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Calculating the Cost of Full Disk Encryption

CowboyRobot writes "Is full disk encryption (FDE) worth it? A recent study conducted by the Ponemon Institute shows that the expected benefits of FDE exceed cost by a factor ranging from 4 to 20, based on a reduction in the probability that data will be compromised as the result of the loss or theft of a digital device. 'After doing all of the math, Ponemon found that the cost of FDE on laptop and desktop computers in the U.S. per year was $235, while the cost savings from reduced data breach exposure was $4,650.'"

34 of 242 comments (clear)

  1. One click for $235 by flyingfsck · · Score: 5, Funny

    I am expensive, but not that expensive. I don't charge a customer $235 to click a full disk encryption check box while installing Fedora Linux. Maybe I should...

    --
    Excuse me, but please get off my Pennisetum Clandestinum, eh!
    1. Re:One click for $235 by Joce640k · · Score: 5, Insightful

      The TCO of is more than the cost of installing it.

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      No sig today...
    2. Re:One click for $235 by Anonymous Coward · · Score: 5, Informative

      Quote: "The study measured costs in 11 segments: licensing, maintenance, incremental costs, device pre-provisioning, device staging, tech time spent on password resets, end-user downtime spent during password resets, cost associated with re-imaging hard drives, end-user downtime associated with initial disk encryption, end-user time spent operating an FDE-enabled computer, and the value of tech time incurred for various administrative tasks related to encrypted drives. [...] The study found that the most expensive element of FDE is [...] the value of user time it takes to start up, shut down and hibernate computing systems while using FDE."

    3. Re:One click for $235 by hairyfish · · Score: 4, Insightful

      I've been working in IT depts for roughly 20 years and can't remember ever having issues related to "data breach from lack of encryption". Not saying it doesn't happen, but I reckon for most people (outside of finance/defence/govt etc) it's overkill. It raises a question, how much security is too much? Do you have a lock on your front door? 3 locks? 45 locks? If you had 100 locks on your door and only locked 99 of them, would this be considered vulnerable? This is how I think of the security industry. One lock is fine. If that doesn't work, then no amount of extra locks will help. The bad guys will simply break a window.

    4. Re:One click for $235 by Anonymous Coward · · Score: 5, Insightful

      That's kind of a flawed way to look at things imo (no offence intented).

      Having 99 locks on the frontdoor is indeed pointless, but that's because all those locks perform the same function. Using (for example) a virusscanner, a firewall and full disk encryption is more akin to having both a lock on the frontdoor but also a fire extinquisher in the hallway. It's a very sane and generally smart thing to have.

      On a sidenote, having 2 (different) locks on a door may very well be a smart thing, because a Type A lock has different flaws than a type B lock. Having 2 different kinds means you potentially eliminate a variety of easy exploits that target a specific type of lock. I don't know where the "line" is but i find it hard to imagine more than 2 or 3 locks being a sane scenario for "regular" entrances.

      Now it's obviously true that every security measure brings with it a "penalty" if you will, to legit users. For most locks this means the user has to carry a key on him, something most people in the west consider normal and not a high price to pay. Having to remember a PIN code to use your debit card is also a penalty on legit accountholders, but we accept it. Now wether or not full disk encryption is as pricey as the article seems to make out, i dunno, but lets look at the alternatives.

      A) Unencrypted drives
      B) Certain Encrypted drives/containers/shares/whatever
      C) Full Disk encryption

      In this day and age (dare i say it, the Information Age) there is a definite demand for encrypting sensitive and important data for almost everyone but the most untrained pc user. This makes option A a bad choice for almost everyone which means the decision is not just about "should we use FDE or not", it becomes "do we encrypt EVERYTHING or just cetain objects" and in order to make that determination you need to look at the price for both.

      Let's not forget, simply enabling FDE is a minor act for the sysadmin whose installating the system, and since FDE is transparent to userspace applications, there is very little additional configuration or problems that arrise due to it. It will impact performance of the hardware, however one can take this into account during the purchase of new machine(s) and simply take a slightly faster system to make up for it (if that's even needed, usually it ain't). Only encrypting certain partitions, shares or folders means you have to deal with many additional administrative and training issues. How do you prevent ppl from moving sensitive files from the secure X:\ drive to the C:\ drive, how do you teach the (presumably non-IT) users where they can store which files. Which policies have to be enforced to ensure it all stays on the level. How often (if at all) do you audit the systems for "leaked" senstive files, etc.

