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Understanding Cyberrisks From Insider Threats

insider threat cyber risk

As cyberrisks evolve, enterprises have begun to focus on the insider threat by adding specialized capabilities for behavioral analytics on top of endpoint and network monitoring. In order for these tools to be most successful, there must be a fundamental understanding of the role an insider plays in a breach. Not every employee-caused breach is malicious, but they certainly are numerous. In fact, according to Verizon’s most recent Data Breach Investigation Report, 90% of breaches have a human component, regardless of intent.

Insider threats are a rampant problem exemplified by several recent headline-making incidents: the indictment of six Chinese nationals on suspicion of stealing intellectual property worth millions from two U.S. technology firms; accusations from financial giant Morgan Stanley toward an employee believed to have stolen client information with the intent to sell it; and claims from wearable-maker Jawbone that its competitor Fitbit regularly courted its privileged employees, enticing several of them to switch companies and bring sensitive details on its products. The uncertainty around all of these cases begs a couple of important questions: how can intent be determined, and how can employee privacy be maintained while ensuring business security?

Malicious or Careless?

Many think of insider threats only in terms of deliberate attacks, but the risk includes damage caused by simple carelessness. It is important to note the differences between malicious and careless incidents to ensure you are taking the right steps to mitigate the threat to your organization.

“Malicious incident” means an employee or someone trusted with network access has acted deliberately, either of their own volition or under the influence of others. A rogue malicious employee usually breaches security policy intentionally for personal gain. This type of incident is illustrated by the Jawbone/Fitbit controversy, as well as the case of the accused Chinese nationals mentioned above.

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Three of those six individuals allegedly leveraged their positions at tech firms to steal research and technology they could replicate and profit from in China.

Conversely, the non-malicious insider threat often stems from employees’ inadvertent mistakes. There is no endgame, just a failure to follow security protocol. This can happen when employees breach policy intentionally but without malicious intent, not recognizing the risk. Sensitive data may be lost due to use of an unauthorized app (“shadow IT”) or manipulation through social engineering attacks, for example. This is easily the most common form of insider threat and can be seen in any case where employee credentials are stolen due to carelessness. To create a truly complete response plan to address insider threats, these incidents must be accounted for as well.

The Most Common Attack Vectors

Through our customer assessments, we have found that most threats stem from two common groups: employees who are planning on leaving the company, and privileged users who are targeted by outside actors.

We’ve come across employees attempting to steal sensitive information before leaving their employers a shocking number of times. In a large portion of investigations launched within three months of working with new customers, we’ve discovered employees attempting to leave with trade secrets that will help them down the road. In recent customer assessments, we found staff using hacking tools not required for their job—like Wireshark and Process Hacker —in two-thirds of cases, and we found staff actively bypassing company security measures 96% of the time.

But the bigger problem we have noticed is outsiders targeting privileged users in order to get into an organization’s networks. Attackers seek out privileged users in order to get quicker and deeper access to sensitive and strategically important information. It’s not as hard as you’d think; 75% of assessments found staff using pirated software, and 93% found sensitive information both in the cloud and on unencrypted USBs.

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These risky practices open the door for phishing schemes, watering-hole attacks, and a slew of other approaches aimed at gaining access to user credentials. A growing number of these highly targeted forms of attack are being perpetrated by sophisticated, well-managed criminal organizations.

Don’t Compromise Privacy

Knowing the varying possibilities, organizations are hard-pressed to guarantee awareness of suspicious or dangerous activities without impacting their employees’ rights to privacy. To address this, start by focusing monitoring on rich, context-heavy data that truly describes typical workforce activity—for example, baseline user behavior over a set period of time to identify uncharacteristic access to sensitive data, running new and unusual applications, or downloading files that an employee has never touched before.

But don’t forget the need to protect the privacy of your employees. Conversations with the legal and HR departments are critical to ensure your plan abides by the legal and ethical limits on gaining insight into user activity.

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Be sure the efforts to stamp out an insider threat don’t come at the expense of the rights of the rest of your workforce.

How Does This Affect the Enterprise?

Whether driven by a careless user, a disgruntled employee looking for quick monetary gain or state-backed espionage, insider threats can have a huge and devastating impact on an organization. Enterprises are beginning to realize they need to understand not only their networks and systems but also their employees and their activities. Historically, a majority of businesses ignored the issue. The most recent Vormetric Insider Threat Report shows 89% of organizations feel vulnerable to the risk of insider threats, but organizations taking a proactive approach still remain in the minority.

