What s Hot and What s Not in the World of Cyber Security and Cyber Crime

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1 Department of Technology, Management & Budget (DTMB) What s Hot and What s Not in the World of Cyber Security and Cyber Crime Dan Lohrmann, Chief Technology Officer Department of Technology, Management & Budget Smart Grid Symposium May 20, 2011

2 Focus today: Security Trends 2011 Snapshot of Michigan s IT environment Did you know? Top 5 Cyber Challenges for 2011 Final Thoughts But first a snapshot of Michigan 2 2

3 2001: Michigan becomes first state to fully consolidate IT 357 online services 70 systems to 2 37 data centers to 3 64 percent reduction in contractors Security controls implemented 10,928,702 Web browser based attacks blocked (2010) Web Renewals for Vehicles and Watercraft Michigan earns A in 2010 Digital States Survey 3

4 Michigan s Current IT Landscape 4 17 agencies 47,000 state employees IT support provided for: Over 800 critical business applications Over 56,000 desktops Over 1,300 telecom locations 4

5 The services we touch All of them! Whenever a citizen: Files an income tax return Pays or receives child support Wins the Lottery Compares schools Starts a business Applies for a drivers license or gets pulled over by a state trooper But like you, Michigan is not without struggles when it comes to Cyber Security 5 5 5

6 The Global State of Cyber Security 6

7 Breach Statistics 510,714,985 records with personal information have been involved in reported security breaches since 2005 Privacy Rights Clearinghouse 246,453,606 financial industry records breach have been breached since Privacy Rights Clearinghouse Average total cost of a breach is estimated at $6.75M/breach - Privacy Rights Clearinghouse 7

8 Did you know? Cyber criminals are running black market on-line networks that broker stolen confidential information - Source Panda Security This brokering is a rapidly growing industry - Source Panda Security 8

9 Did you know? It s all being done on-line. You can purchase Credit card details for $2-$90 per card or actual cards for $180 Bank credentials from $80 to $700 with guaranteed balances Money laundering services for 10% to 40% of the total You can pay a project team to set up your own fake online store complete with rogueware Source Panda Security 9

10 Did you know? 30% Increase in enterprise malware attacks 92% Attacks come from the Web 84% Malware on legitimate Web sites 10

11 In 2010, 79% of sites hosting or redirecting visitors to malicious content were legitimate sites. 11

12 Cyber crime is all about money Globally businesses lose $1 trillion to cyber crime every year Source: McAfee BUT IT IS ALSO Low risk Easy (technically) Easy (morally you never meet the victim) 12

13 The Environment is Changing Source: Rob Walters, Sr. Director of Symantec Research Labs 13

14 How about Michigan? What we re seeing 14

15 Average Cyber Attacks Blocked Per Day! 2,9942 Web browser based attacks 24,671 Http based attacks 14,072 scans 88,774 Intrusion prevention 1 5 Securing government is more than a defensive strategy. Start internally with changing how people think 15 15

16 What s hot now You can expect to see the following: 16

17 Challenge #1: Malware Explosion Significant growth in new malware strains 2010 saw 20 million new strains 17

18 Malware Explosion Face the facts: The bad guys are getting better The cyber world is an excellent target for crime The malware development cycle has become an organized process A story from Russia 18

19 Challenge #2: Social Media requires protection Cyber-criminals have found social media sites are perfect to infect unwary users because users are more trusting of the tools than say Increased collaboration and openness will increase organizational vulnerability to data breach 19

20 Social Media Should government take on Facebook? Mark Zuckerberg, Facebook s founder and chief executive, has promised to improve the site s complex privacy controls, which have frustrated many users. 20

21 Social Media Should government take on Facebook? 21

22 Challenge #3 SmartPhones and Mobile Apps need security Mobile subscribers are growing rapidly billion mobile subscribers worldwide by 2013 Push by employees to use personal rather than company provided cell phones Many operating systems Little or no security Malware will take off! 22

23 Mobile Apps An electron spinning technique could pave the way for a new generation of wireless device signals difficult for enemies to intercept, according to researchers at the National Institute of Standards and Technology. 23

24 Mobile Apps ipads iphones Droids Other Smartphones 24

25 Challenge #4 Securing the Cloud Securing the cloud becomes critical as business moves its core processes to the cloud Hackers will exploit the cloud as they look for low hanging fruit that can lead them to monetary gain 25

26 Cloud Computing Malware will invade the cloud in 2011 A new strain of malware was recently detected in a cloudbased service, and its presence may herald a new and potentially dangerous security threat for Internet users in

27 The good, the bad and the ugly The good is dazzlingly good Lower costs On-demand access and self-service Rapid provisioning / deprovisioning Minimal manual effort Ubiquitous network access Measured service 27 27

28 And then there s the bad Loss of control Trust Security Privacy Availability Resiliency Where s my data? 28 28

29 But the ugly is really ugly Below cost threshold for procurement scrutiny Explosive growth/migration of service consumption Fewer eyes on service use Explosive bandwidth consumption Paradigm shift for IT rates Rogue cloud sourcing Time for a reality check: How ugly is it in your shop? 29 29

30 One extreme is blind trust Adopt a commodity cloud function as-is (cloud sets the rules) BUT: Provider accountability is low while risks are high Opposite extreme is all about control Dictate the standards, terms & conditions, etc. BUT: No longer a commodity (and no longer cheap!)

31 Challenge #5 Crimeware Kits Crimeware kits are all encompassing software packages that were designed for nontechnical cybercriminals They open the door for a new era of hackers Some of the more well known crimeware kits are: Zeus/SpyEye, ipack, and Avalanche These programs range in price anywhere from $500-$

32 Final Thought As cyber crime evolves, the approach to security must evolve with it. We must be open to new ways of thinking that include enabling, providing options and forming partnerships without risking security programs. 32

33 Questions Dan Lohrmann

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