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IT Security Presentation - IIMC 2014 Conference
This document discusses information technology security and fraud prevention. It begins by outlining the top IT security concerns, including data security, network security, and managing risk. It then examines specific threats like data breaches, hacking, and internal fraud. The document provides examples of major data incidents and their impacts. It emphasizes the importance of physical security, access controls, encryption, and policies/procedures to mitigate risks. Throughout, it stresses planning, governance, training, and incident response to help organizations strengthen their security posture.
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IT Security Presentation - IIMC 2014 Conference
- 1. Information Technology Security: Whereare Your Problems? Precision Plus, Inc. Jeffrey T. Lemmermann, CPA, CITP, CISA, CEH LemmermannJ@preplus.com International Institute of Municipal Clerks 2014 Conference May 17 - 22, 2014 – Milwaukee, WI
- 2. 1 Information Security 1. Managing& retaining data (2) 2. Securing the IT environment (1) 3. Managing IT risk & compliance 4. Ensuring privacy 5. Managing system implementation (6) Topping The Charts Everywhere! AICPA 2013 Top 10 Technology Initiatives 6. Preventing & responding to fraud (9) 7. Enabling decision support & managing performance 8. Governing & managing IT investment/spending 9. Leveraging emerging technologies (6) 10.Managing vendors and service providers Importance of Data Security Regulations HIPAA GLBA / SOX 404 FACTA Red Flag Rules PCI Standards Publicity “No such thing is bad publicity …except your own obituary.” - Brendan Behan, Irish Dramatist Damage to reputation. Loss of consumer confidence. Redirection of resources SONY 77 Million User Accounts – 12 Million Unencrypted CC #s Playstation Network Taken Down – Cost’s over $178 M Fidelity Info Services $13M Loss – Unauthorized Credit Card Activities SEGA 1.3M subscribers: names, birth dates, e-mail addresses, and passwords UW - Milwaukee Names and SS #s of 75,000 Students and Staff Regulation Changes 1. Electronic documents are treated the same as physical documents! 2. Requires Organizations to know what data you have and in which format it exists. 3. Forensic Professionals on many sides of a case: 1. Recovering lost or unintentionally deleted items 2. Producing evidence that opponent said was not available 4. Handling of computer evidence 1. Preserve evidence 2. Maintain chain of custody Changes to the Federal Rules of Civil Procedure Enacted December 1, 2006
- 3. 2 Where Is YourData? The Obvious Network File/Data Servers Laptop Computers Backup Storage Media The Obscure Smartphones / Tablets Portable Storage (USB Drives) E-Mail Attachments The Forgotten Disposed Equipment – LEASED Equipment! Proper Disposal Rules “Disposal practices that are reasonable and appropriate to prevent unauthorized access to –or use of- information in a consumer report.” Burn, pulverize, or shred papers so they cannot be reconstructed. Destroy or erase electronic files or media so information cannot be read or reconstructed. Conduct due diligence and hire a document destruction contractor. Due diligence could include: Reviewing contractor’s independent audit Obtain information from several references Require certification by recognized trade association Review contractor’s information security policies or procedures Hard Drive Data Study of 2nd Hand Drives O & O Company: 2004: 88% of Disks from EBay contained recoverable data. 2005: 71% Edith Cowan University – Annual study of 2nd hand hard drives 2006: 48% 2009: 39% 2012: 47% 2007: 40% 2010: 2008: 38% 2011: Type of recoverable data: Internal company memos Legal correspondence of governmental agency Credit ratings (Bank owned hard drive) File erasing Utilities Eraser (Freeware - up to 35 overwrite passes) Steganos Security Suite (up to 100 passes)
- 4. 3 Hard Drive DataWorries What About Smartphones? Deleting Apps Might Not Delete Data SD Card Storage Data Stored By Service Providers Tablet Computers – Same Issues as Smartphones Solid State Drives (SSDs) Traditional Disk Wiping Utilities Do Not Work “Nearly impossible to completely delete data from SSD’s” Physical Destruction Highly Recommended Newer SSDs – Deletion Utilities with Drives Data Security How can we keep our data safe? Case Study: Open Records How “open” do you mean?
