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Internet Security and Cyber
           Crime
 … or It’s not paranoia if they’re
         really after you.
              Sam Lumpkin
        Senior Security Architect
                2AB, Inc.
             info@2ab.com

             www.2AB.com


                                     1
Integration Platform
                                 For Trusted Solutions
www.2AB.com




   Authentication
                                                    Business Logic



                            Infrastructure
                            Access Control
        Confidentiality /
        Message Integrity
                                                        Business Logic

                             Access
       Auditing &            Decision, Attribute Mgt,
       Administration        Auditing, Policy Mgt
How Management Views Their
    Company’s Security




                             3
How Internal Users View Their
    Company’s Security




                                4
How Crackers and Script Kiddies
 View a Company’s Security




                                  5
How Bad Can It Be?




                     6
Current Headlines

FBI Issues Water Supply Cyberterror Warning
Al-Qaida terrorists have scoured the Web for
information on the computerized systems that
control water distribution and treatment, NIPC
warns.
By Kevin Poulsen, www.securityfocus.com




                                                 7
Current Headlines

Microsoft Store Offline After Insecurity Exposed.
By Brian McWilliams, Newsbytes
Jan 11 2002 5:52PM PT
An online store operated by Microsoft Corp. [NASDAQ:
MSFT] for software developers was unavailable today
following reports that a security flaw gave visitors the
ability to take control of the site, including access of
customer data.

www.securityfocus.com

                                                           8
Current Headlines

NASA Hacker Gets 21 Months
Jason 'Shadow Knight' Diekman cracked JPL,
Stanford University and others.
By Dick Kelsey, Newsbytes
Feb 5 2002 5:28PM PT
www.securityfocus.com




                                             9
Headlines

Lloyd's of London To Offer Hacker Insurance
Lloyd's of London, one of world's largest insurance
firms, has partnered with San Jose, California-
based Counterpane Security, Inc. to offer insurance
against business losses due to mischief by hackers.
By Lori Enos E-Commerce Times July 10, 2000




                                                  10
Prediction

 Denial of service attacks against companies such as Yahoo!
and Amazon.com illustrated the susceptibility of even well-
established organizations to hacker attacks. Security
incidents had not been widely reported prior to the
broadband explosion, however, the Gartner Group predicts
that by 2004, service providers will witness a 200 percent
increase in the cost of responding to security incidents due
to broadband connections.
Pamela Warren, Nortel/Shasta


                                                           11
How common is unauthorized
            system entry?
A survey conducted by the Science Applications International Corp. in
1996 found that 40 major corporations reported losing over $800 million to
computer break-ins. An FBI survey of 428 government, corporate and
university sites found that over 40% reported having been broken into at
least once in the last year. One third said that they had been broken into
over the Internet. Another survey found that the Pentagon's systems that
contain sensitive, but unclassified information, had been accessed via
networks illegally 250,000 times and only 150 of the intrusions were
detected. The FBI estimates that U.S. businesses loose $138 million every
year to hackers. According to the CIA in the past three years government
systems have been illegally entered 250,000.
   from student paper by Jimmy Sproles and Will Byars for a Computer Ethics Course at ETSU 1998
   http://www-cs.etsu-tn.edu/gotterbarn/stdntppr/stats.htm


                                                                                                  12
Point and Click Cracking

ÜHacker/Cracker
 toolkits
ÜPassword crackers
Ü“Script Kiddies”




                                13
Are “They” in YOUR System?

• Most companies do not know.
• There is no plan to review logs or scan for
unusual activity.
• Physical access is not controlled in a consistent
manner.
• If an intrusion were detected or even suspected,
there is no procedure designed to deal with it.

                                                      14
Who Are “They”?

ÜExternal “They”:
  v“Script Kiddies” (i.e. children)
  vSkilled crackers
  vForeign nationals (well funded)
  vCompetitors or their agents
ÜInternal “They”:
  vDisgruntled employees
  vContractors, vendors, temps, etc.

                                       15
What Can “They” Do?

The worst thing “they” can do is to simply
 quietly gather information and sell it to your
 competitors, or to other crackers. This can
 include customer information, trade secrets,
 payroll information, proposals, and bids.
 You won’t even know the information has
 been compromised.

                                              16
What Else Can “They” Do?

ÜDestroy data
ÜAlter data
ÜEffect any system
 controlled by
 computers.
ÜImbed Trojan
 programs for later
 exploitation.
                               17
Why should you care?

How much is your information worth? What happens if a
  competitor has access to your pricing, your bids, and
your payroll information? How much of you information
      could you do without and still do business?