Your best bet is to adhere to the philosophy of “trust, but verify.” Rather than focus on locking down certain applications and limiting access to many or all users at the network perimeter, organizations must gain broad visibility into behavior across the company to identify the most pressing vulnerabilities. Not until that has become a widespread practice will enterprises have a true handle on the insider threat.

Insider Fraud: How to Identify and Prevent Internal Threats

Organizations of all sizes, across all industries have become data breach victims as cyber crooks become more sophisticated in identifying vulnerable targets.

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Attackers can compromise an organization within scant minutes in 60% of breaches, reports the latest Verizon Data Breach Investigations Report. Still, insiders persist as one of the biggest fraud perpetrators, costing organizations globally about $3.7 trillion annually in 2014, estimates the Association of Certified Fraud Examiners. The puzzling question is this: With the advances in technology, why aren’t organizations preventing these incidents and why aren’t the offenders being nabbed earlier?

The answer to the insider fraud dilemma lies in a lag in robust risk-management technologies that help organizations identify and prevent insider fraud, especially in such industries as banking. With this type of breach, tracking behavior becomes a key component of managing risks and threats proactively. While basic data tracking isn’t new, what is fresh is grasping the internal behavior of employees in a real time, comprehensive view across multiple platforms and applications.

Unfortunately, disparate legacy systems that don’t share information easily create larger problems by limiting an organization’s ability to monitor across all systems. And siloed information makes it impossible to find “normal” employee behavior that should serve as a benchmark for day-to-day activity.

For example, banks must be on the lookout continually for employees who exhibit illegal behavior when, say, handling a dormant bank account, who are manipulating customer information or who collude with colleagues.

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By benchmarking regular employee activity and leveraging link analysis to spot relationships across accounts or employees, banks also can monitor for and spot instances of employee negligence that can offer cyber crooks easy access to customer data.

Sophisticated surveillance technology exists that lets organizations monitor and detect suspicious behavior in real time, then analyze and develop an evidence trail. Organizations can use the following activities to help identify and prevent an internal threat before it escalates and triggers substantial monetary and brand damage.

  • Monitor all user activity: It is critical to establish what is normal and what is abnormal. Each organization has different user personas with unique activities considered “normal.” By defining organizational benchmarks for normal versus abnormal activity, risk managers can identify inconsistencies in employee behavioral patterns.
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    Visibility into user activity across applications and networks enables them to highlight incidents that warrant deeper analysis and determine threats.

  • Track behavior in real time: Rather than analyze data retroactively, organizations should adopt a solution which can alert from the moment data is captured from the corporate applications and networks. Long-lead systems or those heavily reliant on log-file data don’t allow for real-time tracking and often result in discovering a breach after the fact.

Enable searchability: Organizations can deploy a user-friendly monitoring system with Google-like searchability features with highly specific behavioral criteria. Moving beyond clunky legacy systems to technology that is intuitive eliminates user error and enables more advanced rule-based monitoring.

  • Record screen activity: Gaining visual evidence of illegal activity while it occurs is critical for use during an investigation. Technology that records screen-by-screen activity at the application level creates the comprehensive data trail needed for courtroom presentation.

A combination of these activities can assist organizations in identifying anomalies in employee behavior, track digital activities and contrast them with an employee’s normal routine or that of a peer group’s pattern. If incongruities appear, advanced risk-management technology develops a data trail and a case strong enough to stand up in court. Leveraging these measures, insider fraud can be discovered at an earlier stage to prevent customer data breaches and malicious attacks.

POS System and Critical Infrastructure Attacks, Hactivism Pose Top Cyber Threats

Maintaining enterprise security only gets more difficult, as additional means of cyberattack and increasingly sophisticated techniques are added to attackers’ arsenal.

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“Our personal and professional attack surfaces have never been greater, and they are only expected to grow as organizations and individuals continue to increase their reliance on the digitally connected world for a variety of tasks,” explained researchers from network infrastructure and security services company Verisign. “Security practitioners must not only protect their enterprise assets, but also guard against threats to their supply chain and other business ecosystems.

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These threats, coupled with the cyber threat landscape’s continuous evolution in terms or actors, tactics and motivations, have created a situation where organizations must now move toward an intelligence-driven, holistic security approach to keep pace with the rapid changes in attackers’ tactics, techniques and procedures (TTPs).”

