Key Management Best Practices to Avoid Cryptographic Failures

The expansion of cloud applications and mobile devices has created unlimited endpoints, leaving data vulnerable to security threats. In fact, Cryptographic failures rank no.2 in OWASP’s top 10 web application security risks. 

Effective cryptographic key management is crucial to protecting data, as a single compromised key could result in a massive data breach. This blog will explain some of the best practices for cryptographic key management.

Let’s start by understanding what is encryption key management.

What is Encryption Key Management?

Encryption is the process of encoding data as ciphertext, which can only be accessed by the person having the decryption keys to decode the ciphertext. Even if the hackers stole it, they won’t be able to access it; all credit goes to data encryption.

Now, encryption key management refers to the practices that govern the key management process. It performs all the important key functions, such as

• Key generation
• Pre-activation
• Activation
• Expiration
• Post-activation
• Escrow
• Destruction

By implementing robust key management practices, organizations can reduce the risk of security breaches and unauthorized data access.

Real-World Examples of Key Management Failures

The real-world victims of key management failures are too many to count, but here are some of the prominent ones among them.

Equifax Data Breach (2017)

This is one of the most notable examples of the largest cybersecurity breaches in history. In 2017, Equifax Inc.’s (Equifax’s parent company) personal data of approximately 13.8 million UK consumers was hacked by cybercriminals.

This happened because the company outsourced data to Equifax Inc.’s servers in the US for processing.

Further, it was revealed that Equifax failed to treat its relationship with the parent company as outsourcing, and they didn’t oversight if the data it was sending was properly managed and protected. 

The data breach resulted in a settlement of up to $700 million and had a large economic impact.

The Facebook Incident

In 2019, Facebook, the social media giant, faced a serious privacy breach. This time, more than 540 million Facebook users’ data was accidentally leaked. The data included users’ names, friend lists, photos, location check-ins, and even passwords.

The Exactis Debacle

Exactis, a marketing and data aggregation firm, has over 3.5 billion business and consumer records. They suffered a security breach that came to light when security expert Vinny Troia was conducting tests on the security of ElasticSearch. 

Using a tool called Shodan, Troia found 7,000 databases that were exposed on public servers. Among them was Exactis’ database, which has 340 million records and was shockingly unprotected and easily accessible.

What made this data breach particularly concerning was the depth of information contained within the exposed records. It wasn’t just basic details like names and contact information; each record included details about people’s habits and preferences, with an average of 400 data points per individual. 

RSA SecurID Attack (2011)

In March 2011, the hackers executed the RSA SecurID breach attack that compromised SecurID tokens used by millions of organizations worldwide, including defense contractors and the military.

The company offers two-factor authentication solutions to many organizations. So, the cybercriminals exploited vulnerabilities in RSA’s systems to compromise the cryptographic keys and steal information that could be used to bypass two-factor authentication protections.

Unfortunately, the breach cost the company $66.3 million to investigate, remediate, and monitor 30,000 customers of its SecurID tokens.

This worrisome cyberattack was a wake-up call for companies to adopt best practices for cryptographic key management to avoid failures.

Target Data Breach

In the Target data breach, hackers stole 40 million credit and debit records and 70 million customer records. However, the company handled the data breach very well; they notified customers within twenty days after the breach occurred, which is comparatively fast.

What was the result of the data breach? It resulted in an $18 million settlement, and the company lost over $200 million. Additionally, when the news of the breach spread, Target’s earnings fell 46% following the attack.

What Leads to Cryptographic Failures?

Most cryptographic failures happen because organizations don’t prioritize handling users’ sensitive information carefully. Some of the sites don’t even prioritize buying an SSL certificate for HTTPS security.

Is cryptographic failures and data breaches the same? Both of these terms are not the same, but they can be related because the final goal is to hack user data, only the way is different.

A data breach happens when hackers gain unauthorized access to user information. On the other hand, cryptographic failures occur when data is left free on a server or in a database. They occur most often when organizations leave configuration details unsecured online.

Key Management Challenges

Here are some of the biggest key management challenges that many organizations face!

Complexity

Key management is a very complex process, especially when it involves dozens or hundreds of applications. The worst part is that entities don’t know how to create, store, and access keys securely, which leads to potential security vulnerabilities.

Lack Of Resilience & Audit Logging

Key confidentiality, integrity, and availability must be protected. If a key is lost without a backup, the data it is protecting will also become inaccessible or lost. The major problem arises if the key lifecycle is not logged, as it becomes difficult to determine when and how a compromise happens.  

Manual Key Management Processes

Still, today, some companies use manual key management processes, which result in human errors, and the data is left to potential vulnerabilities. That’s why it is suggested to use a key management system or solutions that automate the whole key management process and mitigate the risks of security breaches.

Compliance with Regulations

This is another significant challenge of key management, i.e., adhering to compliance. Different industries, like health and finance, have strict rules and regulations regarding data privacy and security, such as PCI DSS, HIPAA, and SOX.  Companies must adhere to these to avoid potential fines and penalties.

Integration with Existing Systems

The integration of a key management system with existing systems poses a challenge for businesses. This is because they need to ensure that the systems are compatible with each other, so the operations will not get disrupted.

Now that we have understood the major key management challenges, let’s examine some of the strategies for overcoming these concerns.

Best Practices for Effective Key Management

Below are some of the best practices for effective key management to avoid potential failures.

