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ICSA Technology Conference:
focus on cyber security
Friday 4 November, 2017
Join
the conversation
@ICSA_News
#ICSATechConf
Chair’s opening remarks
Mark Child, Managing Director
GLE Consulting Limited
Building business confidence
Cyber Security
The ICSA Technology Conference 2016
ICSA: THE GOVERNANCE INSTITUTE 4TH NOVEMBER 2016
Cyber security – everyone’s pet subject
• Undoubtedly the topic of the moment
• But, is it anything new?
• How worried should we really be?
• How, in practical terms, do we understand and tackle ‘cyber
threat’?
Questions…
“What are we doing
about Cyber?” “Can we be
hacked?”
“What is our current
level of Cyber risk?”
“Should we be
doing penetration
testing?”
“Can’t we just take
out insurance?”
It’s an opportunity for the authorities too
“The biggest threat to the UK way of life will
come from cyber terrorism rather than
traditional attacks on cities and people”.
David Blunkett
“If the US government does not improve
cyber defences, we will leave our nation and
our economy vulnerable".
Barak Obama
“Cyber security is a Tier 1 threat to the
nation and has become a strategic risk
management issue for all organisations.”
MI6
Hardware and software vendors…
…are never blind to a sales and
marketing opportunity either!
Threat landscape
• Main themes over the last year.
• The risk landscape is dynamic and continuously evolving.
• Cybercrime in Financial Services is the domain of organised criminals -
focussed on monetising their technical advantage.
• Ransom-ware
• Phishing
• Data theft
• Wire-fraud (and ‘whale phishing’)
• Smaller organisations are as equally likely to be in the firing line as large
firms. Their relative lack of resources mean that they are easier to
compromise and exploit.
• Increased reliance on third party suppliers – a significant hidden
security risk.
• The threat therefore remains real, current and relevant to all.
Threat landscape –
The global state of information security survey
2015
Threat landscape – global
Implementation of key security safeguards
Threat landscape – global
Ransomware and cyber extortion
Martin Lee
Technical Lead, Security Research Team
Lead, Talos Outreach EMEA, Cisco
Martin Lee
Technical Lead Security Research
Digitisation of Crime
Acquisitive Crime
“The Conjurer”
Hieronymus Bosch c.1480
Cyber Crime Business Model
Compromised
System
Steal CPU Cycles
Steal Bandwidth
Steal Data
Mine bitcoins
DDOS
Send spam
Credential theft
Identity theft
Ransomware - A New Model
Ransomware Rogues Gallery
Name AIDS Trojan
Date Dec 1989
Spread Diskette
Ransom $189 (by post)
Encryption Symmetric
(file names only)
Ransomware Rogues Gallery
Name Reveton Cryptolocker Cryptowall 2.0 Locky
Date May 2012 Sep 2013 Sep 2014 Feb 2016
Spread Exploit kits
(web)
Email Malvertising Email
Ransom $200
by Ukash,
Bitcoin
$400 by Ukash
or Bitcoin
$500 or bitcoin $300 - $400
Tor, Bitcoin
Encryption various RSA-2048 bit Including
network drives
RSA- 2048 bit RSA-2048 + AES-256
including network
drives also web site
version.
Angler EK - The Money
Distribution
Zepto - Spam
Malvertising
A Major News Site
26 Domains
39 Hosts
171 Objects
557 Connections
Angler EK Infection Demo
SamSam – March 2016
Scan for JBoss
vulnerability
Encrypt files &
demand payment
Install
SamSam
malware
Install web shell
Expand presence
on network
SamSam – March 2016
Vulnerable Systems
3.2 million ‘at risk’ machines
Scan for JBoss
vulnerability
CVE-2010-0738
Install web shell
2100 installed web shells
A Future Ransomware Model
Establish initial
access
Escalate
privileges
Identify critical
systems
Install
ransomware
Collect
payment
Scan for
vulnerabilities
Maximising lost value for the victim
Minimising costs for the attacker
www.talosintelligence.com
blog.talosintel.com
@talossecurity
martinle@cisco.com
Incident response: what to do in
the event of a cyber breach
Mark Child, Managing Director and
Neil May, Senior Manager, Technology Risk
Management
GLE Consulting Limited
What To Do In The Event of A
Cyber Breach
Incident Response
ICSA: THE GOVERNANCE INSTITUTE 4TH NOVEMBER 2016
You might be feeling a bit like this…
Rabbit in the headlights!
Or, depending on your board…
Possibly like this.
The big question is …
Is this really an entirely new threat that
we are facing?
Our view
But, there are some trends:
― We are noticing more and larger breaches.
― Breaches and data leaks are making the news – there is public, media and regulatory interest.
― The criminals are getting smarter.
The threat is NOT new.
‘Cyber’ is a convenient label for
information risk in the 21st Century
Our view – how do we respond?
Pursue a strategy of defence-in-depth
Avoid our historic fixation on ‘the perimeter’
This is not a purely technical problem.
The solution is not necessarily a technical one.
Technical controls remain key.
The weakest links are likely to be:
Your people
Your third party suppliers & partners
And
So
But
Summary
― ‘Cyber threat’ is nothing new – in our view!
― But it is serious.
― Target defence in depth.
― Staff, contractors and suppliers are now your weakest link.
― Get back to basics on information governance
― Apply technology solutions intelligently to support & enable.
History quiz
History quiz
Just how successful was it?
Not very
successful at
all!
Perception versus reality
We think we are building this…
But we have potentially built this…
Case studies – poor practices
― October 2015
― Cause: Simple (and old) technical exploit (executed by a 15 year-old boy)
― Immediate result: 150,000 customer records stolen (0ver 15,000 full bank details)
― Incident/crisis management extremely poor:
― CEO unprepared & poorly briefed
― Scope of breach massively over-estimated
― Response ill-judged (500,000 customers given ‘free upgrade’)
― Impacts:
― REPUTATION – Lost 95,000 customers in year 1
― FINANCIAL – Current financial cost estimated at £60m
― REGULATORY – Formally sanctioned by ICO (Fined 400k)
Case studies – insider threat
― December 2014
― Cause: Malicious software deployed via ‘phishing’ attack used to obtain IDs and passwords
― Politically motivated
― Immediate result: 100 terabytes of data stolen (the whole of the “.co.uk” domain is only 68
Tb)
― Data included entire movies, financials, staff data, salary data, email records
― Data posted on the internet for download
― Impacts:
― REPUTATION – Deputy CEO forced to resign due to damaging email content
― FINANCIAL – Current financial cost estimated at $15m (impact reduced by
insurances and managed legal response).
