New Cloudflare Report Shows Organizations Struggle with Outdated Security Approaches, While Online Threats Increase

Rhea-AI Summary

Cloudflare's latest State of Application Security 2024 Report highlights significant security challenges faced by organizations due to outdated security approaches and increasing online threats. The report notes a rise in distributed denial of service (DDoS) attacks, with DDoS comprising 37.1% of mitigated traffic, and mentions the largest DDoS attack in history. Zero-day vulnerabilities are being exploited faster than ever, with one case occurring just 22 minutes after proof-of-concept publication. Bad bots, making up 31.2% of traffic, predominantly pose threats, particularly to industries like Manufacturing, Cryptocurrency, and the US Federal Government. The reliance on third-party software introduces growing risks in supply chain security, with organizations using an average of 47.1 pieces of third-party code and making 49.6 outbound connections. The report is based on traffic patterns from April 1, 2023, to March 31, 2024, across Cloudflare's global network.

Positive

• Cloudflare's network blocks an average of 209 billion cyber threats daily.
• DDoS attacks, a major threat, are actively mitigated, representing 37.1% of application traffic.
• The report provides detailed insights into security challenges, assisting organizations in better threat management.

Negative

• Organizations are struggling to keep up with modern application security demands.
• Zero-day vulnerabilities are exploited rapidly, highlighting severe security gaps.
• A significant portion of traffic (31.2%) is from potentially malicious bots.
• Dependence on third-party software increases supply chain security risks.

Financial Analyst

The Cloudflare report reveals significant trends in the cybersecurity landscape that can influence investor sentiment. The key takeaway here is the increasing frequency and intensity of Distributed Denial of Service (DDoS) attacks, which now comprise 37.1 of all application traffic mitigated by Cloudflare. This highlights the growing importance of Cloudflare's services in protecting web applications and APIs. Given that Cloudflare's revenue model depends heavily on its ability to provide robust security solutions, this uptick in cyber threats could potentially translate into increased demand for their services, thereby positively impacting their top-line growth.

Furthermore, the report underscores the rapid exploitation of zero-day vulnerabilities, which suggests that organizations are not just dealing with more threats but also more sophisticated ones. This could lead to higher client retention for Cloudflare as businesses prioritize advanced security measures.

However, the financial burden on organizations to constantly update and maintain robust security measures will also be significant. Cloudflare's ability to continuously innovate and stay ahead of cyber threats will be important for its long-term sustainability. Investors should monitor the company's R&D investments and product pipeline closely.

Tech Expert

The key findings from Cloudflare's report offer a critical look at the evolving state of cybersecurity. One particularly notable point is the record-breaking time-to-exploit of new zero-day vulnerabilities, with a breach occurring just 22 minutes after its proof-of-concept was published. This rapid exploitation suggests a need for immediate and proactive defense mechanisms. The reliance on outdated security approaches for APIs is another alarming trend. Traditional Web Application Firewall (WAF) rules are based on a negative security model, whereas the industry best practice is moving towards a positive security model. This shift indicates that many organizations are not fully prepared for modern API threats.

The significant presence of bad bots—accounting for 31.2 of all web traffic—further complicates the security landscape. These bots can severely disrupt operations, making it imperative for organizations to adopt more sophisticated bot mitigation strategies. Cloudflare’s capability to block an average of 209 billion cyber threats daily demonstrates its capacity but also highlights the scale of the challenge. For retail investors, understanding Cloudflare’s technological edge and its ability to adapt to these rapid changes in threat landscapes will be crucial.

Market Research Analyst

The report sheds light on critical market dynamics that could influence Cloudflare’s position in the cybersecurity industry. The rising volume of cyber threats, especially DDoS attacks, points to a growing market for advanced security solutions. Industries like Gaming and Gambling, IT, Cryptocurrency and Marketing are particularly vulnerable and these sectors may increasingly turn to Cloudflare for protection. This could enhance Cloudflare’s market share in these high-risk industries.

The increased reliance on third-party software adds another layer of complexity. Organizations now use an average of 47.1 pieces of code from external providers, which exposes them to supply chain risks. This trend may drive businesses to seek comprehensive security platforms, bolstering demand for Cloudflare’s integrated solutions.

Nevertheless, the market's competitive landscape is also intensifying. Competitors are likely to ramp up their offerings to capture this growing demand. Cloudflare's ability to maintain its technological edge and effectively market its products will be pivotal for sustaining its competitive advantage.

Insights reveal record-breaking time-to-exploit of new zero-day vulnerability, largest DDoS attack in the history of the Internet, and increasing supply chain threats

SAN FRANCISCO--(BUSINESS WIRE)-- Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today published its State of Application Security 2024 Report. Findings from this year's report reveal that security teams are struggling to keep pace with the risks posed by organizations’ dependency on modern applications—the technology that underpins all of today’s most used sites. The report underscores that the volume of threats stemming from issues in the software supply chain, increasing number of distributed denial of service (DDoS) attacks and malicious bots, often exceed the resources of dedicated application security teams.

