Cyber attacks have increased in frequency and severity, and financial institutions are particularly interesting targets to cyber criminals. Join this presentation to learn the latest cybersecurity threats and challenges plaguing the financial industry, and the policies and solutions your organization needs to have in place to protect against them. Viewers will learn: • Current trends in Cyber attacks • FFIEC Cyber Assessment Toolkit • NIST Cybersecurity Framework principles • Security Metrics • Oversight of third parties • How to measure cybersecurity preparedness • Automated approaches to integrate Security into DevOps About the Presenter: Ulf Mattsson is the Chief Technology Officer of Security Solutions at Atlantic BT, and earlier at Compliance Engineering. Ulf was the Chief Technology Officer and a founder of Protegrity, He invented the Protegrity Vaultless Tokenization, Data Type Preservation (DTP2) and created the initial architecture of Protegrity's database security technology. Prior to Protegrity, Ulf worked 20 years at IBM in software development and in IBM's Research organization, in the areas of IT Architecture and Security, and received a US Green Card of class ‘EB 11 – Individual of Extraordinary Ability’ after endorsement by IBM. Ulf is the inventor of more than 45 patents in the areas of Encryption, Policy Driven Data Encryption, Internal Threat Protection, Data Usage Control and Intrusion Prevention

1. Securing FinTech:
Threats, Challenges, Best
Practices, FFIEC, NIST, and
Beyond
Ulf Mattsson, CTO Security Solutions
Atlantic Business Technologies
ulf.mattsson@atlanticbt.com

2. Ulf Mattsson
Inventor of more than 45 US Patents
Industry Involvement:
• PCI DDS - PCI Security Standards Council
Encryption & Tokenization Task Forces, Cloud & Virtualization
SIGs
• IFIP - International Federation for Information
Processing
• CSA - Cloud Security Alliance
• ANSI - American National Standards Institute
ANSI X9 Tokenization Work Group
• NIST - National Institute of Standards and Technology
NIST Big Data Working Group
• User Groups
Security: ISACA & ISSA
Databases: IBM & Oracle
2

3. 3
Evolving IT Risk – My ISACA Articles

4. 4

5. New York State’s Cybersecurity Rules
• The New York State Department of Financial Services (“DFS”) has
been closely monitoring the evergrowing threat posed to information
and financial systems by nation-states, terrorist organizations and
independent criminal actors
• Recently, cybercriminals have sought to exploit technological
vulnerabilities to gain access to sensitive electronic data
• Cybercriminals can cause significant financial losses for DFS regulated
entities as well as for New York consumers whose private information
may be revealed and/or stolen for illicit purposes
• The financial services industry is a significant target of cybersecurity
threats
https://www.governor.ny.gov/sites/governor.ny.gov/files/atoms/files/Cybersecurity_Requirements_Financial_Services_23
NYCRR500.pdf 5

6. New York State’s Cybersecurity Rules
• They lay out unprecedented requirements on steps financial firms
must take to protect their networks and customer data from hackers
and disclose cyber events to state regulators
• "These strong, first-in-the-nation protections will help ensure this industry
has the necessary safeguards in place" to protect businesses and clients "from
the serious economic harm caused by these devastating cyber-crimes,"
Governor Andrew Cuomo said in a statement
• The state in December delayed implementation of the rules by two months
and loosened some requirements after financial firms complained they were
onerous and said they would need more time to comply
• The new rules call for banks and insurers to scrutinize security at third-party
vendors that provide them goods and services
http://www.reuters.com/article/cyber-new-york-idUSL1N1G11F2
6

7. 7

8. Visibility Into Third Party Risk
Discover and thwart third party vulnerabilities and security
gaps in real-time to better control the impact of breaches.
Source: SecurityScoreCard
# Vulnerabilities
Time
8

9. Verizon 2017 &
2016 Data Breach
Investigations
Reports (DBIR)

10. Verizon 2017 Data Breach Investigations Report – Credentials Issue
Source: Verizon 2017 Data Breach Investigations Report 10

