Who Drives Cybersecurity in Your Business? Milan Patel, K2 Intelligence. AIBA Quarterly Meeting September 10, 2015

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1 Who Drives Cybersecurity in Your Business? Milan Patel, K2 Intelligence AIBA Quarterly Meeting September 10, 2015

2 The Answer 2 Everyone The relationship between the board, C-suite, IT, and compliance leaders within an organization to execute a holistic cyber security program is increasingly becoming critical. What s the goal? To protect the brand, reputation, assets, and customers How to achieve the goal? Education Priorities

3 Who is at risk? 3 Two types of companies: Those which have been compromised and those which will be compromised. - OR - Those which have been compromised and know it, and those which have been compromised and don t.

4 What is the threat? 4

5 Types of Threats 5 The Range of Cyber Threats Against the U.S. Computer-based Intrusion, elevated privileges, data exploitation Network-based Denial of service, surveillance, manipulation User-based Social engineering, insider threat, overseas travel Facility-based Physical access, supply chain, infrastructure

6 Intrusion Vectors 6 Phishing Broad, untargeted campaigns Spoofing or masquerading as a trusted/legitimate sender Malicious links or attachments Designed to infect largest possible number of hosts Spearphishing Highly targeted and specially crafted Malicious links or attachments with believable names Based primarily on openly available information (Google, FB, Linked- In, company website/publications, conference lists) Primary cyber intrusion vector

7 Intrusion Vectors 7 Drive-by-downloads Malware downloaded after visiting compromised website Watering hole attacks Exploit kits widely available for sale (BlackHole, Eleanore) Physical delivery Thumb drives, removable media Usually highly targeted Visitors, conferences, guest presenters Foreign travel Insider threat Compromised employee Foreign travel

8 What makes spearphishing successful? 8 Sending account has been spoofed to gain the recipient s trust. subject and body have been crafted to gain the recipient s interest. Title of attachment is consistent with subject.

9 How else do they target employees? 9 Identify users of social media, including Facebook and LinkedIn. Develop a direct relationship with the targeted individual, or develop a relationship with persons associated with the targeted individual. Send targeted individual a link to a malicious site after trust has been established.

10 For Profit 10 Financial Institution and Identity Fraud Sophisticated, highly customizable malware (Zeus, Spy Eye, Gozi) Web inject feature manipulated HTML content on the client machine Steal and monetize private user information Financial credentials Identity information lists (spam) Online services user credentials (e-shopping, social networking, ) Click-fraud DNS poisoning Pay-per-click advertising profit scheme Legitimate advertisement content replaced with unauthorized ads Financial loss to legitimate advertisers

11 Attack Categories APT Nation-State Espionage 11 Sophisticated and organized cyber attack to access and steal information from compromised computers Usual targets: Defense industry, financial industry, manufacturing and research industry Difference between criminal hackers and APT hackers: APT depends on persistence and has greater access to resources APT uses tools that are less noisy and circumvents anti-virus APT attacks can last several years without detection Stages of an APT attack 1. Network Reconnaissance 2. Intrusion into the network 3. Establishing a backdoor 4. Obtaining user credentials 5. Installing multiple utilities 6. Privilege escalation & data exfiltration 7. Maintaining persistence

12 Statistics % of victims were notified by external entity. 33 % of victims discovered breach internally. 229 Median # of days until adversary presence was discovered on victim network.

13 Statistics % of observed phishing s related to info technology / impersonating company s IT dept. 93 % of phishing s sent on weekdays.

