Category Archives: Crime

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The bebe Hack: Guarding Against Cyberbreach During the Holiday Shopping Season

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bebe data breach

On Friday, retail chain bebe announced that it had identified an attack on computers that operate the in-store payment processing system. The attack may have exposed data from cards swiped in retail locations in the U.S., Puerto Rico, and the U.S. Virgin Islands between Nov. 8 and Nov. 26, including cardholder name, account number, expiration date and verification code. The breach did not impact customers who shopped online or in other international locations, bebe reported, and the company has hired a security firm to stop and investigate the attack.

Almost exactly a year after the massive Target hack, this latest incident comes after a steady stream of sizable breaches among retailers, including Home Depot, JPMorgan Chase and eBay. Consumers have begun to find these hacks increasingly less surprising, and stopped paying as much attention – a phenomenon many are calling “breach fatigue.”

But companies are not entirely off the hook. While Target is on the rebound and subsequent breach victims have endured less damage to consumer perception, these cybersecurity incidents still demand a notable amount of contingency planning and mitigation.

According to public relations and social media firm Affect, there are four keys to protecting brand reputation in the event of a security breach:

1) Develop a Fully Locked and Loaded Response Plan

In the digital age, it is essential to have a cyber attack plan in place as part of an organization’s crisis management strategy. Companies can get ahead of a crisis by leveraging social media to diffuse damaging situations. In order to prepare, be sure to anticipate and understand the kinds of threats that could influence your business and your industry.

“There are four phases of crisis communications: readiness, response, reassurance and recovery,” said Sandra Fathi, president of Affect. “In order to properly respond to a crisis, each stage must be ready to go at a moment’s notice — develop materials such as messages and prepared statements, prepare delivery channels like hotlines and social media platforms and train employees regarding awareness and organizational procedures.
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2) The Customer is Top Priority

Arguably the most important step in maintaining a brand’s image amid a breach is to be honest with customers and inform them about what has occurred — the sooner the better, especially if their personal information is at stake. In fact, 47 states have Security Breach Notification Laws that govern communication with customers in the face of a security breach including the timeline for those communications. Several weeks elapsed before Target released an official statement to their customers and as a result, experienced massive backlash from customers, other organizations and the media alike.

Adam Levin, chairman and founder of IDT911, a provider of data risk and identity management services, believes every company needs to demonstrate three things in the wake of a data breach.

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“Urgency, transparency, and empathy are all critical. I don’t think they [Target] showed enough of those three,” Levin said in an interview with ABCNews.com. Not being upfront with customers can result in a loss of confidence in the brand that can hinder not only the company’s reputation, but could lead to a loss in revenue.

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3) Monitor the Situation in Real-Time

Social media can be a powerful tool but “with great power comes great responsibility.” While positive engagements boost a brand’s respect, companies must always monitor for negative interactions in real-time and be even more stringent during a security breach, as customers will turn to social media to respond to situations, regardless of their allegiance to the brand. Develop a Social Media Response Map that outlines anticipated situations and correlated standard responses to avoid any last minute shuffle. Don’t shy away from angry customers that continuously post adverse comments.

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Depending on the situation, it may be worthwhile to engage with these individuals in a private forum and resolve their concerns, taking the negative sentiments offline.

4) Don’t Repeat the Same Mistakes

For brands, it is especially important to not make the same mistakes twice. Customers may or may not forgive a first offense, so a second go-around is even harder to rebound from. Companies must carefully document and analyze each breach to identify how it happened, why it happened and how to prevent such an event in the future. Consider changing security vendors, deploying new software, re-training staff and amending company policies. It is also important to communicate these changes to customer to reassure them that a similar breach will not reoccur.

DDoS Attacks Cost Businesses $40,000 an Hour

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One of the most common weapons in the cybercriminal’s arsenal is the DDoS attack.

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According to the network security experts at Digital Attack Map, “A Distributed Denial of Service (DDoS) attack is an attempt to make an online service unavailable by overwhelming it with traffic from multiple sources. They target a wide variety of important resources, from banks to news websites, and present a major challenge to making sure people can publish and access important information.

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While many have heard of these attacks or suffered from the outages they cause, most people do not understand the true business risks these incidents pose. To get a better picture of the threat, Internet security firm Incapsula surveyed 270 firms across the U.S. and Canada about their experiences with DDoS attacks. On average, they found, 49% of DDoS attacks last between 6 and 24 hours.

