Risk and Crisis Management Explored at Cyber Event

NEW YORK—Cyberattacks and data security need to be high priorities for all businesses, experts stressed at ALM’s cyberSecure 2017 event here, Dec. 4 and 5. In fact, not only is failing to prepare for an attack or breach risky, it’s foolish, Kathleen McGee, internet & technology bureau chief for the Office of the Attorney General of the State of New York said in Monday’s opening address. She added that not reporting a breach in a timely fashion has its own set of legal and reputational risks, referring to the SHIELD Act (the Stop Hacks and Improve Electronic Data Security Act), introduced to New York State legislature by Attorney General Eric Schneiderman in November.

“Under the SHIELD Act, companies would have a legal responsibility to adopt reasonable, administrative, physical and technical safeguards for sensitive data,” she said Monday, adding that the standards would apply to any business holding data of New Yorkers, whether or not they do business in the state.

McGee noted that even though a company may not have all the details in the first 72 hours following a breach, reporting it to the New York Department of Financial Services (NYDFS) or another regulator is crucial. It is a legal requirement as part of the NYDFS Cybersecurity Requirements for Financial Services Companies, and even if all the pertinent information about an attack is not yet available, divulging what is known will prevent further enforcement action from the state.

“For some companies, data is the only commodity,” she said. “But in the past 10 years, risk assessments have not evolved as quickly as data collection.”

That observation lent itself to a segue for the next session, “Integrating Periodic Risk Assessment to Avoid Becoming the Next Target of a High-Profile Cyberattack.” Panelists covered the importance of formal risk assessments, which will be legally required by regulators like the NYDFS and the General Data Protection Regulation (GDPR) in Europe and goes into effect in 2018.

Moderator Eric Hodge, director of consulting at CyberScout, said education charts the path to a positive assessment and suggested using non-traditional training methods to onboard clients and employees over the course of a year.

“There are a lot of ways to educate other than the traditional annual training session set in a typical conference room,” Hodge said. “You can try white hat phishing to trap people in a safe way. Share your stories every month and be honest about your own failures. There are ways beyond just checking a box.”

eHarmony Vice President and General Counsel Ronald Sarian said his company has learned from its past incidents to better prepare and to update its ERM framework. The dating and compatibility company’s site was breached in 2012, before he joined the group.

“You need to do a data impact assessment and ask: What are your family jewels?” noted Sarian, who said he aims to implement ISO27001 as the ERM framework to secure eHarmony’s international and cyber presence. “We had so much in place already that I thought we should take a shot at it. It takes at least a year but so far it’s working for us.”

When considering ransomware, experts from healthcare, insurance and electronic payments companies spoke passionately during a dedicated session about how they mitigate risks. Christopher Frenz, director of infrastructure at the Interfaith Medical Center strongly advocated for network segmentation, which he uses at the center, in an effort to keep intrusions contained.

As previously reported, Advisen’s recent Information Security and Cyber Risk Management Survey indicated that, for the first time in the seven years of the survey, there has been a decline in how seriously C-Suite executives view cyberrisk. With that trend in mind, panelist Christopher Pierson, Ph.D., chief security officer & general counsel of ViewPost, a provider of electronic invoice and payment services to businesses, outlined his approach to eliciting a response from board members.

“You can’t tell the board that [paying] is not an option unless it’s illegal,” Pierson said. “Educate the board and explain that it is an option to pay terrorists and criminal syndicates. You’ll see the looks on their faces and then you’ll get them [to want to take action].”

For more information about GDPR, read Risk Management magazine’s coverage.

Closing the Vendor Security Gap

What do organizations really know about their relationships with their vendors?

It’s a question that most companies can’t answer, and for many, that lack of knowledge could represent increased risk of a security breach. This year, Bomgar conducted research into vendor security on a global scale, and the findings underscore that much work remains to be done to shore up third-party security.

