A10 Networks Reports Record Quarterly Revenue of $72.1 Million, up 10.2% Driven by Balanced Product, Customer and Regional Mix

SAN JOSE, Calif.–(BUSINESS WIRE)–A10 Networks (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its third quarter and nine-month period ended September 30, 2022.

Third Quarter 2022 Financial Summary

• Revenue of $72.1 million, up 10.2% year-over-year.
• Revenue growth was broad-based, with increases in North America, APJ, EMEA and Latin America, and from both Enterprise and Service Provider customers. Enterprise sales grew 17%, and Service Provider sales grew 6%, demonstrating strong revenue diversification.
• GAAP gross margin of 79.5%; non-GAAP gross margin of 80.2% as a result of better product mix and continued successful navigation of short-term input cost pressures.
• GAAP net income of $12.1 million, or $0.16 per diluted share, compared with GAAP net income (inclusive of a non-recurring $65.4 million income tax benefit related to sustained profitability) of $74.9 million, or $0.94 per diluted share in the third quarter of 2021.
• Non-GAAP net income of $15.9 million, or $0.20 per diluted share, compared with non-GAAP net income of $13.7 million, or $0.17 per diluted share in the third quarter of 2021.
• Adjusted EBITDA of $21.3 million, representing 29.5% of revenue, in line with stated business model goals.
• A10 repurchased approximately 3.7 million shares during the quarter at an average price of $12.77 for a total of $47.5 million and issued $3.8 million in cash dividends.
• The Board of Directors approved a 20% increase in its quarterly cash dividend to $0.06 per share, payable on December 1, 2022 to stockholders of record at the close of business on November 15, 2022.

A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

“A10 is consistently achieving revenue and EPS targets despite a variety of macro headwinds in all regions,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “This demonstrates robust demand for our proprietary security-led solutions, disciplined execution, and a focus on diversification that drives sustainability. We have positioned our business to avoid concentration in any single geography, any specific customer type, or any isolated product offering, and this diversification enables consistent execution despite economic, supply chain, and geopolitical challenges. Customer-centric technical innovation, global commercial execution and focus on driving the business model are bolstering our sustainability and driving continued success.”

“From a profitability standpoint, we maintained gross margins of approximately 80%, and we delivered record non-GAAP operating income and EBITDA margin, reflecting strong execution and an ability to navigate supply chain challenges and input cost pressures,” added Mr. Trivedi. “This performance enabled us to repurchase more than $47.5 million of our stock, in both negotiated and open-market transactions, materially reducing our capitalization. Additionally, ongoing strength in our business positioned us to increase the quarterly dividend by 20% and authorize a new $50 million stock repurchase plan. Simultaneously, we are strategically investing in technology, furthering our ability to capture market share and reinforcing our differentiators and driving durability for our business model despite macroeconomic conditions. We again reiterate our full year targets of top line growth of 10 – 12% and Adjusted EBITDA margins in the range of 26 – 28% of revenue.”

Conference Call

Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, November 1, 2022, to discuss these results. Interested parties may access the conference call by dialing (833) 927-1758 (toll-free) or (929) 526-1599 and referencing access code: 059416.

A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Network’s website at investors.a10networks.com. The webcast will be archived for at least 90 days. A telephonic replay of the conference call will be available two hours after the conclusion of the live call and will run for seven days and may be accessed by dialing (866) 813-9403 (toll-free) or (929) 458-6194 and entering the passcode 030371.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding our anticipated future financial results, quarterly dividend payments, drivers of growth, demand, supply chain challenges, positioning, growth and EBITDA expectations. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Factors that may cause actual results to differ include the impact of the COVID-19 pandemic on our business and the business of our customers; a significant decline in global macroeconomic or political conditions that have an adverse impact on our business and financial results; business interruptions related to our supply chain; our ability to manage our business and expenses if customers cancel or delay orders; execution risks related to closing key deals and improving our execution; the continued market adoption of our products; our ability to successfully anticipate market needs and opportunities; our timely development of new products and features; our ability to achieve or maintain profitability; any loss or delay of expected purchases by our largest end-customers; our ability to maintain or improve our competitive position; competitive and execution risks related to cloud-based computing trends; our ability to attract and retain new end-customers and our largest end-consumers; our ability to maintain and enhance our brand and reputation, changes demanded by our customers in the deployment and payment model for our products; continued growth in markets relating to network security; the success of any future acquisitions or investments in complementary companies, products, services or technologies; the ability of our sales team to execute well; our ability to shorten our close cycles; the ability of our channel partners to sell our products; variations in product mix or geographic locations of our sales; risks associated with our presence in international markets; weaknesses or deficiencies in our internal control over financial reporting; our ability to timely file periodic reports required to be filed under the Securities Exchange Act of 1934; and other risks that are described in “Risk Factors” in our periodic filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Commission on March 8, 2022. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables and Exhibit 99.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this release contain certain non-GAAP financial measures, including non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit and gross margin, non-GAAP operating income and operating margin, non-GAAP operating expenses, and Adjusted EBITDA. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies.

