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Morpho Hacker Group Targets Intellectual Property

With the highly-publicized rise in cyberbreaches, we have seen hackers break into systems for a variety of reasons: criminal enterprises simply stealing money, thieves gathering Social Security or credit card numbers to sell on the black market, state-sponsored groups taking confidential information, and malicious actors taking passwords or personal data to use to hit more valuable targets. Now, another group of financially-motivated hackers has emerged with a different agenda that may have even riskier implications for businesses.

According to a new report from computer security company Symantec, a group it calls Morpho has attacked multiple multibillion-dollar companies across an array of industries in pursuit of one thing: intellectual property. While it is not entirely clear what they do with this information, they may aim to sell it to competitors or nation states, the firm reports. “The group may be operating as ‘hackers for hire,’ targeting corporations on request,” Symantec reported. “Alternatively, it may select its own targets and either sell stolen information to the highest bidder or use it for insider trading purposes.”

Victimized businesses have spanned the Internet, software, pharmaceutical, legal and commodities fields, and the researchers believe the Morpho group is the same one that breached Facebook, Twitter, Apple and Microsoft in 2013.

Symantec does not believe the group is affiliated with or acting on behalf of any particular country as they have attacked businesses without regard for the nationality of its targets. But, as the New York Times reported, ” the researchers said there were clues that the hackers might be English speakers — their malicious code is written in fluent English — and they named their encryption keys after memes in American pop culture and gaming. Researchers also said the attackers worked during United States working hours, though they conceded that might just be because that is when their targets are most active.”

The researchers have tied Morpho to attacks against 49 different organizations in more than 20 countries, deploying custom hacking tools that are able to break into both Windows and Apple computers, suggesting it has plenty of resources and expertise. The group has been active since at least March 2012, the report said, and their attacks have not only continued to the present day, but have increased in number. “Over time, a picture has emerged of a cybercrime gang systematically targeting large corporations in order to steal confidential data,” Symantec said.

Morpho hacking victims by industry

Morpho hackers have also been exceptionally careful, from preliminary reconnaissance to cleaning up evidence.

In some cases, to help best determine the valuable trade secrets they would steal, the group intercepted company emails as well as business databases containing legal and policy documents, financial records, product descriptions and training documents. In one case, they were able to compromise a physical security system that monitors employee and visitor movements in corporate buildings. After getting the data they wanted, they scrubbed their tracks, even making sure the servers they used to orchestrate the attacks were rented using the anonymous digital currency Bitcoin.

In short, the hackers are really good, according to Vikram Thakur, a senior manager of the attack investigations team at Symantec. “Who they are? We don’t know. They are virtually impossible to track,” he said.

U.S. Policymakers Renew Focus on Data Breach Laws

If we have learned any lessons from the last few years, it is that data breaches present a significant business risk to organizations, often resulting in high financial cost and impact on public opinion. According to a recent study, the average cost of a data breach incident is approximately $3.5 million. With reputation management and a complex regulatory landscape as additive organizational concerns, security and risk professionals face the tough task of ensuring their companies successfully manage the aftermath of a data breach.

A crucial aspect to data breach preparedness is having a strong understanding of the legislative and regulatory framework around data breach notification. However, set against a patchwork of 47 existing laws from nearly every U.S. state, risk and compliance professionals are challenged with understanding and communicating rights for their business and customers. The recent mega breaches experienced by several large companies in the United States has resulted in heightened consumer, media and policymaker awareness and concern, making the potential for new requirements and legislation a hot topic.

Currently, legislation that would establish a national data security and breach standard remains undefined.

However, there has been a renewed focus from policymakers and support from the Obama administration to adopt a national notification requirement – offering clarity and guidance for organizations following a data breach. While legislation awaits, experts expect continued data breach enforcement from the federal level, such as the FTC, alongside state governments.

Additionally, as more data is being stored in the cloud and shared across international borders, standard data breach notification requirements are also being evaluated and established on a global level. For example, the European Union’s (EU) new data breach requirements for telecommunication operators and internet service providers (ISPs) were implemented in August 2013. Now, these entities are required to notify national data protection authorities within 24 hours of detection of a theft, loss or unauthorized access to customer data, including emails, calling data and IP addresses. Based on that legislation, the EU is now also considering expanding the 24-hour notification requirement be applied to all commercial sectors as part of the larger update of the region’s data protection law.

A federal standard is likely on the horizon, but in the meantime, there are a few recommended steps risk managers should evaluate now as part of their preparedness plan:

  • Understand the current notification requirements and enlist legal counsel. Once the details of a data breach are identified, organizations will need to assess which laws apply to the incident. Identifying the right group of experts, including outside privacy counsel, ahead of time can help risk managers quickly navigate this process. However, be aware that within the United States, certain state laws have consumer notification requirements as short as 30 or 45 days. This means there is no time to waste verifying consumer addresses; writing, printing and mailing notification letters; or setting up a call center and other services for affected individuals. To complicate things further, multiple state laws may apply to a single data breach due to the jurisdiction of the affected individuals, not where the business is located. For more information on notification requirements, Experian has developed a guide with tips on data breach response available for download at http://www.experian.com/data-breach/response-guide.
  • Offer identity theft protection. Though laws and industry regulations vary regarding if and when an organization needs to notify victims following a data breach, affected consumers have also expressed their expectation that organizations will offer credit monitoring and identity theft protection services in the aftermath of an incident. In fact, 63% of respondents from a recent survey indicated breached companies should be obligated to provide free identity theft protection to affected customers. Organizations that provide fraud monitoring and identity protection are better positioned to improve compliance and maintain consumer’s trust. Policymakers have also made clear as they evaluate data breach legislation that they expect for companies to take steps to further protect consumers from identity theft following a breach.