11. Verizon 2017 Data Breach Investigations Report – PII Issue
Source: Verizon 2017 Data Breach Investigations Report
PII
11

12. Source: Verizon 2017 Data Breach Investigations Report
Verizon 2017 Data Breach Investigations Report – Motives
Financial
Espionage
12

13. Source: Verizon
2016 Data
Breach
Investigations
Report
13
Source: Verizon 2016 Data Breach Investigations Report
Verizon 2016 Data Breach Investigations Report – Breach Discovery

14. Source: Verizon 2017 Data Breach Investigations Report
Decreases in card
skimming and POS
crime
sprees influence the
massive decrease in
law
enforcement and fraud
detection
Verizon 2017 Data Breach Investigations Report – Breach Discovery
14

15. Source: Verizon
2016 Data Breach
Investigations
Report
15Source: Verizon 2016 Data Breach Investigations Report
Verizon 2016 Data Breach Investigations Report – Malware

16. Source: Verizon 2017 Data Breach Investigations Report
Verizon 2017 Data Breach Investigations Report – Crime ware
16

17. Source: Verizon 2017 Data Breach Investigations Report
Verizon 2017 Data Breach Investigations Report – Breaches & Actors
17

18. Leaked NSA Tools
Infect and Control
Computers

19. 19

20. Incident Classification Patterns Across Confirmed Data
Breaches
Source: Verizon 2016 Data Breach Investigations Report
Web
Application
Attacks
20

21. Worry Only About the Major Breach Patterns
Source: Verizon 2016 Data Breach Investigations Report
21
Application
Attacks

22. Security
and
Applications

23. Security Tools for DevOps
Static
Application
Security
Testing
(SAST)
Dynamic Application Security Testing (DAST)
Fuzz testing is
essentially
throwing lots of
random garbage
Vulnerability
Analysis
Runtime Application
Self Protection
(RASP)
Interactive
Application Self-
Testing (IAST)
23

24. Security
Metrics

25. Security Metrics from DevOps
25
# Vulnerabilities
Time

26. Generating Key Security Metrics
26
# Vulnerabilities
Time

27. The Board’s Perception of Cybersecurity Risks
• How would you characterize the board’s perception of cybersecurity risks over the last one to two years?
• Source: PWC – The Global State of Information Security Survey 2016
Increased
Increased
significantly
High
No change
27

28. Source: PWC – The Global State of Information Security Survey 2016
Cybersecurity is now a Persistent
Business Risk
• Cybersecurity software, solutions, and services market is
likely to remain a growth sector because executives and
Boards recognize that cyber threats will never be completely
eliminated, and regulatory and compliance requirements will
likely become more stringent
• Cybersecurity services market is expanding in the wake of
increased incidents and heightened regulations, corporations
and government agencies are scrambling to safeguard their
data and networks—a push that is catalyzing growth in the
market for cybersecurity solutions and technologies
28

29. Trends in Board Involvement in Cyber Security
• Source: PWC – The Global State of Information Security Survey 2016
29

30. Questions the Board Will Ask
Source: PWC – The Global State of Information Security Survey 2016
30

31. CEOs, CFOs, Business Risk Owners & CISOs questions
1."How much cyber risk do we have in dollars and cents?"
2."How much cyber insurance do we need?"
3."Why am I investing in this cyber security tool?"
4."How well are our crown jewel assets protected?"
5."How do I know that we’ve actually lowered our risk
exposure?"
6. "As my business changes through M&A, adding new
business applications and new cyber risks , how can I get the
quickest view of the impact on my overall business risk?"
31
Source: PWC – The Global State of Information Security Survey 2016

32. Risk Management
Are your security
controls covering
all sensitive data?
Are your deployed
security controls
failing?
Source: storm.innosec.com
Are you prioritizing
business asset
risk?
32