        With the explosion of on-line services,
controlling access to personal information is critical!
  The demands of consumers and the requirements of many
government regulations such as US Code Title 47 and HIPAA
      make it mandatory that information be protected.

                                                            18
Why Should You Care?
Corporate Officers And Directors Need To Take
Responsibility For Securing Corporate
Information Assets, Report Says
Recourse Technologies™ Report, Written by
Tech Industry Legal Expert, Finds Evidence That
Directors/Officers Can be Held Liable for Loss of
Data Due to Hacking.
www.recourse.com/download/press/PDF/07.30.01_NOC.pdf



                                                       19
What About Firewalls?

ÜFirewalls help protect the
 perimeter of your
 network. (The hard
 “candy” shell)
ÜThe “soft chewy center”
 needs protecting, too.
ÜFirewalls can and are
 compromised.

                               20
Why Protect an Intranet?

ÜAs stated before, firewalls
 can and are compromised.
ÜThe only secure system is a
 system with no input or
 output, but what good is it?
Ü Attacks also come from
 within the perimeter from
 vendors, contractors, and
 even employees.
                                  21
How Do I Begin?

It isn’t magic; but don’t start
from scratch. Resources:
Ø Reference Books
Ø The Internet
Ø Consultation
Ø Off The Shelf Software


                                  22
Awareness

ÜInitial awareness program
  vExisting information dissemination methods
  vSpecial security awareness presentations
ÜOngoing awareness (updates, etc.)
  vSecurity awareness newsletter
ÜNew employee/contractor orientation


                                                23
Implementation

Ü Physical Constraints
  v Locks
    § Time Locks
    § Cipher Locks
  v “Man Traps”
  v “Tamper Proof” Containers



                                24
Implementation

ÜElectronic Access
  vProximity Badges
  vBiometrics (the Oldest Form of Authentication)
    § Fingerprint
    § Voice Recognition
    § Retinal Scan
    § Face Recognition
  vMust have human oversight!

                                                25
Implementation

ÜMonitoring for Adherence to Established
 Practices and Policies.
  v Access logs (paper and electronic).
  v “Two man” accountability.
  v Visitor sign-in and escort.
  v Monitoring and review of video surveillance.
  v Regular audits (internal and external).
  v Mechanized scans of logs for anomalies.

                                                   26
Implementation

Ü Computer Access Controls.
  v Logon ID and Password
  v Digital Certificate/Smart Card
  v Hard Token (i.e. SecureID)
  v Biometrics
  v Integrated with Physical Access Method?
  v Logging! (with Review)
  v Regular Audits of Access Lists

                                              27
Implementation

Ü Access Authorization
  v Role based
  v Specific Individual
  v Dependent on Authentication Mechanism
  v High Level
    § Corporate Directory
    § CORBASec ADO (Access Decision Object)
  vGranular
    § CORBA RAD (Resource Access Decision)
                                              28
Policy Implementation

Ü Integration of Physical and Computer
 Security Policies and Procedures.
Ü Usability Studies.
Ü Log, Review, Audit.
Ü Consider Outside Certification.
Ü Nothing Can Replace the Human Mind and
 the Human Eye for Monitoring and Review.
                                        29
Logging

ÜTurn on logging!
ÜAllocate headcount to review logs.
ÜTrain reviewer(s).
ÜPolicy should dictate actions specifically.
  vShut down intruder(s) immediately or
  vTrack intruder to determine intent/build case.
  v Honeypot?

                                                    30
Enforcement

ÜManual
  vReview system logs
  vNetwork/platform scans
  vVarious periodic audits
ÜAutomatic
  vPlatform password restrictions
  vFirewalls, proxies, etc.
  vVarious policy enforcement tools
                                      31
Policies

Ü Must Be Documented
Ü Clear, Concise, Well Indexed, Available
Ü Consider Online, Web Based
Ü Various Products Can “Jump Start” the
 Creation and Maintenance of Policies
Ü Regular Reviews
Ü Communication, Communication,
 Communication!
                                            32
Some Resources

Ü ICSA White Paper on Computer Crime
  Statistics
  v http://www.trusecure.com/html/tspub/whitepapers/
     crime.pdf
Ü http://www.securityfocus.com/vulns/stats.shtml
Ü … but don’t always believe Statistics
   v http://www.attrition.org/errata/stats.html