As legislation for data breaches continue to be shaped, risk managers preparing for their response plans should ensure they partner with legal counsel to understand various notification requirements, across national and international borders. It is also important to remember data breaches cannot be managed solely as a compliance issue, and to take into account consumer needs and expectations. As part of having a well-practiced pre-breach preparedness plan, risk professionals should focus on clear notification and guidance, along with offering identity theft or fraud protection to protect consumers and ultimately maintain their trust following a breach. With these measures in place, regulators will likely recognize that a company is demonstrating established and responsible procedures for managing and responding to a breach.

More information on data breach legislation and resources can be found at the Experian Data Breach Resolution website and the Experian Data Breach Resolution blog.

Why Employees Quit—And How to Keep Them

Why Employees Quit

Employee turnover creates tremendous risk—resources are lost in recruitment and training, productivity lags with insufficient staffing, intellectual property can be exposed, and no company wants to get a reputation as a place where no one can stay very long. Further, the implications for workers comp, lawsuits and insurance extended to employees can cause headaches long after a desk has been cleared out.

A few recent studies highlight some of the biggest factors contributing to employee turnover resultant human resources risk, and what managers can do to keep staff and avoid risk.

Why Employees Leave

A new “exit survey” conducted by LinkedIn among members from five countries found that top reason workers left their jobs was because they wanted greater opportunities for advancement. In a related study from the social network, the number one reason employees who were not actively seeking a new job would be willing to leave was for better compensation or benefits. Regular performance reviews and assessments that open up opportunity for advancement in both responsibilities and salary can help keep employees engaged—and prevent feeling they have to stray to stay on top.

Room to Improve

Another recent study from LinkedIn found that 69% of human resources managers thought that employees were well aware of internal advancement programs. Yet only 25% of departing employees said they knew about these opportunities. In fact, of those who stayed within the company and found a new position internally, two thirds found out about the opportunity through informal interaction with coworkers. Strengthening formal retention and advancement programs and improving awareness of these initiatives may go a long way toward getting employees to use them.

Why New Hires Quit

One in six employees quits a new job within six months — and 15% either make plans to do so or quit outright within that time frame, according to Time. HR software company BambooHR found that the primary factor was “onboarding problems”—in other words, HR or managers are failing to properly orient new hires and integrate them into the workplace. This may seem silly, but they could have reason to feel this is a fatal flaw: research from John Kammeyer-Mueller, associate professor at the University of Minnesota’s Carlson School of Management, found that there is only a 90-day window for settling in. If your new employee is not caught up to speed by then, you may see them walk out the door.

Getting Employees to Stay

CareerBuilder surveyed thousands of workers recently to gain insight into why they decide to stay or go. Of those who plan to stay at their jobs, the top reasons they did not want to leave included: liking the people they work with (54%), having a good work/life balance (50%), being satisfied with the benefits package (49%), and feeling happy with their salary (43%). Of those who are unhappy, however, 58% said they plan to leave in the next year. Making sure these bases are covered is a strong step to keeping your top talent at their desks.

Check out the infographic below for more of LinkedIn’s insights into why employees leave, and what you lose when they go:

New Preliminary Cybersecurity Framework Champions Risk Management

Cybersecurity

In February, President Obama issued an executive order instructing the Commerce Department to lead a task force of security experts and industry insiders to develop a voluntary framework to reduce cyberrisk. Last week, the National Institute of Standards and Technology officially released an initial draft of the cybersecurity framework and announced a 45-day open comment period for public input.

The full Preliminary Cybersecurity Framework can be viewed here on the NIST website. After the review period and subsequent revisions, a more complete version will be released in February.

Risk management is a primary focus of the new framework, from the language used to analyze potential exposure to express endorsements in the policy itself. According to a press release, “The Preliminary Framework outlines a set of steps that can be customized to various sectors and adapted by both large and small organizations while providing a consistent approach to cybersecurity. It offers a common language and mechanism for organizations to determine and describe their current cybersecurity posture, as well as their target state for cybersecurity. The framework will help them to identify and prioritize opportunities for improvement within the context of risk management and to assess progress toward their goals.”

Under Secretary of Commerce for Standards and Technology and NIST Director Patrick Gallagher, who was tasked with overseeing development of the framework, emphasized the risk management as a critical component of strengthening national infrastructure in line with the president’s executive order. “We want to turn today’s best practices into common practices, and better equip organizations to understand that good cybersecurity risk management is good business,” Gallagher said.

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“The framework will be a living document that allows for continuous improvement as technologies and threats evolve. Industry now has the opportunity to create a more secure world by taking ownership of the framework and including cyber risks in overall risk management strategies.

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The framework outlines key functions that should organize cybersecurity activities: Identify, Protect, Detect, Respond and Recover. These functions are designed to aid the risk manager in evaluating, communicating and fortifying against cyberrisks. The document even suggests itself as a potential opportunity for risk managers to seize the opportunity to get involved in proactive cyberrisk strategy. It reads, “The functions also align with existing methodologies for incident management, and can be used to help show the impact of investments in cybersecurity.”

Authors also added the following visual to highlight the critical role of risk management at every level of suggested implementation:

Risk Management in Cybersecurity Framework

In a blog post, the White House encouraged businesses to evaluate the initial framework and their current cyberrisk position, and to consider their cyber risk appetite in the form of a projected target state for cybersecurity.