33. Cyber Budgeting
Source: storm.innosec.com
Asset
Regulatory
Risk Residual Risk FTE Cost Tool Cost Total Cost
CRM High Medium $ 20,000 0 $ 20,000
HR High Medium $ 100,000 20,000 $ 120,000
Feed High Low $ 1,000 0 $ 1,000
Crossbow Medium Medium $ 5,000 50,00 $ 10,000
eTrader Low Low $ 1,000 0 $ 1,000
IT Alert Low Low $ 1,000 0 $ 1,000
SAP Low Low $ 1,000 0 $ 1,000
Total $ 129,000 $ 25,000 $ 154,000
33

34. Asset Sensitivity, Risk, and Quarterly Findings
34

35. Audience Focused Dashboards
CISO CEO and Board of
Directors
Senior
Management
How compliant are
we?
How much risk do we
have?
What work do we
need to prioritize?
35

36. DCAP
Data Centric Audit and
Protection -
Centrally managed
security
Data Centric Security Lifecycle & PCI DSS
UEBA
User behavior
analytics helps
businesses detect
targeted attacks
PCI DSS
Protect stored
cardholder data
YearI
2004
I
2014
I
2015
PCI DSS
3.2
I
2016
PCI DSS
Security in the
development
process
36

37. Security Skills Shortage
37

38. Cybercriminal
Sweet Spot
Source: calnet
Cybercrime Trends and Targets
38

39. Problematic and Increasing Shortage of Cybersecurity
Skills
• 46 percent of organizations say they have
a “problematic shortage” of cybersecurity
skills in 2016
• 28 percent of organizations claimed to
have a “problematic shortage” of
cybersecurity skills in 2015
• 18 percent year-over-year increase
39

40. Examples of Services That Can Fill The Gap
Application Services
• Application Hosting & Cloud
Migration
• IT Consulting & Information Architecture
• Software Development & User Experience
Design
Security Services
• Audit & Assessment Services
• Application Security Consulting
• Managed Vulnerability Scanning
• Security Tools Implementation
• Virtual CISO
SecDevOps
40

41. Regulations

42. Federal Financial
Institutions
Examination Council
(FFIEC)

43. FFIEC is a Formal U.S. Government Interagency Body
It includes five banking regulators
Source: WIKPEDIA
43
1. Federal Reserve Board of Governors (FRB),
2. Federal Deposit Insurance Corporation (FDIC),
3. National Credit Union Administration (NCUA),
4. Office of the Comptroller of the Currency (OCC), and
5. Consumer Financial Protection Bureau (CFPB).
It is "empowered to prescribe uniform principles, standards, and report
forms to promote uniformity in the supervision of financial institutions"

44. FFIEC Cybersecurity Assessment Tool
The Assessment consists of two parts: Inherent Risk Profile and Cybersecurity Maturity.
To complete the Assessment, management first assesses the institution’s inherent risk profile based on five categories:
• Technologies and Connection Types
• Delivery Channels
• Online/Mobile Products and Technology Services
• Organizational Characteristics
• External Threats
Management then evaluates the institution’s Cybersecurity Maturity level for each of five domains:
• Cyber Risk Management and Oversight
• Threat Intelligence and Collaboration
• Cybersecurity Controls
• External Dependency Management
• Cyber Incident Management and Resilience
Source: https://www.ffiec.gov/pdf/cybersecurity/FFIEC_CAT_June_2015_PDF2.pdf 44