                                                  33
More Resources

ÜInformation Security Policies Made Easy –
 Version 7; by Charles Cresson Wood
ÜSecrets & Lies – Digital Security in a Networked
 World; by Bruce Schneier
Ühttp://csrc.nist.gov
• http://www.security-policy.org
• http://www.msb.edu/faculty/culnanm/
  gippshome.html
                                                    34
Thanks for Listening


     Sam Lumpkin
        and
    Marty Byrne
       info@2ab.com
        2AB, Inc.
       205-621-7455
       www.2ab.com



                       35

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A6704d01

  • 1. Internet Security and Cyber Crime … or It’s not paranoia if they’re really after you. Sam Lumpkin Senior Security Architect 2AB, Inc. info@2ab.com www.2AB.com 1
  • 2. Integration Platform For Trusted Solutions www.2AB.com Authentication Business Logic Infrastructure Access Control Confidentiality / Message Integrity Business Logic Access Auditing & Decision, Attribute Mgt, Administration Auditing, Policy Mgt
  • 3. How Management Views Their Company’s Security 3
  • 4. How Internal Users View Their Company’s Security 4
  • 5. How Crackers and Script Kiddies View a Company’s Security 5
  • 6. How Bad Can It Be? 6
  • 7. Current Headlines FBI Issues Water Supply Cyberterror Warning Al-Qaida terrorists have scoured the Web for information on the computerized systems that control water distribution and treatment, NIPC warns. By Kevin Poulsen, www.securityfocus.com 7
  • 8. Current Headlines Microsoft Store Offline After Insecurity Exposed. By Brian McWilliams, Newsbytes Jan 11 2002 5:52PM PT An online store operated by Microsoft Corp. [NASDAQ: MSFT] for software developers was unavailable today following reports that a security flaw gave visitors the ability to take control of the site, including access of customer data. www.securityfocus.com 8
  • 9. Current Headlines NASA Hacker Gets 21 Months Jason 'Shadow Knight' Diekman cracked JPL, Stanford University and others. By Dick Kelsey, Newsbytes Feb 5 2002 5:28PM PT www.securityfocus.com 9
  • 10. Headlines Lloyd's of London To Offer Hacker Insurance Lloyd's of London, one of world's largest insurance firms, has partnered with San Jose, California- based Counterpane Security, Inc. to offer insurance against business losses due to mischief by hackers. By Lori Enos E-Commerce Times July 10, 2000 10
  • 11. Prediction Denial of service attacks against companies such as Yahoo! and Amazon.com illustrated the susceptibility of even well- established organizations to hacker attacks. Security incidents had not been widely reported prior to the broadband explosion, however, the Gartner Group predicts that by 2004, service providers will witness a 200 percent increase in the cost of responding to security incidents due to broadband connections. Pamela Warren, Nortel/Shasta 11
  • 12. How common is unauthorized system entry? A survey conducted by the Science Applications International Corp. in 1996 found that 40 major corporations reported losing over $800 million to computer break-ins. An FBI survey of 428 government, corporate and university sites found that over 40% reported having been broken into at least once in the last year. One third said that they had been broken into over the Internet. Another survey found that the Pentagon's systems that contain sensitive, but unclassified information, had been accessed via networks illegally 250,000 times and only 150 of the intrusions were detected. The FBI estimates that U.S. businesses loose $138 million every year to hackers. According to the CIA in the past three years government systems have been illegally entered 250,000. from student paper by Jimmy Sproles and Will Byars for a Computer Ethics Course at ETSU 1998 http://www-cs.etsu-tn.edu/gotterbarn/stdntppr/stats.htm 12
  • 13. Point and Click Cracking ÜHacker/Cracker toolkits ÜPassword crackers Ü“Script Kiddies” 13
  • 14. Are “They” in YOUR System? • Most companies do not know. • There is no plan to review logs or scan for unusual activity. • Physical access is not controlled in a consistent manner. • If an intrusion were detected or even suspected, there is no procedure designed to deal with it. 14
  • 15. Who Are “They”? ÜExternal “They”: v“Script Kiddies” (i.e. children) vSkilled crackers vForeign nationals (well funded) vCompetitors or their agents ÜInternal “They”: vDisgruntled employees vContractors, vendors, temps, etc. 15
  • 16. What Can “They” Do? The worst thing “they” can do is to simply quietly gather information and sell it to your competitors, or to other crackers. This can include customer information, trade secrets, payroll information, proposals, and bids. You won’t even know the information has been compromised. 16