- 5. 4 Security Points Five KeyPoints of Data Security: Physical Security Network Security Application Security External Security Planning & Governance Physical Security Access to Equipment Locked server room, mobile equipment logs Theft Prevention Procedures Cameras, user policies on mobile equipment Separation of Duties Ordering / Inventory separate from Installers Hardware Inventory Serial numbers, internal configurations, assignments Network Security Password Policies Minimum characters, forced changes, complexity No sticky notes! Unattended Terminal Protection Password protected screensavers, firm policies Network File Structure Security User site of files, annual review process! Auditing Logs Activate logging, review logs Control of Backup Tapes Physical security, password protection
- 6. 5 Password Complexity Demo Importance of non-dictionary passwords Dictionaries now including numbers added to words Alternate spelling meth0ds 1nclud3d Importance of length Ease of brute-force attacks Flaw in some encryption methods Importance of other characters Adds to password possibilities Helps to beat dictionary cracks Password Recommendations Secure Password Techniques: Use modified pass phrases 4score&7yearsago Let’sg0r3d Connect words with modifier in middle Milwaukeejtl07Bucks Aries01thejtlram Stick with constant formulas Use secure password database managers PC / PocketPC – KeePass (http://keepass.sourceforge.net) Android – KeePass, LastPass, SplashId iPhone / iPad – DataVault Password Manager (iTunes store) Application Security Key Application Security Accounting, HR, or other sensitive data applications Follow password standards of network Segregation of duties / Reporting Controls Anti-Virus Protection (Symantec, McAfee, etc.) Server based, automatic updates of workstations E-mail protection Patch Maintenance Windows Update Services Employee Training Dangerous Files, E-Mail Concerns, Web Surfing Spyware Protection
- 7. 6 Spyware – Detecting& Eliminating Signs you have been infected: Random “Security” Pop-up windows appear when browsing. Normal home page has been replaced. Drop in computer performance. New search bars have appeared in web browser. Removal help: Cleaning Programs: ComboFix, SpyBot Search & Destroy Monitoring & Prevention: SuperAntiSpyware, MS Defender Other Tools: Startup Inspector Pop-up Blocker - Google www.processlibrary.com External Access Security Cannot have without other elements! Weakness in other areas can defeat the best external security. Access method security (vpn, citrix, etc.) Data Encryption User Education Activities to avoid Popular methods of capturing data: Shoulder surfing Key logging / capturing programs Packet sniffing Wireless worries Wireless Security Control Access Change Defaults! Administrator Password Network SSID MAC Filtering List of authorized wireless Ethernet cards Minimize Access Points Scan self for “rogue” access points Heatmapper WiFi Analyzer (Android Tool) Control own equipment’s access
- 8. 7 Wireless Security ControlData - Encryption WEP – Wired Equivalency Protocol Set to highest level supported WEP has deficiencies: Both 40-bit and 128-bit keys have been hacked Use still will prevent or delay hack attempts WPA – Wi-Fi Protected Access (WPA2) Subset of developing 802.11i Standard Some devices updateable to support standard Case Study: Wireless Risks The “Cantenna” T.J. Maxx Breach Planning & Governance Align IT Goals with Business Goals Does the IT Department work for you or run you? Is IT Planning part of the overall strategic planning process? Steering committee: department head involvement! Must-Have Plans: Disaster Recovery Business Continuity Testing! Involvement of all departments – what are their needs? Incident Response Plan Data disclosure events Contact Requirements
- 9. 8 Case Study: IncidentResponse Plans Starting point: April, 2011 Type: Network Intrusion - External Records affected: 101.6 million Estimated costs: $171 million outlay ($1025 Million all considered*) Affected entities: Sony Pictures, Sony Corporation of America, Sony Online Entertainment, Sony Play Station Network. * - lost business, various compensation costs and new investments—assuming that no additional security problems emerge. Sony – Breach Timeline 2009 – “geohot” announces intention to jailbreak PS3 March, 2010 – Sony removes functionality on PS3 to install another O/S (to block jailbreak effort.) January 2, 2011 - Geohot (George Holtz) jailbreaks PS3 and publishes code online January 11, 2011 – Sony sues geohot – seeks to stop April 2, 2011 – Sony announces settlement April 13, 2011 – Anonymous announces attack on Sony “In the eyes of the law, the case is closed, for Anonymous it is just beginning… prepare for the biggest attack you have ever witnessed, Anonymous style.” Sony – Breach Timeline April 16 – Sony Online Entertainment (SOE) 25 million user details / 23 K credit/debit cards April 17 – PlayStation Network 77 million user details April 20 – Sony shuts down PlayStation Network April 26 – Sony publically discloses PlayStation breach May 1 – Investigators discover SOE breach May 2 – Sony publically discloses SOE breach “We are trying to fight criminal activities by corporations and governments, not steal credit cards.”