Case studies – third party
― Spring 2014
― Cause: Security compromise at third party AirCon and Ventilation contractor – access gained
to Target’s network.
― Immediate result: 70m customer records and 40m credit card records harvested across
1,797 stores over extended period
― Data downloaded by criminals in Russia.
― Impacts:
― FINANCIAL – Current financial cost to Target estimated at $61m (Industry-wide costs estimated at
$200m)
Get back to basics
― It’s not just about the enemy at the gates (i.e. the perimeter)
― The perimeter is hard to define these days
― We cannot rely solely upon prevention – our detection and response capability must improve.
We need to take the threat seriously.
Get back to basics
― Technology and tools of the highest quality can be undermined by weaknesses in basic
security practices.
― Or by a flawed corporate culture.
― Cyber/Information risk is a problem for the entire business to resolve – not just IT!
― Today’s cyber criminals recognise this and exploit it by adopting a range of approaches which
step away from the purely technical and exploit weaknesses in the way that organisations
manage, control and interact with their information.
― A full frontal assault is unlikely to be profitable – an attacker will target compromise from the
inside. And they can be very patient.
Get back to basics
Fundamentally, addressing the Cyber Threat means going back to basics, looking again at your
organisation and the controls you already have:
― Understanding your people – what threats do they pose? After all there is no patch for
stupidity!
― Understanding your organisation’s information, where it is and how it is used.
― Identifying the main risks to physical and information assets.
― Ensuring that the right measures are adopted to mitigate risk to within acceptable levels –
balancing cost versus risk.
Get back to basics – governance foundations
Unless the foundations of good information and security governance are working well, any
investment in security technology will most likely be wasted. Fundamental areas for focus are:
― Staff security training and awareness.
― Robust oversight and management of third party suppliers
― Software & hardware patch management
― Intelligent management & admin of user access.
― Clear policies on security, acceptable system use and social media.
People. Process. Tools. In that order!
Get back to basics – making it work
For effective and sustainable governance:
― Setting, maintaining and continuing to evolve the “tone at the top”.
― Monitoring of information risk management by the Board of Directors.
― Ongoing, practical and relevant awareness training.
― Independent assurance.
― Regular, risk-based security testing. Inside and outside the perimeter.
What happens if a security breach occurs?
― If a security breach occurs, organisations that follow clearly documented plans to reduce the
impact of the breach have a much better chance of staying out of the law courts and avoiding
punishment
― Most organisations unfortunately don't have good systems for actually managing the
problem. If a breach occurs, the law is really concerned with your behaviour at that point in
time. You can't unravel the past and pretend the breach didn't occur, it's what you do from
that point on that will determine your culpability
― On top of having well documented systems and procedures, organisations need to have
clearly defined actions for dealing with a breach and limiting the damage to those affected.
This is likely to involve multiple disciplines that could include information security specialists,
IT resources, a PR agency, legal advice and credit reporting services
― If you adopt an honourable stance from the outset, doing the right thing at the right time, then
your legal team is in a very strong position to defend you to the regulator arguing that you're
not the kind of organisation that has the profile that requires all of the effect of the law and
therefore the punishment
How to protect organisations from security breaches
― Take some basic steps to "build a protective shield”, most notably:
― Build a single unified security policy
― Ensure information security forms part of any contract initiation
― Make security part of the process when any project is initiated
― Employee adequacy – ensure you have processes for handling new employees, changes of job, and
for employees exiting the company; show that they were made aware of security requirements
― Third-party assurance – have processes in place to guard information held by third parties
― Culture – have a managerial structure in place that demonstrates a chain of responsibility for handling
security and reporting errors
― ‘Tone at the top’
― Shared ownership of good practices
― Openness & transparency – continuous improvement
State of the Nation – addressing Cyber Risk
Four golden rules our plan is founded upon
Over 75% of attacks exploit failures to put in
place basic controls
Get the basics right
You have to prioritize where you spend your
money to defend yourself, so build a fortress
around your most critical asset.
Look after the crown jewels
Invest in understanding who might attack you,
why and how, so that you can anticipate the most
likely scenarios and defend those assets that are
most likely to get attacked.
Do your homework on your enemies
Security and resilience can affect nearly every
part of an organization. Strategies to protect IT
security and business resiliency should align with
an organization’s broader goals – from protecting
intellectual property to maximizing productivity to
finding new ways to delight customers.
Treat cyber risk as an opportunity to look
closely at your business
Solving the big ‘Board reporting
problem’ in cyber
Jon Hawes, Security Intelligence Strategist,
Panaseer
Cyber security insurance
Graeme Newman, Chief Innovation Officer
CFC
Tackling the insider threat
Garath Lauder, Director, Cyberseer
Ted Plumis, Vice President of Channels
and Corporate Development, Exabeam
Social engineering: the art of the
con
Rob Shapland, Penetration Testing Team
Manager, First Base Technologies
Cryptography Basics
Dr David Weston, Lecturer in Computer
Science and Information Systems
Birkbeck University of London
Tokens, Honeypots, Idenitfication
Authorisation Services
Ray Dalgarno, Director, CYBERCAST
Trust with “THIS”
Tokens,
Honeypots,
Identification Authorisation Services;
The Confluence
Agenda
Warfare
Attack Surface, Attribution, Residency, Deniability
Honeypots & Tokens
Identification and Authorisation
Conclusion
Warfare
Security through obscurity –
the reason the armed forces adopt camouflage
NHS Cyber Attacks – The Telegraph 1st Nov 2016
“…hacking is "no longer the stuff of spy thrillers and action
movies" but a clear and present threat…”
“…Ben Gummer, minister for Cabinet, says that "large
quantities of sensitive data" held by the NHS and the
Government is being targeted by hackers…”
“…Ministers will also unveil a Cyber Security Research Institute,
a "virtual collection of UK universities" which will work towards
making passwords obsolete…”
Cyber Fraud
“…Online fraudsters stole £10.9bn in the UK last year…”
“…39% (of respondents), questioned by “Get Safe Online” said
they were a victim of cybercrime, but did not report it…”
“…53% received phishing messages…”
Extract from The Telegraph 20th October 2016
Cyber Crime is a War Zone
“Rouse him, and learn the principle of his activity or inactivity. Force
him to reveal himself, so as to find out his vulnerable spots.”