A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance and are used by the company’s management for that purpose.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

We define non-GAAP net income as our GAAP net income excluding: (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition, (iii) global distribution center transition expense and (iv) release of deferred tax asset valuation allowance. We define non-GAAP net income per basic and diluted share as our non-GAAP net income divided by our basic and diluted weighted-average shares outstanding. We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, and (ii) global distribution center transition expense. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating income as our GAAP income from operations excluding (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition and (iii) global distribution center transition expense. We define non-GAAP operating margin as our non-GAAP operating income divided by our GAAP revenue. We define non-GAAP operating expenses as our GAAP operating expenses excluding (i) stock-based compensation and related payroll tax, (ii) amortization expense related to acquisition and (iii) global distribution center transition expense. We define Adjusted EBITDA as our GAAP net income excluding (i) interest expense (if any), (ii) interest income and other (income) expense, net, (iii) depreciation and amortization expense, (iv) benefit from (provision for) income taxes, (v) stock-based compensation and related payroll tax and (vi) global distribution center transition expense.

We have included our non-GAAP net income, non-GAAP gross profit and gross margin, non-GAAP operating income and operating margin, non-GAAP operating expenses and Adjusted EBITDA in this press release. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company’s operating results.

About A10 Networks

A10 Networks (NYSE: ATEN) provides secure application services and solutions for on-premises, multi-cloud and edge-cloud environments at hyperscale. Our mission is to enable service providers and enterprises to deliver business-critical applications that are secure, available and efficient for multi-cloud transformation and 5G readiness. We deliver better business outcomes that support investment protection, new business models and help future-proof infrastructures, empowering our customers to provide the most secure and available digital experience. Founded in 2004, A10 Networks is based in San Jose, Calif. and serves customers globally. For more information, visit https://www.a10networks.com/ and follow us @A10Networks.

The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in the United States and other countries. All other trademarks are the property of their respective owners.

A10 NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts, on a GAAP Basis)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Revenue:
Products	$	45,104			$	39,815			$	123,624			$	104,718
Services		26,955				25,545				79,080				74,653
Total revenue		72,059				65,360				202,704				179,371
Cost of revenue:
Products		10,191				7,859				28,342				23,160
Services		4,574				5,335				12,747				16,163
Total cost of revenue		14,765				13,194				41,089				39,323
Gross profit		57,294				52,166				161,615				140,048
Operating expenses:
Sales and marketing		21,605				21,354				66,159				60,195
Research and development		14,360				13,578				41,483				41,050
General and administrative		5,661				6,931				17,160				17,260
Total operating expenses		41,626				41,863				124,802				118,505
Income from operations		15,668				10,303				36,813				21,543
Non-operating income (expense), net:
Interest income		432				66				736				306
Other income (expense), net		(871	)			(264	)			(1,204	)			(1,799	)
Non-operating income (expense), net		(439	)			(198	)			(468	)			(1,493	)
Income before provision for (benefit from) income taxes		15,229				10,105				36,345				20,050
Provision for (benefit from) income taxes		3,116				(64,781	)			7,467				(64,109	)
Net income	$	12,113			$	74,886			$	28,878			$	84,159
Net income per share:
Basic	$	0.16			$	0.97			$	0.38			$	1.09
Diluted	$	0.16			$	0.94			$	0.37			$	1.05
Weighted-average shares used in computing net income per share:
Basic		75,881				77,149				76,191				76,885
Diluted		77,679				79,927				78,454				79,803

