AUDIT TAX SYSTEMS ADVISORY

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1 AUDIT TAX SYSTEMS ADVISORY Presented by: Jim Rumph Introduction JIM RUMPH, CISA Systems Manager Jim is a graduate of the University of Georgia with a Bachelor of Business Administration in Accounting and over five years of experience in computer audit and internal controls consulting. Since joining PKM in February of 2006, he has performed information technology general controls assessments for a variety of clients in the financial services industry. These engagements have included both assurance and consulting projects for financial statement audits, Service Organization Control reports and Sarbanes Oxley compliance in a wide range of complex information technology environments. Jim is also a member of ISACA. 1

2 Agenda Why is Information Security important? What should we protect? Where is the information? What are the threats? How can we protect ourselves? How do we respond? Why is this Important? National Cyber Security Alliance 2

3 Why is this Important? National Cyber Security Alliance Why is this Important? 40% of all cyber attacks target business with fewer than 500 employees? - 52% of businesses have a cybersecurity plan (1.) - 40% of businesses do not have an incident response plan should a loss of data occur (1.) - 77% revealed they do not have a formal, written Internet security policy for employees (1.) - 74 % of small businesses reported attacks from 2009 to 2010 with an average cost of about $190,000 per attack (2.) - Cyber crime has surpassed illegal drug trafficking as a criminal moneymaker (2.) National Small Business Study by the National Cyber Security Alliance and Symantec 2. Symantec 3

4 Why is this Important? What commonalities exist? - 79% of victims were targets of opportunity (-4%) - 96% of attacks were not highly difficult (+4%) - 94% of all data compromised involved servers (+18%) - 85% of breaches took weeks or more to discover (+6%) - 92% of incidents were discovered by a third party (+6%) - 97% of breaches were avoidable through simple or intermediate controls (+1%) - 96% of victims subject to PCI DSS had not achieved compliance (+7%) Verizon s 2012 Data Breach Investigations Report Why is this Important? Financial Loss Reputation Risk Legal Liability 4

5 What to Protect Non Public Customer Information HIPAA PCI Data Sensitive business information Any information that can be used to facilitate an attack Where is your Information? Transmitted by post or using electronic means Shown on corporate videos Displayed/published on the web Verbal spoken in conversations Printed or written on paper Stored electronically - Computers - USB - Copier/Printer - CD/DVD 5

6 Information Exposure Malicious Code/Hackers Paper Computer File Web-Based Application Locked Up Limited Access More Users Can Access Open to Multiple Vulnerabilities & Threats Relatively Safe Vulnerability Increased Increases Threat Likelihood Threats and Their Sources Source External Hackers Internal Hackers Terrorist Poorly trained employees Motivation Challenge Ego Game Playing Deadline Financial problems Disenchantment Revenge Political Unintentional errors Programming errors Data entry errors Threat System hacking Social engineering Dumpster diving Backdoors, Fraud, Poor documentation System attacks Social engineering Letter bombs Viruses Denial of service Corruption of data Malicious code introduction System bugs Unauthorized access 6

7 Other Threats Physical Malicious Software Wireless Social Engineering 7

8 8

9 9

10 How Do We Protect Ourselves? People Process Technology How to Protect ourselves People? Training/Awareness - Social Engineering. - Suspicious s - Internet Surfing - Wireless Internet Password security Unique/Strong Passwords for Each System 10

11 How to protect ourselves People Computer Logoff Physical Security Clean Desk Policy Laptop/PDA Security How to Protect ourselves Processes? Policies/Procedures Monitoring of Security Logs Back-up of Critical Data Insurance 11

12 How to Protect Ourselves Technology? Firewalls Strong Passwords Encryption Multifactor Authentication Up to date Anti-virus/Anti-spyware System and Application Patching Automatic Password Protected Screen Saver How to Protect ourselves Technology? Limit Administrative Rights Do not allow employees to install any software without receiving prior approval Install and Maintain Spam Filters 12

13 How Do We Respond to Malicious Activity? Do you have an Incident Response Plan(IRP)? What kind of information has been compromised? Levels of responses Who to notify? Truths of Security Absolute security is unattainable, but reach for the sky! People are your first line of defense. Training/communication is key. Prevention of attacks is far cheaper than responses to attacks. Can t outsource responsibility. 13

14 References aspx#free-materials Jim Rumph

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