- 10. 9 Sony – Lesson1 In the public eye - assume you are going to be a target Was Sony right to go after geohot? Doesn’t matter if you are in IT If the effort is coordinated they will get in Limit the attack surface Only ask for and store necessary data from users What really needs to be exposed to the Internet? Sony – Lesson 2 PR Campaigns Matter Minimize enemy creation Response to hacking incident is critical to retention People hate being lied to! Contingency Plan Development DDOS attacks are form of disaster event Practice recovering from them Policies & Procedures Policies in general: Signature requirements acknowledgement Redistribution of policy general availability Centralize & minimize total number Training opportunity on changes! Important groupings: Computer Use Policy Internet Use E-Mail Use IT Security Policy Confidentiality statements Data handling and storage Data retention & destruction
- 11. 10 Policies & Procedures– Updating The importance of reviewing and updating policies: What happens when two worlds collide? Can social media be used for public debate? What rules are in place for posting information by the elected? How can the use of social media be policed? Sunshine Laws Data Security Updating our policies and procedures is a critical part of the circle. Knowing Our Enemies Is that all there is to it? FRAUD: deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage. No functional network is impervious.
- 12. 11 Internal Fraud Fraudusually comes from within: On average, 6% of an organizations revenue is lost to internal fraud. Small company loss - $127,500 per incident Large company loss - $97,000 per incident Schemes involving non-cash assets are more costly Men out-steal women $200,000 to $60,000 per incident Education levels: Those with a high school education steal $70,000 per incident Those with a post-graduate degrees steal $162,000 Those with a bachelor degrees steal $243,000 45% of companies report unauthorized access of data by insiders! Case Study: The City of San Francisco Who’s network is it anyway? Terry Childs – Cisco Certified Internetworking Engineer Built & Managed the city-wide network (core of networks) Elevated rights to sole administrator – always on call Attack Origins Points of Origins of Network Attacks Internal Harder to protect against – productivity vs. security Motivations: Personal Gain Revenge (Missed promotion, about to be fired) Job Security External Hard to identify source Motivations: Random Attack Revenge (Former employee, angry client, competitor) Industrial Espionage
- 13. 12 A Typical ITHack Organization Data Store Unethical Hacker SS’s Information SS’s Information Employee Customer Vendor HH Buys Information Transfers Money Opens Charge Account UH Steals Information Cracks Database Wireless Sniff Social Engineering UH Posts Information Computer Fraud – First Steps 1. Stop using compromised system! Every action changes computer environment Preservation of hard drive and memory contents Isolate System Physically disconnect system from Internet if exposed If intranet threat is possible, isolate from local network 1. Record visual information from PC Running applications Items in system tray 2. Utilize drive duplication tools to create copy of drive Refer to item #1 Allows for other tests to be tried without losing original evidence Goals of Computer Forensics Preservation of Evidence Adherence to carefully developed set of procedures that address security, authenticity, and chain-of-custody. • Analysis of User Activity Reporting of all user activity on computer and company network including, but not limited to,e-mail, Internet and Intranet files accessed, files created and deleted, and user access times. • Password Recovery Accessing and recovering data from password protected files.
