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Key Takeaways from the White House Summit on Cybersecurity

Stanford University, Feb. 13, 2015

It was an honor to attend the White House Summit on Cybersecurity and Consumer Protection and I applaud President Obama’s efforts to bring together an impressive group of leaders across a broad range of industries, government and law enforcement officials, and consumer and privacy advocates to discuss cybersecurity. This is an issue that affects us all and clearly has no borders.

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While there were several core themes discussed throughout the day, three key takeaways are of particular interest to private industry:

Public-Private Collaboration is Critical
The overarching theme presented by the White House was how to boost the collaboration between companies and agencies in order to combat hackers. The announcement in the days preceding the Summit of the new Cyber Threat Intelligence Integration Center (CTIIC) was just a first step. As a further validation of the importance and urgency on behalf of the White House surrounding the issue at hand, at the Summit President Obama signed an Executive Order directing the creation of Information Sharing and Analysis Organizations (ISAOs) which will enable companies and the government to share classified cyber threat information. Only with an ongoing sharing of threat information between the government, including the Department of Homeland Security and the Federal Bureau of Investigation, and companies across industry groups, will we be successful.

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With much of the order voluntary, companies across all industries are also being asked to step up to the table now to not only share threat information but to establish best practices within their organizations in order to protect their constituencies in the future. This too is critical, since the maintenance of best practices is closely tied to a company’s ability to get cyber insurance.

Understanding Vulnerabilities is Key to Improving Best Practices
While the need to focus on the security systems operating behind consumer payment systems in order to make it harder for hackers to steal information is absolutely critical, and Apple CEO Tim Cook was quite persuasive on this point, to stop at payment systems alone would not solve cyber hacks. In order to enhance consumer protections online, single factor authentication, or the password as the primary form of security, is a dated practice that should be replaced with more secure technologies.

Companies also need to be mindful that criminals can breach a business’ defenses in any number of ways – directly through company networks and also indirectly through the network of vendors and third party service providers. What is needed is a fuller understanding of all the possible threats, malicious actors and the broad range of tactics those actors will employ. Across all industries, companies are facing a highly complex and constantly evolving threat environment with new attackers and attack methods to be wary of in order to protect their partners, clients and customers.

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What Comes Next is Even More Meaningful
While it is essential for the United States to take a leadership role on this important issue, with guidelines and processes for internal consumption, we cannot merely look inward. We are living and working in an increasingly interconnected and globalized environment, and that environment also includes criminal elements. Cyber threats from foreign countries, such as Russia, China and North Korea, keep growing. Sharing information alone won’t stop them. The next steps from our government in protecting our nation’s business must be even more meaningful. We urge cooperation with international law enforcement agencies to help protect companies from foreign-based threats and to help make significant progress in this area.

Biggest Bank Robberies of the 21st Century

Many of the top perceived risks in the banking industry are focused on new developments. According to last year’s Protiviti survey “Executive Perspective on Top Risks for 2014,” financial services industry professionals projected that the biggest risks would be regulatory changes, cyber threats, and protecting the privacy and security of their customers amid greater use of cloud computing, social media and mobile technology.

One of the oldest threats banks face, however, still packs quite a punch for the bottom line. As Ross Smith of Fast Locksmith illustrates in the infographic below, bank robberies may be more closely associated with the days of Bonnie and Clyde and Old West sheriffs, but they have cost the industry billions since 2000. Check out some of the biggest bank robberies of the 21st century:

Bank Robbery Infographic

 

McAfee Labs Predicts Top Cybersecurity Threats for 2015

2015 cybersecurity trends

In 2015, cybercriminals will increasingly be non-state actors who monitor and collect data through extended, targeted attack campaigns, McAfee Labs predicts. In the group’s 2015 Threats Predictions, Intel Security identified internet trust exploits, mobile, internet of things and cyber espionage as the key vulnerabilities on next year’s threat landscape.

“The year 2014 will be remembered as ‘the Year of Shaken Trust,’” said Vincent Weafer, senior vice president of McAfee Labs. “This unprecedented series of events shook industry confidence in long-standing Internet trust models, consumer confidence in organizations’ abilities to protect their data, and organizations’ confidence in their ability to detect and deflect targeted attacks in a timely manner. Restoring trust in 2015 will require stronger industry collaboration, new standards for a new threat landscape, and new security postures that shrink time-to-detection through the superior use of threat data. Ultimately, we need to get to a security model that’s built-in by design, seamlessly integrated into every device at every layer of the compute stack.”