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“This means that, with an estimated cost of $40,000 per hour, the average DDoS cost can be assessed at about $500,000—with some running significantly higher,” the company reported. “Costs are not limited to the IT group; they also have a large impact on units such as security and risk management, customer service, and sales.”

Check out the infographic below for more of Incapsula’s findings on the actual costs of DDoS attacks:

Darkhotel Cyber Attacks Are Targeting Traveling Executives

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darkhotel cyber attack

Traveling business executives have been falling prey to cybercriminals acting through hotel Internet networks since at least 2009. In an ongoing, sophisticated “espionage campaign” nicknamed “Darkhotel,” thousands of people traveling through Asia have been targeted and hacked through infected hotel WiFi, cybersecurity company Kapersky Lab reported Monday. About two-thirds of the attacks took place in Japan, while others occurred in Taiwan, China and other Asian countries.

“For the past few years, a strong actor named Darkhotel has performed a number of successful attacks against high-profile individuals, employing methods and techniques that go well beyond typical cybercriminal behavior,” said Kurt Baumgartner, principal security researcher at Kaspersky Lab. “This threat actor has operational competence, mathematical and crypto-analytical offensive capabilities, and other resources that are sufficient to abuse trusted commercial networks and target specific victim categories with strategic precision.”

So strategic, in fact, that the hackers appear to know the names, arrival and departure times, and room numbers of the targets. While maintaining an intrusion on hotel networks, the hackers used this information, waiting until the victim checked in and logged on to the hotel Wi-Fi, then submitting their room number and surname to log in. When the hackers saw the victim on the network, they would trick the executive into downloading and installing a “backdoor” with the Darkhorse spying software disguised as an update for legitimate software like Google Toolbar, Adobe Flash or Windows messenger. Once installed, the backdoor can be used to download other spying tools, such as an advanced keylogger and an information-stealing module.

“These tools collect data about the system and the anti-malware software installed on it, steal all keystrokes, and hunt for cached passwords in Firefox, Chrome and Internet Explorer; login credentials for Gmail Notifier, Twitter, Facebook, Yahoo! and Google; and other private information,” Kapersky explained. “Victims lose sensitive information likely to be the intellectual property of the business entities they represent.”

While the company has identified the means of attack and many of the victims, the hackers carrying them out remain active, the company warned. The attackers did leave a footprint in part of the malicious code—two Korean characters—but, while the cryptographic skills suggest there may be a government entity behind it, some elements of the attacks could be performed by the most basic cybercriminals, and no one has been identified.

Kapersky Lab offered tips to guard against Darkhotel and other cybersecurity threats targeting travelers:

When traveling, any network, even semi-private ones in hotels, should be viewed as potentially dangerous. The Darkhotel case illustrates an evolving attack vector: individuals who possess valuable information can easily fall victim to Darkhotel itself, as it is still active, or to something similar to a Darkhotel attack. To prevent this, Kaspersky Lab has the following tips:

  • Choose a Virtual Private Network (VPN) provider—you will get an encrypted communication channel when accessing public or semi-public Wi-Fi
  • When traveling, always regard software updates as suspicious. Confirm that the proposed update installer is signed by the appropriate vendor
  • Make sure your Internet security solution includes proactive defense against new threats rather than just basic antivirus protection

Controlling Employee Crime

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Employee theft costs businesses billions of dollars annually and it is on the rise, the U.S. Chamber of Commerce reports. Strategies for controlling these thefts include pre-employment screening, installing procedures to make theft more difficult, improving employee job satisfaction and maintaining a policy of apprehension and prosecution, according to The Hanover Insurance Group, Inc.

“Business owners spend a significant amount of time and resource protecting their business from a variety of risks, whether it’s liability for their products or services or severe weather,” Helen R.

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Savaiano, president of management liability at The Hanover said in a statement.

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“But, what can sometimes be overlooked are the risks presented by unscrupulous employees and unfortunately those types of losses happen more often than business owners think.

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In support of Crime Prevention Month, the company offers insights into the most common crime schemes and steps business owners can take to help prevent these schemes within their own companies.

What business owners can do:

Organizations should make sure there is clear accountability for every position and that no position has broad enough power to authorize payments without another individual’s consent. Companies also need to establish a system of checks and balances and set up an anonymous tip line to encourage reporting of any suspicious activities or business practices, The Hanover said in a report.