Cybersecurity Panel. ABA Mutual Community Bank Conference Marriott Marquis Hotel, Washington, D.C.



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Cybersecurity Panel ABA Mutual Community Bank Conference Marriott Marquis Hotel, Washington, D.C. aba.com 1-800-BANKERS

Your Panel Speakers: Bill Nelson, President and CEO, Financial Services Information Sharing and Analysis Center Al Williams, Chief Operating Officer, Dollar Bank Moderator: Doug Johnson, Senior Vice President, Payments and Cybersecurity Policy, American Bankers Association aba.com 1-800-BANKERS

The Threat Landscape and FS-ISAC Overview Financial Services Information Sharing & Analysis Center

Agenda Today Threat Landscape FS-ISAC Background Services Examples of information shared Membership Tsunami Community Bank resources Maximize value of FS-ISAC membership What s Next? 4

Threat Trends Cyber Crime Bad guys are mostly Eastern European although Asian groups are also active. A complete service based economy supporting their activities Attacks are a mix of social engineering and technical attack. Hactivists Started with WikiLeaks Anonymous DDoS attacks Data loss combination of hacking and insiders Nation State Motivations: espionage (APT), disruption (AQCF) Targeting Government + private sector This FS-ISAC presentation is not for publication 5

Anatomy of an Attack Financial Services Information Sharing & Analysis Center 6

Attacker Mindset An adversary will attack the network s weakest point The User The Supply Chain Targeting has become very selective Executives & staff (access to data) System and network administrators (privileged credentials) Third Party vendors Open source information gathering allows the adversary to become very familiar with target prior to attack Organizational structure, technologies, research activities Attacker will utilize minimum complexity to be successful Simple techniques allow the adversary to leverage more attacks (less training and technology required) 7

Common Attack Scenario Adversary Gains Foothold Compromised Web Site Adversary Adversary determines that it has an interest in an Organization s protected information Tainted email sent to Organization s users User clicks on link to compromised web site, remote admin tool installed www.hackedsite.com Additional tools uploaded Using credentials gained, adversary works to establish additional footholds Host 1 Host 2 8

Adversary frequently will perform data mining through a host (Host 2) other than the initially compromised host (Host 1) Remote host may or may not be the same IP/Domain as initial attack Data mining typically occurs on file servers via share permissions Multiple files are typically extracted as an encrypted bundle Common Attack Scenario Data Mining Adversary Host 1 Host 2 File Server 9

DDoS Attack Compromised PCs Your customers Company X edge router Internet Your Internet ISP Company X network and web server Servers controlled by attackers

Background FS-ISAC Overview of FS-ISAC

MISSION: Sharing Timely, Relevant, Actionable Cyber and Physical Security Information & Analysis A nonprofit private sector initiative formed in 1999 Designed/developed/owned by financial services industry Mitigate cybercrime, hactivist, nation state activity Process thousands of threat indicators per month 2004: 68 members; 2015: 5400+ members Sharing information globally 12

PRIVATE SOURCES CROSS SECTOR SOURCES GOVERNMENT SOURCES Information Sources DHS Treasury & FS Regulators FBI, USSS, NYPD FS-ISAC Operations FS-ISAC 24x7 Security Operations Center Member Communications Information Security Physical Security Other Intel Agencies Business Continuity/ Disaster Response isight Partners Info Sec Secunia Vulnerabilities Wapack Labs Malware Forensics NC4 Phy Sec Incidents MSA Phy Sec Analysis Cross Sector (other ISACS) Open Sources (Hundreds) Alerts Fraud Investigations Payments/ Risk Member Submissions 13

Information Sharing & Analysis Tools Threat Data, Information Sharing Anonymous Submissions CyberIntel Listserver Relevant/Actionable Cyber & Physical Alerts (Portal) Special Interest Group Listservers (Community Institution Council) Document Repository Member Contact Directory Member Surveys Risk Mitigation Toolkit Threat Viewpoints Ongoing Engagement Bi-weekly Threat Calls Emergency Member Calls Semi-Annual Member Meetings and Conferences Regional Outreach Program Bi-Weekly Educational Webinars Readiness Exercises US and EU Government Sponsored Exercises CAPP Exercise Advanced Threat/DDoS Exercise Industry exercises- QD2/Pandemic Financial Services Information Sharing & Analysis Center 14