“If you know the enemy and know yourself you need not fear the
results of a hundred battles”
- Sun Tzu, Military General, Strategist & Philosopher, 5th Century
BC, China
Deception is a powerful, effective, but under utilised tool –
(at least by defenders)
Full range of “effects” on adversaries possible through deception
Effects Attacker Defender
Fail to observe
Prevent the defender from detecting the attack. Prevent the attacker from discovering their target.
Reveal
Trick the defender into providing access. Trick the attacker into revealing their presence.
Waste Time
Focus the defender’s attention on the wrong aspects of
the incident.
Focus the attacker’s efforts on the wrong target.
Deception Effects - Attacker & Defender
Operation Mincemeat - 1943
Successful British disinformation plan during the
Second World War to cover the invasion of Italy from
North Africa. To convince the Germans that, instead
of attacking Sicily, the Allied armies would invade
Greece.
Operation Mincemeat - 1943
Successful British disinformation plan
during the Second World War to cover
the invasion of Italy from North Africa.
To convince the Germans that, instead
of attacking Sicily, the Allied armies
would invade Greece.
This was accomplished by persuading
the Germans that they had, by
accident, intercepted "top secret"
documents giving details of Allied war
plans.
Attack Surface, Attribution,
Residency, Deniability
From the living room to the boardroom
Attack Surface
From ordinary consumers, to a single-office business, through
the regulatory bodies, to the national and global giants
The environment dictates the approach – no “Silver Bullet”
Layered security – combining multiple mitigating security
controls to cost effectively protect resources & data
Attack Attribution
At which point in the attack do you realise that you have been
hacked
 TalkTalk, DNC, Yahoo
There are very few “smoking guns” visible
Attacks that often begin with broadly targeted phishing, that can
introduce & run new binaries on victims networks, & that
connect to random internal hosts using exfiltrated credentials ,
can still remain hidden for a year
Examples of Global IT Vendors’ Vulnerabilities
Microsoft
 Microsoft August (2016) Patch Tuesday, included five updates rated
critical out of a total of nine, bringing the number of patches for the year-
to-date at 103
SAP
 There are vulnerabilities in almost every SAP module; CRM, EP, and SRM
are leaders among them ERPScan SAP Cyber Threat
Report2016
Oracle MICROS (and others)
 In total, more than one million PoS terminals around the world could be
at risk, should the attacks prove to have been deeper than the
companies are currently publicly admitting
Computing Aug
Dwell Time/Residency
Mandiant reported that attackers on average lurked on a
network for 205 days before being discovered¹
Microsoft recently reported they place the number at more
than 200 days to detect a security breach and 80 days to contain
it²
1. https://www2.fireeye.com/rs/fireye/images/rpt-m-trends-2015.pdf
2. https://blogs.windows.com/windowsexperience/2016/03/01/announcing-windows-defender-advanced-threat-
protection
Plausible Deniability & Malware Intrusion
Plausible deniability refers to circumstances where a denial of
responsibility or knowledge of wrong doing cannot be proved as
true or untrue due to a lack of evidence proving the allegation
It is a basic law for the cheat and the deceiver. Be able to offer up
an excuse that cannot be disproved easily and that makes sense
for the situation
Trickle-down Effects
Increasing rapidity of car-trickle-down; yester-years’ top end car
innovations eventually migrate through the models becoming standard
options in lower-priced vehicles
This pattern of innovation holds true in virtually every field, including
cyber- security
Malware as a Service (MaaS) – moving from the heavily funded
specialist cyber experts down into the mass market
MaaS now commonly available at very low cost through the darknet and
sites such TOR, I2p
Honeypots & Tokens
Evolution Mimicry
Honeypots
Venus Flytrap in Action
(triggered honeypot)
Trojan Horse (passive honeypot)
Greeks built, used to enter the
city of Troy and win the 10 year
Trojan war - 4th Century story
Cartography: A trap street (passive
honeypot) is a fictitious entry in the
form of a misrepresented street, for
the purpose of "trapping" potential
copyright violators
Tempting - moneypot
All
mine……….
Ooops!
Honeypot Principle
Focus on detecting threats
 Here, we’d like to know immediately someone has broken into the network and in
places they shouldn’t be
Ensure the honeypot looks appealing to the attacker
 The honeypot must look legitimate & enticing
In this attack scenario the defender has particular advantage
 Once attackers initially land inside your internal network, they’re at a disadvantage.
They don’t know the lay of the land and they need to explore it (reconnaissance),
while remaining hidden
Defence through Deception
Deception is a highly effective solution for protecting
environments; used to confuse, delay and redirect the enemy
Lured to the Canary Honeypot, the attacker will be tricked into
engaging with that device and believe they are being successful
in their attack
Canary – Today and Tomorrow
Canary - great for remote sites but what about our VM data
centres?
What about integration with established enterprise monitoring
frameworks such as Openview, CA or Microsoft SCOM?
Console management limit on the number of deployed Canaries?
Are “Canarytokens” part of tomorrow’s planning?