McAfee Labs predicts the top cybersecurity threats in 2015 will be:

1. Increased use of cyber warfare and espionage tactics. Cyber espionage attacks will continue to increase in frequency as long-term players will become stealthier information gatherers, while newcomers to cyber-attack capabilities will look for ways to steal sensitive information and disrupt their adversaries.

  • Established nation-state actors will work to enhance their ability to remain hidden on victim systems and networks.
  • Cybercriminals will continue to act more like nation-state cyber espionage actors, focusing on monitoring systems and gathering high-value intelligence on individuals, intellectual property, and operational intelligence.
  • McAfee Labs predicts that more small nation states and terror groups will use cyber warfare.

2. Greater Internet of Things attack frequency, profitability, and severity. Unless security controls are built-in to their architectures from the beginning, the rush to deploy IoT devices at scale will outpace the priorities of security and privacy. This rush and the increasing value of data gathered, processed, and shared by these devices will draw the first notable IoT paradigm attacks in 2015.

  • The increasing proliferation of IoT devices in environments such as health care could provide malicious parties access to personal data even more valuable than credit card data. For instance, according to the McAfee Labs report entitled Cybercrime Exposed: Cybercrime-as-a-Service, the cybercrime community currently values stolen health credentials at around $10 each, which is about 10 to 20 times the value of a stolen U.S. credit card number.

3. Privacy debates intensify. Data privacy will continue to be a hot topic as governments and businesses continue to grapple with what is fair and authorized access to inconsistently defined “personal information.”

  • In 2015 we will see continued discussion and lack of clarity around what constitutes “personal information” and to what extent that information may be accessed and shared by state or private actors.
  • We will see a continued evolution in scope and content of data privacy rules and regulations, we may even see laws begin to regulate the use of previously anonymous data sets.
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  • The European Union, countries in Latin America, as well as Australia, Japan, South Korea, Canada, and many others may enact more stringent data privacy laws and regulations.

4. Ransomware evolves into the cloud. Ransomware will evolve its methods of propagation, encryption, and the targets it seeks. More mobile devices are likely to suffer attacks.

  • We predict ransomware variants that manage to evade security software installed on a system will specifically target endpoints that subscribe to cloud-based storage solutions.
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  • Once the endpoint has been infected, the ransomware will attempt to exploit the logged-on user’s stored credentials to also infect backed-up cloud storage data.
  • We expect the technique of ransomware targeting cloud-backed-up data to be repeated in the mobile space.
  • We expect a continued rise in mobile ransomware using virtual currency as the ransom payment method.

5. New mobile attack surfaces and capabilities. Mobile attacks will continue to grow rapidly as new mobile technologies expand the attack surface.

  • The growing availability of malware-generation kits and malware source code for mobile devices will lower the barrier to entry for cybercriminals targeting these devices.
  • Untrusted app stores will continue to be a major source of mobile malware. Traffic to these stores will be driven by “malvertising,” which has grown quickly on mobile platforms.

6. POS attacks increase and evolve with digital payments. Point of sale (POS) attacks will remain lucrative, and a significant upturn in consumer adoption of digital payment systems on mobile devices will provide new attack surfaces that cybercriminals will exploit.

  • Despite current efforts by retailers to deploy more chip-and-pin cards and card readers, McAfee Labs sees continued growth in POS system breaches in 2015 based on the sheer numbers of POS devices that will need to be upgraded in North America.
  • Near field communications (NFC) digital payment technology will become an entirely new attack surface to exploit, unless user education can successfully guide users in taking control of NFC features on their mobile devices.

7. Shellshock sparks Unix, Linux attacks. Non-Windows malware attacks will increase as a result of the Shellshock vulnerability.

  • McAfee Labs predicts that the aftershocks of Shellshock with be felt for many years given the number of potentially vulnerable Unix or Linux devices, from routers to TVs, industrial controllers, flight systems, and critical infrastructure.
  • In 2015, this will drive a significant increase in non-Windows malware as attackers look to exploit the vulnerability.

8. Growing exploitation of software flaws. The exploitation of vulnerabilities is likely to increase as new flaws are discovered in popular software products.

  • McAfee Labs predicts that exploitation techniques such as stack pivoting, return- and jump-oriented programming, and a deeper understanding of 64-bit software will continue to drive the growth in the number of newly discovered vulnerabilities, as will the volume of malware that exploits those newly discovered vulnerabilities.

