You probably know that it’s not a question of if, but when, you will be attacked. Are you doing enough to minimize your risk?
The single best way to know how well your company is secure is through penetration testing.

What is Penetration Testing?

Penetration testing, often called a “pen test,” is a proactive security measure where skilled professionals simulate cyberattacks on your company’s IT systems. These ethical hackers, known as penetration testers, use the same tools and techniques as real hackers, but their goal is to find and fix security weaknesses rather than cause harm.

During a pen test, the testers will launch mock attacks both on the devices within your network and from outside to see if they could gain access. This helps uncover critical vulnerabilities that a malicious attacker could exploit. By identifying these weak points, you can understand the real-world risks they pose to your business and take steps to strengthen your defenses.

Penetration Test vs Vulnerability Assessments

Penetration tests and vulnerability assessments are both used to find weaknesses in apps, devices, and networks for security purposes. However, these methods serve slightly different purposes.

Vulnerability Assessment

Think of a vulnerability assessment as a comprehensive health check-up for your IT systems. It involves scanning your network, software, and hardware to identify any potential weaknesses or vulnerabilities. The process generates a report with a detailed list of issues, including outdated software, weak passwords, and misconfigured systems. The goal is to provide you with a clear overview of your system’s security posture and highlight areas that need attention.

Penetration Test

A penetration test takes things a step further. Instead of just recognizing flaws, it simulates a real-world cyberattack to reveal how those vulnerabilities can be exploited. Employing the same techniques as malicious hackers, authorized penetration testers try to break into your systems. Their goal is to find out how far they can get and what damage they could do if they were real attackers.

Think of a pen test as hiring a friendly, professional burglar to try to break into your building. They won’t cause any harm, but they’ll show you exactly how a real burglar might exploit any weak points to access sensitive data or disrupt operations. Instead of trying to guess what hackers might do, this helps you understand the practical risks and gives you a clear action plan to strengthen your defenses against real-world cyberthreats.

Who Are Your Business’s Adversaries?

People may target your business for various reasons, like revenge, entertainment, negligence, ignorance, financial gain or criminal intent. So, who are these threats to network security and your clients’ privacy?

1. Malicious Outsiders: Competitors may try to steal sensitive information to gain a competitive advantage. Hacktivist individuals or groups that launch cyberattacks for political or social motives. State-sponsored hackers may target organizations for espionage or to disrupt operations. Organized cyber criminals aim to steal data for financial gain, often through ransomware or data breaches.
2. Insiders: Employees or former staff with access to sensitive information can pose a significant threat, whether through malicious intent or negligence.
3. Your Clients: Whether intentionally or unintentionally, customers with compromised IT systems can introduce malware or other risks into your network.
4. Your Vendors or Business Partners: Knowingly or unknowingly, partners with weak cybersecurity measures can be a gateway for attackers to access your systems.

How Penetration Tests Can Help Protect Your Business

Pen testers use a combination of automated and manual processes to uncover both known and unknown vulnerabilities. Penetration testing services are offered by outside experts who approach systems like hackers, often finding flaws that in-house security teams might not catch.

Here are some real-life examples of how companies in Canada and the U.S. used penetration tests to find cyber threats and improve their defenses against attacks:

1. Healthcare Provider

A healthcare provider in Canada used penetration testing to secure their electronic health record (EHR) system. The pen test uncovered several vulnerabilities, including weak password policies and unpatched software. By fixing these issues, the healthcare provider was able to protect sensitive patient data from potential ransomware attacks and unauthorized access.

2. Financial Services Firm

A mid-sized financial services firm in the U.S. employed penetration testing to evaluate the security of their online banking platform. The tests revealed several critical vulnerabilities, such as SQL injection flaws and inadequate encryption. By addressing these weaknesses, the firm improved the security of their online services and safeguarded customer financial information from cyber threats, reinforcing the trust of their clients.

3. Manufacturing Company

A mid-sized manufacturing company in Canada conducted penetration tests to assess the security of their industrial control systems (ICS). The tests identified vulnerabilities in the company’s network architecture and software configurations. By rectifying these issues, the company enhanced the security of their production processes and protected against potential industrial espionage and sabotage.

4. Educational Institution

An educational institution in Canada used penetration testing to assess the security of their online learning platform. The pen test revealed weaknesses that could be exploited to access student records and financial information. By enhancing their protective measures, the institution protected their data and maintained a secure online learning environment for their students.

By simulating real-world cyberattacks, these companies strengthened their defenses, protect sensitive information, and maintain the trust of their customers and stakeholders. Penetration testing is a crucial part of a comprehensive cybersecurity strategy for mid-size businesses aiming to safeguard their operations and data from cyber threats.

Where are Penetration Tests Required for Your Business?

Here are some key scenarios where penetration testing may be mandatory or strongly recommended:

Canada

1. To Obtain Cyber Insurance
   • Many cyber insurance policies require proof of comprehensive security measures before issuing coverage. Penetration testing serves as evidence that a business has identified and addressed vulnerabilities in its IT systems, making it more likely to qualify for insurance.
2. Personal Information Protection and Electronic Documents Act (PIPEDA):
   • While PIPEDA does not explicitly mandate penetration testing, it requires organizations to implement appropriate security measures to protect personal information. Penetration testing is often used to demonstrate compliance with this requirement by identifying and addressing vulnerabilities in an organization’s IT systems.
3. Provincial Privacy Laws:
   • Similar to PIPEDA, provincial privacy laws like the British Columbia Personal Information Protection Act (PIPA) and the Alberta Personal Information Protection Act (PIPA) require organizations to protect personal information. Penetration testing can help organizations meet these requirements.
4. Payment Card Industry Data Security Standard (PCI DSS):
   • PCI DSS requires organizations that handle credit card transactions to conduct regular penetration testing. This applies to Canadian businesses that process, store, or transmit credit card data.
5. Canada’s Critical Infrastructure Protection (CIP):
   • Organizations in sectors deemed critical to national infrastructure, such as energy, telecommunications, and finance, may be subject to regulations that require regular penetration testing to ensure robust cybersecurity measures are in place.