The 2016 Vendor Vulnerability Index report produced eye-opening results that should be a wake-up call for business leaders, CIOs and senior IT managers. The survey of more than 600 IT and security professionals explores the visibility, control, and management that organizations in the U.S. and Europe have over external parties accessing their IT networks. Some of the most surprising statistics are summarized below:

  • An average of 89 vendors are accessing a company’s network every week.
  • 92% of respondents reported they trusted their vendors completely or most of the time.
  • 69% said they definitely or possibly suffered a security breach resulting from vendor access in the past year.
  • In the U.S., just 46% of companies said they know the number of log-ins that could be attributed to vendors.
  • Only 51% enforce policies around third-party access.

It’s evident from these findings that third-party access is pervasive throughout most organizations. What’s more, this practice is likely to grow—75% of the respondents stated that more vendors access their systems today than did two years ago. An additional 71% believe this number will continue to increase for another two years.

Two-thirds of those polled admit they have a tendency to trust vendors too much—confidence that should be questioned based on the results of this report. The data revealed that, while most organizations place a high level of trust in their vendors, they still have a low level of visibility into how vendors are accessing their systems.

This contradiction is not something organizations should take lightly. As noted above, 69% of respondents admitted they had either definitely or possibly suffered a security breach resulting from vendor access. An additional 77% believe their company will experience a security issue within the next two years as a result of vendor activity on their networks.

As an organization’s network of vendors grows, so too does the risk of a potential breach. For most companies, it is essential that third-parties have access to sensitive systems as a course of doing business—the question centers on how to grant this access securely.

Historically, companies have used VPNs to provide network access to third-parties. While appropriate for the intended end-user—remote and/or traveling employees—issues arise when the scope of VPN is trusted to manage connections from external groups. If a system connected via VPN is exploited and used as a point of persistence for leap-frogging into the broader network, hackers can persist for days or months and move stealthily about the network. Companies have also seen malicious (or well-intentioned) insiders choosing to abuse their access to steal or leak sensitive information, as this is all made fairly trivial when leveraging open-ended VPN connectivity.

To balance the dual demands of access and security, companies need a solution that allows them to control, monitor and manage how external parties are accessing their systems. Rather than providing “the keys to the kingdom,” a modern secure access solution enables organizations to grant vendors and other third-parties access only to the specific systems and applications needed to do their jobs.

To ensure security, organizations should also select a secure access solution that provides video and text logs of all session activity. This allows companies to monitor how remote access is being used and, perhaps more importantly, by whom. With this technology, any suspicious activity can be immediately flagged for further investigation. In addition, these session forensics can help companies meet internal and external compliance requirements.

Another secure access best practice is to employ a password/credential vaulting solution. This enables organizations to mitigate the risk of credentials shared between privileged users, which are often the target of a threat actor. It also reduces the risk of what system administrators often think of as “the stickynote nightmare,” where a sensitive credential is written on a stickynote and stuck on someone’s monitor for all who walk by to see. Password vaulting technologies also help with the dangers posed by embedded system service accounts that have administrative privileges and are rarely rotated for fear of bringing critical business services down. A small, yet strong initiative to protect network security would include requiring every privileged user to access credentials required for elevated work via checking out of a password vault. This removes most of the challenges associated with sharing credentials as, once they are checked back in, those credentials can be immediately rotated and thus become unknown to the employee or the bad actor who may have stolen them. Incorporating multi-factor technology in order to access the password vault and other sensitive systems takes it a step further.

In today’s heightened environment, following these steps should be essential security best practices for any company allowing vendors or other third-parties to access their network.

The Vendor Vulnerability Index report suggests that companies are aware of the threats posed by ineffective management and poor visibility into vendor access. Yet, as the data shows, just slightly over half of the respondents are enforcing any policies around third-party access. In light of these findings, companies should also ensure that they are properly screening any third-parties with whom they share network access. For example, does the vendor provide security awareness training as part of their employee on-boarding process? Asking this and similar questions will give companies a clearer picture of the vendor’s security ethos, and help them to determine if the partnership is a good fit to begin with.

