In one aspect, a method for penetration testing for optimization of network security policies is disclosed. The method includes determining, by a security management service, that one or more cybersecurity threats successfully penetrated a security service protecting a pseudo-target in a penetration testing environment, analyzing, by the security management service, the one or more cybersecurity threats that successfully penetrated the security service to characterize the one or more cybersecurity threats, and generating, by the security management service, an update of a policy used by the security service that would prevent the one or more cybersecurity threats from penetrating the security service based on the analysis of the one or cybersecurity threats.