According to Verisign’s “2015 Cyber Threats and Trends: What You Need to Know to Protect Your Data,” the top cyberrisks from 2014 and the first half of 2015 came from:

  • attacks on point-of-sale (POS) systems
  • banking trojans and downloaders
  • various forms of hacktivism
  • critical infrastructure attacks
  • open-source software exploitation
  • vulnerability research “crowdsourcing”

Check out the infographic below for some of the report’s key insights into the top cyberthreats and the biggest vulnerabilities for enterprise security:

verasign cyber threats trends 2015

The Rise of Malvertising

malvertising cyber security

LAS VEGAS—One of the hottest topics in cyberthreat detection right now is the rise of malvertising, online advertising with hidden malware that is distributed through legitimate ad networks and websites. On Monday, Yahoo! acknowledged that one of these attacks had been abusing their ad network since July 28—potentially the biggest single attacks, given the site’s 6.9 billion monthly visits, security software firm Malwarebytes reported.

In the first half of this year the number of malvertisements has jumped 260% compared to the same period in 2014, according a new study released at the Black Hat USA conference here today by enterprise digital footprint security company RiskIQ. The sheer number of unique malvertisements has climbed 60% year over year.

“The major increase we have seen in the number of malvertisements over the past 48 months confirms that digital ads have become the preferred method for distributing malware,” said James Pleger, RiskIQ’s director of research. “There are a number of reasons for this development, including the fact that malvertisements are difficult to detect and take down since they are delivered through ad networks and are not resident on websites. They also allow attackers to exploit the powerful profiling capabilities of these networks to precisely target specific populations of users.”

How does malvertising work—and why is it taking off right now? “The rise of programmatic advertising, which relies on software instead of humans to purchase digital ads, has generated unprecedented growth and introduced sophisticated targeting into digital ad networks,” the company explained. “This machine-to-machine ecosystem has also created opportunities for cyber criminals to exploit display advertising to distribute malware. For example, malicious code can be hidden within an ad, executables can be embedded on a webpage, or bundled within software downloads.”

The study also noted that, in 2014, there was significantly more exploit kit activity (which silently installs malware without end user intervention) than fake software updates that require user consent. In 2015, however, fake software updates have surpassed exploit kits as the most common technique for installing malware. Fake Flash updates have replaced fake antivirus and fake Java updates as the most common method used to lure victims into installing various forms of malware including ransomware, spyware and adware.

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Last week, enterprise security firm Bromium also released a new study focused on the rising threat of malvertising, finding that these Flash exploits have increased 60% in the past six months and the growth of ransomware families has doubled every year since 2013.

“For the last couple of years, Internet Explorer was the source of the most exploits, but before that it was Java, and now it is Flash; what we are witnessing is that security risk is a constant, but it is only the name that changes,” said Rahul Kashyup, senior vice president and chief security architect at Bromium. “Hackers continue to innovate new exploits, new evasion techniques and even new forms of malware—recently ransomware—preying on the most popular websites and commonly used software.”

One of the riskiest aspects of these exploits is that users do not have to be accessing sites that seem remotely suspect to be exposed. According to Bromium’s research, more than 58% of malvertisments were delivered through news websites (32%) and entertainment websites (26%). Notable websites unknowingly hosting malvertising included cbsnews.com, nbcsports.com, weather.com, boston.com and viralnova.com, the firm reported.

With that in mind, IT and cybersecurity teams have to adapt to meet these new threats, which are evolving far faster than detection tools, including antivirus, behavioral analysis, network intrusion detection, and the basic safe browsing guidelines issued to employees regarding their use of work devices.

“The key takeaway from this report is that, at large, the Internet is increasingly becoming ‘untrustworthy.’ Attackers are now using popular websites to launch malware via online ads, which makes things difficult for IT security teams,” explained Rahul Kashyup, SVP and chief security architect at Bromium. “This risk should be well understood and factored in for any organization while building a ‘defense-in-depth’ security stack. Regular patching and updates definitely help to limit the exposure to potential attacks, but that might not be feasible for large organizations.

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It is advisable to evaluate non-signature based technologies that can thwart such attacks in a reliable way and prevent infections on end-user devices.

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According to Bromium, the websites that most frequently serve as malvertising attack sources are:

malvertising attack sources