Unseen threats: Startups say cyber fight is getting harder

It's been a troubling month for business cyber security breaches and the stats show the most common threat is no longer compromised credit card details.

This year's cyber security survey from BDO and AusCERT found one third of the 500 business executives it surveyed had seen an attack last year, while the number of confidential data loss incidents was up by 74 per cent.

ArchTIS chief executive Daniel Lai.

In one quarter of breach cases, sensitive personal information was the target. That trumped the stealing of financial data, which was only targeted in 12 per cent of cases.

"Cybersecurity is such a broad area, there's no single point solution," says chief executive of security firm archTIS, Daniel Lai.

When it comes to the number one threat facing businesses and governments, "information and data is it," he says.

ArchTIS listed on the ASX last year after completing an $8 million capital raise at 20c a share. Its focus is on protecting 'top secret' information so that governments and businesses can collaborate on projects without running the risk of a data breach.

It's generated just under $1 million in revenue over the past nine months and the share price is sitting at 12c.

Now [storage platforms] are borderless, how do they guarantee national sovereignity of data?

The company's Kojensi Gov security product categorises information according to how sensitive it is and then stores this so that only those with the right clearance can access it.

A beta trial of the product was completed last year with the Attorney General's department but it's not ready for commercial and government clients yet. The startup also has a cloud security product coming soon.

ArchTIS is one of a number of Aussie tech companies honing in on new threats emerging as companies start to process large volumes of data across borders.

Lai says global cloud providers have offered businesses an easy way of storing large amounts of customer data, but this model doesn't always work for very sensitive information.

"Now they [storage platforms] are borderless — how do they guarantee national sovereignty of data?" he says.

Breach costs growing

Cyber threats have become increasingly personal over the past few years and the consumer watchdog says that approach has paid off for scammers.

Last week the Australian Competition and Consumer Commission confirmed Australian business scam losses jumped 53 per cent last year. The $7.2 million lost included $3.8 million from business email compromises, where scammers access details about actual staff to then impersonate them.

While these scams rely on persuading business staff to act in certain ways, all begin with a breach of emails or systems to obtain information about a company's operations.

Startups like Sydney's Kasada are focused on stopping bots from stealing business account details. 

Kasada founder Sam Crowther. Credit:Simon Schluter

Founder Sam Crowther says the more information companies start to store about their customers and suppliers, the more new threats emerge.

"They just become juicier targets," Crowther says.

The startup, which raised $2.5 million from investors including Reinventure last year, has seen companies breached for customer information relating to things like loyalty schemes.

Hackers are targeting customer data so they can leverage loyalty points from others, Crowther says.

"In some cases, they can convert this to cash."

Lai says a "tsunami of security products" are emerging to protect customer and business information as the world cottons on to the value of personal information.

"The explosion in this fourth industrial revolution is all about the data and the value and aggregation of that data."

Follow MySmallBusiness on Twitter, Facebook and LinkedIn.

Source: Read Full Article