophistication required and the number of licenses needed. 

3. Security staffing: The cost of security staffing can vary depending on the level of expertise required and the location of the organization.
4. Compliance and audit: Companies can also invest in compliance and audit services to ensure that their AppSec program meets regulatory requirements and industry best practices. 

The costs associated with investing in application security can vary widely depending on the size and complexity of the organization, as well as the specific areas of investment. Let’s try to understand this:

• Security testing: Security testing is an essential part of application security that helps identify vulnerabilities and weaknesses in software systems. The costs associated with security testing can vary depending on the scope and complexity of the testing. 

• Secure coding practices: ‘Shifting Left’ to the secure coding practices can help prevent security vulnerabilities from being introduced into software systems in the first place.

• Security tools and technologies: Companies can invest in security tools and technologies such as firewalls, intrusion detection systems, and data loss prevention tools to protect their software systems.

• Incident response planning: Incident response planning is an important aspect of application security that helps companies prepare for security incidents and respond to them quickly and effectively. 

• Compliance and audit: Compliance and audit are important aspects of application security that help companies ensure they are meeting regulatory requirements and industry standards. 

The Benefits of Investing in AppSec

By taking a proactive approach to application security, organizations can significantly reduce their risk of becoming a victim of a cyber attack. The benefits include:

1. Identifying and fixing vulnerabilities: A vulnerability scan or penetration testing can help identify vulnerabilities in a web application that an attacker could exploit to gain unauthorized access to sensitive data.
2. Implementing security best practices: A software development team can follow secure coding practices such as input validation and output encoding to prevent common vulnerabilities such as cross-site scripting (XSS) and SQL injection.
3. Improving incident response: For example, implementing intrusion detection systems (IDS) or security information and event management (SIEM) systems can help detect and respond to security incidents more quickly.
4. Meeting compliance requirements: For example, implementing code reviews and static analysis tools can help ensure compliance with PCI DSS Requirement 6.5.

How GuardRails helps

GuardRails provides developers with the ability to detect, address, and proactively avoid security threats within their web and mobile applications.

• Robus AppSec Program: Integrating open-source and commercial security tools seamlessly into existing development workflows, GuardRails efficiently orchestrates these tools for a streamlined approach to an AppSec program.
• Training: With our Just-In-Time training, understand the significance of a vulnerability and how to remedy it, promoting secure coding practices and preventing future errors.
• Fix Errors: GuardRails security system operates inconspicuously in the background, identifying and alerting users to critical security threats in their code before deployment, not after.
• False Positive Detection: GuardRails improves its false positive detection logic by incorporating user feedback, allowing users to mark issues as false positives or report incorrect findings. 

Conclusion

Here’s a recap of the reasons why companies are increasing their AppSec budgets:

• Increased attack surface 
• Increased complexity of applications, which makes them more difficult to secure.
• Compliance requirements in industries such as healthcare and finance etc.
• Brand reputation and customer trust issues.
• Greater scalability in the cloud, which requires scalable security solutions to match.
• Emphasis on speed and automation in DevOps practices.

The post Why Companies Are Boosting Their AppSec Budgets for 2023 appeared first on GuardRails.

*** This is a Security Bloggers Network syndicated blog from GuardRails authored by GuardRails. Read the original post at: https://blog.guardrails.io/why-companies-are-boosting-their-appsec-budgets-for-2023/