Identification &
Authorisation
A new way forward
Tokens
Tokens - In general, a token is an object that represents something
else, such as another object (either physical or virtual), or an
abstract concept. In computer systems, there are a number of
types of tokens, both hardware and software
In human terms, a token of trust can exist between two parties
with such levels of trust reinforced through personal introductions
with other parties
A token generation & management platform, designed
specifically for high security multi-services in public and private
clouds,
greatly enhances trustworthy information handling
Identification with Passwords
Any directory service or management
platform holding passwords becomes a
target by the attacker for credentials’ theft
Passwords are fundamentally flawed:
 Often easy to guess
 Are reused across different services
 Are written down or stored or shared
 Can be intercepted
 Are expensive to maintain
 29% of all cybercrime is from stolen
passwords
Identification WITHOUT Password
The Problem
 The password has outlived it’s usefulness
Secure Cloudlink’s Response
 Patented and highly secure tokenised message management
solution assures password redundancy
 User credentials are not transmitted, stored or replicated
 Secure digital services - a snap for the user
Randomised, encrypted, key generation –
no consistent key to be stolen
Conclusion
Possible quick-wins
Immediate Low-risk Considerations
People protection: Continuous inter-active education on the threats & risks
posed by cyber-criminals through the deployment of Phish5 email phishing
simulations with supporting education processes
Network hardening: Rapid deployment of customisable, low-cost, capex-
free, Canary honeypots throughout the strategic points on the network
Access & authorisation protection: Review and assess the usage &
costs (direct/indirect) of passwords in your own organisation – test the results
against Secure Cloudlink
Information handling assurance: Regular external, expert assessment &
audit of network, data governance practices and procedures
Security Through Obscurity
Warfare - The Social Threat
Attack Surface, Attribution, Residency, Deniability -
Livingroom to Boardroom
Honeypots & Tokens – Evolution Mimicked
Identification and Authorisation – New Pathway
Thank you
Trust in “THIS”
Security through Obscurity
Ray Dalgarno
ray@cybercast.co
New and evolving forms of malware
Mark Olding, Senior Enterprise Presales
Consultant, Kaspersky Labs
The what, how, who and why of computer malware
Mark Olding
Senior Enterprise Presales Consultant
THE SCALE OF THE THREAT
1
NEW VIRUS EVERY
HOUR
1994
1
NEW VIRUS EVERY
MINUTE
2006
1
NEW VIRUS EVERY
SECOND
2011
310,000
NEW SAMPLES EVERY
DAY
2016
THE SCALE OF THE THREAT
90%
9.9%
0.1%
Targeted attacks
Advanced persistent
threats
Traditional cybercrime
Targeted threats to
organizations
Cyber-weapons
THE NATURE OF THE THREAT
TRENDS AND THREATS
Internet of Things
Big Data Fragmentation of the internet
Cloud & Virtualization
Consumerisation & Mobility
Critical Infrastructure at risk
Increasing online
commerce
Privacy & Data
protection challenge
Online
banking at risk
Mobile threats
Decreasing costs of APTs
Merger of cyber crime and APTs
Supply chain attacks
Internet of Things
Targeting
hotel networks
Ransomware
programs
Cyber mercenariesMassive data
leaks
Malware for ATMs
Financial phishing attacks
Attacks on
PoS terminals
Threats to
Smart Cities
‘Wipers’ & Cyber - sabotage
Targeted Attacks
HOW MALWARE SPREADS
USB sticks
Email
Exploit kits
Social Networks
Browser
s
VULNERBILITIES AND EXPLOITS
WEB-BASED THREATS
Kaspersky Lab discovered 798,113,087 web attacks in 2015
25 attacks per second
1,518 attacks per minute
2.1 million attacks per day 91,000 attacks per hour
DRIVE-BY DOWNLOADS
June2015
SOCIAL MEDIA
June2015
EMAIL
REMOVABLE DRIVES
June2015
DIGITAL CERTIFICATES
CONSUMER THREATS IN 2015
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
Users
Users
2 MILLION ATTEMPTS
In 2015, Kaspersky Lab solutions blocked
attempts to launch malware capable of
stealing money via on-line banking on almost
2 million computers
This number is 2.8%
higher than in 2014
June2015
Ransomware
June
2015
BLOCKERS
CRYPTORS
June
2015
Stuxnet
Advanced Persistent Threats
Duqu
Gauss
Flame
MiniFlame
Kimsuky
NetTraveler
Winnti
Icefog
RedOctober
Miniduke
TeamSpy
Energetis Bear/
Crouching Yeti
Epic Turla
Careto/The Mask
Regin
CosmicDuke
Darkhotel
Spring Dragon
Satellite Turla
MsnMM
Campaigns
Darkhotel Part 2
Animal Farm
Equation
Desert Falcons
Carbanak
Sofacy
Hellsing
Naikon
Duqu 2.0
Blue Termite
Wild Neutron
We discover and dissect
the worlds most
sophisticated malware
HOW THE CARBANAK CYBERGANG STOLE $1bn
Carbanak sent
backdoor as an
attachment
Bank employee
Emails with exploits
Credentials stolen
100s of machines infected
In search of admin PC
Admin
REC
CASH
TRANSFER
SYSTEMS
1. Infection 2. Harvesting Intelligence
Intercepting the clerk’s screen
3. Mimicking the staff
How the money was stolen
Online – Banking
Money was transferred to the
fraudsters accounts
E- Payment Systems
Money was transferred to banks in
China and the US
A targeted attack on a bank
Inflated account balances
The extra funds were pocketed via a
fraudulent transaction
Inflated account balances
The extra funds were pocketed via a
fraudulent transaction
Controlling ATMS
Orders to dispense cash at a pre-
determined time
MAC MALWARE
In 2012, the flashback botnet was
discovers, consisting of 700,000
computers all running under
MAC OSX
Cybercriminals repeatedly use
MAC malware when launching
targeted attacks
MACs can unknowingly pass PC
malware onto PCs in your
network
MAC MALWARE
0
5000
10000
15000
20000
25000
30000
2003200520072009201120132015
Malware
Malware
Since 2012 the proportion of
adware on OSX has increased
fivefold
Kaspersky Lab recorded almost
6 million unique attacks on MAC
devices in 2015
x5
There are more then 24,000
sample of malicious OSX files in
Kaspersky Lab’s collection
MOBILE MALWARE
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
Q12011
Q32011
Q12012
Q32012
Q12013
Q32013
Q12014
Q32014
Q12015
Q32015
Malware
Malware
MOBILE MALWARE
Sales
Adware
RiskTool
• Evaluate the risks
• Patch OS and applications
• Mange your network
• Secure your systems
 Multi-layered protection
 Not just endpoints
 Default-Deny
 Encrypt
 Don’t forget mobile
• Educate staff
RIGHT NOW
• Stop fire fighting
 Create a strategy
• It’s bigger than IT
• Delegate to experts
 Assessment
 Incident response
 Analysis
TOMORROW
• ‘The end of APTs’
• Alternative payment systems and stock exchange
• Sabotage, extortion and shame
• Ransomware
• Trusted resources
• From ‘APT-as-a-Service’ to ‘Access-as-a-service’
• Balkanisation
• Transportation
• ‘Crypto-apocalypse
FUTURE PROSPECTS
THANK YOU
Closing keynote address
Vicki Gavin, Compliance Director, Head of
Business Continuity & Information Security
The Economist Group
Thank you.

