Introduction to Penetration Testing Costs - A Detailed Guide

REDSECLABS

• 7 min read
Introduction to Penetration Testing Costs - A Detailed Guide

Pentesting (Penetration Testing) is a vital part of an organization’s cybersecurity strategy. This involves simulating cyber attacks on your systems, networks, or applications to identify vulnerabilities before they can be exploited by threat actors. Apart from finding loopholes, this process also helps organizations the effectiveness of security controls in real time.

Understanding the costs associated with penetration testing is important for organizations, not only to make sound budgets but also to ensure they get the best value for their investment. Penetration testing costs can vary greatly depending on a wide variety of factors, which we will explore in this guide.

Factors Affecting Costs

Scope and Complexity

Entrance testing affects that cost significantly. A simple test might involve testing a single web application, while a complex test might involve multiple applications, networks, and endpoints. The more detailed and complex the environment, the more time and resources are required, increasing costs. Additionally, when an organization has multiple IT infrastructures with different operating systems, cloud environments, and legacy systems, complexity increases and specialized skills are required, which in turn increases costs.

Type of Test

Different types of penetration tests have varying cost structures:

  • Black Box Testing - The tester has no prior knowledge of the system being tested, simulating an attack by an external hacker. This approach helps identify vulnerabilities that could be exploited by outsiders. Ideally, it's important to understand what your security posture looks like from an external perspective. Since the tester is unaware of the system's internal workings, this method can uncover unexpected security gaps that might be overlooked by those familiar with the system. However, black-box penetration tests may take less time if the external attack surface is limited. That said, certain issues, such as Authentication Bypass, Server-Side Request Forgery (SSRF), and unprotected endpoints, might be missed in black-box testing due to the limited visibility into the system.

  • White box testing - The tester has complete knowledge of the system including the source code. This approach allows for a thorough analysis of internal and external weaknesses. It involves a thorough assessment of the system's security from the inside out. White box testing is particularly effective at identifying weaknesses in rules and regulations that can be exploited by any stakeholder. There are pros and cons to these testing For instance, Logic flaws can be deeply embedded within the business logic, making them hard to identify even with source code access. These flaws require a deep understanding of the application’s intended behavior, which may not be fully apparent from the code alone.

  • Gray Box Testing - Gray box testing is a combination of black box and white box testing, where the tester has partial knowledge of the system. This may include credentials for different roles within the system, enabling the tester to assess vulnerabilities such as Insecure Direct Object References (IDOR). This approach helps identify weaknesses from both internal and external perspectives, offering a balanced view of how different access methods can impact system security. Gray box testing is often used to simulate an attack by a known insider or a sophisticated external attacker who has gained limited access to the system.

Experience of the Testing Team

The overall experience and standing of the penetration testing team can greatly affect costs. Highly skilled testers or firms that rotate aggressively tend to charge higher fees for their services. They bring with them a wealth of knowledge, as they have coped with systems and threats, which can be invaluable in addressing potential weaknesses that less experienced teams may miss.

Type of Penetration Testing Engagement

Web application-based penetration testing is currently the most common type of testing due to the overall popularity of web applications and the rise of cloud and SaaS-based solutions. While enterprise network infrastructure penetration testing has been a staple, other types of pentests, such as smart contract audits, Web 3.0 wallet security, hardware penetration testing, and VPN testing, can be more expensive due to their niche nature and specialized expertise required. These specialized pentests often involve advanced techniques and higher levels of scrutiny, which can drive up the cost. 

Compliance and Reporting Requirements

Organizations in regulated industries such as finance, healthcare, and government often have specific compliance requirements that must be met. These may include compliance with standards such as PCI-DSS, SOC2, ISO 27001, and GDPR, which may require extensive testing and reporting. Meeting these standards often requires additional documentation, analysis, and possibly even follow-up testing, all of which contribute to higher costs.

Cost Breakdown for Penetration Testing Services

Penetration testing is an essential component of a robust cybersecurity strategy. It involves simulating real-world attacks to uncover vulnerabilities prior to threat actors exploiting them. 

Cost: These rates can greatly vary from country to country and market to market, however  they would usually be in the range of 700 to 2000 USD per day. The number of days would depend upon a wide variety of factors, however most importantly being the complexity of the network/application. 

Below is a detailed look at the costs, scope, and objectives for different levels of penetration testing:

1. Small-Sized Websites

Websites that are primarily hosted on Content Management Systems (CMS) like WordPress, Joomla, Drupal, and other similar platforms. These websites are usually straightforward and designed for basic functionalities like blogs, small business sites, or portfolio pages. They often leverage pre-built themes and plugins to manage content, forms, and media, with limited custom development or API integrations.

Timeline: Projects in this category are generally completed within 3-5 days, as they involve simpler, less complex tasks such as setting up the CMS, configuring plugins, and making minimal design customizations. These are ideal for businesses or individuals seeking quick, cost-effective solutions for online presence.