A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (unaudited, in thousands, except per share amounts)
	Three Months Ended September 30,										Nine Months Ended September 30,
	2022					2021					2022					2021
GAAP net income	$		12,113			$		74,886			$		28,878			$		84,159
Non-GAAP items:
Stock-based compensation and related payroll tax			3,798					4,201					10,423					11,433
Amortization expense related to acquisition			—					—					—					505
Global distribution center transition expense			—					(1	)				—					2,946
Release of deferred tax asset valuation allowance			—					(65,417	)				—					(65,417	)
Total non-GAAP items			3,798					(61,217	)				10,423					(50,533	)
Non-GAAP net income			15,911					13,669					39,301					33,626
Income tax effect of non-GAAP items (1)			(2,831	)				(2,952	)				(5,876	)				(5,876	)
Non-GAAP net income, as adjusted for income tax effect of non-GAAP items (2)	$		13,080			$		10,717			$		33,425			$		27,750
GAAP net income per share:
Basic	$		0.16			$		0.97			$		0.38			$		1.09
Diluted	$		0.16			$		0.94			$		0.37			$		1.05
Non-GAAP items:
Stock-based compensation and related payroll tax			0.04					0.05					0.13					0.14
Amortization expense related to acquisition			—					—					—					0.01
Global distribution center transition expense			—					—					—					0.04
Release of deferred tax asset valuation allowance			—					(0.82	)				—					(0.82	)
Total non-GAAP items			0.04					(0.77	)				0.13					(0.63	)
Non-GAAP net income			0.20					0.17					0.50					0.42
Income tax effect of non-GAAP items (1)			(0.03	)				(0.04	)				(0.07	)				(0.07	)
Non-GAAP net income per share, as adjusted for income tax effect of non-GAAP items: (2)
Basic	$		0.17			$		0.14			$		0.44			$		0.36
Diluted	$		0.17			$		0.13			$		0.43			$		0.35
Weighted average shares used in computing net income per share:
Basic			75,881					77,149					76,191					76,885
Diluted			77,679					79,927					78,454					79,803

(1)	For the three and nine months ended September 30, 2022 this represents the tax impact using estimated tax rates of 17.8% and 15.0%, respectively. For the three and nine months ended September 30, 2021 this represents the tax impact using estimated tax rates of 21.6% and 17.5%, respectively.
(2)	Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate adjusted net income and earnings per share in the same manner.

A10 NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value, on a GAAP Basis)
	September 30, 2022				December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	32,131			$	78,925
Marketable securities		95,642				106,117
Accounts receivable, net of allowances of $319 and $543, respectively		73,500				61,795
Inventory		21,289				22,462
Prepaid expenses and other current assets		15,023				14,720
Total current assets		237,585				284,019
Property and equipment, net		17,958				10,692
Goodwill		1,307				1,307
Deferred tax assets, net		65,557				65,773
Other non-current assets		30,254				31,294
Total assets	$	352,661			$	393,085
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,045			$	6,852
Accrued liabilities		41,472				36,101
Deferred revenue		74,762				73,132
Total current liabilities		122,279				116,085
Deferred revenue, non-current		51,405				48,499
Other non-current liabilities		18,243				19,613
Total liabilities		191,927				184,197
Stockholders’ equity:
Common stock, $0.00001 par value: 500,000 shares authorized; 86,790 and 84,717 shares issued and 73,406 and 77,423 shares outstanding, respectively		1				1
Treasury stock, at cost: 13,384 and 7,294 shares, respectively		(134,934	)			(55,677	)
Additional paid-in-capital		460,884				446,035
Dividends paid		(15,392	)			(3,880	)
Accumulated other comprehensive income		(1,341	)			(229	)
Accumulated deficit		(148,484	)			(177,362	)
Total stockholders’ equity		160,734				208,888
Total liabilities and stockholders’ equity	$	352,661			$	393,085