45. FFIEC Cybersecurity Assessment Tool – Part One
Inherent Risk Profile Part one of the Assessment identifies the institution’s inherent risk:
• Technologies and Connection Types. Certain types of connections and technologies may pose a higher inherent risk
depending on the complexity and maturity, connections, and nature of the specific technology products or services.
• Delivery Channels. Various delivery channels for products and services may pose a higher inherent risk depending on
the nature of the specific product or service offered.
• Online/Mobile Products and Technology Services. Different products and technology services offered by institutions may
pose a higher inherent risk depending on the nature of the specific product or service offered.
• Organizational Characteristics. This category considers organizational characteristics, such as mergers and acquisitions,
number of direct employees and cybersecurity contractors, changes in security staffing, the number of users with
privileged access, changes in information technology (IT) environment, locations of business presence, and locations of
operations and data centers.
• External Threats. The volume and type of attacks (attempted or successful) affect an institution’s inherent risk exposure.
Source: https://www.ffiec.gov/pdf/cybersecurity/FFIEC_CAT_June_2015_PDF2.pdf 45

46. FFIEC Cybersecurity Assessment Tool – Risk Levels
The following includes definitions of risk levels:
• Least Inherent Risk. An institution with a Least Inherent Risk Profile generally has very limited use of technology. It has
few computers, applications, systems, and no connections. The variety of products and services are limited. The
institution has a small geographic footprint and few employees.
• Minimal Inherent Risk. An institution with a Minimal Inherent Risk Profile generally has limited complexity in terms of
the technology it uses. It offers a limited variety of less risky products and services.
• Moderate Inherent Risk. An institution with a Moderate Inherent Risk Profile generally uses technology that may be
somewhat complex in terms of volume and sophistication.
• Significant Inherent Risk. An institution with a Significant Inherent Risk Profile generally uses complex technology in
terms of scope and sophistication.
• Most Inherent Risk. An institution with a Most Inherent Risk Profile uses extremely complex technologies to deliver
myriad products and services.
Source: https://www.ffiec.gov/pdf/cybersecurity/FFIEC_CAT_June_2015_PDF2.pdf
46

47. FFIEC Cybersecurity Assessment Tool
– Part Two
Cybersecurity Maturity
Maturity level within each of the following five domains:
• Domain 1: Cyber Risk Management and Oversight
• Domain 2: Threat Intelligence and Collaboration
• Domain 3: Cybersecurity Controls
• Domain 4: External Dependency Management
• Domain 5: Cyber Incident Management and Resilience Domains,
Assessment Factors, Components, and Declarative Statements
Within each domain are assessment factors and contributing
components.
Source: https://www.ffiec.gov/pdf/cybersecurity/FFIEC_CAT_June_2015_PDF2.pdf
47

48. FFIEC Cybersecurity Assessment Tool –
Maturity Levels
Each maturity level includes a set of declarative statements
that describe how the behaviors, practices, and processes of
an institution can consistently produce the desired outcomes.
Source: https://www.ffiec.gov/pdf/cybersecurity/FFIEC_CAT_June_2015_PDF2.pdf
Definitions for each of the maturity levels
The Assessment starts at the Baseline
maturity level and progresses to the
highest maturity, the Innovative level
48

49. FFIEC Cybersecurity
Assessment Tool –
5 Domains:
1. Domain 1: Cyber Risk
Management and Oversight
2. Domain 2: Threat Intelligence
and Collaboration
3. Domain 3: Cybersecurity
Controls
4. Domain 4: External Dependency
Management
5. Domain 5: Cyber Incident
Management and Resilience
Source:
https://www.ffiec.gov/pdf/cybersec
urity/FFIEC_CAT_App_B_Map_to_NI
ST_CSF_June_2015_PDF4.pdf
49

50. Mapping FFIEC Cybersecurity Assessment Tool to NIST Cybersecurity
Framework
Source: https://www.ffiec.gov/pdf/cybersecurity/FFIEC_CAT_App_B_Map_to_NIST_CSF_June_2015_PDF4.pdf 50

51. FFIEC Cybersecurity Assessment Tool - Interpreting and Analyzing
Assessment Results
Source:
https://www.ffiec.gov/pdf/cyb
ersecurity/FFIEC_CAT_June_20
15_PDF2.pdf
51