Information Sharing: Traffic Light Protocol Restricted to a defined group (e.g., only those present in a meeting.) Information labeled RED should not be shared with anyone outside of the group This information may be shared with FS-ISAC members. Information may be shared with FS-ISAC members and partners (e.g., vendors, MSSPs, customers). Information in this category is not to be shared in public forums This information may be shared freely and is subject to standard copyright rules 15

How FS-ISAC Works: Circles of Trust IRC CHEF PRC CYBER INTEL FS- ISAC PPISC TIC BRC CIC CAC Clearing House and Exchange Forum (CHEF) Payments Risk Council (PRC) Payments Processor Information Sharing Council (PPISC) Business Resilience Committee (BRC) Threat Intelligence Committee (TIC) Community Institution Council (CIC) Insurance Risk Council (IRC) Compliance and Audit Council (CAC) Cyber Intelligence Listserv NEW- Asset Managers (AM) Dealer Brokers (DM) Member Reports Incident to Cyber Intel list, or via anonymous submission through portal Members respond in real time with initial analysis and recommendations SOC completes analysis, anonymizes the source, and generates alert to general membership Financial Services Information Sharing & Analysis Center 16 16

Types of Information Shared Cyber Threats, Vulnerabilities, Incidents Malicious Sites Threat Actors, Objectives Threat Indicators TTPs, Observables Courses of Action Exploit Targets Denial of Service Attacks Malicious Emails: Phishing/Spearphishing Software Vulnerabilities Malicious Software Analysis and risk mitigation Incident response Physical Threats, Incidents Terrorism Active Shooter Hurricanes Earthquakes Other meteorological events Geopolitical impacts Pandemic Type, location, severity Impact analysis and risk mitigation Business resilience preparation and incident response Financial Services Information Sharing & Analysis Center 17

Community Institution Case Study: ATM Risk from Windows XP end of life FS-ISAC Community Institution Council reviewed impact on ATMs from Windows XP end of life Microsoft ends support of Windows XP April 8, 2014 95% of ATMs run on XP. Community Institution Council members shared strategies on 1) extending maintenance, 2) determining ATM Operating System, 3) embedded XP support, 4) network isolation options. Financial Services Information Sharing & Analysis Center

Recent FS-ISAC Response to Heartbleed Open SSL Vulnerability Advisories and recommendations from membership (Threat Intelligence Committee), government, and third parties (intel vendors) Shared websites with information about Heartbleed-- o Heartbleed Overview o NIST NVD: CVE-2014-0160 (aka the Heartbleed Bug) o TrendMicro: Heartbleed Bug Mobile Apps are Affected Too Community Institution Council shared information and recommendations to FS-ISAC SOC Shared website links identifying affected systems, websites, and status [WHITE] [WHITE] [WHITE] [WHITE] US-CERT: Vendor Information for the "Heartbleed" Bug CNET: Site Patch Status for the "Heartbleed" Bug Reuters: 'Heartbleed' blamed in attack on Canada tax agency, more expected Akamai: Heartbleed Update (v3) Emergency membership call Financial Services Information Sharing & Analysis Center 19

FS-ISAC Membership Tsunami FFIEC regulator webinar May 7, 2014 followed by FFIEC Guidance issued on November 3, 2014. FFIEC encourages all FIs to join FS-ISAC. Over 1,400 new members in the last twelve months. FS-ISAC has responded by: Expanding its customer service and business relationship management staffs, Adding a resource for community institutions, Adding global 24x7 SOC services, Completing Security Toolkit October 2014, Finishing Aid to Processing FS-ISAC Information. Financial Services Information Sharing & Analysis Center

Membership Tiers Benefits Basic Core Standard Premier Membership Dues $250.00/yr. $850.00/yr. $5,000/yr $10,000/yr. Users Access Credentials 1 4 10 25 CINS, Government, Member, and Partner Alerts Member Contact Directory Ability to Join Committees and Working Groups Attendance to Bi-Weekly Threat Calls Ability to Join Business Resilience Committee and Threat Intelligence Committee 21

FS-ISAC Community Bank Resources

Jeff Korte, Director Community Institutions and Associations Sept 2014 hired to support Community Bank and Association activities. Work Experience: VP Bank Security Officer for a $2.5B community bank Corporate Security and Info Sec Manager Investigations Officer Association Experience: Chair of a state bankers association FI security taskforce ABA credit card security task force FS-ISAC CIC member Financial Services Information Sharing & Analysis Center 23