      I'm not a sysadmin myself, but i do work in IT and have a fair understanding on their job, and to me at a quick glance it appears FDE is a LOT cheaper and easier for everyone involved than encrypting only sensitive files.

    5. Re:One click for $235 by smash · · Score: 3, Insightful

      OK. MD leaves his laptop at airport/side of road/in car that is stolen. He has competitive-advantage generating information on there, that would be worth millions of dollars in contracts to a competitor.

      We've had staff have laptops stolen, with data like that on them in the past. Do we know that the data was let into the wrong hands? Nope. But it could have been.

      --
      I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
    6. Re:One click for $235 by Dodgy+G33za · · Score: 4, Interesting

      Surely if it means a lot to you but not to anyone else then encryption is not as important (if at all) as backing up?

      I have lost personal data. I also have a few old and fairly important files kicking around that I password protected many moons ago and forgot the password.

      I have chosen not to encrypt, but I have a very solid backup routine.

      But then I can't imagine having data that is so personal (and yet irreplaceable) that I would rather lose it than have some random look at it.

    7. Re:One click for $235 by dbIII · · Score: 4, Interesting

      The other side of the coin is managing it properly. For example I've had to restore from an unencrypted backup purely because somebody who was managing their own disk encryption had forgotten how to access their files and needed whatever earlier copies were available as a matter of urgency. If it's not done properly with people at multiple sites having details of how to access the files it's not worth doing at all. An encrypted volume should not be a room full of people that have eaten the salmon mousse away from being permanently inaccessible.

    8. Re:One click for $235 by Alan+Shutko · · Score: 4, Insightful

      I've gone paperless, so I have tax returns, medical info, SSNs, etc on my laptop. Full Disk Encryption means I don't have to worry about it.

      With FDE, you have to decrypt it every time you use the computer, so you're not going to forget the password. If you're worried about that, put the password on a piece of paper in a safe deposit box or some other type of storage at home.

    9. Re:One click for $235 by __aagbwg300 · · Score: 3, Funny

      You think that's bad? I thought it was done by the Pokemon Institute.

    10. Re:One click for $235 by Just+Some+Guy · · Score: 3, Insightful

      If the information is that sensitive then what is it doing on a portable device in the first place...?

      I don't have information that sensitive by a long shot. But I'm currently a contractor who provides my own laptop and I do have some of my employer's sensitive information - pricing plans, campaign strategies, etc. - on my personal computer because that's what I use to do the work for them. I have OS X's full drive encryption enabled and a two-day-old encrypted Time Machine backup at my house. If my laptop gets stolen on the BART, bummer. I have to go fill out a police report, file an insurance claim, and do other inconvenient stuff. And when I bring my new laptop home, I restore it from the backup and I'm up and running again a couple of hours later. The thief has my hardware but not a single byte of my personal or employer's information.

      That's a nice situation to be in. If I did lose my laptop, I can tell my supervisor "sorry for the inconvenience while I get a replacement. Don't worry, though; your stuff is locked up and the thief can't get to it." That is infinitely preferable to the alternative of "umm, we might have a problem."

      --
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  2. Truecrypt TCO by nereid666 · · Score: 3, Interesting

    Does it cost Truecrypt TCO $403 year? for a company with fewer of 50 employees? I know Trucrypt don't have, enterprise functionality, like admin and user password, integration with identity management, but I thik 403$ year only in support and maintenance, using this opensource and free solution. And It is very difficult to meause the value of the information of a laptop.

    --
    Damia
    1. Re:Truecrypt TCO by neokushan · · Score: 3, Insightful

      Truecrypt is fantastic software. I find it's a lot easier to use and understand than Microsoft's Bitlocker (What's that about a TPM module? Do I need a USB stick or not? So many questions!) and it just works.

      --
      +1 IDisagreeSoHeMustBeATrollOrAnAstroturferOrAShill
    2. Re:Truecrypt TCO by bertok · · Score: 3, Informative

      The main difference between Truecrypt and Bitlocker is that the latter allows transparent decryption, which is very hard to solve without special hardware (TPM). Additionally, Bitlocker has automatic key escrow to Active Directory, but Truecrypt can only do the same kind of thing manually, which is useless when managing large numbers of computers.

      If you can trust your users to remember passwords, Truecrypt is much more secure. Similarly, Bitlocker can be made more secure as well if you set it up to require a passphrase during boot, without which it keeps the unencrypted key on the machine. The TPM chip is supposedly tamper-proof, but I bet there's at least one three-letter agency with a back door!

