Big Data for Fraud Management

We will be conducting research to look into how big data can be used for better fraud management. We define big data as data of Volume, Velocity and Variety. Our premise is that more and more granular data from more sources allows banks, insurers, government agencies, e-Retailers to cut fraud losses more aggressively.We are interested in your thoughts around this topic.

How Will The Extended Enterprise And Zero Trust Identities Impact Your Identity Administration Processes?

We regularly get inquiries from companies that feel the need to restructure their access controls to support extended enterprise user populations: firms have to support employees, contractors, business partners, customers and keep them contained to be able to access resources (applications, data, etc.) that they have a business need to access. Technology and protocols are catching up here: companies (and vendors too!) are moving to finally support SAML, OAuth and OpenID Connect in bulk. 

The real question, however, is not just access control, but it's also identity administration and attestation. How do you extend your internal provisioning of entitlements to your employees to your business partners or customers? What is the lifecycle of a data asset or piece of intellectual property in the broader ecosystem of identities? OAuth, Claims-based authorization or SAML attribute value injection will provide the infrastructure for enforcing policy decisions, but how do you extend your identity and access governance to the extended enterprise?

We see companies being interested and starting to build on the following to solve these challenges:

1.) Don't solve the problem but ingest a much richer context in your access control solutions (risk based authentication used for internal workforce user access, context variables being passed on to federated Relying Parties to understand that you're at a coffeehouse in a rogue country vs. you're logging in from your normal office and open up the general ledger with read/write access only if you're in your office).

2.) Providing increased delegated administration and attestation services from the cloud so business partners can also participate in these processes. This has been around for some time and will gain more popularity as firms need to remain compliant in the era of the extended enterprise.

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Active Directory Moving To The Cloud?

We hear a lot about cloud IAM vendors offering metadirectories or user repositories in the cloud. We predict that in 1-2 years we'll see AD being moved from on-premises installations into cloud based services. This has a benefit of simpler provisioning, higher availability, muc, much easier support for federation both into SaaS applications and with business partners. Today the only technical difficulty is latency of access to AD in the cloud from on-premises applications, but we believe this will be resolved by some type of customer premises equipment (much like the reverse of Symplified's Identity Router today).  Moving AD into the cloud will also have a huge impact on reducing the cost of AD management and improving delegated administration by providing easy-to-use web interfaces.

Security Intelligence: Should We Send A Guy With A Gun Or A Wrench?

We are kicking off research on security and identity intelligence, which is about understanding risk and detecting abnormal behavior.  One thing is clear: companies don't even *know* what kind of security (SIM, data,  identity, email, etc.) information they should be inspecting to detect security threats and where they should start eating the giant elephant of risk. They clearly need intelligent and automated systems to establish what a normal baseline means in user behaviors and events and then alert on any anomalies - and when they see any changes to normal patterns, understand whether they should send a guy with a gun or a guy with a wrench.  In this research (which will also be the topic of my Security Forum keynote speech) we will look at the interdisciplinary areas between enterprise fraud management, risk based authentication, data protection and identity management. I want to hear about your concerns, issues, and early case studies/solutions in this area.

Blending Cloud IAM Delivery Flavors: Convergence Of In-House And IAM Suite Offerings

Today we see two basic flavors of cloud IAM. One archetype is the model offered by Covisint, VMware Horizon, Symplified, Okta, OneLogin, etc.: these vendors provide relatively tight integration, but less capable identity services based on their respective firm's own intellectual property. Because of the above, these offerings clearly have a short implementation time. The other camp of vendors believes in providing hosted services of "legacy" IAM products: CA Technologies coming out with CloudMinder, Lighthouse adding their own IP to IBM TIM/TAM, Simeio Solutions blending OpenAM and Oracle's identity stack with their own secret sauce, and Verizon Business using NetIQ's IDM stack as a basis for their hosted offering solution.