Today’s digital world runs on web applications and APIs. They allow ecommerce sites to accept payments, healthcare systems to securely share patient data, and power activities we do on our phones. However, the more we rely on these applications, the more the attack surface expands. This is further magnified by the demand for developers to quickly deliver new features—e.g., capabilities driven by generative AI. But if unprotected, exploited applications can lead to the disruption of businesses, financial losses, and the collapse of critical infrastructure.

“Web Applications are rarely built with security in mind. Yet, we use them daily for all sorts of critical functions, making them a rich target for hackers,” said Matthew Prince, co-founder and CEO at Cloudflare. “Cloudflare's network blocks an average of 209 billion cyber threats for our customers every single day. The layer of security around today’s applications has become one of the most essential pieces to making sure the Internet stays secure.”

Key findings from Cloudflare’s State of Application Security 2024 Report include:

• DDoS attacks continue to increase in number and volume: DDoS remains the most leveraged threat vector to target web applications and APIs, comprising 37.1% of all application traffic mitigated by Cloudflare. Top targeted industries were Gaming and Gambling, IT and Internet, Cryptocurrency, Computer Software and Marketing and Advertising.
• First to patch vs. first to exploit—the race between defenders and attackers accelerates: Cloudflare observed faster exploitations than ever of new zero-day vulnerabilities, with one occurring just 22 minutes after its proof-of-concept (PoC) was published.
• Bad bots—if left unchecked—can cause massive disruption: One-third (31.2%) of all traffic stems from bots, the majority (93%) of which are unverified and potentially malicious. Top targeted industries were Manufacturing and Consumer Goods, Cryptocurrency, Security and Investigations, and US Federal Government.
• Organizations are using outdated approaches to secure APIs: Traditional web application firewall (WAF) rules that use a negative security model—the assumption that most web traffic is benign—are most commonly leveraged to protect against API traffic. Far fewer organizations use the more widely accepted API security best practice of a positive security model—strict definitions on traffic that is allowed, rejecting the rest.
• Third-party software dependencies pose growing risk: Organizations use an average of 47.1 pieces of code from third-party providers and make an average of 49.6 outbound connections to third-party resources to help enhance website efficiency and performance—e.g., leveraging Google Analytics or Ads. But as web development has largely shifted to allow these types of third-party code and activity to load in a user's browser, organizations are increasingly exposed to supply chain risk and liability and compliance concerns.

Report Methodology: This report is based on aggregated traffic patterns (observed from April 1, 2023 - March 31, 2024) across the Cloudflare global network. This data and threat intelligence from Cloudflare’s network has been complemented by third-party sources, as cited throughout the report. Cloudflare mitigated 6.8% of all web application and API traffic during the data collection period. Mitigated traffic is defined as any traffic that is blocked or is served a challenge by Cloudflare. The specific threat type and relevant mitigation technique depend on many factors, such as the application’s potential security gaps, the nature of the victim’s business and the attacker’s goals.

To learn more, please check out the resources below:

• Cloudflare State of Application Security 2024 Report
• Cloudflare Application Services

About Cloudflare

Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company on a mission to help build a better Internet. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.

Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.

Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at https://radar.cloudflare.com.

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern Cloudflare’s expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding Cloudflare’s products and technology, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, future market risks and trends, and comments made by Cloudflare’s CEO. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Cloudflare’s filings with the Securities and Exchange Commission (SEC), including Cloudflare’s Quarterly Report on Form 10-Q filed on May 2, 2024, as well as other filings that Cloudflare may make from time to time with the SEC.

The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Cloudflare undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Cloudflare may not actually achieve the plans, intentions, or expectations disclosed in Cloudflare’s forward-looking statements, and you should not place undue reliance on Cloudflare’s forward-looking statements.

© 2024 Cloudflare, Inc. All rights reserved. Cloudflare, the Cloudflare logo, and other Cloudflare marks are trademarks and/or registered trademarks of Cloudflare, Inc. in the U.S. and other jurisdictions. All other marks and names referenced herein may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240625803487/en/

Cloudflare, Inc.

Daniella Vallurupalli

Vice President, Head of Global Communications

press@cloudflare.com

Source: Cloudflare, Inc.

FAQ

What does Cloudflare's State of Application Security 2024 Report reveal?

The report reveals increasing online threats, including record-breaking DDoS attacks, rapid exploitation of zero-day vulnerabilities, and significant risks from bad bots and third-party software dependencies.

How rapidly are zero-day vulnerabilities being exploited according to Cloudflare's report?

The report notes that zero-day vulnerabilities can be exploited as quickly as 22 minutes after a proof-of-concept is published.

What percentage of traffic mitigated by Cloudflare consists of DDoS attacks?

DDoS attacks comprise 37.1% of all application traffic mitigated by Cloudflare.

Which industries are most targeted by bad bots as per Cloudflare's report?

Manufacturing and Consumer Goods, Cryptocurrency, Security and Investigations, and the US Federal Government are the most targeted by bad bots.

How does reliance on third-party software affect security according to the Cloudflare report?

Reliance on third-party software increases supply chain security risks, with organizations using an average of 47.1 pieces of third-party code and making 49.6 outbound connections.