As the cybersecurity landscape evolves and cybercriminals continue to develop new ways to infiltrate computer systems and networks, employers must ensure their businesses are positioned to prevent and swiftly respond to cyber incidents. Digital forensics and incident response (DFIR) is a specialized field that integrates two cybersecurity areas to help businesses accomplish this goal. This article provides an overview of DFIR, examines the pros and cons of in-house and outsourced DFIR teams, and discusses how cyber insurance policies enable access to DFIR.
Understanding Digital Forensics and Incident Response
DFIR combines two cyber defense disciplines, digital forensics and incident response, to provide an integrated approach to cybersecurity:
- Digital forensics involves investigating cybersecurity events by gathering and analyzing digital evidence left by malicious actors, including malware and malicious code. This information allows investigators to reconstruct an incident, determine how the breach occurred and draft a report noting the details. This report can also be used in subsequent legal proceedings or insurance claims and can guide the business on how to avoid future cyberattacks.
- Incident response centers on detecting and addressing cybersecurity incidents. It seeks to contain the breach, mitigate its damage and initiate the recovery process. Incident response also involves conducting a post-incident review to guide a business in preventing future cyber intrusions and conducting ongoing risk assessments.
When these two areas are combined into a single DFIR process carried out by one team, they can complement each other and strengthen a business’s overall cybersecurity position. In contrast, when digital forensics and incident response occur independently, they can interfere with each other. For example, a team of digital forensic investigators may not work to swiftly contain a breach, as their primary aim is gathering and analyzing data, while incident responders may corrupt or lose evidence in their drive to eliminate a cyberthreat from a system or network.
When these fields are combined under one team, efficiency and effectiveness can improve. As part of its investigations, a DFIR team may discover a well-hidden threat within a system and have the authority and resources to remove it. They may also use their skills to save evidence and follow a chain of custody protocol while responding to and containing a cybersecurity breach. This evidence can be vital for the impacted business’s related insurance claims or lawsuits and for law enforcement’s investigation into the incident.
In-house vs. Outsourced Digital Forensics and Incident Response Teams
Businesses can have an in-house DFIR team or hire a third-party DFIR provider. Each option has distinct advantages and disadvantages. The benefits of having an in-house DFIR team are:
- Improved oversight and data security—By having an in-house DFIR team, a business can have greater control of its personnel and duties. An in-house team can also reduce data breach risks since an outside vendor is not accessing their network and systems.
- Familiarity—An in-house DFIR team will have a more thorough understanding of a business’s operations, and this relationship can improve communication and efficiency.
On the other hand, an in-house team may be more expensive and require a company to use more management resources.
Alternatively, outsourcing DFIR also has benefits, including:
- Lower costs and flexibility—By hiring an outside DFIR team, an employer can improve their cost efficiency and save management resources. They can also more readily scale their contracted DFIR team to match their evolving cybersecurity needs.
- Dedicated professionals—An outsourced DFIR team allows a business to access a team of professionals who specialize in DFIR and are current on the latest cybersecurity trends. They may also be available to provide around-the-clock support.
However, a business cedes some control when hiring an outside DFIR team and risks these third-party professionals being less familiar with the business’s needs and operations. Ultimately, each organization must analyze the pros and cons of each approach and determine which model best suits its needs.
Digital Forensics and Incident Response and Cyber Insurance
DFIR and cyber insurance often go hand in hand. They are both integral parts of a business’s cybersecurity position, and insurance carriers frequently provide the insured with a preapproved list of contractors, known as a vendor panel. By choosing a DFIR firm from the insurer’s vendor panel, a business may experience cost savings and improved claim efficiency as the insurer likely has an established relationship with the DFIR company. However, a business must diligently review potential third-party providers to ensure their services align with cybersecurity needs and goals.
We Can Help
DFIR plays a critical role in effective cyber incident investigation and response. As the cyberthreat landscape evolves, DFIR’s importance continues to grow. Businesses should proactively analyze their risks to ensure they are securing a DFIR team that strengthens their cybersecurity position.
If you’d like additional information and resources, we’re here to help you analyze your needs and make the right coverage decisions to protect your operations from cyber risks. You can download a free copy of our eBook, or if you’re ready to make Cyber Liability Insurance a part of your insurance portfolio, Request a Proposal or download our Cyber & Data Breach Insurance Application and we’ll get to work for you.