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Showreel ICSA Technology Conference

  • 1. ICSA Technology Conference: focus on cyber security Friday 4 November, 2017
  • 3. Chair’s opening remarks Mark Child, Managing Director GLE Consulting Limited
  • 5. Cyber Security The ICSA Technology Conference 2016 ICSA: THE GOVERNANCE INSTITUTE 4TH NOVEMBER 2016
  • 6. Cyber security – everyone’s pet subject • Undoubtedly the topic of the moment • But, is it anything new? • How worried should we really be? • How, in practical terms, do we understand and tackle ‘cyber threat’?
  • 7. Questions… “What are we doing about Cyber?” “Can we be hacked?” “What is our current level of Cyber risk?” “Should we be doing penetration testing?” “Can’t we just take out insurance?”
  • 8. It’s an opportunity for the authorities too “The biggest threat to the UK way of life will come from cyber terrorism rather than traditional attacks on cities and people”. David Blunkett “If the US government does not improve cyber defences, we will leave our nation and our economy vulnerable". Barak Obama “Cyber security is a Tier 1 threat to the nation and has become a strategic risk management issue for all organisations.” MI6
  • 9. Hardware and software vendors… …are never blind to a sales and marketing opportunity either!
  • 10. Threat landscape • Main themes over the last year. • The risk landscape is dynamic and continuously evolving. • Cybercrime in Financial Services is the domain of organised criminals - focussed on monetising their technical advantage. • Ransom-ware • Phishing • Data theft • Wire-fraud (and ‘whale phishing’) • Smaller organisations are as equally likely to be in the firing line as large firms. Their relative lack of resources mean that they are easier to compromise and exploit. • Increased reliance on third party suppliers – a significant hidden security risk. • The threat therefore remains real, current and relevant to all.
  • 11. Threat landscape – The global state of information security survey 2015
  • 12. Threat landscape – global Implementation of key security safeguards
  • 14. Ransomware and cyber extortion Martin Lee Technical Lead, Security Research Team Lead, Talos Outreach EMEA, Cisco
  • 15. Martin Lee Technical Lead Security Research
  • 18. Cyber Crime Business Model Compromised System Steal CPU Cycles Steal Bandwidth Steal Data Mine bitcoins DDOS Send spam Credential theft Identity theft
  • 19. Ransomware - A New Model
  • 20. Ransomware Rogues Gallery Name AIDS Trojan Date Dec 1989 Spread Diskette Ransom $189 (by post) Encryption Symmetric (file names only)
  • 21. Ransomware Rogues Gallery Name Reveton Cryptolocker Cryptowall 2.0 Locky Date May 2012 Sep 2013 Sep 2014 Feb 2016 Spread Exploit kits (web) Email Malvertising Email Ransom $200 by Ukash, Bitcoin $400 by Ukash or Bitcoin $500 or bitcoin $300 - $400 Tor, Bitcoin Encryption various RSA-2048 bit Including network drives RSA- 2048 bit RSA-2048 + AES-256 including network drives also web site version.
  • 22. Angler EK - The Money
  • 26. A Major News Site 26 Domains 39 Hosts 171 Objects 557 Connections
  • 28. SamSam – March 2016 Scan for JBoss vulnerability Encrypt files & demand payment Install SamSam malware Install web shell Expand presence on network
  • 30. Vulnerable Systems 3.2 million ‘at risk’ machines Scan for JBoss vulnerability CVE-2010-0738 Install web shell 2100 installed web shells
  • 31. A Future Ransomware Model Establish initial access Escalate privileges Identify critical systems Install ransomware Collect payment Scan for vulnerabilities Maximising lost value for the victim Minimising costs for the attacker
  • 33. Incident response: what to do in the event of a cyber breach Mark Child, Managing Director and Neil May, Senior Manager, Technology Risk Management GLE Consulting Limited
  • 34. What To Do In The Event of A Cyber Breach Incident Response ICSA: THE GOVERNANCE INSTITUTE 4TH NOVEMBER 2016
  • 35. You might be feeling a bit like this… Rabbit in the headlights!
  • 36. Or, depending on your board… Possibly like this.
  • 37. The big question is … Is this really an entirely new threat that we are facing?
  • 38. Our view But, there are some trends: ― We are noticing more and larger breaches. ― Breaches and data leaks are making the news – there is public, media and regulatory interest. ― The criminals are getting smarter. The threat is NOT new. ‘Cyber’ is a convenient label for information risk in the 21st Century
  • 39. Our view – how do we respond? Pursue a strategy of defence-in-depth Avoid our historic fixation on ‘the perimeter’ This is not a purely technical problem. The solution is not necessarily a technical one. Technical controls remain key. The weakest links are likely to be: Your people Your third party suppliers & partners And So But
  • 40. Summary ― ‘Cyber threat’ is nothing new – in our view! ― But it is serious. ― Target defence in depth. ― Staff, contractors and suppliers are now your weakest link. ― Get back to basics on information governance ― Apply technology solutions intelligently to support & enable.
  • 43. Just how successful was it? Not very successful at all!