14 Analytics * 14 From 2,122 confirmed breaches and 79,790 reported security incidents affecting 61 countries. 99.9% of exploited vulnerabilities compromised more than a year after patch made available 95% of all incidents involve harvesting credentials and using them to log into web applications 60% of cases networks compromised within minutes 23% of recipients click on phishing messages 11% click on attachments 50% open and click within the first hour 5 billion IoT devices by then end of 2020 * 2015 Verizon Data Breach Report

15 Emerging Threats/Trends 15 Business Compromise Over 7K US victims; $747 million exposed loss ** 270% increase in identified victims and loss since Jan 2015 Majority of transfers going to Asian banks within China/HK Compromise of IoT Automobile hacking Samsung Smart Fridge Deep Web/Dark Net ** FBI PSA Alert Number I a-PSA

16 K2 Cyber Security Advisory Services 16 Server Room to the Board Room Training and compliance Table Top exercises (mock scenarios) Network Traffic Analysis Analysis of network traffic (netflow and pcap) Router configuration files and other network related log files Host-Based Forensics Collect forensic host images and live memory capture Analyze images for indicators of compromise Malware Analyze samples of malicious code Legal Working with US Government and Law Enforcement Intelligence Leverage multiple sources (private and public)

17 Victim Systems Owner Preparation 17 Ensure availability of : - CISO, CSO, Legal, Senior System Administrator, Network Architect, Lead Developer Legal Banner/Computer Use Agreement Network Topography Maps Internal/External IP Address and Host List List of Network Devices (switches, routers) Incident Logs (security, host, IDS, web, database) Archived Network Traffic Forensic Images of Compromised Hosts Physical Access Logs (video, key cards)

18 Preventive Considerations 18 Know your legal agreements with users and partner companies Make sure your IT Staff and Managing Partners are talking regularly Segment your networks (Finance vs. HR/Payroll vs. Case Work) Segment your authentication Two Factor Authentication Application Security Security vs. Productivity Who s monitoring the monitors? Remember: Any network link is a potential intrusion vector Have at least 2 to 3 IT staff members trained in cyber incident response

19 K2 Intelligence Milan Patel Managing Director Milan Patel is a Managing Director at K2 Intelligence. Before joining K2 Intelligence, Milan served as the FBI Cyber Division s Chief Technology Officer (CTO) where he was responsible for advising FBI Cyber Division on policy, strategy and the tactical direction of information and operational technologies used in cyber investigations by the FBI s cyber field operations across all 56 FBI offices in the United States. As the technology lead for the FBI Cyber Division he identified and implemented technologies used in cyber incident response, traditional cyber investigations, and to support interagency cyber threat intelligence sharing within the United States intelligence community the CIA, NSA, and DHS. Leading a team of senior FBI agents, he was also charged with developing more efficient processes and utilization of the Cyber Division s enterprise cyber threat management platform. Most recently, Milan organized and co-led the Joint Requirements Team, facilitated by the White House National Security Council Cyber Security Directorate, a team charged with creating inter-agency business and technology requirements to address President Obama s Executive Order 13636, Improving Critical Infrastructure Cyber Security. This led to the development of the first national cyber incident severity scheme approved by the White House and senior leadership within the United States Intelligence and Federal Law Enforcement Communities and outlines how and when the United States Government will respond and coordinate during cyber incidents within the United States.

20 K2 Intelligence K2 Intelligence, is an industry leading investigative, compliance and cyber defense services firm founded in 2009 by Jeremy M. Kroll and Jules B. Kroll, the originator of the modern corporate investigations industry. K2 Intelligence is redefining 21 st century corporate intelligence by combining deep subject mater expertise with cutting edge technology in an unprecedented way. By employing a wide range of traditional techniques, amplified by cutting-edge technology, stateof-the-art data analytics and the most advanced intelligence gathering methods necessary for complex business problems, K2 Intelligence helps clients mitigate risk and provide solutions that not only protect a company's bottom line but also their brand and reputation. We bring to bear the best multi-disciplinary and multi-national team in the business to solve our clients most difficult problems. K2 Intelligence s multi-disciplinary teams of experts are comprised of former law enforcement and intelligence professionals, former prosecutors and attorneys in private practice, former regulators and Bank Compliance officers, former intelligence officers, investigative journalists, technology experts, forensic accountants, and cybersecurity experts. With offices in New York, London, Madrid, Tel Aviv and Geneva, K2 Intelligence acts as advisors to governments, companies, boards and individuals in business areas including: Complex Investigations & Disputes; Anti-Money Laundering and Regulatory Compliance; Integrity Monitoring & Compliance; Data Analytics & Visualization; Board Advisory; and Cybersecurity Investigations & Defense.

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