- 14. 13 Fraud: Preemptive Tools Computer audit logs Enable auditing (default is normally not enabled) Ensure size is sufficient (avoid overwriting) Copied to remote storage/permanent media on regular intervals Utilize other logging tools: Keystroke Loggers Screenshot Recording Shadowing Capabilities E-Mail and Instant Messaging Archives Ethical Considerations Computer Use Policy – notification of right to trace actions Control access to implemented tools Ensure proper and ethical use Other Threats: Phishing Banking Spoofs, E-Bay Accounts, etc. New Evolution: Pharming “Poisoning” of DNS Record to redirect request Site could be exact duplicate of intended site Malware Key-loggers & Screen Capture Programs Browser Hi-jacks Phishing – How can you tell? How can you tell a legitimate email from a phony?
- 15. 14 Other Threats: URLShorteners Tinyurl, bit.ly, sn.im Creates a short link from a long internet address Problem if malware site is being hidden Study of URL shorteners: Stage 1 Compliant if it appears to use a security service or blacklist to identify malicious domains and does not allow a user to create a shortened link to any infected domain. Stage 2 Compliant if it uses a security service or blacklist to identify malicious domains and does not allow a user to create a shortened link to any infected domain or malicious full URL hosted on that domain. Scanning Yourself Footprinting Gaining parameters of network Areas of search Google Searches Usegroup/Newsgroup Searches ARIN Records – DNS Stuff Vulnerability Assessments Finding rabbit holes - weak points in your network Online Tools Nessus (www.nessus.org) Registered vs. Direct Feed Windows & Linux Versions External Use Internal Use Penetration Testing How far down does the rabbit hole go? Care in performing exploits – not for amateurs! Metasploit Understand Your Enemies You have to understand their tactics to better stop them. Hacking for Dummies by Kevin Beaver, Stuart McClure Certified Ethical Hacking – Training & Certification Vulnerability Assessments Penetration Testing On-line Resources Print Resources
- 16. The Elements ofIT Security Example one: PHISHING Right click the message and select “VIEW SOURCE”
- 17. The Elements ofIT Security Actual source of the e-mail in html format:
- 18. The Elements ofIT Security Example 2: Citibank Phishing FRAUD ALERT CitiBank phishing email - "Read Now! Important Message From Citibank" Date Issued: April 13 2004 Customers of CitiBank are the targets of the latest phishing email scams. The email claims to be from "Citi Identity Theft Solutions", and directs customers they must update their ATM/Debit Card PIN. Users are instructed to click on a link within the email and enter their debit card number and ATM PIN in a form on a fake website. The fake website is displayed in a small window, while the real CitiBank website is displayed in the background. This gives the users a false sense of security in entering their personal information. A copy of the email is displayed below:
- 19. The WebSite isshown below: What to do? If you receive an e-mail similar to this, do nothing. Do not reply to the e-mail and do not give any personal details to the sender. If you do receive similar emails, or any email that you think may be fraudulent, please forward to FraudWatch International at: scams@fraudwatchinternational.com
- 20. Reprinted from: http://www.sans.org/resources/policies/Acceptable_Use_Policy.pdf SampleAcceptable Use Policy 1.0 Overview InfoSec's intentions for publishing an Acceptable Use Policy are not to impose restrictions that are contrary to <Company Name>. established culture of openness, trust and integrity. InfoSec is committed to protecting <Company Name>'s employees, partners and the company from illegal or damaging actions by individuals, either knowingly or unknowingly. Internet/Intranet/Extranet-related systems, including but not limited to computer equipment, software, operating systems, storage media, network accounts providing electronic mail, WWW browsing, and FTP, are the property of <Company Name>. These systems are to be used for business purposes in serving the interests of the company, and of our clients and customers in the course of normal operations. Please review Human Resources policies for further details. Effective security is a team effort involving the participation and support of every <Company Name> employee and affiliate who deals with information and/or information systems. It is the responsibility of every computer user to know these guidelines, and to conduct their activities accordingly. 