  • 44. Perception versus reality We think we are building this… But we have potentially built this…
  • 45. Case studies – poor practices ― October 2015 ― Cause: Simple (and old) technical exploit (executed by a 15 year-old boy) ― Immediate result: 150,000 customer records stolen (0ver 15,000 full bank details) ― Incident/crisis management extremely poor: ― CEO unprepared & poorly briefed ― Scope of breach massively over-estimated ― Response ill-judged (500,000 customers given ‘free upgrade’) ― Impacts: ― REPUTATION – Lost 95,000 customers in year 1 ― FINANCIAL – Current financial cost estimated at £60m ― REGULATORY – Formally sanctioned by ICO (Fined 400k)
  • 46. Case studies – insider threat ― December 2014 ― Cause: Malicious software deployed via ‘phishing’ attack used to obtain IDs and passwords ― Politically motivated ― Immediate result: 100 terabytes of data stolen (the whole of the “.co.uk” domain is only 68 Tb) ― Data included entire movies, financials, staff data, salary data, email records ― Data posted on the internet for download ― Impacts: ― REPUTATION – Deputy CEO forced to resign due to damaging email content ― FINANCIAL – Current financial cost estimated at $15m (impact reduced by insurances and managed legal response).
  • 47. Case studies – third party ― Spring 2014 ― Cause: Security compromise at third party AirCon and Ventilation contractor – access gained to Target’s network. ― Immediate result: 70m customer records and 40m credit card records harvested across 1,797 stores over extended period ― Data downloaded by criminals in Russia. ― Impacts: ― FINANCIAL – Current financial cost to Target estimated at $61m (Industry-wide costs estimated at $200m)
  • 48. Get back to basics ― It’s not just about the enemy at the gates (i.e. the perimeter) ― The perimeter is hard to define these days ― We cannot rely solely upon prevention – our detection and response capability must improve. We need to take the threat seriously.
  • 49. Get back to basics ― Technology and tools of the highest quality can be undermined by weaknesses in basic security practices. ― Or by a flawed corporate culture. ― Cyber/Information risk is a problem for the entire business to resolve – not just IT! ― Today’s cyber criminals recognise this and exploit it by adopting a range of approaches which step away from the purely technical and exploit weaknesses in the way that organisations manage, control and interact with their information. ― A full frontal assault is unlikely to be profitable – an attacker will target compromise from the inside. And they can be very patient.
  • 50. Get back to basics Fundamentally, addressing the Cyber Threat means going back to basics, looking again at your organisation and the controls you already have: ― Understanding your people – what threats do they pose? After all there is no patch for stupidity! ― Understanding your organisation’s information, where it is and how it is used. ― Identifying the main risks to physical and information assets. ― Ensuring that the right measures are adopted to mitigate risk to within acceptable levels – balancing cost versus risk.
  • 51. Get back to basics – governance foundations Unless the foundations of good information and security governance are working well, any investment in security technology will most likely be wasted. Fundamental areas for focus are: ― Staff security training and awareness. ― Robust oversight and management of third party suppliers ― Software & hardware patch management ― Intelligent management & admin of user access. ― Clear policies on security, acceptable system use and social media. People. Process. Tools. In that order!
  • 52. Get back to basics – making it work For effective and sustainable governance: ― Setting, maintaining and continuing to evolve the “tone at the top”. ― Monitoring of information risk management by the Board of Directors. ― Ongoing, practical and relevant awareness training. ― Independent assurance. ― Regular, risk-based security testing. Inside and outside the perimeter.
  • 53. What happens if a security breach occurs? ― If a security breach occurs, organisations that follow clearly documented plans to reduce the impact of the breach have a much better chance of staying out of the law courts and avoiding punishment ― Most organisations unfortunately don't have good systems for actually managing the problem. If a breach occurs, the law is really concerned with your behaviour at that point in time. You can't unravel the past and pretend the breach didn't occur, it's what you do from that point on that will determine your culpability ― On top of having well documented systems and procedures, organisations need to have clearly defined actions for dealing with a breach and limiting the damage to those affected. This is likely to involve multiple disciplines that could include information security specialists, IT resources, a PR agency, legal advice and credit reporting services ― If you adopt an honourable stance from the outset, doing the right thing at the right time, then your legal team is in a very strong position to defend you to the regulator arguing that you're not the kind of organisation that has the profile that requires all of the effect of the law and therefore the punishment
  • 54. How to protect organisations from security breaches ― Take some basic steps to "build a protective shield”, most notably: ― Build a single unified security policy ― Ensure information security forms part of any contract initiation ― Make security part of the process when any project is initiated ― Employee adequacy – ensure you have processes for handling new employees, changes of job, and for employees exiting the company; show that they were made aware of security requirements ― Third-party assurance – have processes in place to guard information held by third parties ― Culture – have a managerial structure in place that demonstrates a chain of responsibility for handling security and reporting errors ― ‘Tone at the top’ ― Shared ownership of good practices ― Openness & transparency – continuous improvement
  • 55. State of the Nation – addressing Cyber Risk Four golden rules our plan is founded upon Over 75% of attacks exploit failures to put in place basic controls Get the basics right You have to prioritize where you spend your money to defend yourself, so build a fortress around your most critical asset. Look after the crown jewels Invest in understanding who might attack you, why and how, so that you can anticipate the most likely scenarios and defend those assets that are most likely to get attacked. Do your homework on your enemies Security and resilience can affect nearly every part of an organization. Strategies to protect IT security and business resiliency should align with an organization’s broader goals – from protecting intellectual property to maximizing productivity to finding new ways to delight customers. Treat cyber risk as an opportunity to look closely at your business
  • 56. Solving the big ‘Board reporting problem’ in cyber Jon Hawes, Security Intelligence Strategist, Panaseer
  • 57. Cyber security insurance Graeme Newman, Chief Innovation Officer CFC
  • 58. Tackling the insider threat Garath Lauder, Director, Cyberseer Ted Plumis, Vice President of Channels and Corporate Development, Exabeam
  • 59. Social engineering: the art of the con Rob Shapland, Penetration Testing Team Manager, First Base Technologies
  • 60. Cryptography Basics Dr David Weston, Lecturer in Computer Science and Information Systems Birkbeck University of London
  • 61. Tokens, Honeypots, Idenitfication Authorisation Services Ray Dalgarno, Director, CYBERCAST
  • 62. Trust with “THIS” Tokens, Honeypots, Identification Authorisation Services; The Confluence
  • 63. Agenda Warfare Attack Surface, Attribution, Residency, Deniability Honeypots & Tokens Identification and Authorisation Conclusion
  • 64. Warfare Security through obscurity – the reason the armed forces adopt camouflage
  • 65. NHS Cyber Attacks – The Telegraph 1st Nov 2016 “…hacking is "no longer the stuff of spy thrillers and action movies" but a clear and present threat…” “…Ben Gummer, minister for Cabinet, says that "large quantities of sensitive data" held by the NHS and the Government is being targeted by hackers…” “…Ministers will also unveil a Cyber Security Research Institute, a "virtual collection of UK universities" which will work towards making passwords obsolete…”
  • 66. Cyber Fraud “…Online fraudsters stole £10.9bn in the UK last year…” “…39% (of respondents), questioned by “Get Safe Online” said they were a victim of cybercrime, but did not report it…” “…53% received phishing messages…” Extract from The Telegraph 20th October 2016
  • 67. Cyber Crime is a War Zone “Rouse him, and learn the principle of his activity or inactivity. Force him to reveal himself, so as to find out his vulnerable spots.” “If you know the enemy and know yourself you need not fear the results of a hundred battles” - Sun Tzu, Military General, Strategist & Philosopher, 5th Century BC, China Deception is a powerful, effective, but under utilised tool – (at least by defenders) Full range of “effects” on adversaries possible through deception
  • 68. Effects Attacker Defender Fail to observe Prevent the defender from detecting the attack. Prevent the attacker from discovering their target. Reveal Trick the defender into providing access. Trick the attacker into revealing their presence. Waste Time Focus the defender’s attention on the wrong aspects of the incident. Focus the attacker’s efforts on the wrong target. Deception Effects - Attacker & Defender
  • 69. Operation Mincemeat - 1943 Successful British disinformation plan during the Second World War to cover the invasion of Italy from North Africa. To convince the Germans that, instead of attacking Sicily, the Allied armies would invade Greece.
