Ethical hacking: The cybersecurity white hats that can save companies millions

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  Quantumrun Foresight
• August 4, 2022

Insight summary

Ethical hackers, known for their skills in identifying vulnerabilities, are becoming key players in enhancing cybersecurity for companies and industries. Their involvement also fosters trust among customers and reduces the economic impact of cyberattacks. This trend is also influencing educational and job markets, promoting a widespread culture of security awareness and leading to innovative strategies in cybersecurity risk management.

Ethical hacking context

Ethical hackers—also known as “white hats” (as opposed to cybercriminals’ “black hats”) and bug bounty hunters—are experiencing increased demand for their services as companies invest in cybersecurity measures that defend against phishing and ransomware attacks. According to digital tech consultancy firm Juniper Research, about $2 trillion in revenue was lost to cyberattacks worldwide in 2019 alone. And as more processes, systems, and infrastructures are migrated to the cloud and leverage digital technologies, cyberattacks will only continue to increase. 

To defend against these cyberattacks, ethical hackers are hired and permitted to infiltrate systems and try to “steal” data just like cybercriminals. Since ethical hackers are only equipped with basic knowledge about a company and its digital architecture and have no role in implementing its cybersecurity measures, they are in the best position to explore the effectiveness of these systems with objective eyes.

Independent, ethical hackers can be an effective defense against malicious hackers. White hats are trained to look for vulnerabilities in enterprise systems and provide appropriate countermeasures. Similarly, financial services firms, in particular, are increasingly adding “bug bounty programs” to their respective cybersecurity setups, including hiring external ethical hackers to test systems regularly. Some white hat-associated certifications include Certified Information Systems Security Professional (CISSP), Offensive Security Certified Professional (OSCP), Encase Computer Forensics Certification, and Network Forensic Investigator Certification. 

Disruptive impact

The integration of ethical hackers into cybersecurity strategies represents a significant shift to a proactive approach, which is crucial as it allows companies to update their infrastructures before cybercriminals can exploit any weaknesses. Ethical hackers' expertise extends to areas like cybersecurity dumpster diving, which helps in recovering and securing sensitive information that might have been lost or discarded.

As cybersecurity systems are strengthened with the support of ethical hackers, companies are likely to witness a notable decrease in their long-term digital security risks. The enhanced resilience of these systems against intrusions and hacking attempts also builds a stronger trust base with customers. For industries such as telecommunications and technology, where data security is paramount, this enhanced trust is invaluable. Furthermore, as companies become less prone to hacking, they can maintain their public reputations more effectively, safeguarding their brand image and customer loyalty.

The evolving landscape of cybersecurity has implications for the insurance industry as well. Insurance companies specializing in cybersecurity risk will have to adapt their underwriting models to account for the enhanced security measures companies are adopting. These insurers may also find value in employing ethical hackers, both to refine their risk assessment models and to provide additional services to their clients. 

Implications for ethical hacking usage

Wider implications of companies employing ethical hackers to test their systems may include:

• Companies able to redirect funds to growth and innovation, as the need for paying ransoms and recovering from data breaches diminishes.
• Government security agencies collaborating with private sector firms, utilizing ethical hackers' audits for comprehensive, national cybersecurity risk assessments.
• Businesses maintaining a ready pool of ethical hackers for continuous security checks, ensuring safer software development and IT system expansions.
• A surge in educational programs for ethical hacking, incorporating diverse skills like cryptography, reverse engineering, and memory forensics, expanding the labor market in cybersecurity.
• Enhanced job opportunities in cybersecurity, attracting a wider demographic and potentially reducing unemployment rates in technology sectors.
• The ethical hacking trend fostering a culture of security awareness among the general public, leading to more informed and cautious online behavior.
• Businesses in telecommunications and technology experiencing fewer disruptions from cyber attacks, resulting in more stable and reliable services for consumers.
• Environmental benefits from reduced electronic waste, as companies invest in securing rather than frequently replacing compromised hardware and software.

Questions to consider

• Do you agree that ethical hackers are now a necessary part of cybersecurity?
• Do you think ethical hackers can keep up with the latest advances in hacking technology and tactics due to their white hat status?