A10 NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands, on a GAAP Basis)
	Nine Months Ended September 30,
		2022				2021
Cash flows from operating activities:
Net income	$	28,878			$	84,159
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,539				7,044
Stock-based compensation		9,818				10,848
Release of deferred tax asset valuation allowance		—				(65,417	)
Other non-cash items		49				786
Changes in operating assets and liabilities:
Accounts receivable		(11,090	)			4,418
Inventory		530				1,438
Prepaid expenses and other assets		(2,574	)			1,905
Accounts payable		(914	)			(1,086	)
Accrued liabilities		4,001				(11,309	)
Deferred revenue		4,536				8,417
Net cash provided by operating activities		38,773				41,203
Cash flows from investing activities:
Proceeds from sales of marketable securities		6,252				5,865
Proceeds from maturities of marketable securities		48,248				70,870
Purchases of marketable securities		(45,699	)			(104,732	)
Purchases of property and equipment		(8,261	)			(3,387	)
Net cash provided by (used in) investing activities		540				(31,384	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee equity incentive plans		4,662				3,750
Repurchase of common stock		(79,257	)			(11,213	)
Payments for dividends		(11,512	)			—
Net cash used in financing activities		(86,107	)			(7,463	)
Net increase (decrease) in cash and cash equivalents		(46,794	)			2,356
Cash and cash equivalents—beginning of period		78,925				83,281
Cash and cash equivalents—end of period	$	32,131			$	85,637
Non-cash investing and financing activities:
Transfers between inventory and property and equipment	$	642			$	122
Purchases of property and equipment included in accounts payable	$	108			$	9

A10 NETWORKS, INC. RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT (unaudited, in thousands, except percentages)
	Three Months Ended September 30,										Nine Months Ended September 30,
	2022					2021					2022					2021
GAAP gross profit	$		57,294			$		52,166			$		161,615			$		140,048
GAAP gross margin			79.5	%				79.8	%				79.7	%				78.1	%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax			489					391					1,248					1,335
Global distribution center transition expense			—					13					—					538
Non-GAAP gross profit	$		57,783			$		52,570			$		162,863			$		141,921
Non-GAAP gross margin			80.2	%				80.4	%				80.3	%				79.1	%

A10 NETWORKS, INC. RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES TO NON-GAAP TOTAL OPERATING EXPENSES (unaudited, in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,
	2022					2021					2022					2021
GAAP total operating expenses	$		41,626			$		41,863			$		124,802			$		118,505
Non-GAAP adjustments:
Stock-based compensation and related payroll tax			(3,309	)				(3,810	)				(9,175	)				(10,098	)
Amortization expense related to acquisition			—					—					—					(505	)
Global distribution center transition expense			—					14					—					(2,408	)
Non-GAAP total operating expenses	$		38,317			$		38,067			$		115,627			$		105,494

A10 NETWORKS, INC. RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP OPERATING INCOME (unaudited, in thousands, except percentages)
	Three Months Ended September 30,										Nine Months Ended September 30,
	2022					2021					2022					2021
GAAP income from operations	$		15,668			$		10,303			$		36,813			$		21,543
GAAP operating margin			21.7	%				15.8	%				18.2	%				12.0	%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax			3,798					4,201					10,423					11,433
Amortization expense related to acquisition			—					—					—					505
Global distribution center transition expense			—					(1	)				—					2,946
Non-GAAP operating income	$		19,466			$		14,503			$		47,236			$		36,427
Non-GAAP operating margin			27.0	%				22.2	%				23.3	%				20.3	%

A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) (unaudited, in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,
	2022					2021					2022					2021
GAAP net income	$		12,113			$		74,886			$		28,878			$		84,159
GAAP net income margin			16.8	%				114.6	%				14.2	%				46.9	%
Exclude: Interest and other (income) expense, net			439					198					468					1,493
Exclude: Depreciation and amortization			1,827					2,291					5,539					7,044
Exclude: Provision for income taxes			3,116					(64,781	)				7,467					(64,109	)
EBITDA			17,495					12,594					42,352					28,587
Exclude: Stock-based compensation and related payroll tax			3,798					4,201					10,423					11,433
Exclude: Global distribution center transition expense			—					(1	)				—					2,946
Adjusted EBITDA	$		21,293			$		16,794			$		52,775			$		42,966
Adjusted EBITDA margin			29.5	%				25.7	%				26.0	%				24.0	%

 

The post A10 Networks Reports Record Quarterly Revenue of $72.1 Million, up 10.2% Driven by Balanced Product, Customer and Regional Mix appeared first on Cybersecurity Insiders.