  • 70.
  • 71. Operation Mincemeat - 1943 Successful British disinformation plan during the Second World War to cover the invasion of Italy from North Africa. To convince the Germans that, instead of attacking Sicily, the Allied armies would invade Greece. This was accomplished by persuading the Germans that they had, by accident, intercepted "top secret" documents giving details of Allied war plans.
  • 72. Attack Surface, Attribution, Residency, Deniability From the living room to the boardroom
  • 73. Attack Surface From ordinary consumers, to a single-office business, through the regulatory bodies, to the national and global giants The environment dictates the approach – no “Silver Bullet” Layered security – combining multiple mitigating security controls to cost effectively protect resources & data
  • 74. Attack Attribution At which point in the attack do you realise that you have been hacked  TalkTalk, DNC, Yahoo There are very few “smoking guns” visible Attacks that often begin with broadly targeted phishing, that can introduce & run new binaries on victims networks, & that connect to random internal hosts using exfiltrated credentials , can still remain hidden for a year
  • 75. Examples of Global IT Vendors’ Vulnerabilities Microsoft  Microsoft August (2016) Patch Tuesday, included five updates rated critical out of a total of nine, bringing the number of patches for the year- to-date at 103 SAP  There are vulnerabilities in almost every SAP module; CRM, EP, and SRM are leaders among them ERPScan SAP Cyber Threat Report2016 Oracle MICROS (and others)  In total, more than one million PoS terminals around the world could be at risk, should the attacks prove to have been deeper than the companies are currently publicly admitting Computing Aug
  • 76. Dwell Time/Residency Mandiant reported that attackers on average lurked on a network for 205 days before being discovered¹ Microsoft recently reported they place the number at more than 200 days to detect a security breach and 80 days to contain it² 1. https://www2.fireeye.com/rs/fireye/images/rpt-m-trends-2015.pdf 2. https://blogs.windows.com/windowsexperience/2016/03/01/announcing-windows-defender-advanced-threat- protection
  • 77. Plausible Deniability & Malware Intrusion Plausible deniability refers to circumstances where a denial of responsibility or knowledge of wrong doing cannot be proved as true or untrue due to a lack of evidence proving the allegation It is a basic law for the cheat and the deceiver. Be able to offer up an excuse that cannot be disproved easily and that makes sense for the situation
  • 78. Trickle-down Effects Increasing rapidity of car-trickle-down; yester-years’ top end car innovations eventually migrate through the models becoming standard options in lower-priced vehicles This pattern of innovation holds true in virtually every field, including cyber- security Malware as a Service (MaaS) – moving from the heavily funded specialist cyber experts down into the mass market MaaS now commonly available at very low cost through the darknet and sites such TOR, I2p
  • 79.
  • 81. Honeypots Venus Flytrap in Action (triggered honeypot) Trojan Horse (passive honeypot) Greeks built, used to enter the city of Troy and win the 10 year Trojan war - 4th Century story Cartography: A trap street (passive honeypot) is a fictitious entry in the form of a misrepresented street, for the purpose of "trapping" potential copyright violators
  • 83. Honeypot Principle Focus on detecting threats  Here, we’d like to know immediately someone has broken into the network and in places they shouldn’t be Ensure the honeypot looks appealing to the attacker  The honeypot must look legitimate & enticing In this attack scenario the defender has particular advantage  Once attackers initially land inside your internal network, they’re at a disadvantage. They don’t know the lay of the land and they need to explore it (reconnaissance), while remaining hidden
  • 84. Defence through Deception Deception is a highly effective solution for protecting environments; used to confuse, delay and redirect the enemy Lured to the Canary Honeypot, the attacker will be tricked into engaging with that device and believe they are being successful in their attack
  • 85. Canary – Today and Tomorrow Canary - great for remote sites but what about our VM data centres? What about integration with established enterprise monitoring frameworks such as Openview, CA or Microsoft SCOM? Console management limit on the number of deployed Canaries? Are “Canarytokens” part of tomorrow’s planning?