  3. Am I the only one that read... by yourtallness · · Score: 5, Funny

    A recent study conducted by the Pokemon Institute... :-P

  4. User still a risk point by N1AK · · Score: 5, Insightful

    One issue with IT security is that policies and security measures like this are only one small part of the picture. My partner works in a government affiliated company and has to use FDE for all PCs. Because of how they have implemented it they virtually all still use the default key (which wasn't random) and if you change it then you thwart the original intent of having quasi-hotdesks.

    Passwords written on desks, stuck to the screen etc are common in many places. Sending files off-network to places like dropbox or email to get around security 'hassles' is widespread. The owner of my current firm wants to use an iPad, because we won't let it on network he does most email from a web email account!

    FDE with rubbish passwords is entirely pointless as anyone with motivation to get in can. If you start requiring complex passwords the risk of people writing it down and storing it with the PC increases. We need to stop thinking about security as a technical issue and work out how to produce 'secure enough' systems which users don't subvert or misuse.

    If removing security breaches is worth nearly $5k a year then surely using some kind of RFID security card that must be near the PC/Laptop to unlock would be cost effective. I could keep it in my wallet or as a keyring. Even better would be combine it with a RSA style password device for two-factor authentication when providing a password (thus making less complex passwords less of an issue).

  5. translation by Hazel+Bergeron · · Score: 5, Informative

    'After doing all of the math,

    "After applying some simplistic formula"

    Ponemon

    "the guy promoting his firm with this /. article"

    found that the cost of FDE

    "without specifying any important parameters such as number of computers or environment in which they are used"

    on laptop and desktop computers

    "but noting that some were laptop and some were desktop because that makes the result sound a little more convincing"

    in the U.S. per year

    Encryption is a lot more expensive in Scotland. They can always look up yer kilt and ken yer keys!

    was $235,

    If this were a porn moneyshot, TFA author would now be panning away from the dick and squirting liquid soap everywhere, seemingly drenching the victim.

    while the cost savings from reduced data breach exposure was $4,650.

    Or $100,000, or life imprisonment, depending on your particular situation. Statistics: on average, not very useful.

  6. Re:Real Costs by pthisis · · Score: 4, Interesting

    At least partially:

    "The study found that the most expensive element of FDE is not the hardware or software involved, but the value of user time it takes to start up, shut down and hibernate computing systems while using FDE. "

    But this study doesn't pass the smell test. Take this, for instance: "The cost savings from reduced data breach exposure was $4,650." Imagine that FDE takes the risk of data breach on a stolen disk from 100% down to 0%. And imagine that any given computer has a 1% chance each year of being stolen by someone who's going to exploit the data on it (rather than just reformat it and sell or use it). Both of those are very generous estimates.

    The average value of a lost computer to my company--either in terms of profits lost or competitor's profits gained--would have to be $465,000 for the math to work. Which as a median doesn't make sense.

    If it's a mean, it only makes sense because there are a handful of computers whose value is tens or hundreds of millions of dollars counterbalancing the vast array of other computers worth far less--but if that's the case, the right solution probably isn't to lump all machines together for analysis purposes, it's to segregate out the high-value targets and treat their security differently from the low-value targets.

    --
    rage, rage against the dying of the light
  7. Re:Real Costs by Anonymous Coward · · Score: 3, Interesting

    Not when you're using an SSD.

  8. I'm rich! by mwvdlee · · Score: 3, Insightful

    ...$235, while the cost savings from reduced data breach exposure was $4,650.

    I've got an old laptop lying around that's not doing anything.
    Last thing I did with it was a clean install of a win8 beta.
    You say if I encrypt it's harddisk, it saves me over four thousand US$?

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  9. Share your experiences by Compaqt · · Score: 3, Interesting

    It would be handy if people could share their experiences with encryption.

    Good, bad, ugly.

    E.g., is it better to encrypt your home directory (as Ubuntu gives you an option for), or the whole disk?

    Has anyone had a problem where you were unable to access your encrypted home directory or drive?

    Does encryption increase the possibility that a small problem on a single sector of a disk will render the whole volume unreadable?

    What about using encryption along with various levels of RAID?

    In some circumstances, I'll connect a harddrive via USB. If you disconnect it, sometimes Ubuntu won't let you access the encrypted volume again until you physically turn on and off the drive (or, sometimes, reboot). Stuff like that makes me fearful.