In order to combat this growing vulnerability, organizations need granular control over external access. Only with such a solution in place can companies feel confident that their vendors won’t unintentionally become their weakest security link.

Defending Against the Cyberrisk of Malicious Insiders

An overwhelming number of businesses increasingly see their greatest cyber threats coming from within, but figuring out what to do about the risk poses a formidable gap, according to a recent study from Mimecast. The email and data security company found that 90% of organizations globally consider malicious insiders a major threat to security, yet 45% report they are ill-equipped to cope with the risk. Indeed, one in seven IT security decision-makers view malicious insiders as their number one threat.

Current measures to guard against this risk may still leave significant exposure, and IT managers appear to know it. Those who say they are very equipped on cybersecurity feel virtually just as vulnerable to insider threats as those who believe they are not equipped at all (16% vs. 17%), “indicating that the risk of malicious insiders trumps perceptions of security confidence,” Mimecast reported.

Mimecast recommends the following strategies to guard against the risk of malicious insiders:

  1. Assign role-based permissions to administrators to better control access to key systems and limit the ability of a malicious insider to act.
  2. Implement internal safeguards and data exfiltration control to detect and mitigate the risk of malicious insiders when they do strike, to cut off their ability to send confidential data outside the network.
  3. Offer creative employee security training programs that deter potential malicious insiders in the first place and help others to spot the signs so they can report inappropriate activity to their managers. Then, back that up with effective processes to police and act swiftly in the event of an attack.
  4. Nurture a culture of communication within teams to help employees watch out for each other and step in when someone seems like they’ve become disenchanted or are at risk of turning against the company.
  5. Train your organization’s leadership to communicate with employees to ensure open communication and awareness.

Check out more of the study’s findings in the infographic below:

mimecast_5-tips-to-defend-infographic

A Risk-Based Approach to Rating and Correcting Individual Cyberrisk

LAS VEGAS—At this week’s Black Hat conference, some information security professionals turned to a key issue to control enterprise-wide cyberrisk: hacking humans. As phishing continues to be one of the top threats for businesses, hackers and security professionals here continue to try and make sense of why this threat vector is so successful and how to better defend against these attacks.

In a session called “Blunting the Phisher’s Spear: A risk-based approach for defining user training and awarding administrative privileges,” Professor Arun Vishwanath presented some of his research on the “people problem” of cybersecurity, proposing a new model for quantifying the cyberrisk posed by individuals within the enterprise and tailoring training to best mitigate the risk they pose. While many corporate training programs stage fake phishing emails and then lecture those who fail, he said, this model continues to be ineffective, as proven by the increase in these attacks and their efficacy across all industries. People are not the problem, Vishwanath asserted, rather it is in our understanding of people.

Vishwanath and his colleagues have come up with a model to explain how users think, the Suspicion, Cognition, Automaticity Model (SCAM). Faulty ideas about cybersecurity practices, popular myths and other irrational beliefs lead to illogical and unsafe practices. Automatic behaviors also play a significant role in risky behavior, particularly with mobile devices and the ritualistic checking of email – users open messages mindlessly and get so used to clicking links, downloading files or entering credentials that they do not really factor logic into these decisions.

Based on this model of why individuals act in risky ways, he recommends developing a Cyber Risk Index (CRI) based on a short, 40-question survey given to individual employees to evaluate the cyberrisk they specifically pose, which can also be aggregated across divisions, sectors and organizations. As the results highlight different areas of weakness that lead to the employee’s risky behaviors, the CRI can dictate the best ways to that individual and mitigate the risk.
phishing risk training What’s more, this quantitative score of individual cyber hygiene can be used to track changes in risk posture over time and to improve current decision processes regarding privileged access to the organization’s systems to better control data at risk.

Check out Dr. Vishwanath’s whitepaper for more on this approach.