  • 87. Tokens Tokens - In general, a token is an object that represents something else, such as another object (either physical or virtual), or an abstract concept. In computer systems, there are a number of types of tokens, both hardware and software In human terms, a token of trust can exist between two parties with such levels of trust reinforced through personal introductions with other parties A token generation & management platform, designed specifically for high security multi-services in public and private clouds, greatly enhances trustworthy information handling
  • 88. Identification with Passwords Any directory service or management platform holding passwords becomes a target by the attacker for credentials’ theft Passwords are fundamentally flawed:  Often easy to guess  Are reused across different services  Are written down or stored or shared  Can be intercepted  Are expensive to maintain  29% of all cybercrime is from stolen passwords
  • 89. Identification WITHOUT Password The Problem  The password has outlived it’s usefulness Secure Cloudlink’s Response  Patented and highly secure tokenised message management solution assures password redundancy  User credentials are not transmitted, stored or replicated  Secure digital services - a snap for the user Randomised, encrypted, key generation – no consistent key to be stolen
  • 91. Immediate Low-risk Considerations People protection: Continuous inter-active education on the threats & risks posed by cyber-criminals through the deployment of Phish5 email phishing simulations with supporting education processes Network hardening: Rapid deployment of customisable, low-cost, capex- free, Canary honeypots throughout the strategic points on the network Access & authorisation protection: Review and assess the usage & costs (direct/indirect) of passwords in your own organisation – test the results against Secure Cloudlink Information handling assurance: Regular external, expert assessment & audit of network, data governance practices and procedures
  • 92. Security Through Obscurity Warfare - The Social Threat Attack Surface, Attribution, Residency, Deniability - Livingroom to Boardroom Honeypots & Tokens – Evolution Mimicked Identification and Authorisation – New Pathway
  • 93. Thank you Trust in “THIS” Security through Obscurity Ray Dalgarno ray@cybercast.co
  • 94. New and evolving forms of malware Mark Olding, Senior Enterprise Presales Consultant, Kaspersky Labs
  • 95. The what, how, who and why of computer malware Mark Olding Senior Enterprise Presales Consultant
  • 96. THE SCALE OF THE THREAT 1 NEW VIRUS EVERY HOUR 1994 1 NEW VIRUS EVERY MINUTE 2006 1 NEW VIRUS EVERY SECOND 2011 310,000 NEW SAMPLES EVERY DAY 2016 THE SCALE OF THE THREAT
  • 97. 90% 9.9% 0.1% Targeted attacks Advanced persistent threats Traditional cybercrime Targeted threats to organizations Cyber-weapons THE NATURE OF THE THREAT
  • 98. TRENDS AND THREATS Internet of Things Big Data Fragmentation of the internet Cloud & Virtualization Consumerisation & Mobility Critical Infrastructure at risk Increasing online commerce Privacy & Data protection challenge Online banking at risk Mobile threats Decreasing costs of APTs Merger of cyber crime and APTs Supply chain attacks Internet of Things Targeting hotel networks Ransomware programs Cyber mercenariesMassive data leaks Malware for ATMs Financial phishing attacks Attacks on PoS terminals Threats to Smart Cities ‘Wipers’ & Cyber - sabotage Targeted Attacks
  • 99. HOW MALWARE SPREADS USB sticks Email Exploit kits Social Networks
  • 101. WEB-BASED THREATS Kaspersky Lab discovered 798,113,087 web attacks in 2015 25 attacks per second 1,518 attacks per minute 2.1 million attacks per day 91,000 attacks per hour
  • 107. CONSUMER THREATS IN 2015 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 Users Users 2 MILLION ATTEMPTS In 2015, Kaspersky Lab solutions blocked attempts to launch malware capable of stealing money via on-line banking on almost 2 million computers This number is 2.8% higher than in 2014
  • 111. Stuxnet Advanced Persistent Threats Duqu Gauss Flame MiniFlame Kimsuky NetTraveler Winnti Icefog RedOctober Miniduke TeamSpy Energetis Bear/ Crouching Yeti Epic Turla Careto/The Mask Regin CosmicDuke Darkhotel Spring Dragon Satellite Turla MsnMM Campaigns Darkhotel Part 2 Animal Farm Equation Desert Falcons Carbanak Sofacy Hellsing Naikon Duqu 2.0 Blue Termite Wild Neutron We discover and dissect the worlds most sophisticated malware
  • 112. HOW THE CARBANAK CYBERGANG STOLE $1bn Carbanak sent backdoor as an attachment Bank employee Emails with exploits Credentials stolen 100s of machines infected In search of admin PC Admin REC CASH TRANSFER SYSTEMS 1. Infection 2. Harvesting Intelligence Intercepting the clerk’s screen 3. Mimicking the staff How the money was stolen Online – Banking Money was transferred to the fraudsters accounts E- Payment Systems Money was transferred to banks in China and the US A targeted attack on a bank Inflated account balances The extra funds were pocketed via a fraudulent transaction Inflated account balances The extra funds were pocketed via a fraudulent transaction Controlling ATMS Orders to dispense cash at a pre- determined time
  • 113. MAC MALWARE In 2012, the flashback botnet was discovers, consisting of 700,000 computers all running under MAC OSX Cybercriminals repeatedly use MAC malware when launching targeted attacks MACs can unknowingly pass PC malware onto PCs in your network
  • 114. MAC MALWARE 0 5000 10000 15000 20000 25000 30000 2003200520072009201120132015 Malware Malware Since 2012 the proportion of adware on OSX has increased fivefold Kaspersky Lab recorded almost 6 million unique attacks on MAC devices in 2015 x5 There are more then 24,000 sample of malicious OSX files in Kaspersky Lab’s collection
  • 117. • Evaluate the risks • Patch OS and applications • Mange your network • Secure your systems  Multi-layered protection  Not just endpoints  Default-Deny  Encrypt  Don’t forget mobile • Educate staff RIGHT NOW
  • 118. • Stop fire fighting  Create a strategy • It’s bigger than IT • Delegate to experts  Assessment  Incident response  Analysis TOMORROW
  • 119. • ‘The end of APTs’ • Alternative payment systems and stock exchange • Sabotage, extortion and shame • Ransomware • Trusted resources • From ‘APT-as-a-Service’ to ‘Access-as-a-service’ • Balkanisation • Transportation • ‘Crypto-apocalypse FUTURE PROSPECTS
  • 121. Closing keynote address Vicki Gavin, Compliance Director, Head of Business Continuity & Information Security The Economist Group