2.0 Purpose The purpose of this policy is to outline the acceptable use of computer equipment at <Company Name>. These rules are in place to protect the employee and <Company Name>. Inappropriate use exposes <Company Name> to risks including virus attacks, compromise of network systems and services, and legal issues. 3.0 Scope This policy applies to employees, contractors, consultants, temporaries, and other workers at <Company Name>, including all personnel affiliated with third parties. This policy applies to all equipment that is owned or leased by <Company Name>. 4.0 Policy 4.1 General Use and Ownership 1. While <Company Name>'s network administration desires to provide a reasonable level of privacy, users should be aware that the data they create on the corporate systems remains the property of <Company Name>. Because of the need to protect <Company Name>'s network, management cannot guarantee the confidentiality of information stored on any network device belonging to <Company Name>. 2. Employees are responsible for exercising good judgment regarding the reasonableness of personal use. Individual departments are responsible for creating guidelines concerning personal use of Internet/Intranet/Extranet systems. In the absence of such policies, employees should be guided by departmental policies on personal use, and if there is any uncertainty, employees should consult their supervisor or manager. 3. InfoSec recommends that any information that users consider sensitive or vulnerable be encrypted. For guidelines on information classification, see InfoSec's Information Sensitivity Policy. For guidelines on encrypting email and documents, go to InfoSec's Awareness Initiative. 4. For security and network maintenance purposes, authorized individuals within <Company Name> may monitor equipment, systems and network traffic at any time, per InfoSec's Audit Policy. 5. <Company Name> reserves the right to audit networks and systems on a periodic basis to ensure compliance with this policy. 4.2 Security and Proprietary Information 1. The user interface for information contained on Internet/Intranet/Extranet-related systems should be classified as either confidential or not confidential, as defined by corporate confidentiality guidelines, details of which can be found in Human Resources policies. Examples of confidential information include but are not limited to: company private, corporate strategies, competitor
- 21. sensitive, trade secrets,specifications, customer lists, and research data. Employees should take all necessary steps to prevent unauthorized access to this information. 2. Keep passwords secure and do not share accounts. Authorized users are responsible for the security of their passwords and accounts. System level passwords should be changed quarterly, user level passwords should be changed every six months. 3. All PCs, laptops and workstations should be secured with a password-protected screensaver with the automatic activation feature set at 10 minutes or less, or by logging-off (control-alt-delete for Win2K users) when the host will be unattended. 4. Use encryption of information in compliance with InfoSec's Acceptable Encryption Use policy. 5. Because information contained on portable computers is especially vulnerable, special care should be exercised. Protect laptops in accordance with the “Laptop Security Tips”. 6. Postings by employees from a <Company Name> email address to newsgroups should contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of <Company Name>, unless posting is in the course of business duties. 7. All hosts used by the employee that are connected to the <Company Name> Internet/Intranet/Extranet, whether owned by the employee or <Company Name>, shall be continually executing approved virus-scanning software with a current virus database. Unless overridden by departmental or group policy. 8. Employees must use extreme caution when opening e-mail attachments received from unknown senders, which may contain viruses, e-mail bombs, or Trojan horse code. 4.3. Unacceptable Use The following activities are, in general, prohibited. Employees may be exempted from these restrictions during the course of their legitimate job responsibilities (e.g., systems administration staff may have a need to disable the network access of a host if that host is disrupting production services). Under no circumstances is an employee of <Company Name> authorized to engage in any activity that is illegal under local, state, federal or international law while utilizing <Company Name>-owned resources. The lists below are by no means exhaustive, but attempt to provide a framework for activities which fall into the category of unacceptable use. System and Network Activities The following activities are strictly prohibited, with no exceptions: 1. Violations of the rights of any person or company protected by copyright, trade secret, patent or other intellectual property, or similar laws or regulations, including, but not limited to, the installation or distribution of "pirated" or other software products that are not appropriately licensed for use by <Company Name>. 