Q: What are the major security concerns for companies using FTP and Telnet?
A: The main problem with FTP or Telnet is that they are fundamentally insecure protocols. FTP dates back from the 60’s when it was commissioned by DARPA and Telnet was created a bit earlier. That was a time when network security was not as much of a concern as it is today. Both protocols were designed with simplicity, versatility and flexibility in mind, but definitely not security. FTP is primarily used for transferring files between homogeneous or heterogeneous environments while Telnet is the de facto protocol for accessing text-based legacy applications or remotely managing servers and network equipment.
Both FTP and Telnet have many security issues, but the most critical are:
• Clear-text transmission: all communications are done in clear text, including usernames and passwords
• Weak client authentication: both FTP and Telnet authenticate users through usernames and passwords, which, time and time again, have proven to be unreliable authentication methods. There is no support for more advanced authentication methods such as public/private key, Kerberos or digital certificates
• No server authentication: this means that users have no way to be sure that the host they are communicating with really is the FTP server and not an attacker impersonating the server
• Absence of data integrity: problem here is that, assuming the same scenario as above, anyone could alter and corrupt the data being transmitted between the server and the client without being noticed
There are more problems related to FTP and Telnet such as the many exploits available on the Internet or the fact that they don’t play nice with firewalls. Ultimately, these technical problems become critical business challenges which amount to two things: cost of a security breach and lack of compliance with industry standards.
According to a 2007 Forrester study, security breaches cost anywhere between $90 to $305 per record breached. As an example, the breach of a simple text file containing 5,000 names, addresses and social security numbers or credit card numbers would end up costing between $450,000 and $1,525,000. This is the kind of money that businesses can not afford to pay these days, especially when you realize that adequately protecting yourself against simple breaches like FTP or Telnet is going to cost you between 1% and 5% of that amount.
At the end of the day, it’s not about the technicalities of security, it’s about how much you are putting your business at risk by not taking care of basic things such as Telnet or FTP and what price you’ll pay for that.