Implement Robust Logging & Auditing

Maintaining a comprehensive logging and auditing trail is vital as it helps you track system activities, such as key generation, usage, and deletion. These logs will surely help if something goes wrong.

Establish Formal Key Management Policies

Establishing formal key management policies is the first best practice for effective key management. This is vital to maintaining the security and integrity of cryptographic keys throughout their lifecycle.

Here’s how to do it!

1. Define procedures for generating encryption keys using secure cryptographic algorithms.
2. Document guidelines for securely storing encryption keys using Hardware Security Modules (HSMs).
3. Establish the right protocols for securely distributing encryption keys to authorized users or systems.

Key Revocation, Suspension, Termination

Organizations must have robust mechanisms in place for key revocation, suspension, and termination. Even if hackers gain access to systems, the company can revoke the keys associated with compromised systems.

Sometimes, a key might need to be temporarily stopped, like when there’s a security investigation or legal issue, but it’s not permanently terminated. These actions help keep data safe and in line with rules and regulations.

Monitor and Report

To maintain a secure cryptographic environment, it’s vital to have secure, automated, and unified logging and reporting systems in place. These help store records of key ownership and any changes made to them.

Monitoring and reporting also help track key usage and identify issues with cryptographic devices or endpoints. Additionally, automated reports and alerts can be set up based on specific management criteria.

Key Rotation

Key rotation is the practice of replacing keys periodically to ensure a lower possibility. 

Each key has a crypto period, determined by factors like the

• Encryption algorithm’s strength,
• Key length, and
• Value of the encrypted data.

This period encompasses both the originator usage period (OUP) and the recipient usage period (RUP). When the crypto period ends, it’s time to rotate the key and replace it with a new one. By doing so, you can ensure even if a cyberattack occur, the hackers will only get access to data of that particular day. 

Ultimately,  it reduces the risk associated with compromised or stolen keys.

Centralized Key Storage (keys stored in hardware)

To ensure the highest security of data, store it in an HSM (Hardware Security Module). It is a specialized computing device that includes necessary security features and performs cryptographic operations to protect keys and objects.

Also, this approach is mandatory according to the National Institute of Standards and Technology’s Federal Information Processing Standard (FIPS) and the Common Criteria for Information Technology Security Evaluation of compliance standards. 

Follow The Principle of Least Privilege (POLP)

It is also known as the Principle of Least Authority (POLA) and entails that only authorized will grant access to a required set of privileges. To do this, use role-based access controls (RBAC) to restrict permissions according to each individual’s roles and responsibilities within the organization. For instance, only the IT department is given access!

Overall, avoid giving unnecessary permissions as it can increase the likelihood of security breaches. Follow the Principle of Least Privilege and mitigate the risk of insider threats seamlessly.

Centralized Encryption Key Management Systems

Today, companies, especially big corporations, use hundreds or even thousands of encryption keys. Handling these is not as easy as it seems, especially when keys are required immediately. Here comes the role of a centralized enterprise key management system.

Centralized key management makes it easier to protect, manage, organize, and use the cryptographic keys. It stores the data in a secure location, separated from the encrypted data and systems. Further, along with improving security, it also improves the performance of encryption-decryption processes.

Select Appropriate Cryptographic Algorithms & Key Lengths

When choosing cryptographic algorithms and key lengths, companies must stay updated with the latest recommendations from the global cryptography community.

Recently, there’s been a shift towards favoring 3072-bit RSA keys over 2048-bit RSA keys. This change is particularly significant because 2048-bit and 4096-bit RSA keys are more vulnerable to cybersecurity breaches.

On the other hand, 3072-bit RSA keys provide enhanced security protection and are now considered the new minimum standard for high-security applications. 

Back-Up the Encryption Keys

What should you do if you lose an encryption key? You may not be able to recover anything until you have a backup of that key, so having backup capabilities is very important in such a situation. Without backups, losing encryption keys could lead to permanent data loss.

Make sure to have backup copies of cryptographic keys in a storage mechanism that offers the same level of protection as the original storage, like Hardware Security Modules (HSMs). It is suggested to use an offline storage container, such as a FIPS-validated card. Further, while backing up the data, ensure it is encrypted by the most advanced encryption standards.

Key Management Solutions

Below are some of the top key management solutions.

Hardware Security Modules (HSMs)

Hardware Security Modules are tamper-resistant hardware devices that provide robust security for strengthening encryption practices and encrypting or decrypting data. HSM can be physical HSM, Managed HSM, or Cloud HSM.

Recommended: Cloud HSM vs On-Premises HSMs: Choosing the Right Encryption Solution

Key Management Interoperability Protocol (KMIP)

KMIP is a communication protocol that simplifies the process of managing cryptographic keys by using a single language across different platforms. The best part is that it doesn’t affect the performance outcome.

Key Management Service (KMS)

KMS provides a system for storing, managing, and backing up cryptographic keys securely. However, the functioning of systems varies, as some of them allow the management of one or more aspects.

For instance, Azure Key Vault, AWS KMS, and Google Cloud Key Management Service.

The Bottom Line

By following the above best practices for Cryptographic Key Management, you can ensure that enterprise encryption key management is effective and secure. Mix and match the different strategies to get the best fit for your company.

If you want to show your users that your software is authentic and safe to use, get a code signing certificate from SignMyCode, no matter whether you need token-based code signing or cloud code signing certificates!

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