November 02, 2022 at 09:09AM

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About $1 billion ransomware payments made in 2021 in United States

According to a finding of Treasury Department Data shared with world renowned news resource CNN, about $1 billion ransomware payments were made across the United States in the year 2021; probably the most ever reported in the history of cyber crime.

Treasury’s Financial Crimes Enforcement Network (FinCEN) report states that most of the crime was committed by Russian hackers or those funded by the Kremlin.

Highlights of the report dole us the fact that the Biden government should think seriously about those spreading ransomware, before the situation deteriorates any further.

Though certain stipulations were formulated by the Biden administration after the May 2021 Colonial Pipeline ransomware attack, nothing much seems to have changed in the fast and sophistication filled spread of various file encrypting malware.

NOTE- FBI and CISA are urging victims not to pay a ransom as it not only encourages crime but also doesn’t guaranty a decryption key for sure.

To contain the crime, Washington will organize an all government meeting by the end of this week to chalk out a plan to contain the free flow of ransom related payments.

Russia and China will stay away from the meeting, while the rest of the world will discuss on how to contain the crime and if necessary will announce a kind of ban on certain cryptocurrencies that are apparently acting as catalysts in perpetuation of the said digital crime.

What do you think? Will crypto ban help in containing the crime?

 

The post About $1 billion ransomware payments made in 2021 in United States appeared first on Cybersecurity Insiders.

November 01, 2022 at 08:41PM

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The State of Endpoint Security Management in 2022: It’s Worse Than You Suspect

How important is endpoint security management for organizations? If you ask security managers, not that much. A recent poll shows that it is not a concern for 60 percent of organizations. Around 49 percent of the poll’s respondents say that endpoint security is nonexistent for them, while 11 percent regard it as a lowest-priority matter.

This state of endpoint security is a disaster waiting to happen. Endpoints refer to any device that is literally an end point of a network. These can be mobile phones, workstations, desktop and laptop computers, tablet computers, smartphones, IoT devices, wearable smart devices, as well as virtual environments, among many others. Everyone who uses the internet or deals with a digital file or task uses an endpoint device. In other words, not having endpoint security is akin to recklessly using connected devices exposed to various cyber threats.

Is endpoint security complex?

Why don’t most organizations readily implement an endpoint security management system? Is it too complex and costly? Unfortunately, it is no longer as simple as it used to be in the past. Back then, endpoint security focused on computers, which meant the installation of antivirus, malware protection, firewall, and (sometimes) VPN in every computer.

Nowadays, endpoints are way more than their numbers from a couple of decades ago. Based on numbers from Statista, there will be over 40 billion connected devices by 2030, and most of these are IoT products. Only around a quarter of them are computers and other conventional web-connected devices that have cybersecurity software tools installed in them. Most devices have limited storage, RAM, and processors to bear their own security tools.

The complexity of endpoint security at present stems from the nature of the endpoint devices in use and their overwhelming numbers. The multitude of connected devices now ranges from smart cameras to small IoT appliances used for office management or supply chain control, wearables, and tracking and automating devices employed in various scenarios. They have different operating systems and some devices are not compatible with others. It is a challenge to secure all of them and coming up with a system to effectively cover all possible attack surfaces.

Organizations typically have several of these connected devices, and sometimes they are no longer being monitored because they may have already been forgotten or there is no one to keep track of them. These ignored, forgotten, and un-updated (OS/firmware) connected devices can become vulnerabilities exploited by cybercriminals to gain access to networks and cloud resources.

Certainly, endpoint security management has become more complex and difficult over the years because of the evolving nature of endpoint devices and their overwhelming numbers. There are no generic cybersecurity plans that work for all organizations operating different kinds of endpoint devices. Endpoint security management would have to be specific to particular situations to be effective and efficient.

Modern endpoint security solutions

What’s encouraging to know is that there are existing endpoint security management solutions that can approximate the specificity and reliability needed to address the varying needs of organizations. These are comprehensive cybersecurity solutions that involve a combination of security tools or controls, including next-generation antivirus, data leak protection, device access management, and threat detection and response tools.

