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Ransomware Down, Extortion and Email Fraud Up in 2018, Proofpoint Finds

Ransomware may have waned at the end of last year, but that gave way to straight-up extortion, according to Proofpoint’s newest Quarterly Threat Report, Q4 2018.

Despite a slight resurgence in the middle of last year, ransomware strains appeared in “relatively small, sporadic email campaigns” that by Dec.

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31, 2018, comprised one-tenth of 1% of overall malicious message volume.

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The consequence of this seemingly-good news was that direct extortion once again came en vogue, albeit in cyber form. The newest threats often took the form of “sextortion,” in which actors threaten to reveal compromising information (like revealing photos or video) or take destructive action if the victim does not pay a fee.

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Proofpoint theorized that actors have reverted to extortion simply because it is more cost efficient.

The report recommended tips to spot a sextortionist and call their bluff:

With rare exceptions, these emails do not contain malware or malicious links and rely on the human factor to trick recipients. Often, the threatening emails include “evidence” of compromise, such as an old password that the actor may have obtained from a data breach or simply guessed.

Additional findings and highlights from the report included:

  • 60% of companies’ domains were spoofed by email fraudsters, a nearly 10% increase from Q3.
  • Email fraud attacks against targeted companies increased by 226% quarter-over-quarter, and 476% vs. Q4 2017. Telecommunications, education and transportation were the industries experiencing this activity most.
  • Incidents of social media support fraud, or “angler phishing” – a type of phishing in which attackers attempt to insert themselves in legitimate conversations between consumers and brand-owned social media accounts – increased by nearly 40% from the prior quarter and saw an overall increase of 500% in 2018.
  • Emails leveraging malicious URLs outnumbered malicious attachments by roughly two-to-one for Q4 and three-to-one for the entire year.

Visit here for Proofpoint’s full quarterly report.

Q&A with RIMS 2019 Keynote Speaker Dr. Erin Meyer

The RIMS 2019 opening keynote address will be delivered by Dr. Erin Meyer, a professor at the INSEAD school of international business in France, and the author of the Culture Map: Breaking Through the Invisible Boundaries of Global Business. She discussed with Risk Management Monitor the concept of “culture mapping,” and how her upcoming address in Boston will provide risk managers with methods to assess cultural rituals and differences before conducting international business.

Download today’s RIMScast episode for Dr. Meyer’s full interview and a deeper dive into culture mapping.

Risk Management Monitor: What will you discuss in the keynote address at RIMS 2019?

Erin Meyer: I will be talking about globalization and how it is impacting our effectiveness when we work internationally.

Risk professionals might be supervising a building code in Indonesia or leading a global team made up of Brazilians and Polish people, for example, and what it means to communicate effectively or make decisions can vary from one country to another.

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I will be presenting a “culture mapping” model that will help participants decode how these cultural differences are impacting their own effectiveness and then think about strategies for working in a more efficient way.

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RMM: What has your experience with risk managers been like?

EM: I’ve noticed that risk professionals were usually in situations where – if they were working internationally – they were collaborating with just one other country at a time. But that has changed recently. In the last couple of years, they’ve often been in these multicultural environments and that’s where the culture mapping tool becomes so important.

When working in a multicultural team, you’ll find that different members have totally different impressions of the same country that they’re working in. This is all part of the concept of what I call “cultural relativity” – where we might have totally different impressions of what’s going on, based on our own cultural perspective. We will explore all this in the keynote.

RMM: What details of your research have surprised you?

EM:  We’ve researched expatriate failure rates and looked at people moving from one country to another who had to return home early because they weren’t able to integrate into their new society. And what came up is the highest failure rate was not “Americans moving to China” or “Japanese moving to the Netherlands,” for example.

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It was Americans moving to the UK.

And I think that’s very interesting because it represents something called “cultural dissonance,” which arises when we think the other culture is the same as ours because of external indicators, like language. For example, when Americans start working with the British and they’re all speaking the same language and eating the same food they assume things will not be so different from their home country.

RMM: Does that make them seem too lax in their work?

EM: They don’t give culture itself as much thought, and the consequence can be that they are perceived as incompetent [by the new colleagues]. So when you’re looking at the culture map – which we’ll be talking about during the keynote – it’s often those small differences that cause problems. Awareness of those differences is crucial.

RMM: How has technology created communication challenges?

EM: When we’re working at a distance we can lose the visual cues that help us, even in our own culture, to understand what’s going on. And when we bring in technology we all lose those visual cues – especially when you consider conference calls, for example. So, in some ways that kind of brings us back to a more standard communication platform but it does make things complicated because of course, we have different ideas about how to use technology in different parts of the world.

RMM: In the Culture Map, you discuss how even the use of email – merely to sum up a discussion – can lead to miscommunication or even an insult. How can that happen?

EM: If you get off of the phone with someone in India, for example, and put into writing everything that was decided and you send it, that might be considered an indication that you don’t trust the recipient. And I think that’s where working at a distance complicates things because if we’re in the same room we might feel that something wasn’t going well. But we’re working a distance, so we make these “errors” and it might hurt the relationship without even realizing it.

RIMS Report: Risk Management Implications of Conflicting Federal and State Cannabis Laws

The RIMS External Affairs Committee has issued a new Legislative Review discussing the challenges risk professionals may face regarding the cannabis laws in the United States.

Available exclusively to members, The Risk Management Implications of Conflicting Federal and State Cannabis Laws is designed as a resource for risk professionals representing cannabis businesses, as well as landowners and landlords who often face a range of issues as a result of the disconnect between state and federal cannabis laws.

