This document summarizes a security awareness training presentation that covered topics such as why security training is important, 21st century security threats, PCI compliance, security objectives and challenges, data classification, and security responsibilities. It provided examples of security incidents, the costs of data breaches, PCI DSS requirements, and outlined the company's security framework including defenses, controls, and challenges around excessive data retention, vulnerable infrastructure, lack of documentation and logging.

1. Security Awareness
Training
July, 2007
Dan Wallace
Program Manager
Information Security & PCI Compliance

2. Agenda
• Why? Why Now?
• 21st Century B&E
• PCI DSS
• Security Objectives, Framework, Challenges
• Data Classification
• Security Responsibilities
• Q&A
July 2007 2

3. 21st Century B&E
Reference: NRF “Navigate the World of Loss Prevention”
Organized Crime
Internal Staff
July 2007 3

4. Security Incident
What is an incident?*
• Denial of Service
• Malicious Code
• Unauthorized Access
• Unauthorized Access (Extortion)
• Inappropriate Usage
• Inappropriate Usage (harassment)
An incident can be thought of as a violation or imminent threat
of violation of computer security policies, acceptable use
policies, or standard security practice.
* List taken from NIST Special Publication 800-61, Computer Security Incident Handling Guide
July 2007 4

5. Cost of Breach
2006 Ponemon Institute Report
• Average cost per lost record = $182 (Gartner says $300)
• Direct Costs = $54/record
• Lost productivity = $30/record
• Loss of good will = $98/record
• Average total cost = $4.8M per breach
• Range of total cost = $226K -> $22M
• TJX up to $1B
Knowledge – Action = Negligence
Safe Harbor requires validation of compliance at
the time of the compromise.
Reference: NRF Seminar on 2/22/07 -- Managing the PCI Lifecycle – “Meeting the Challenge of Security Breach Notice Laws” by
Philip L. Gordon, Littler Mendelson, P.C. and “PCI DSS Assessment Process” by Rick Dakin, Coalfire
July 2007 5

6. May BGI Security Incident
• On 5/3 disabled anti-malware and multiple infections were identified on
a BGI PC containing a large amount of cardholder data
• The scope of the possible breach expanded to investigating store
systems, 11 additional PCs, file servers, and application servers
• Remediation tasks included re-imaging the PCs, scanning and cleaning
the PCs with multiple anti-malware tools, changing user and
administrator account passwords, emphasizing the BGI policy of not
visiting potentially harmful websites and not downloading any
unauthorized software
• Six weeks of forensic investigation concluded the incident was
contained and no cardholder data was compromised
• No customer notification was required, however the card associations
were provided with the potentially at-risk account information for
monitoring
July 2007 6

7. NRF PCI DSS Update
• Manage Scope
• Restrict access to cardholder data
• Isolate and limit storage of cardholder data
• Educate systems developers and business areas on
the proper handling of cardholder data
• Maintain a good audit trail – build in auditability
with centralized logging and event management
• Ensure 3rd Party contracts have appropriate terms to
address PCI requirements, indemnification, and IRM
• Implement a Privacy Breach CIRT (Critical Incident
Response Team) Plan
Reference: NRF Seminar on 2/22/07 -- Managing the PCI Lifecycle – “PCI – A Retailer’s Perspective on Compliance and
Governance” by Teri Mieritz, JCPenny and “PCI – An Internal Audit Perspective” by Ken Askelson, JCPenny
July 2007 7

8. PCI DSS
Build and Maintain a Secure Network
1. Install and maintain a firewall configuration to protect data
2. Do not use vendor-supplied defaults for system passwords and other security parameters
Protect Cardholder Data
3. Protect stored data
4. Encrypt transmission of cardholder data and sensitive information across public networks
Maintain a Vulnerability Management Program
5. Use and regularly update anti-virus software
6. Develop and maintain secure systems and applications
Implement Strong Access Control Measures
7. Restrict access to data by business need-to-know
8. Assign a unique ID to each person with computer access
9. Restrict physical access to cardholder data
Regularly Monitor and Test Networks
10. Track and monitor all access to network resources and cardholderdata
11. Regularly test security systems and processes
Maintain an Information Security Policy
12. Maintain a policy that addresses information security
July 2007 8