52. FFIEC Cybersecurity
Assessment Tools
-
Excel Templates

53. FFIEC Cybersecurity Assessment Tool - Excel Template
The linked FFIEC Cybersecurity Assessment Tool Excel Template was created to assist in the assessment process. It includes worksheets to
complete the Inherent Risk Profile Assessment and Cybersecurity Maturity Assessment.
The Assessment Summary worksheet calculates an Inherent Risk Score and reflects percentage of Cybersecurity Maturity achieved against
defined targets based on the completed assessment worksheets.
Source: FFIEC Cybersecurity Assessment Tool Excel Template by Tony DiMichele
53

54. FFIEC Cybersecurity Assessment Tool - Cybersecurity Maturity
Each of the Cybersecurity Domains is dashboarded to illustrate the percentage of maturity achieved against targets selected
for each domain.
Source: FFIEC
Cybersecurity
Assessment
Tool Excel
Template by
Tony
DiMichele

55. FFIEC Cybersecurity Assessment Tool - Cybersecurity Maturity
The calculated Cybersecurity Maturity is plotted on the dashboard against the Inherent Risk, highlighting alignment or lack
thereof.
Source: FFIEC
Cybersecurity
Assessment
Tool Excel
Template by
Tony
DiMichele
55

56. FFIEC Cybersecurity Assessment Tool – FAIR International Standard
Source: http://www.risklens.com/blog/how-to-effectively-leverage-the-ffiec-cybersecurity-assessment-tool
Factor Analysis of
Information Risk
(FAIR)
56

57. FFIEC Cybersecurity Assessment Tool – Tool by FS-ISAC & FSSCC
FSSCC Automated Cybersecurity Assessment Tool
FS-ISAC collaborated with members of the Financial Services Sector Coordinating Council (FSSCC) on
an ”automated” tool:
• No attempts were made to interpret or change any of the FFIEC’s stated expectations; and
• Some FFIEC agencies are using the results of the Cybersecurity Assessment Tool as part of the examination
and supervisory process
Source: https://www.fsisac.com/article/fsscc-automated-cybersecurity-assessment-tool 57

58. FFIEC
Applications
and Data

59. FFIEC
Cybersecurity
Assessment
Source:
https://www.ffiec.go
v/pdf/cybersecurity/
FFIEC_CAT_App_B_M
ap_to_NIST_CSF_Jun
e_2015_PDF4.pdf
Risk
Resources
Controls
59

60. Examples of Services That Can Fill The Gap
Application Services
• Application Hosting & Cloud
Migration
• IT Consulting & Information Architecture
• Software Development & User Experience
Design
Security Services
• Audit & Assessment Services
• Application Security Consulting
• Managed Vulnerability Scanning
• Security Tools Implementation
• Virtual CISO
SecDevOps
60

61. Securing FinTech:
Threats, Challenges, Best
Practices, FFIEC, NIST, and
Beyond
Ulf Mattsson, CTO Security Solutions
Atlantic Business Technologies
ulf.mattsson@atlanticbt.com

62. My Work with PCI DSS Standards
Payment Card Industry Security Standards Council (PCI SSC)
1. PCI SSC Tokenization Guidelines Task Force
2. PCI SSC Encryption Task Force
3. PCI SSC Point to Point Encryption Task Force
4. PCI SSC Risk Assessment SIG
5. PCI SSC eCommerce SIG
6. PCI SSC Cloud SIG
7. PCI SSC Virtualization SIG
8. PCI SSC Pre-Authorization SIG
9. PCI SSC Scoping SIG Working Group
10. PCI SSC Tokenization Products Task Force
62

63. Not Knowing Where Sensitive Data Is
Source: The State of Data Security Intelligence, Ponemon Institute, 2015
63

64. Data Security On Prem
Operating System
Security Controls & Agents
OS File System
Database
Application Framework
Application Source Code
Application
Data
Network
External Network
Internal Network
Application Server
SecDevOps