AUSTRALIA ENCRYPTION TRENDS STUDY - 2021 Find out how organisations are protecting data across multiple clouds, and how your encryption strategy ...
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You are here. Your data is there. Threats are everywhere. 2021 AUSTRALIA ENCRYPTION TRENDS STUDY Find out how organisations are protecting data across multiple clouds, and how your encryption strategy compares.
PONEMON INSTITUTE PRESENTS THE FINDINGS OF THE 2021 AUSTRALIA ENCRYPTION TRENDS STUDY1 We surveyed 317 individuals in Australia to Fifty-four percent of respondents say their examine the use of encryption and the impact organisations have an overall encryption of this technology on the security posture of strategy that is applied consistently across organisations in this region. Globally, 6,457 the entire enterprise and 36 percent of individuals across multiple industry sectors in organisations have a limited encryption plan 17 countries and regions were surveyed. The or strategy. research includes: Australia, Brazil, France, Germany, Hong Kong, Japan, Mexico, Middle Following are the findings from this year’s East (which is a combination of respondents research. located in Saudi Arabia and the United Arab Emirates), Netherlands, the Russian Federation, Southeast Asia, South Korea, Spain, Sweden, Taiwan, the United Kingdom and the United States.2 Moving ahead Organisations in Australia have adopted enterprise-wide encryption strategies faster than global averages 60% 54% 50% 41% 50% 40% 30% 32% 20% 10% Australia 0% Global 2017 2018 2019 2020 2021 1 This year’s data collection was started in December 2020 and completed in January 2021. Throughout the report we present trend data based on the fiscal year the survey commenced rather than the year the report is finalized. Hence, we present the current findings as fiscal year 2020. 2 Country-level results are abbreviated as follows: Australia (AU), Brazil (BZ), France (FR), Germany (DE), Hong Kong (HK), Japan (JP), Korea (KO), Mexico (MX), Middle East (AB), Netherlands (NL), Russia (RF), Spain (SP), Southeast Asia (SA), Sweden (SW), Taiwan (TW), United Kingdom (UK), and United States (US). PONEMON INSTITUTE © RESEARCH REPORT 2
STRATEGY AND ADOPTION Mistake or malice: The results are the same OF ENCRYPTION Top 5 threats to sensitive data IT operations has the most influence in Employee mistakes 64% Highest rate X worldwide directing encryption strategies. While responsibility for the encryption strategy is System or process 40% malfunction dispersed throughout the organisation, IT operations (33 percent of respondents) has the Third party 21% service providers most influence. Fifteen percent of respondents say no one single function is responsible for Highest rate Lawful data request 20% worldwide encryption strategy. Malicious insiders 17% Which data types are most often encrypted? Sixty-two percent of respondents say their organisations are encrypting intellectual This is followed by system or process property, 60 percent of respondents say malfunction (40 percent of respondents). employee/HR data and payment-related data Twenty percent of respondents rate lawful is encrypted. Less than a third (30 percent) of data requests as a threat, which is tied for respondents say their organisations encrypt the highest region. healthcare information. Protecting information against specific THREATS, MAIN DRIVERS identified threats is the main driver for the AND PRIORITIES use of encryption. Sixty-three percent of respondents say they encrypt to protect Negligent insiders pose the greatest threat to information against specific, identified threats sensitive data. The most significant threats to and 52 percent of respondents say compliance the exposure of sensitive or confidential data with external privacy or data security are employee mistakes, according to 64 percent regulations and requirements is the reason to of respondents (the highest rate worldwide). encrypt sensitive and confidential data. Do your priorities match your promises? Top 6 types of data that organisations encrypt in Australia 62% 60% 60% 53% 55% 55% 54% 48% 48% 42% 30% 24% Intellectual Payment- Employee/ Financial Customer Healthcare property related data HR data records information information Australia Global 3 PONEMON INSTITUTE © RESEARCH REPORT
Forty-three percent say they encrypt data to Certain encryption features are considered comply with internal policies, the highest more critical than others. Respondents rate worldwide. were asked to rate encryption technology features considered most important to their Encryption strategy is increasingly organisation’s security posture. Eighty- data-driven three percent of respondents (the highest Top 5 drivers for using encryption rate worldwide) say support for emerging Highest rate worldwide To protect information algorithms (e.g. ECC) and 85 percent of against specific, up 13% from last year 63% identified threats respondents say separation of duties and To comply with external role-based controls are critical features in privacy or data security 52% regulations and requirement encryption technology solutions. Highest rate worldwide To comply with internal policies 43% The Australian approach To protect enterprise As encryption use grows, Australia shows a intellectual property 42% stronger preference than other regions for encryption solutions with these specific features To reduce the scope of compliance audits 40% Highest Australia rate worldwide Global 85% 83% Discovering where sensitive data resides in 70% 57% 57% 56% the organisation continues to be the biggest challenge. Fifty-nine percent of respondents say their organisations consider discovering Separation of Support for System where sensitive data resides as the biggest duties and emerging scalability role-based algorithms challenge when planning and executing a data controls protection strategy. Half of respondents say initially deploying the encryption technology is one of their biggest challenges. ATTITUDES ABOUT KEY MANAGEMENT DEPLOYMENT CHOICES How painful is key management? Fifty-nine percent of respondents rate key management No single encryption technology dominates as very painful, which suggests respondents because organisations have very diverse view managing keys as a very challenging needs. Encryption of Internet communications activity. The top reasons are: lack of skilled (e.g. TLS/SSL) and laptop and hard drives personnel (60 percent of respondents), are most likely to be extensively deployed inadequacy of key management tools (62 percent and 54 percent of respondents, (55 percent of respondents) and no clear respectively). Internet of Things (IoT) ownership (49 percent of respondents). platforms/data repositories and IoT devices are at least partially deployed, each at 60 percent of respondents. PONEMON INSTITUTE © RESEARCH REPORT 4