    --
    I'm not a lawyer, but I play one on the Internet. Blog
  10. Re:Real Costs by neyla · · Score: 4, Interesting

    Agreed on the smell-test. No matter how good a security-measure is, it cannot save more money than is lost without it. (i.e. the best possible security is 100%)

    Thus for FDE to save $4650/computer/year, the current cost of data-loss that would be avoided with FDE must be atleast the same amount.

    There's about 100 million computers sold annually in USA, essentially none of which have FDE. The average computer is used for atleast 3 years. The total *current* cost of data-losses must thus be atleast: 100M * $4650 *3 = $1395 billion/year.

    That doesn't pass the smell-test. It would mean the losses add up to $12500 a year for each household, which is utterly ridicolous.

  11. No kidding by Sycraft-fu · · Score: 5, Insightful

    In a corporate environment, you have to have some kind of key management system. You can't do FDE with a free utility that is just "Enter the password to get in to the computer." Well why not? Tow big reasons:

    1) What if the person suddenly up and dies, and you need to get at the data? A backup won't help if said backup is also encrypted with the same password that only they knew. You need to have a system to get in.

    2) More commonly, what do you do when a user forgets their password? This happens ALL the fucking time. People cannot remember passwords, just how it is. Just losing data is not an acceptable answer, so you have to have a system that can get in.

    Now there are systems out there like that. They have central key stores, key recovery facilities and so on all while maintaining cryptographic security. However all the ones I've seen cost money. Then on top of that is the cost of administering such a system.

    As an example at work a lady forgot her password, as she is known to do on days ending in "y". So she couldn't get in the encrypted laptop that has key codes for the doors (she deals with that). She also hadn't put the laptop on the 'net in like a year, so it was all desync'd with the Active Directory. This meant my boss couldn't log in to do any kind of override. So he had to hook it up, go through this key recovery thing where the console give you a bigass key to enter in to the system, then get it to sync passwords, then he could log in and get everything working. Took a fair bit of time to do.

    You have to count all that kind of thing in cost calculations. You can't pretend like it isn't a cost. Yes you already pay his salary but he has about 5,000 other thing to be doing that weren't being done while he worked on that. Needless to say if this were being used for more than a couple systems (we only use it in special cases) it would quickly need one or more people who's job was to administer it and deal with all the problems caused by it (meaning by users).

    1. Re:No kidding by bertok · · Score: 5, Insightful

      Now there are systems out there like that. They have central key stores, key recovery facilities and so on all while maintaining cryptographic security. However all the ones I've seen cost money. Then on top of that is the cost of administering such a system.

      Security only costs extra if you had nothing to begin with, which basically never happens. Any corporation with data worth stealing is likely to have Active Directory, which has a convenient key escrow functionality built right in.

      If you've already purchased Windows Server and have standardized on Windows 7, then full disk encryption with all the goodies is just a few button clicks away, and costs nothing but the 60 minutes it takes to read through the relevant technet articles and then setting a few settings in group policy.

      She also hadn't put the laptop on the 'net in like a year, so it was all desync'd with the Active Directory.

      That's not her fault, that's the IT department's fault. That laptop can't possibly have been properly patched, its data synchronized, or up-to-date security policies applied. That should have rung alarm bells in the system, or locked her out until she did synchronize successfully.

      Which can be done wirelessly these days. From home. Using transparent VPNs that require zero user interaction. All of which can be monitored centrally.

      So he had to hook it up, go through this key recovery thing where the console give you a bigass key to enter in to the system, then get it to sync passwords, then he could log in and get everything working.

      Wait, wait, wait.. let me get this straight: she failed to authenticate properly with the system for something like a year, which then correctly locked her out after the timeout expired, protected the data on her laptop, allowed you to recover the data as designed, and all of this required just a few minutes of typing? And to top that off, the security system insisted that her hopelessly out-of-date credentials cache be updated to verify her account?

      OH MY GOD THE HORROR! The hassle! Why doesn't the crypto system just fall dead and recognize how important this lady is and unlock all of her data, despite her ongoing blatant violation of IT security policy! The nerve of Microsoft for designing such a thing! Next thing you know, they'll insist that you use passwords to log on to computers! Can you imagine?! We just won't be able to get any work done around here any more!

      Clearly this is all just a giant conspiracy to drain valuable IT resources.

      You have to count all that kind of thing in cost calculations.

      Additional electricity due to use of AD Policy Driven Bitlocker encryption: $57.35
      One hour support call to fix non-compliant user's locked out system: $197.50
      Incompetent IT team: $457,350.00
      Potential lawsuit due to leaking user data: Priceless.

      Yes, you do have to factor that kind of thing in, you're right.