9. Security Objectives
The five security objectives:
1. Confidentiality (of data and system information)
2. Integrity (of data and systems)
3. Availability (of data and systems for intended use only)
4. Accountability (to the individual level)
5. Assurance (the other four objectives have been adequately
met)
Goal: Adaptive, integrated security.
“Let the good guys in, keep the bad guys out.”
July 2007 9

10. Security Framework
Defenses & Controls
Defense in Depth
Management Layer • Risk/Control Framework
& Assessment
Network Layer (including Wireless)
• Network Diagram • Data Classification
Hardware Layer / Operating System Layer w/HW, OS, DB,
and data flow for • Policies & Procedures,
Application Layer all sensitive data enforcement & audit
• Network
Database Layer segmentation • Security Awareness &
Training
Customer • Access Control • Access Control • Access Control • Access Control • Access Rights (IAM,
Identity (Privacy) • User • User • User • User RBAC, SOD) & Reviews
Credit Card (PCI) • Admin • Admin • Admin • Admin
Enterprise • DBA • Developers • Operators • Engineers
Financial (SOX) • Super User • Super User
Legal (Litigation)
Competitive • Change Control • Change Control • Change Control • Change Control • Reviews & Approvals
Employee
Identity (Privacy) • Physical Access • Physical Access • Physical Access
PHI (HIPAA) Control Control Rights
Compensation
Performance • Table / Field • Application • Patch Mgmt. / • Vulnerability • Security Architecture
Minimize Controls, incl. Controls, incl. app Config Mgmt. Controls (FW, AM,
encryption FW, security dev IDS / IPS, Config.)
capture, use, • Monitoring, incl. • Monitoring • Monitoring • Monitoring (SIEM, • IRM, Reviews & Action
transmission, file integrity p. scans, pen test) Plans
retention • Disaster Recovery • Disaster Recovery • Disaster Recovery • Disaster Recovery • Business Continuity
Planning
Goal: Minimize risk of loss due to inadvertent or intentional misuse of sensitive data and / or technology.
July 2007 10

11. Key Security Challenges
• Excessive retention, storage, access to unprotected data
• Vulnerable infrastructure:
• complex – multiple app versions, multiple builds
• outdated patches – clients (desktops, laptops, registers)
• unsupported OS – NT, 98, DOS
• old software versions – MVS, Peoplesoft
• Limited current documentation on data stores and flow
• De-centralized, inconsistent logging / monitoring
July 2007 11

12. Data Classification
Corporate Office Handbook:
1. Confidential Information
2. Business Records
3. Information Classification
Privacy Committee – Privacy Policy:
1. A specific privacy policy addressing protection of sensitive customer data.
2. Provisions in the company's Employee Handbook that prohibit the disclosure of
sensitive employee data.
3. Ongoing efforts to comply with the Payment Card Industry (PCI) Data Security
Standard, which sets forth key security requirements for controlling internal and
external access to sensitive customer data.
4. Awareness programs for employees at all levels of the organization regarding the
proper handling of sensitive data*.
*"Sensitive Data" is defined by Borders Group as:
(i) personally identifiable information including, address, telephone, birth date number and email address
with the associated name;
(ii) social security number with or without the associated name;
(iii) mother's maiden name with the associated name;
(iv) driver's license, state or federal ID # or other government issued identification card numbers with the
associated name;
(v) credit, debit card or financial account numbers with the associated name and any required PIN or
access code;
(vi) personally identifiable health information; or personally identifiable payroll/financial information including
employee identification numbers.
July 2007 12

13. Security Responsibilities
Know:
computer system usage policies and procedures
loss prevention policies and procedures
classification and appropriate handling of information
privacy policy (The Beat, coming soon to Corp Info)
actions required to report a potential incident
Sources:
Corp Info
Corporate Office Handbook
July 2007 13