Community Institution Goals Create value-added programs that focus on community institutions by: Perform data analysis from community institution perspective Create and distribute relevant and actionable threat and vulnerability awareness alerts Generate weekly C-level threat summaries Monitor and comment on Community Institution Council (CIC) email listserver Facilitate monthly CIC calls Devise relevant quarterly community institution webinars Create and facilitate working groups Develop services based upon member feedback and requests Financial Services Information Sharing & Analysis Center

Risk Summary Report Weekly Risk Summary Reports provide C- Level management with overviews of the weeks top critical threats 25

Making Choices to Filter Relevant and Actionable Information FS-ISAC provides summary reports for managers and technical reports for analysts. Bank staff have different roles within most banks. Examples: information security, fraud, payments risk. Assign portal accounts to individuals with key responsibilities. Employ FS-ISAC portal filtering of alerts. Use MS Outlook filters as needed for additional routing or filtering. Goal: Make informed choices based on roles and eliminate unnecessary emails. Financial Services Information Sharing & Analysis Center 26

What s Next? Financial Services Information Sharing & Analysis Center 27

Potential Emerging Threat Landscape Mobile Platforms Bandwidth and continuous connectivity makes it an ideal platform for launching attacks. Tools are now available on Google Play and for the iphone. Social Media People instantly, globally connected 24/7. Syrian Electronic Army hacking of AP Twitter demonstrated moving markets Supply Chain Compromise of supply chain has occurred within financial sector. Hardware and software integrity are resource intensive challenges 28

Evolution from Disruptive to Destructive Attacks Advanced DDOS 2012, 2013 40+ FIs targeted, wake-up call for FS industry Resulted in dynamic, effective information sharing Shamoon 2012 Malware executable spread using network shared drives Corrupts files and wipes device boot blocks at specified date A group named "Cutting Sword of Justice" claimed responsibility Attack on 30,000 Saudi Aramco workstations South Korean Attacks 2013 2 banks, media company and insurance company, patch systems targeted Wipers hit Windows, Linux and UNIX OS and removed file systems. Over 3,000 machines made unbootable Sony 2014 Data breach but more importantly destructive malware installed on their network and core systems including back-up. Intellectual property and sensitive information released publically. Impact financial system data destroyed, inability to disburse payments, still can t produce financials for 3 rd quarter 2014. 29

12/3/2014 speech-- Sarah Raskin, Deputy Secretary of the U.S. Treasury provided guidance to chief executive officers, chief risk executives and boards of directors for assessing cybersecurity preparedness: Baseline Protections Is cybersecurity part of your current risk management framework? Is your FI following the National Institute for Standards and Technology (NIST) Framework? Do you know the cyber risks of using your vendors and third-party service providers and do you know the rigor of their cybersecurity controls? Do you have cyber risk insurance? Do you engage in basic cyber hygiene (to protect your enterprise and your customers)? Threat Mgmt Incident Mgmt Risk Analysis 30

Sarah Raskin guidance (continued) Information Sharing Do you share information with the Financial Services Information Sharing & Analysis Center, as well as other industry groups, and if so, how often? Response and Recovery Do you have a cyber-incident playbook, and who is the point person for managing the response and recovery? What roles do senior leaders and the board play in managing and overseeing the cyber incident response? When and how do you engage law enforcement after a breach? After a cyber-incident, when and how do you inform customers, investors and the general public? 31

Information Sharing Overview of FS-ISAC One Organization s Incident becomes the Industry Response

Contact Information Bill Nelson, President & CEO bnelson@fsisac.us Eric Guerrino, EVP Operations eguerrino@fsisac.us Jeff Korte, Director Community Instituions jkorte@fsisac.us Denise Anderson, VP Gov t & Cross-Sector Programs danderson@fsisac.us Chair, Nat l Council of ISACs Rick Lacafta, Director Insurance Services rlacafta@fsiac.us Charles Bretz, Director Payment Services cbretz@fsisac.us Beth Hubbard, Director of Member Services bhubbard@fsisac.us www.fsisac.com Financial Services Information Sharing & Analysis Center 34

Thank You for Your Time Today Financial Services Information Sharing & Analysis Center

Things you need to know Company Confidential

Questions every CEO should be asking

While Cyber Security is a very difficult topic to cover in a brief session, there are a number of areas that management can make inquiries into with IT security staff that will give a good indication of the current level of cyber security within your institution. For those institutions that have outsourced the IT function, these questions should be addressed to your vendor.