Modern endpoint protection veers away from the conventional system of installing a cyber defense application in each and every device connected to the network. Instead, it brings together various security controls suitable for different categories of devices. Commonly referred to as endpoint detection and response (EDR), it serves as a platform to consolidate security information or alerts generated at different points of a network and by several security apps and enable unified, prompt, and efficient responses to threats.

Endpoint detection and response tools address the different ways through which threat actors use endpoints in making their way into enterprise networks and IT resources. They are designed to detect and block file-based malware attacks, examine network activities for malicious operations, and facilitate incident investigation and remediation. EDR tools also examine process executions, the communication between endpoints, user logins, and data movements to discover possible anomalies.

Modern endpoint security solutions automate most of the attack detection, investigation, and remediation tasks to achieve continuous protection. They help block malware infection by automatically scanning email attachments and file downloads, implementing runtime protection against file-less attacks, and keeping track of phishing sites and schemes in real time.

Moreover, the top-tier endpoint security platforms take advantage of shared threat intelligence and cybersecurity frameworks to boost attack detection and remediation capabilities. They are built to collaboratively work with other cybersecurity providers, cyber threat information institutions, and others that readily provide threat information and insights.

Are existing endpoint security solutions effective enough?

Forrester released its 2022 State of Endpoint Security report in July this year, saying that buyers are seeking better product efficacy and integrated data security. Many of the less-than-majority of organizations that use endpoint security solutions believe that they are not getting enough from the endpoint security platforms they are using.

This does not mean that all or most of the endpoint security platforms available now are ineffective. A good number of them are actually designed to address most user needs and preferences especially when it comes to process automation, comprehensive endpoint protection, up-to-date threat intelligence, advanced behavioral analysis to anticipate zero-day or yet-to-be-identified attacks, automatic data analysis, and cyber forensics reports, and high catch rates.

However, organizations may not be exposed to the more dependable endpoint security solution options. Also, those that have been using decent EDR platforms may not be making the most out of the features and functions available to them. It is possible that they are not well-versed in enabling comprehensive integration and conducting meaningful data analysis and correlation. Administrators could also be abusing access privileges and suspending controls recklessly.

Many security solution providers indeed overpromise and underdeliver. However, to be fair, there are those that actually provide genuinely effective solutions when used the right way and with proper technical support.

In conclusion

To say that endpoint security management needs improvement in 2022 is probably an understatement, with the backdrop of increasingly sophisticated and aggressive cyber attacks. It is urgent. It is clear that there is a need to boost endpoint security, and it should start with the desire of organizations to actively pursue effective and efficient endpoint security solutions.

While not every available endpoint security solution is effective and efficient enough, many of the options provide satisfactory outcomes especially in terms of unified threat monitoring and response, automated threat detection, and sensible efforts in reducing the human proneness to fall prey to phishing and other social engineering attacks.

The post The State of Endpoint Security Management in 2022: It’s Worse Than You Suspect appeared first on Cybersecurity Insiders.

November 01, 2022 at 07:58PM

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Security and the Future of Open Finance: How to Improve Adoption Globally

By Jacob Ideskog, CTO at Curity

The adoption of Open Banking has increased rapidly over recent years and has had a revolutionary impact on financial institutions and on the experience consumers have when interacting with finance products. According to the OBIE 5 million people are now using Open Banking in the UK, as the benefits of the new products and services  begin to be recognized by consumers and businesses alike.

However, the rapid rise of Open Finance has also coincided with concerns about the compliance and security risk that it poses. Curity’s latest report ‘Facilitating the Future of Open Finance’ revealed that over 70% of organizations globally are concerned with security related issues associated with Open Banking. It’s clear that this is a significant hurdle that still needs to be overcome if the adoption of Open Banking is to continue its rise.

The cybersecurity sector has the opportunity and means to alleviate fears and be at the forefront of the adoption of this revolutionary technology.

Addressing and Alleviating Security Concerns

A key concern amongst businesses is the extensive involvement of third-party providers that Open Finance requires and the heightened security risks associated with this, as over 65% of organizations view this as a top security concern. Additionally 62% of organizations have concerns with outdated security systems that don’t support securely sharing data.