2. Unauthorized copying of copyrighted material including, but not limited to, digitization and distribution of photographs from magazines, books or other copyrighted sources, copyrighted music, and the installation of any copyrighted software for which <Company Name> or the end user does not have an active license is strictly prohibited. 3. Exporting software, technical information, encryption software or technology, in violation of international or regional export control laws, is illegal. The appropriate management should be consulted prior to export of any material that is in question. 4. Introduction of malicious programs into the network or server (e.g., viruses, worms, Trojan horses, e-mail bombs, etc.). 5. Revealing your account password to others or allowing use of your account by others. This includes family and other household members when work is being done at home. 6. Using a <Company Name> computing asset to actively engage in procuring or transmitting material that is in violation of sexual harassment or hostile workplace laws in the user's local jurisdiction. 7. Making fraudulent offers of products, items, or services originating from any <Company Name> account. 8. Making statements about warranty, expressly or implied, unless it is a part of normal job duties.
- 22. 9. Effecting securitybreaches or disruptions of network communication. Security breaches include, but are not limited to, accessing data of which the employee is not an intended recipient or logging into a server or account that the employee is not expressly authorized to access, unless these duties are within the scope of regular duties. For purposes of this section, "disruption" includes, but is not limited to, network sniffing, pinged floods, packet spoofing, denial of service, and forged routing information for malicious purposes. 10. Port scanning or security scanning is expressly prohibited unless prior notification to InfoSec is made. 11. Executing any form of network monitoring which will intercept data not intended for the employee's host, unless this activity is a part of the employee's normal job/duty. 12. Circumventing user authentication or security of any host, network or account. 13. Interfering with or denying service to any user other than the employee's host (for example, denial of service attack). 14. Using any program/script/command, or sending messages of any kind, with the intent to interfere with, or disable, a user's terminal session, via any means, locally or via the Internet/Intranet/Extranet. 15. Providing information about, or lists of, <Company Name> employees to parties outside <Company Name>. Email and Communications Activities 1. Sending unsolicited email messages, including the sending of "junk mail" or other advertising material to individuals who did not specifically request such material (email spam). 2. Any form of harassment via email, telephone or paging, whether through language, frequency, or size of messages. 3. Unauthorized use, or forging, of email header information. 4. Solicitation of email for any other email address, other than that of the poster's account, with the intent to harass or to collect replies. 5. Creating or forwarding "chain letters", "Ponzi" or other "pyramid" schemes of any type. 6. Use of unsolicited email originating from within <Company Name>'s networks of other Internet/Intranet/Extranet service providers on behalf of, or to advertise, any service hosted by <Company Name> or connected via <Company Name>'s network. 7. Posting the same or similar non-business-related messages to large numbers of Usenet newsgroups (newsgroup spam). 5.0 Enforcement Any employee found to have violated this policy may be subject to disciplinary action, up to and including termination of employment. 6.0 Definitions Term Definition Spam Unauthorized and/or unsolicited electronic mass mailings. 7.0 Revision History
- 23. Questions & Answers "Thesearch for static security - in the law and elsewhere - is misguided. The fact is security can only be achieved through constant change, adapting old ideas that have outlived their usefulness to current facts." - Canadian physician, William Osler Jeffrey T. Lemmermann, CPA, CITP, CISA, CEH Chief Financial Officer / Information Officer Precision Plus, Inc. 840 Koopman Ln. Elkhorn, WI 53121 LemmermannJ@preplus.com