    2. Re:No kidding by RaceProUK · · Score: 3, Informative

      *points to joke*

      --
      No colour or religion ever stopped the bullet from a gun
  12. Re:Depends on the data, doesn't it? by Antarius · · Score: 4, Funny
  13. it depends by smash · · Score: 3, Insightful

    on a modern cpu with AES hardware acceleration, the cpu cost is minimal. if you have valuable data, you'd be negligent not to enable it.

    --
    I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
  14. Re:Truecrypt FTW by smash · · Score: 4, Insightful

    So, how well do you stand up to beatings/torture, tough guy?

    --
    I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
  15. Re:Truecrypt FTW by Rogerborg · · Score: 4, Insightful

    I love giving police the finger when they demand to see what's on my laptop

    And in your fantasy, does the Lady Cop say "Oh, Mr Neckbeard, your fingering is so... virile," then bow-chicka-wow?

    There's nothing so sad as preparing for an apocalyptic showdown with The Man, when The Man could not possibly care less about you or your data. Encrypt, don't encrypt, you've got more chance of being eaten by badgers than subjected to a search-and-seizure.

    --
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  16. Re:Real Costs by pthisis · · Score: 3, Insightful

    According to the article, they're the average actual losses, not potential. If the potential losses were $4650 and the actual annual cost of FDE was $235, then you'd need to believe that every computer has a 5% chance of being stolen and exploited every year in order for FDE to be worth it; the article would have to conclude that FDE isn't worth it for the average machine in that case.

    By ginning up a ludicrously overstated actual loss, though, they're able to make FDE look like a total bargain--at least until you start thinking about it enough to realize the numbers are cooked.

    --
    rage, rage against the dying of the light
  17. Re:Truecrypt FTW by Tastecicles · · Score: 3, Informative

    No one is bound to answer any question if the answer thereto would, in the opinion of the judge, have a tendency to expose (him) to any criminal charge, penalty or forfeiture which the judge regards as reasonably likely to be preferred.
      - Established precedent over 1100 years of Common Law, from the Code of Alfred 870 to the Fifth Amendment of the US Constitution.

    In Saunders v UK (ECHR), according to which "the right not to incriminate oneself does not extend to the use in criminal proceedings of material which may be obtained from the accused through compulsory powers but which have an existence independent of the will of the suspect, such as, inter alia, documents acquired pursuant to a warrant, breath, blood and urine samples and bodily tissue for the purpose of DNA testing".
    This would only extend to a passphrase which exists outside the mind of the defendant. It would be on the prosecutor to prove that such a document exists to obtain an order against which refusal would result in a finding of contempt. Therefore, no court can force disclosure of a passphrase which exists only in the grey matter of one individual.
      - Also established precedent (NG08C10148, in camera and compartmentalised).

    For those who are about to fire the thought-ending cliché, "What, do you have something to hide?" Why, yes I do. The nature of that material is nobody's business but mine, and if you think it's of an illegal nature, it's on you to prove it beyond supposition and paranoid delusion - "beyond reasonable doubt" as is required in a criminal process. But do NOT expect me to help you or feed your fantasy.

    --
    Operation Guillotine is in effect.
  18. Re:Truecrypt FTW by cpghost · · Score: 4, Insightful

    If you live in a fucked up police state where this is considered possible, you have more problems to care for than merely encrypting data.

    --
    cpghost at Cordula's Web.
  19. Warranty void if unencrypted by Anonymous Coward · · Score: 3, Insightful

    As far as I'm concerned, storing any confidential data on a hard disk unencrypted effectively voids the warranty, because there's no way I'm going to send a drive containing sensitive data away for warranty replacement.

  20. Re:Silly numbers by gnasher719 · · Score: 3, Interesting

    - tech time spent on password resets: zero. This is real encryption, there's no such thing available as "password reset", there's only a passphrase which cannot be recovered. If it can, then this means you have zero security

    Nonsense. For example, Apple uses three keys: 1. The actual encryption key for the disk. It is never accessible to the user, it is stored in encrypted form on the disk, and by overwriting that portion of the disk, you can wipe a disk within milliseconds. 2. The master key. This key is used to decrypt the real key. It's a long hex number; you can write it down _and put the paper in your safe_. You'll never need it unless you need to do a password reset. 3. The user's password. The user has a password which is used to recover the master key. Multiple users can have different passwords. The password can be changed at any time without having to re-encrypt the data, because it is only used to decrypt the master password.

    So you can do password resets, but only if you have the master key. Which is used _only_ for that purpose.