2. Mid-Sized Applications

Websites and web applications that require a higher level of complexity, including API interactions, custom development portals, and integrations with third-party services or platforms. This could involve building dynamic features, such as user dashboards, data exchange between different systems, e-commerce functionalities, or real-time interactions through APIs.

Timeline - Takes anywhere from 5 to 14 days. These projects require deeper custom development, more extensive testing, complex API or database management, and might involve building from scratch or significantly modifying an existing system. They also demand more detailed security reviews and infrastructure optimization.

3. Enterprise-Level Projects

Large-scale, high-complexity projects that cater to enterprise environments. These projects often involve a robust and scalable architecture designed for extensive user bases, multi-service applications, or platforms that support multiple business processes. An enterprise-level project may involve a wide variety of integrations with internal business systems, such as Customer Relationship Management (CRM) software, Enterprise Resource Planning (ERP) systems, and complex APIs connecting various services. 

Following are few other factors that can affect the overall timelines: 

Network Footprint: Enterprise projects typically have a large external and internal network footprint. This involves working with a large-scale infrastructure that spans multiple locations or environments, often with a sophisticated internal network comprising firewalls, VPNs, load balancers, and other networking components.

Active Directory Integration: Many enterprise applications are integrated with Microsoft’s Active Directory (AD) for centralized user management, permissions, and security policies. Managing access, permissions, and security protocols within an Active Directory environment can add to the project’s complexity, requiring additional development time for secure integration.

Timeline: The development timeline for enterprise projects can range from 2 weeks to as long as 2 months. However, the presence of a large network footprint, internal and external dependencies, integration with Active Directory, and the need for complex security and testing can extend the timeline further.

Notes

Costs and scope can vary based on specific needs, system complexity, and additional services requested. Always request a detailed quote and scope from the service provider to ensure the pricing reflects the specific requirements of your organization.

Additional Costs

In some cases, additional costs, e.g.

  • Once vulnerabilities are fixed, retesting may be necessary to ensure all issues are fixed, often at additional cost. Often times, developers might not be able to fix the issue under one-go, hence the number of retests have to be agreed before hand.

  • Detailed reports including staff briefs and technical specifications may be required for compliance or internal implementation, resulting in additional costs

ROI and Cost Justification

Choosing the right penetration testing provider is essential to ensure you get the most value for your money. When considering providers, consider

  • Research competitors to compare the quality of services, pricing, and customer reviews to ensure you're getting the best possible deal.

  • Does a cybersecurity company invest in research and development to advance its knowledge and capabilities and stay ahead of the curve? Furthermore, do its experts participate in industry conferences and events, such as Black Hat, Hack in the paris, Defcon etc.

  • Has the cybersecurity company released any of its proprietary toolsets? Additionally, does it actively conduct research to discover vulnerabilities in open-source software, and does it have any Common Vulnerabilities and Exposures (CVEs) associated with its findings?

  • Do the Cyber Security professionals have certifications such as CREST, OSCP, CISSP, CISA etc.

Note: One could argue that using licensed commercial Vulnerability Assessment and Penetration Testing (VAPT) tools demonstrates a company's commitment to providing these services. However, it can also be argued that many complex authorization and logical flaws are discovered through manual analysis rather than automated tools. Hence, it would be more appropriate not to place a lot of weightage here, but the most important factors would be the individual profile of pentesters involved in doing the pentest. 

Issues with Cheaper Penetration Tests 

Since penetration testing is frequently viewed as a compliance requirement, companies may be less inclined to invest in higher-quality, more expensive options. While a company might occasionally get a good deal on pricing, in my experience, that is usually not the case. Here are a few reasons why opting for cheaper pentesting services or using freelancers might not be advisable:

Confusion Between VA and PT: Some freelancers or companies might promise penetration testing (pentests) engagements but end up offering vulnerability assessments (VAs) instead. Customers might be impressed by reports with fancy charts and assume their compliance requirements are met. However, in the long run, this could lead to undetected security vulnerabilities and potentially result in a security breach 

Security Risks and Confidentiality: There is a risk that some freelancers might misuse or steal sensitive data during the process and later on potentially using it for ransom or other malicious purposes. This is especially in case of a grey/white box pentest, where-by the pentester would have more information pertaining the underline system. 

Difficulty Enforcing NDAs: Adding on to the previous point, some freelancers might be located in jurisdictions where enforcing non-disclosure agreements (NDAs) becomes challenging, making it harder to address any misuse of data, and complicating legal recourse.

Limited Follow-Up and Support: If it is required to address compliance requirements or follow up on remediation advice, it is imperative to reach out to a freelancer for assistance. However, there is a risk that the freelancer may no longer be available or reachable, which could hinder your ability to address security issues effectively.

Conclusion

Understanding the costs associated with penetration testing is essential to making informed decisions about your cybersecurity strategy. By considering a variety of factors that affect cost, such as scope, type of testing, and compliance requirements, organizations can better plan their budget and choose the right provider for their needs Investing in penetration testing not only helps protect against cyber threats but also ensures compliance with industry regulations Protects financial reputation assets