In the past year I had a pleasure working with a number of startups on improving their security posture. I would like to share some common pain points here and what to do about them.
Advising startups on security is not easy, as it tends to be a ‘wicked’ problem for a cash-strapped company – we often don’t want to spend money on security but can’t afford not to because of the potential devastating impact of security breaches. Business models of some of them depend on customer trust and the entire value of a company can be wiped out in a single incident.
On a plus side, security can actually increase the value of a startup through elevating trust and amplifying the brand message, which in turn leads to happier customers. It can also increase company valuation through demonstrating a mature attitude towards security and governance, which is especially useful in fundraising and acquisition scenarios.
Security is there to support the business, so start with understanding the product who uses it. Creating personas is quite a useful tool when trying to understand your customers. The same approach can be applied to security. Think through the threat model – who’s after the company and why? At what stage of a customer journey are we likely to get exposed?
Are we trying to protect our intellectual property from competitors or sensitive customer data from organise crime? Develop a prioritised plan and risk management approach to fit the answers. You can’t secure everything – focus on what’s truly important.
A risk based approach is key. Remember that the company is still relatively small and you need to be realistic what threats we are trying to protect against. Blindly picking your favourite NIST Cybersecurity Framework and applying all the controls might prove counterproductive.
Yes, the challenges are different compared to securing a large enterprise, but there some upsides too. In a startup, more often than not, you’re in a privileged position to build in security and privacy by design and deal with much less technical debt. You can embed yourself in the product development and engineering from day one. This will save time and effort trying to retrofit security later – the unfortunate reality of many large corporations.
Be wary, however, of imposing too much security on the business. At the end of the day, the company is here to innovate, albeit securely. Your aim should be to educate the people in the company about security risks and help them make the right decisions. Communicate often, showing that security is not only important to keep the company afloat but that it can also be an enabler. Changing behaviours around security will create a positive security culture and protect the business value.
How do you apply this in practice? Let’s say we established that we need to guard the company’s reputation, customer data and intellectual property all the while avoiding data breaches and regulatory fines. What should we focus on when it comes to countermeasures?
I recommend an approach that combines process and technology and focuses on three main areas: your product, your people and your platform.
Think of your product and your website as a front of your physical store. Thant’s what customers see and interact with. It generates sales, so protecting it is often your top priority. Make sure your developers are aware of OWASP vulnerabilities and secure coding practices. Do it from the start, hire a DevOps security expert if you must. Pentest your product regularly. Perform code reviews, use automated code analysis tools. Make sure you thought through DDoS attack prevention. Look into Web Application Firewalls and encryption. API security is the name of the game here. Monitor your APIs for abuse and unusual activity. Harden them, think though authentication.
I talked about building security culture above, but in a startup you go beyond raising awareness of security risks. You develop processes around reporting incidents, documenting your assets, defining standard builds and encryption mechanisms for endpoints, thinking through 2FA and password managers, locking down admin accounts, securing colleagues’ laptops and phones through mobile device management solutions and generally do anything else that will help people do their job better and more securely.
Some years ago I would’ve talked about network perimeter, firewalls and DMZs here. Today it’s all about the cloud. Know your shared responsibility model. Check out good practices of your cloud service provider. Main areas to consider here are: data governance, logging and monitoring, identity and access management, disaster recovery and business continuity. Separate your development and production environments. Resist the temptation to use sensitive (including customer) data in your test systems, minimise it as much as possible. Architect it well from the beginning and it will save you precious time and money down the road.
Every section above deserves its own blog and I have deliberately kept it high-level. The intention here is to provide a framework for you to think through the challenges most startups I encountered face today.
If the majority of your experience comes from the corporate environment, there are certainly skills you can leverage in the startup world too but be mindful of variances. The risks these companies face are different which leads to the need for a different response. Startups are known to be flexible, nimble and agile, so you should be too.
Image by Ryan Brooks.
What makes a cyber startup successful? From my working with a number of companies, there are four key areas cyber entrepreneurs should consider:
- Are you passionate about the idea?
- How unique is it?
- Can your intellectual properly be protected?
- Do you have genuine expertise in your domain?
- What do people in your community think of you?
- Do you have a strong network and business skills?
- Do you know your client?
- Do you understand their issues?
- Do they trust you to solve them?
- Are you focusing on the right things?
- Are you measuring the right things?
- Are you incorporating client feedback into the development?
The key here, as you can see, is clients. There is really no way around understanding them, pleasing them and focusing on what they want. This feedback will allow you to pivot where required. Above all, stay focused and avoid premature scaling – don’t do too much too soon.