  • 17. What Else Can “They” Do? ÜDestroy data ÜAlter data ÜEffect any system controlled by computers. ÜImbed Trojan programs for later exploitation. 17
  • 18. Why should you care? How much is your information worth? What happens if a competitor has access to your pricing, your bids, and your payroll information? How much of you information could you do without and still do business? With the explosion of on-line services, controlling access to personal information is critical! The demands of consumers and the requirements of many government regulations such as US Code Title 47 and HIPAA make it mandatory that information be protected. 18
  • 19. Why Should You Care? Corporate Officers And Directors Need To Take Responsibility For Securing Corporate Information Assets, Report Says Recourse Technologies™ Report, Written by Tech Industry Legal Expert, Finds Evidence That Directors/Officers Can be Held Liable for Loss of Data Due to Hacking. www.recourse.com/download/press/PDF/07.30.01_NOC.pdf 19
  • 20. What About Firewalls? ÜFirewalls help protect the perimeter of your network. (The hard “candy” shell) ÜThe “soft chewy center” needs protecting, too. ÜFirewalls can and are compromised. 20
  • 21. Why Protect an Intranet? ÜAs stated before, firewalls can and are compromised. ÜThe only secure system is a system with no input or output, but what good is it? Ü Attacks also come from within the perimeter from vendors, contractors, and even employees. 21
  • 22. How Do I Begin? It isn’t magic; but don’t start from scratch. Resources: Ø Reference Books Ø The Internet Ø Consultation Ø Off The Shelf Software 22
  • 23. Awareness ÜInitial awareness program vExisting information dissemination methods vSpecial security awareness presentations ÜOngoing awareness (updates, etc.) vSecurity awareness newsletter ÜNew employee/contractor orientation 23
  • 24. Implementation Ü Physical Constraints v Locks § Time Locks § Cipher Locks v “Man Traps” v “Tamper Proof” Containers 24
  • 25. Implementation ÜElectronic Access vProximity Badges vBiometrics (the Oldest Form of Authentication) § Fingerprint § Voice Recognition § Retinal Scan § Face Recognition vMust have human oversight! 25
  • 26. Implementation ÜMonitoring for Adherence to Established Practices and Policies. v Access logs (paper and electronic). v “Two man” accountability. v Visitor sign-in and escort. v Monitoring and review of video surveillance. v Regular audits (internal and external). v Mechanized scans of logs for anomalies. 26
  • 27. Implementation Ü Computer Access Controls. v Logon ID and Password v Digital Certificate/Smart Card v Hard Token (i.e. SecureID) v Biometrics v Integrated with Physical Access Method? v Logging! (with Review) v Regular Audits of Access Lists 27
  • 28. Implementation Ü Access Authorization v Role based v Specific Individual v Dependent on Authentication Mechanism v High Level § Corporate Directory § CORBASec ADO (Access Decision Object) vGranular § CORBA RAD (Resource Access Decision) 28
  • 29. Policy Implementation Ü Integration of Physical and Computer Security Policies and Procedures. Ü Usability Studies. Ü Log, Review, Audit. Ü Consider Outside Certification. Ü Nothing Can Replace the Human Mind and the Human Eye for Monitoring and Review. 29
  • 30. Logging ÜTurn on logging! ÜAllocate headcount to review logs. ÜTrain reviewer(s). ÜPolicy should dictate actions specifically. vShut down intruder(s) immediately or vTrack intruder to determine intent/build case. v Honeypot? 30
  • 31. Enforcement ÜManual vReview system logs vNetwork/platform scans vVarious periodic audits ÜAutomatic vPlatform password restrictions vFirewalls, proxies, etc. vVarious policy enforcement tools 31
  • 32. Policies Ü Must Be Documented Ü Clear, Concise, Well Indexed, Available Ü Consider Online, Web Based Ü Various Products Can “Jump Start” the Creation and Maintenance of Policies Ü Regular Reviews Ü Communication, Communication, Communication! 32
  • 33. Some Resources Ü ICSA White Paper on Computer Crime Statistics v http://www.trusecure.com/html/tspub/whitepapers/ crime.pdf Ü http://www.securityfocus.com/vulns/stats.shtml Ü … but don’t always believe Statistics v http://www.attrition.org/errata/stats.html 33
  • 34. More Resources ÜInformation Security Policies Made Easy – Version 7; by Charles Cresson Wood ÜSecrets & Lies – Digital Security in a Networked World; by Bruce Schneier Ühttp://csrc.nist.gov • http://www.security-policy.org • http://www.msb.edu/faculty/culnanm/ gippshome.html 34
  • 35. Thanks for Listening Sam Lumpkin and Marty Byrne info@2ab.com 2AB, Inc. 205-621-7455 www.2ab.com 35