United States

1. Health Insurance Portability and Accountability Act (HIPAA):
   • HIPAA requires healthcare organizations to implement technical safeguards to protect electronic protected health information (ePHI). While not explicitly mandated, penetration testing is often used to meet HIPAA’s security requirements.
2. Payment Card Industry Data Security Standard (PCI DSS):
   • Similar to Canada, PCI DSS requires U.S. businesses handling credit card transactions to conduct regular penetration testing.
3. Sarbanes-Oxley Act (SOX):
   • SOX mandates that publicly traded companies implement controls to ensure the integrity of financial reporting. Penetration testing can be part of the IT controls to secure financial systems and data.
4. Federal Information Security Management Act (FISMA):
   • FISMA requires federal agencies and their contractors to implement a risk management framework that includes regular penetration testing to secure federal information systems.
5. Gramm-Leach-Bliley Act (GLBA):
   • GLBA requires financial institutions to protect the security and confidentiality of customer information. Penetration testing can help identify and mitigate vulnerabilities in systems handling this data.
6. ISO/IEC 27001
   • This international standard specifies the requirements for establishing, implementing, maintaining, and continually improving an information security management system (ISMS). Penetration testing is a critical requirement for identifying and managing technical vulnerabilities, assessing risks, and demonstrating compliance with the standard.

Penetration testing is a critical component of compliance with various regulations and standards in Canada and the United States. While not always explicitly mandated, it is often necessary to demonstrate that an organization has implemented robust security measures to protect sensitive information and maintain regulatory compliance.

When Should you Perform a Pen Test?

Ideally, you should perform these tests before any security breaches occur. Many businesses only think about penetration testing after they’ve been attacked, but by then, they might have already lost valuable data and tarnished their reputation.

The following suggest best practices for when to conduct a penetration test.

During System Development or Pre-Production: Delaying tests can lead to higher costs and rushed, less effective security measures.

After Significant System or Employee Changes: Testing needs to take place whenever significant changes are made in your IT systems or employee infrastructure. Test new network additions or major application updates promptly to secure vulnerabilities.

Ongoing Testing Practices: Penetration tests are not one-time events; they should occur at least once a year to maintain security standards and compliance. Conducting quarterly or monthly tests enhances defense by identifying risks earlier and provides a comprehensive view of your security status.

Regular penetration testing ensures your company information remains secure, and your employees stay vigilant, helping maintain trust and security in your business.

Why Armor Coded? Benefits of Working with Us

Tailor-Made Penetration Testing

• Customize tests specifically for your business needs, ensuring a thorough evaluation of your security.

Clear Communication

• Our reports are straightforward and free of jargon, making it easy for both your business and technical teams to understand the findings and recommendations.

Fixed Project Costs

• We offer clear, transparent pricing so you know the cost upfront, eliminating any surprises.

Expertise and Experience

• Our team has deep expertise in cybersecurity, focusing on the unique needs of mid-size businesses like yours.

Agility and Flexibility

• We adapt swiftly to your changing security needs and offer flexible scheduling to fit your business timeline.

Armor Coded’s Penetration Testing Process

1. Setting the Scope
Before we begin a penetration test, our team collaborates with your company’s appointed team to outline the scope of the test. This scope specifies which systems we’ll assess, when the testing will occur, and the methods our testers can use.

2. Reconnaissance
Once the scope is set, our testers begin to collect information about your systems in what we refer to as the Reconnaissance Phase. Think of it like detectives gathering clues. We look at things like your application’s code or devices your employees use or study how data flows across your network to spot any weak spots. We even check public sources like social media accounts, available documentation and news articles to learn more about potential vulnerabilities.

3. Target Discovery and Development
Using what we’ve learned, we identify areas where your systems might be vulnerable. For example, we might use tools to scan for open doors in your network that hackers could exploit, or we might create a fake email to see if employees unwittingly give away their login details.

4. Exploitation
In the Exploitation Phase, we simulate real-world attacks. This could include trying to trick your systems into revealing sensitive information or cracking passwords to see how easily they could be sold on the dark web. Our testers might flood your networks with too much traffic to see how quickly they can disrupt services or even try sneaking malware onto your computers. We do all of this to see how well your defenses hold up against different types of threats.

5. Escalation
If we manage to breach your defenses, we then try to escalate our access in what’s called the Escalation Phase. We might move from one weak spot to another, like getting into a computer and then using that access to reach more sensitive areas, just like a real hacker might.

6. Cleanup and Reporting
Afterward, we clean up any traces of our tests so real-world hackers can’t use them to break your network. Then we’ll prepare a detailed report for you. This report highlights any vulnerabilities we found, how we exploited them, and recommendations on how to strengthen your security. You’ll hold your own customized action strategy for improving your defenses against future attacks.

Learn more about the penetration testing technology we use at our Penetration Testing product page.