Fifty-four percent respondents say their Key management is a people problem organisations plan to use blockchain. The two For the 4th straight year, a lack of skilled personnel is the top reason why key primary use cases will be cryptocurrency/ management is painful wallets and asset transactions/management, each at 59 percent of respondents. The business case for blockchain 60% 55% 49% Average timeframe for planned use of blockchain Lack of skilled Key management No clear is 3 years from now vs. global average of 2.5 years personnel tools are ownership inadequate Asset transactions management 59% Which keys are most difficult to manage? Cryptocurrency wallets The most difficult keys to manage are keys for external cloud or hosted services, including 59% BYOK keys (82 percent of respondents, Smart contracts which is the highest rate worldwide), SSH 44% keys and signing keys (each at 51 percent of Supply chain respondents). Least painful to manage are keys to embed into devices (e.g. at the time of 40% manufacture in device production environments Identity or for IoT devices used), according to 20 percent of respondents. 38% Multi-party computation will reach mainstream Juggling is struggling enterprise adoption much sooner than Australia rates the pain associated with quantum algorithms. Respondents were managing several types of encryption keys higher than global averages, including: asked to estimate how long it will take before Keys for external cloud quantum algorithms, homomorphic encryption or hosted services Highest rate worldwide 82% including Bring Your and multi-party computation to be adopted. 58% Own Key (BYOK) While it is estimated that quantum algorithms Key associated 50% with SSL/TLS will be adopted in an average of seven years, 41% multi-party computation will be adopted in an 48% Payments-related keys 35% average of nearly five and a half years. Encryption keys for 38% backups and storage 29% IMPORTANCE OF HARDWARE Australia Global SECURITY MODULES (HSMs) HSMs are very important to organisations’ Cryptocurrency/wallets and asset encryption or key management strategy. transactions/management are the applications Eighty-eight percent of respondents are organisations plan to use blockchain for. knowledgeable about HSMs. 5 PONEMON INSTITUTE © RESEARCH REPORT
We asked respondents who are in organisations currently transfer sensitive or confidential data that currently deploy HSMs (42 percent of to the cloud (whether or not it is encrypted or respondents) how important they are to their made unreadable via some other mechanism) encryption or key management strategy. and 31 percent of respondents plan to in the Seventy-three percent of respondents say next 12 to 24 months. they are important today and 83 percent of respondents say will be important in the next How do organisations protect data at rest in 12 months. the cloud? Forty percent of respondents say encryption is performed on-premises prior How organisations are using HSMs. Fifty- to sending data to the cloud using keys the eight percent of respondents say they have a organisation generates and manages. Twenty- centralized team that provides cryptography eight percent of respondents say encryption is as a service and 42 percent of respondents performed in the cloud using keys generated/ say each individual application owner/team managed by the cloud provider. Twenty-four is responsible for their own cryptographic percent of respondents are using some form of services. Today, 67 percent of respondents Bring Your Own Key (BYOK) approach. use HSMs for TLS/SSL including firewalls, and application delivery controllers. In 12 months, 67 Who holds the keys? When encrypting data-at-rest in the cloud, percent of respondents say their organisations 64% of organisations prefer to control the will be using payment transaction processing or encryption keys vs. 59% globally payment credential issuing/provisioning. 40% 38% The path is clear 24% 21% How organisations plan to increase HSM deployment in the next 12 months Payment transaction Encryption performed in Encryption performed processing or payment up 34% from 67% last year the cloud using keys their on-premises prior to credential issuing organisation generates and sending data to the manages on-premises cloud using keys their organisation generates With Secrets up 22% from and manages 38% Management solutions last year Australia Global Code signing up 24% from last year 35% What are the top three encryption features up 10% from Database encryption last year 31% specifically for the cloud? The top three up 15% features are granular access controls Key management 23% from last root of trust year (67 percent of respondents), support for the KMIP standard for key management CLOUD ENCRYPTION (65 percent of respondents), and Bring Your Own Key management support (59 percent Almost half of organisations transfer sensitive of respondents). or confidential data to the cloud. Forty-nine percent of respondents say their organisations PONEMON INSTITUTE © RESEARCH REPORT 6
ABOUT PONEMON INSTITUTE The Ponemon Institute© is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors, and verifies the privacy and data protection practices of organisations in a variety of industries. ABOUT ENTRUST Entrust keeps the world moving safely by enabling trusted identities, payments, and data protection. Today more than ever, people demand seamless, secure experiences, whether they’re crossing borders, making a purchase, accessing e-government services, or logging into corporate networks. Entrust offers an unmatched breadth of digital security and credential issuance solutions at the very heart of all these interactions. With more than 2,500 colleagues, a network of global partners, and customers in over 150 countries, it’s no wonder the world’s most entrusted organisations trust us. For more information, visit entrust.com 7 PONEMON INSTITUTE © RESEARCH REPORT
Learn more at entrust.com Entrust, nShield, and the Hexagon Logo are trademarks, registered trademarks, and/or service marks of Entrust Corporation in the U.S. and/or other countries. All other brand or product names are the property of their respective owners. © 2021 Entrust Corporation. All rights reserved. HS22Q1-2021-australia-encryption-trends-study-re PONEMON INSTITUTE © RESEARCH REPORT 8
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