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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

Miller and Valasek Show the Real-World Impact Hackers Can Have

Charlie Miller and Chris Valasek at Black Hat USA 2015Photo: Black Hat USA 2015

LAS VEGAS—At Black Hat 2015, Charlie Miller and Chris Valasek gave one of the most highly anticipated and best-attended presentations, even far beyond the elite infosecurity experts gathered here this week. The already notable duo of hackers made international headlines two weeks ago when they demonstrated more than a year’s worth of work figuring out how to hack into and remotely control unaltered cars—and used Wired reporter Andy Greenberg as their test driver.

Greenberg’s article and video of the test paint a compelling portrait of just what Miller and Valasek’s hack means in practice. “As the two hackers remotely toyed with the air-conditioning, radio, and windshield wipers, I mentally congratulated myself on my courage under pressure. That’s when they cut the transmission,” Greenberg wrote. “Immediately my accelerator stopped working. As I frantically pressed the pedal and watched the RPMs climb, the Jeep lost half its speed, then slowed down to a crawl.

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This occurred just as I reached a long overpass, with no shoulder to offer an escape. The experiment had ceased to be fun.”

From a couch in Miller’s basement 10 miles away, they were able to seize control of the Jeep, and their methods could be applied to any car operating the same technology: Uconnect, an internet-connected computer feature in hundreds of thousands of cars that controls the entertainment and navigation systems, enables phone calls and, with a subscription purchase, offers a Wi-Fi hotspot. The hackers’ exploit can also be used for surveillance, using the Jeep’s GPS to track location to measure speed, and even drops pins on a map at regular intervals to trace its route. And, because of the system’s cellular connection, this can be done on any car from anywhere with access to the same cellular network (Sprint) as long as hackers know the car’s IP address.

In the wake of the Wired article, Sprint has blocked the kind of phone to car traffic and car to car traffic that facilitates remote hacking. What’s more, Fiat Chrysler announced the recall of 1.

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4 million cars and trucks that could be vulnerable to hacking—more than three times as many as the pair originally estimated may be at risk.

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Miller and Valasek approached the company with their findings as early as 2014, and said the automaker was responsive to their report. Unauthorized remote access was blocked with a network-level improvement, the company announced shortly after Greenberg’s article went to print. In addition to the recall to update software in the infotainment system, affected customers will receive a USB device to upgrade vehicles’ software with internal safety features.

And lest anyone still question the impact hackers can have on a business’s bottom line, as they were only too happy to point out, here’s a look at Chrysler’s stock from a week before to a week after the Wired story:

chrysler stock

Part of their aim was to increase consumer awareness and provoke greater scrutiny of technology they are being told is safe. “If consumers don’t realize this is an issue, they should, and they should start complaining to carmakers,” Miller told Wired. “This might be the kind of software bug most likely to kill someone.” Their research has already effected concrete change beyond the cars recalled. Partially spurred by the team’s earlier demonstrations in the arena, Senators Edward Markey of Massachusetts and Richard Blumenthal of Connecticut introduced legislation on July 21 that would direct the National Highway Traffic Safety Administration and the Federal Trade Commission to establish rules to secure cars and protect consumer privacy. The bill would also establish a rating system to inform owners about how secure their vehicles are beyond any minimum federal requirements, Bloomberg reported. “Controlled demonstrations show how frightening it would be to have a hacker take over controls of a car,” Markey said in a statement to Wired. “Drivers shouldn’t have to choose between being connected and being protected…We need clear rules of the road that protect cars from hackers and American families from data trackers.”

Miller and Valasek have done a lot more than present a frightening demonstration of just how vulnerable so many cars are, and it involves everyone here at Black Hat. In their presentation, Valasek opened with a blunt public service announcement: Please stop saying anything is “unhackable,” because you are wrong and you are just going to look silly. Proving that took more than a year of meticulous work, much of which could not be easily reproduced and applied any time soon, but they did prove it, and in doing so, they prompted the first formal safety campaign in response to a cybersecurity threat. That may be the biggest impact, he told the audience: “Hackers did something, fiscal change happened and it wasn’t in infosec—it was in the real world.”

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