Does the IT unit prepare an IT risk assessment which includes a cybersecurity risk evaluation Does the risk report provide reccomendations Has this been communicated to the board of directors

Is there security awareness training for all new employees. Do all existing employees (including all Senior Management) receive security awareness training at least annually. Can you produce a documented report of the completion of such training.

Have you and the senior risk officer and/or Board committee reviewed the following type of reports: Number of blocked inbound emails Number of blocked outbound emails which contained personal customer information Number and type of intrusion attempts on your network

Bank Tool: Spam Prevention : Email caught and blocked from entering Bank Inbound Email allowed or blocked as spam 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 Blocked Inbound Email (Spam, corrupt or invalid) 0 Dec-13 Jan-14 Feb-14 2,526,199 2,480,350 2,331,873 Accepted Inbound Email 481,498 501,651 486,313 Company Confidential 42

Bank Tool: Encryption of outbound email 700 600 601 640 500 471 400 300 200 100 0 Dec-13 Jan-14 Feb-14 Company Confidential 43

Bank Tool: DLP Data Loss Prevention (DLP) ensures that outgoing email containing sensitive information is blocked if the sender did not encrypt the email. Breakdown of blocked outbound sensitive data: 90 80 70 70 87 80 60 50 48 40 30 26 29 20 10 2 4 1 1 1 0 Dec-13 Jan-14 Feb-14 Credit Card # 2 4 11 Debit Card # 1 1 1 TRA Account # 70 87 80 Social Security # 26 48 29 11 Company Confidential 44

Bank Tool: Incoming email: Protects against viruses and malware Incoming email: Protects by filtering out spam Outgoing Email: Performs email encryption 5,000 Malware blocked by xxxxxx 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 4,734 3,179 2,819 Dec 13 Jan 14 Feb 14 February 2014: Top 5 Malware # gen:variant.kazy.333943 283 General (virus-like behavior) 221 trojan.spy.zbot.fjw 208 trojan.ranapama.n 177 gen:variant.graftor.132099 155 Company Confidential 45

Bank Tool: Endpoint Protection & Endpoint Security * Provides anti-virus and anti-malware protection on end-user computers and servers. Malware on Desktops, Laptops, or Servers 2.5 2 2 1.5 1 0.5 0 1 0 0 0 0 Dec-13 Jan-14 Feb-14 Blocked or Detected & Cleaned Still Infected Posing a Risk to Bank Company Confidential 46

Some DDOS attacks against banks have been initiated to distract bank security personnel. Then business customer computers which have been compromised by man in the middle malware send out fraudulent wire transfers or ACH files. What type of layered controls do you have on outgoing wires and ACH files.

What type of education have you provided to your retail and business customers Have you really provided two factor authentication in online banking sessions Have you provided any security enhancement tools to your high risk customers

Are you preparing the bank to make the best use of the new top level domain -.bank Process for obtaining a.bank name Trademark clearing house Marketing plan IT changes Customer education on enhanced security features of.bank

In a world consisting of.coms and.govs.radio.team.science.technology.guru.nyc.book.careers.dating.wed.bible.travel.associates.photo.show.buzz.eco.bet.cool.realtor.college.space.bike.photo.builders.feedback.ceo Over one thousand new domains being added

The Internet financial world will also change.mortgage.cards.insurance.investments.credit.cash.insure.fund.credit card.bank.financial.loan.money.trading.invest.pay.payu.capital 2

Key Marketing Themes Robust Operational Requirements Eligibility Standards; who can participate Name Selection; what kinds of names can be registered Acceptable Use / Anti-Abuse; how domains may be used Prohibition of Proxy Registrations Mandatory verification of all registrations prior to activation Enhanced Technical Requirements Domain Name Security (DNSSEC) deployment across registration chain (i.e., registry, registrar and registrant) Multi-factor authentication by registry and registrar (NIST level 3 or higher) Enhanced encryption standards Email authentication records (e.g., DMARC, DKIM, SPF) Exploring options for DDoS mitigation via real-time monitoring and detection 52

.bank is expected to launch June 15, 2015.but you need to be ready sooner TRADEMARK SUNRISE GENERAL REGISTRATION PERIOD AVAILABILITY PERIOD Prior to May 18, 2015 May 18 June 17, 2015 June 24 Ongoing Register organizations trademarked names with ICANN s Trademark Clearinghouse. Trademark holders registered with ICANN s clearinghouse can register for domains matching trademarks. Verified members of the banking community can register domains on a first come, first served basis

Go to: ABA.com/dotbank for the latest