However such concerns, whilst understandable, don’t recognize the current capabilities of security solutions available such as Multi-Factor Authentication and the implementation of Government regulations such as PSD2 in the EU. Crucial elements of the Open Banking experience are Application Programming Interfaces (APIs). APIs enable  the efficient exchange of data between applications, services, and customers and can be safely used as long as security and access is properly secured. Acting as the backbone for Open Banking, applications built using APIs with correctly secured access allow backend communication between banks and financial institutions without the need to re-enter or re-share login details every time.

With regard to outdated security systems, investment will be crucial in addressing this issue. Reassuringly, 83% of all organizations surveyed do plan to invest more into Open Banking this year than the previous 12 months. This will not only allow them to update their security systems to meet the standards that Open Banking requires, but will also improve the customer experience and reassure potential users.

The foundations of Open Banking are rooted in providing consumers with choice of financial products and  how they control their finances. Therefore providing a service that is interoperable between brokers, banks and third party financial institutions can be used to better the customer experience, so that all parties are equipped with the information that they need is vital. Furthermore, investment into the deployment of modern authentication methods will be a key aspect of addressing consumer hesitancy due to security concerns and ensuring consumer buy in.

Communication will also play a crucial role, both internally and externally. As mentioned previously many concerns of both financial institutions and consumers are either already accounted for by security systems or have solutions that can be immediately implemented. It’s vital to ensure that education around Open Banking is improved to alleviate fears that in some cases are unfounded amongst businesses and consumers alike.

The role of the cybersecurity industry

Whilst there are clear concerns and issues amongst organizations across the globe, there is undeniably significant momentum behind the adoption of Open Banking.  With almost three quarters of organizations surveyed planning to introduce Open Banking in the next 18 months, cybersecurity professionals’ focus should be on ensuring this transition is as smooth as possible.

This momentum and clear intention from businesses to adopt and invest in Open Banking provides the cyber security sector with a significant opportunity to be at the forefront of this banking revolution. It will be vital for the industry to work closely alongside financial institutions to support this change and mitigate risk at every turn.

We can expect the adoption of Open Banking to continue in the short term, but its long term health and adoption is absolutely dependent on the ability of the industry to address the security concerns and hesitancy that exist.

There’s potential for Open Banking to have a revolutionary impact on the way businesses and consumers approach their finances and more and more institutions are set to incorporate it into their business. However, despite the clear benefits associated with Open Finance, this cannot be done at the expense of individuals’ security and protecting their personal and private data. This is why the cybersecurity sector plays such an important role. If the industry doesn’t effectively mitigate risk and alleviate fears, no matter how much enthusiasm and momentum there is behind Open Banking it will not realize its full potential.

The post Security and the Future of Open Finance: How to Improve Adoption Globally appeared first on Cybersecurity Insiders.

November 01, 2022 at 06:50PM

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FTC issues cybersecurity warning to Chegg

Chegg, the American company that offers textbook rental and homework related online services to school and college students, has been asked to revamp its security practices. Failing which it will be eligible to go through harsh legal practices and hefty financial implications.

The Federal Trade Commission found in its investigations that the company was storing sensitive information about millions of its student customers and employees without following a basic security hygiene. This includes social security numbers, email addresses and passwords to access the services on the application.

Such practices in-turn led to 4 security breaches since 2017 and so the company was asked to revamp its security practices while collecting and storing data with authentication and biometrics that need to be followed by the staff.

Samuel Levine, the Director of FTC’s Bureau of Consumer Protection, acknowledged the news as true and clarified that after a 6 months period, the data watchdog will again review the security practices and then act aggressively.

Chegg that offers educational services online is sure to leap this issue with ease, as it has already revamped it’s in-house security practices related to data protection and its security.

NOTE- Because of lax security practices, a former contractor belonging to Chegg could steal data of nearly 40 million users by exploiting the company’s AWS cloud server. The contractor then sold information belonging to employees and other contractors on an online forum.

 

The post FTC issues cybersecurity warning to Chegg appeared first on Cybersecurity Insiders.

November 01, 2022 at 11:12AM

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