modeling and predicting cyber hacking breaches

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MODELING AND PREDICTING CYBER
HACKING BREACHES
ABSTRACT:
Analyzing cyber incident data sets is an important method for
deepening our understanding of the evolution of the threat situation. This
is a relatively new research topic, and many studies remain to be done.
In this paper, we report a statistical analysis of a breach incident data set
corresponding to 12 years (2005–2017) of cyber hacking activities that
include malware attacks. We show that, in contrast to the findings
reported in the literature, both hacking breach incident inter-arrival times
and breach sizes should be modeled by stochastic processes, rather than
by distributions because they exhibit autocorrelations. Then, we propose
particular stochastic process models to, respectively, fit the inter-arrival
times and the breach sizes. We also show that these models can predict
the inter-arrival times and the breach sizes. In order to get deeper
insights into the evolution of hacking breach incidents, we conduct both
qualitative and quantitative trend analyses on the data set. We draw a set
of cybersecurity insights, including that the threat of cyber hacks is
indeed getting worse in terms of their frequency, but not in terms of the
magnitude of their damage.

ARCHITECTURE:
EXISTING SYSTEM:
The present study is motivated by several questions that have not been
investigated until now, such as: Are data breaches caused by cyber-
attacks increasing, decreasing, or stabilizing? A principled answer to this
question will give us a clear insight into the overall situation of cyber
threats. This question was not answered by previous studies.

Specifically, the dataset analyzed in [7] only covered the time span from
2000 to 2008 and does not necessarily contain the breach incidents that
are caused by cyber-attacks; the dataset analyzed in [9] is more recent,
but contains two kinds of incidents: negligent breaches (i.e., incidents
caused by lost, discarded, stolen devices and other reasons) and
malicious breaching. Since negligent breaches represent more human
errors than cyber-attacks, we do not consider them in the present study.
Because the malicious breaches studied in [9] contain four sub-
categories: hacking (including malware), insider, payment card fraud,
and unknown, this study will focus on the hacking sub-category (called
hacking breach dataset thereafter), while noting that the other three sub-
categories are interesting on their own and should be analyzed
separately.Recently, researchers started modeling data breach incidents.
Maillart and Sornettestudied the statistical properties of the personal
identity losses in the United States between year 2000 and 2008. They
found that the number of breach incidents dramatically increases from
2000 to July 2006 but remains stable thereafter. Edwards et al. analyzed
a dataset containing 2,253 breach incidents that span over a decade
(2005 to 2015). They found that neither the size nor the frequency of
data breaches has increased over the years. Wheatley et al., analyzed a
dataset that is combined from corresponds to organizational breach
incidents between year 2000 and 2015. They found that the frequency of
large breach incidents (i.e., the ones that breach more than 50,000

records) occurring to US firms is independent of time, but the frequency
of large breach incidents occurring to non-US firms exhibits an
increasing trend.
PROPOSEDSYSTEM:
In this paper, we make the following three contributions. First, we
show that both the hacking breach incident interarrival times (reflecting
incident frequency) and breach sizes should be modeled by stochastic
processes, rather than by distributions. We find that a particular point
process can adequately describe the evolution of the hacking breach
incidents inter-arrival times and that a particular ARMA-GARCH model
can adequately describe the evolution of the hacking breach sizes, where
ARMA is acronym for “AutoRegressive and Moving Average” and
GARCH is acronym for “Generalized AutoRegressive Conditional
Heteroskedasticity.”We show that these stochastic process models can
predict the inter-arrival times and the breach sizes. To the best of our
knowledge, this is the first paper showing that stochastic processes,
rather than distributions, should be used to model these cyber threat
factors. Second, we discover a positive dependence between the
incidents inter-arrival times and the breach sizes, and show that this
dependence can be adequately described by a particular copula. We also
show that when predicting inter-arrival times and breach sizes, it is
necessary to consider the dependence; otherwise, the prediction results

are not accurate. To the best of our knowledge, this is the first work
showing the existence of this dependence and the consequence of
ignoring it. Third, we conduct both qualitative and quantitative trend
analyses of the cyber hacking breach incidents. We find that the
situation is indeed getting worse in terms of the incidents inter-arrival
time because hacking breach incidents become more and more frequent,
but the situation is stabilizing in terms of the incident breach size,
indicating that the damage of individual hacking breach incidents will
not get much worse. We hope the present study will inspire more
investigations, which can offer deep insights into alternate risk
mitigation approaches. Such insights are useful to insurance companies,
government agencies, and regulators because they need to deeply
understand the nature of data breach risks.
ALGORITHM:
SUPPORT VECTOR MACHINE
“Support Vector Machine” (SVM) is a supervised machine learning
algorithm which can be used for both classification and regression
challenges. However, it is mostly used in classification problems. In this
algorithm, we plot each data item as a point in n-dimensional space
(where n is number of features you have) with the value of each feature
being the value of a particular coordinate. Then, we perform
classification by finding the hyper-plane that differentiate the two