9. New evasion tactics for sandboxing. Escaping the sandbox will become a significant IT security battlefield.

  • Vulnerabilities have been identified in the sandboxing technologies implemented with critical and popular applications. McAfee Labs predicts a growth in the number of techniques to exploit those vulnerabilities and escape application sandboxes.
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  • Beyond application sandboxing, McAfee Labs predicts that 2015 will bring malware that can successfully exploit hypervisor vulnerabilities to break out of some security vendors’ standalone sandbox systems.

Risk Management, Board Collaboration Can Bolster Cyber Defense

Risk management executives are charged with preparing companies for, and protecting them from, a broad array of emerging risks. Today, there is perhaps no threat that poses more danger than a cyberattack, which could result in a data breach or compromising sensitive information. Given the rapid increase in frequency and severity of high-profile cyberattacks in recent months, organizations must confront cybersecurity issues with greater focus, specificity and commitment.

Of note, an astounding 43% of U.S. companies experienced a data breach in the past year, according to the Ponemon Institute’s 2014 annual study on data breach preparedness, a 10% increase from 2013. These alarming trends are compelling companies to create programs centered on cyber risk awareness, education and preparedness. These programs are vital to the company’s performance and growth; the 2014 Cost of Data Breach Study by IBM and the Ponemon Institute reveals that the average cost to a company from a data breach was about $3.5 million per breach in 2014 – a 15% increase since last year. A company’s intellectual property and customer data may also be compromised in a cyberattack, expanding potential casualties beyond financial losses.

Risk management executives cannot confront this issue alone. Because the responsibilities of management and boards of directors are not limited to having a thorough understanding of cybersecurity issues, they must also be aligned on a clear-cut strategy for both preventing and responding to cyberattacks. This strategy includes efforts to improve education, implement preparation measures before an attack strikes and continued adherence to best practices in all board-related activities.

Awareness and Education

At the most fundamental level, boardrooms must increase the company’s resiliency in the face of cybersecurity threats by increasing awareness of the topic and the associated risks. Unfortunately, boardrooms are struggling to properly educate directors on the topic: a 2012 Carnegie Mellon poll of how U.S. boards are managing cyber risks found that 71% rarely or never review privacy and security budgets, 80% rarely or never review roles and responsibilities, and nearly two-thirds rarely or never review top-level policies. Additionally, more than half of directors surveyed rarely review security program assessments. Every director should make cybersecurity a topic on the board’s agenda and ask questions if there is any confusion or doubt.

Preparation

Directors who are properly aware and educated on the topic of cybersecurity are therefore more prepared and versed in the case of a crisis, not only as individuals but as a collective management team. Given the potential economic consequences of these attacks, it is essential that boardrooms are aligned on the company’s response strategy. It is critical that there be a clear understanding among all levels of a management team about who is responsible for managing this issue. Directors who are familiar with their company’s IT department are better able to determine if the team is equipped to effectively address cybersecurity. Cyber policies must remain updated and understood by all in order to decrease chances for exposure.

Best Practices

A critical part of boardroom preparedness is ensuring that directors are pursuing best practices to decrease changes for exposure and there increase resiliency. There are several practices companies can adopt to ensure this level of preparation:

  • Education and preparation: Board members must be educated on cybersecurity and its risks so that they are prepared to manage any situation or crisis. Oftentimes, companies increase their vulnerability by failing to provide directors with the proper tools and information.
  • Secure communication: Companies must provide board members with a secure way to share and communicate about critically sensitive information. In order to prevent careless oversharing, this information should never be sent via email. Board members must have a thorough understanding of cloud services. Although these solutions provide an easy way to upload and download files, many have been successfully hacked, compromising private files and email addresses.
  • Collaborate and strategize: When directors have a clear understanding of cyber security and the associated risks, they are more equipped to collaborate and strategize around managing any issues related to cybersecurity. With increased board-level conversation about cybersecurity, directors are able to determine if managing cybersecurity is the purview of the audit committee, a separate committee, the company’s IT department or CIO.

Education, awareness and preparedness are critical components to help mitigate vulnerability and risks of cyberattacks. Boardrooms must be open to embracing new strategies and technologies in order to ensure their communication capabilities are secure while remaining fast and accessible. Organizations need to prioritize cybersecurity training to ensure that boardrooms are acting in the company’s best interest and are confident in its cyber crisis response strategy. Although risk has been an evolving factor impacting businesses of all types and sizes throughout history, cybersecurity presents a new challenge—and it is one that can be confronted successfully with the correct management strategy and tools.