The sale, possession and use of marijuana has been fully and partially decriminalized in many states, but is still federally recognized as a “Schedule I Narcotic” under the Controlled Substances Act. This has led to conflicting interpretations of the law and unwittingly put many companies at risk of breaking the law.

“The members comprising our external affairs committee have been monitoring the developments related to cannabis for years,” said Whitney Craig, RIMS Government Affairs Director. “There are few absolutes when it comes to cannabis in the United States, but the review provides a concise guide to help members navigate through the challenges posed in this evolving industry.

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The review discusses:

  • how and when to navigate between state and federal laws
  • the risks of a marijuana business opening a bank account
  • what types of businesses are subject to federal drug raids
  • how these laws and risks impact residential and commercial owners
  • insurance resources
  • and more.

“Until the Controlled Substances Act is amended to remove marijuana as a Schedule I Narcotic, there is always some risk that shifting political winds or other factors in the area where the business is located may result in prosecution, even where marijuana has been legalized or decriminalized,” the report states. “Careful due diligence and legal advice from counsel familiar with this area of law is always a wise choice.”

The report touches on a number of new cannabis industries, such as delta 8 THC which has become popular in Texas due to the recent DSHS ban. There are a number of merchant services that will process payments for delta 8 THC products, and there are also a number of banks who will accept these clients, according to delta 8 vape manufacturer Area 52.

The report is currently available exclusively to RIMS members.

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To download the report, visit RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge. For more information about the Society and to learn about other RIMS publications, educational opportunities, conferences and resources, visit www.RIMS.org.

Risk Management magazine has covered the risks that growing marijuana can pose to commercial or residential property.

NTSB’s Most Wanted Improvements Reflect Major Transportation Disasters of 2018

The National Transportation Safety Board (NTSB) unveiled its 2019-2020 Most Wanted List of Transportation Safety Improvements today. The 10-item list is associated with 267 open NTSB safety recommendations that mark critical changes needed in the next two years to reduce transportation accidents, injuries and fatalities, and longstanding safety issues that threaten businesses, professionals and the traveling public.

The list, which is now available online, was unveiled at the NTSB’s press conference in Washington, D.

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C.:

  • Eliminate Distractions.
  • End Alcohol and Other Drug Alcohol Impairment.
  • Ensure the Safe Shipment of Hazardous Materials
  • Fully Implement Positive Train Control (PTC)
  • Implement a comprehensive strategy to reduce speeding-related crashes
  • Improve the Safety of Part 135 Aircraft Flight Operations
  • Increase Implementation of Collision Avoidance Systems in All New Highway Vehicles
  • Reduce Fatigue-Related Accidents
  • Strengthen Occupant Protection
  • Require Medical Fitness – Screen for and Treat Obstructive Sleep Apnea

“We do not simply come up with these recommendations based on a whim,” NTSB chairman Robert Sumwalt said during his opening remarks. “It’s a data-driven approach based on the results of our investigation and the tragic and senseless deaths we investigate. The NTSB’s most wanted list is written in blood.”

Sumwalt said driving while distracted – from cars to trains – had risen to be one of the most prevalent transportation risks facing American roads, railways, businesses and the general population. Texting-while-driving, he said, can increase the likelihood of a crash between four and 20 times. Sumwalt said the NTSB has called for an outright ban on all mobile devices when operating a vehicle because of the distraction to a driver’s cognitive ability and has urged policymakers to regulate the use of devices like Bluetooth and hands-free phones the same as standard mobile device use.

He also said that nearly 37,000 fatalities were reported on roadways in 2017, the most recent year of data available.

The inclusion of distracted driving dovetails with a study released in January by the Insurance Institute for Highway Safety (IIHS), which highlighted the marked increase in drivers using phones in risky ways. based on an observational survey of drivers in four Northern Virginia communities drivers were 57 percent more likely to be observed manipulating their phones, like when texting or using for purposes other than phone calls.

Based on findings that fatal crash risk is 66 percent higher when manipulating a phone, IIHS researchers estimated that about 800 crash deaths in the United States in 2017 could be attributed to drivers texting or using phones for things other than talking.

PTC also received special focus during the NTSB panel discussion and press conference. Board member Jennifer Homendy said the most recent data is from the third quarter of 2018 and that, “we are closer to installation but there’s a big difference between installation and operational. We’re a ways away from that, unfortunately. The risk is the same 50 years ago as it was a year ago,” she said, referencing the PTC-preventable crash she investigated exactly one year ago in Cayce, South Carolina.

After Congress passed the PTC Enforcement and Implementation Act of 2015 it also authorized the FAST Act, which allocated $199 million in PTC grant funding and specifically prioritized PTC installation projects for Railroad Rehabilitation and Improvement Financing funding. The Association of American Railroads estimates that freight railroads will spend $10.6 billion implementing PTC, with additional hundreds of millions each year to maintain. The American Public Transportation Association has estimated that the commuter and passenger railroads will need to spend nearly $3.6 billion on PTC.

As previously reported, several major transportation providers, such as AMTRAK and the Long Island Railroad have missed critical deadlines for installing PTC.

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“In 1961 President Kennedy set a goal to put a man on the moon by the end of the decade and in July 1969 Neil Armstrong and Buzz Aldrin did that,” Homendy said. “In 1969, NTSB investigated its first PTC-preventable accident. In one decade we put a man on the moon but in five decades we haven’t implemented PTC.”