14. Security Responsibilities
Protect sensitive information by:
Being aware of phishing, pharming, DoS, spyware, and
social engineering.
Not using email or fax to exchange sensitive information,
unless encrypted.
Not replying or clicking on links in any message requesting
personal or financial information.
Not downloading or installing any applications and
contacting the Service Desk for all software requests.
Not storing sensitive information on portable devices such
as laptops, PDAs and USB drives or on remote/home
systems unless there is appropriate authorization and the
information is encrypted and properly deleted in a timely
manner.
Appropriately securing and deleting secondary data stores –
i.e. Access databases, Excel spreadsheets, etc.
July 2007 14

15. Phishing
Phishers attempt to fraudulently acquire sensitive information,
such as usernames, passwords and credit card details, by
masquerading as a trustworthy entity in an electronic
communication. The damage caused by phishing ranges from
loss of access to email to substantial financial loss.
July 2007 15

16. Pharming
Pharming is a cracker's attack aiming to redirect a website's
traffic to another, bogus website.
A Geocities web page duplicating the Yahoo! login page.
July 2007 16

17. Denial of Service (DoS)
A denial-of-service attack (DoS attack) is an attempt to make
a computer resource unavailable to its intended users. Although
the means to, motives for and targets of a DoS attack may vary,
it generally comprises the concerted, malevolent efforts of a
person or persons to prevent an Internet site or service from
functioning efficiently or at all, temporarily or indefinitely.
One common method of attack involves saturating the target
(victim) machine with external communications requests, such
that it cannot respond to legitimate traffic, or responds so slowly
as to be rendered effectively unavailable. In general terms, DoS
attacks are implemented by:
• forcing the targeted computer(s) to reset, or consume its resources such that
it can no longer provide its intended service
• obstructing the communication media between the intended users and the
victim so that they can no longer communicate adequately
July 2007 17

18. Security Responsibilities
Cooperate fully to support incident response management by:
Following procedures for incident notification in a timely
manner.
Providing detailed information to assist in the investigation.
Complying immediately with all actions requested.
Procedures for incident notification:
1. Corporate:
* IRTeam@bordersgroupinc.com (Incident Response Team)
* Corp Info – Home / BGI Policies / Employee Complaint Procedures
(866) 356-4636 (U.S. Domestic employees)
* Service Desk – IT Security Incident
(734) 477-4357
2. Stores:
* Store Hot Line – Shrink Link
(888) 273-9546
July 2007 18

19. Security Responsibilities
Manage information wisely by:
Minimizing acquisition, storage, transmission, access, and
retention to only what is absolutely required for business use.
Knowing where and how sensitive information for which I am
responsible is acquired, stored, transmitted, accessed,
retained, and disposed of.
Ensuring that information is appropriately secured at all times
and accessible to only those with a need to know.
Properly discarding / disposing of information that is no longer
needed, taking care to use locked recycle bins and proper
deletion tools for sensitive information.
July 2007 19

20. Security Responsibilities
Keep my computer secure by:
Maintaining proper security settings and program patches.
Maintaining appropriate security applications (i.e. anti-
spyware, anti-virus).
Maintaining screensaver password protection at 15 minutes of
inactivity.
Shutting down the PC at the end of the day.
July 2007 20

21. Security Responsibilities
Practice safe access by:
Being conscious of the existence, dangers, and symptoms
of malware.
Being careful about opening any email attachments.
Using only your account or authorized accounts for
application or data access.
Abiding by the password policy and using strong password
controls, including not sharing or writing down the password.
Accessing only the applications and information required by
my job responsibilities, and requesting change of such
access as required.
July 2007 21

22. Security Responsibilities
Avoid Internet dangers by:
Being suspicious about the trustworthiness of all Internet
use, and alert to potential misuse.
Restricting the sharing of information to “need to know” for
business reasons only, and using proper security to protect
sensitive information.
Be responsible about Internet surfing -- i.e. avoid gaming
sites, free download sites, etc.
July 2007 22

23. Security Responsibilities
Key points:
Protect sensitive information
Cooperate fully to support incident response management
Manage information wisely
Keep my computer secure
Practice safe access
Avoid Internet dangers
July 2007 23

24. Q&A
Organized Security
July 2007 24