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Xmas IAM Spending Spree: Quest Software Acquires BiTKOO, Enters IAM Suite Provider Market

With only 4 stack players in Identity and Access Management, it is always welcoming news to see a new company joining the space. Quest Software is on a shopping spree: it acquired e-DMZ (privileged identity management), Völcker Informatik AG (provisioning), Symlabs (virtual directories), and now BiTKOO (XACML entitlement management). Forrester expects that in reaction to its main competitor NetIQ taking over Novell’s IAM portfolio, Quest will expand significantly into the non-Windows, heterogeneous IAM space. Forrester further expects that Symantec and to some degree Intel will follow suit, as both of these companies announced cloud-based IAM offerings.

RSA Breach: Two-Factor Authentication Is Not Dead But Is Morphing And Getting More Granular

Many IT end-user companies deployed hard tokens at a time when intermediate-risk choices were thinner on the ground, and some of these companies would have benefited from a more granular approach anyway. In general, we are seeing companies moving towards risk-based authentication augmented by mobile soft tokens (sometimes called from a mobile application through an API). These software-only solutions are easier and cheaper to deploy, particularly if the target population is on smartphones, and a lot easier to patch in case of an attack. Interestingly, risk-based authentication is now asked about not only in the B2C context (which was a norm about a year ago), but also in the B2E context as well. Right now, end-user companies are thinking about:

  1. How they can ditch hardware tokens altogether; and
  2. How can they can move risk-based authentication, and increasingly authorization (fraud management), into the cloud.

Losing Patience And Token Information

As we speak to companies worldwide, many express their frustration with the cost and complexity of physical tokens. Our staple response is: "Oh yes, these solutions are hard to integrate and operate, but they provide the extra level of security required in an enterprise environment." However, today’s RSA SecureID breach goes against our typical advice and demonstrates that even the most hardened solution is vulnerable to insider threats – as it appears that the information leaked by (or social-engineered out of?) an RSA insider caused the security hole.

This situation draws attention to two basic themes that we are consistently hearing about:

  1.  Monitor your employees' activities and behavior patterns; and
  2. Use lighter-weight authentication such as adaptive and risk-based authentication.

Both topics are areas we plan to discuss in greater depth this year. Please stay tuned for more reports from us on these topics!

Watson Beats Jeopardy Champions: How Can You Capitalize On This In Risk And Fraud Management?

IBM's Watson (natural language processing, deduction, AI, inference and statistical modeling all served by a massively parallel POWER7 array of computers with a total of 2880 processors with 15TB RAM) beat the greatest Jeopardy players in three rounds over the past 3 days — and the matches weren't even close. Watson has shocked us, and now it's time to think: What's in it for the security professional?

The connection is easy to see. The complexity, amount of unstructured background information, and the real-time need to make decisions.

Forrester predicts that the same levels of Watson's sophistication will appear in pattern recognition in fraud management and data protection. If Watson can answer a Jeopardy riddle in real time, it will certainly be able to find patterns of data loss, clustering security incidents, and events, and find root causes of them. Mitigation and/or removal of those root causes will be easy, compared to identifying them . . .

Quest Acquires e-DMZ: Get Ready For Consolidation In The PIM Space

Quest is making aggressive moves to extend into the heterogeneous, non-Microsoft-centric land of identity and access management. After acquiring Voelcker Informatik for provisioning, Quest just announced the acquisition of e-DMZ, an enterprise-class, high-performance PIM appliance vendor. Novell (now Attachmate) acquired host access control specialist Fortefi, Oracle bought Passlogix (vGO-SAM), CA extended Access Control, and IBM integrated Encentuate's eSSO solution with ITIM as a service offering to manage privileged access. The remaining major PIM players like Cyber-Ark, Lieberman, and BeyondTrust will now face added client RFP scrutiny and price pressures from the competition. Forrester expects that new IAM entrants like Symantec/VeriSign,  NetIQ (to compete with arch-rival Quest), or MSSPs will look at acquiring the remaining above vendors.