classes very well (look at the below snapshot).Support Vectors are
simply the co-ordinates of individual observation. Support Vector
Machine is a frontier which best segregates the two classes (hyper-plane/
line).More formally, a support vector machine constructs a hyper plane
or set of hyper planes in a high- or infinite-dimensional space, which can
be used for classification, regression, or other tasks like outliers
detection. Intuitively, a good separation is achieved by the hyper plane
that has the largest distance to the nearest training-data point of any class
(so-called functional margin), since in general the larger the margin the
lower the generalization error of the classifier.Whereas the original
problem may be stated in a finite dimensional space, it often happens
that the sets to discriminate are not linearly separable in that space. For
this reason, it was proposed that the original finite-dimensional space be
mapped into a much higher-dimensional space, presumably making the
separation easier in that space.
MODULES:
1. UPLOAD DATA
The data resource to database can be uploaded by both
administrator and authorized user. The data can be uploaded with
key in order to maintain the secrecy of the data that is not released
without knowledge of user. The users are authorized based on their
details that are shared to admin and admin can authorize each user.

Only Authorized users are allowed to access the system and upload
or request for files.
2. ACCESS DETAILS
The access of data from the database can be given by
administrators. Uploaded data are managed by admin and admin is
the only person to provide the rights to process the accessing details
and approve or unapproved users based on their details.
3. USER PERMISSIONS
The data from any resources are allowed to access the data with
only permission from administrator. Prior to access data, users are
allowed by admin to share their data and verify the details which are
provided by user. If user is access the data with wrong attempts then,
users are blocked accordingly. If user is requested to unblock them,
based on the requests and previous activities admin is unblock users.
4. DATA ANALYSIS
Data analyses are done with the help of graph. The collected
data are applied to graph in order to get the best analysis and
prediction of dataset and given data policies. The dataset can be
analyzed through this pictorial representation in order to better
understand of the data details.
FUTUREWORK:

There are many open problems that are left for future research. For
example, it is both interesting and challenging to investigate how to
predict the extremely large values and how to deal with missing data
(i.e., breach incidents that are not reported). It is also worthwhile to
estimate the exact occurring times of breach incidents. Finally, more
research needs to be conducted towards understanding the predictability
of breach incidents (i.e., the upper bound of prediction accuracy).
REQUIREMENT ANALYSIS
The project involved analyzing the design of few applications so as
to make the application more users friendly. To do so, it was really
important to keep the navigations from one screen to the other well
ordered and at the same time reducing the amount of typing the user
needs to do. In order to make the application more accessible, the
browser version had to be chosen so that it is compatible with most of
the Browsers.
REQUIREMENT SPECIFICATION
Functional Requirements
 Graphical User interface with the User.
Software Requirements

For developing the application the following are the Software
Requirements:
1. Python
2. Django
3. Mysql
4. Wampserver
Operating Systems supported
1. Windows 7
2. Windows XP
3. Windows 8
Technologies and Languages used to Develop
1. Python
Debugger and Emulator
 Any Browser (Particularly Chrome)
Hardware Requirements

For developing the application the following are the Hardware
Requirements:
 Processor: Pentium IV or higher
 RAM: 256 MB
 Space on Hard Disk: minimum 512MB
CONCLUSION:
We analyzed a hacking breach dataset from the points of view of
the incidents inter-arrival time and the breach size, and showed that they
both should be modeled by stochastic processes rather than distributions.
The statistical models developed in this paper show satisfactory fitting
and prediction accuracies. In particular, we propose using a copula-
based approach to predict the joint probability that an incident with a
certain magnitude of breach size will occur during a future period of
time. Statistical tests show that the methodologies proposed in this paper
are better than those which are presented in the literature, because the
latter ignored both the temporal correlations and the dependence
between the incidents inter-arrival times and the breach sizes. We
conducted qualitative and quantitative analyses to draw further insights.
We drew a set of cybersecurity insights, including that the threat of
cyber hacking breach incidents is indeed getting worse in terms of their
frequency, but not the magnitude of their damage. The methodology

presented in this paper can be adopted or adapted to analyze datasets of a
similar nature.

modeling and predicting cyber hacking breaches

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