Category Archives: Technology Risk

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Galaxy Quest: Assessing Space Commercialization

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Student-space
If a bunch of kids can launch a satellite into space, why can’t you?

As reported by the Washington Post, seventh-graders at St. Thomas More Cathedral School in Arlington, Texas are the first grade school students to send a satellite into orbit. The CubeSat – built by the children – was launched into space and will begin beaming photos from 200 miles above the Earth’s surface to an antenna on the school’s library.

This learning experience is remarkable for the kids, but what does it mean for the future of commercial industries in space? While commercialization of space tourism and satellite technology is already happening, is this emerging risk something that industries can afford to overlook?

The Space Foundation’s 2015 “The Space Report” found that commercial activities in space continue to increase and now make up 76% of the global space economy. The report adds that revenue from commercial space products and services was dominated by direct-to-home television services, making up more than three-quarters of the global commercial space products and services market.

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Space budgets

Allianz published an article that outlines some of the challenges of space insurance and space risks, from the pre-launch phases to in orbit operations and satellite insurance.

“Losing a spacecraft is by far not the only risk,” the article points out. “Potential interruptions of a satellite’s service in our globalized work are just as problematic for spacecraft users, individual transponders users such as TV channels and Internet providers, but also for banks, car manufacturers and large industries that use telecommunications networks.”

According to the Federal Aviation Administration’s (FAA / AST) Annual Compendium of Commercial Space Transportation: 2016, “The size of the global space industry, which combines satellite services and ground equipment, government space budgets, and global navigation satellite services (GNSS) equipment, is estimated to be about $324 billion. At $95 billion in revenues, or about 29%, satellite television represents the largest segment of activity.”

The report highlights the progress China has made with its space program, noting the number of orbital launches conducted by the country has steadily increased each year since 2010, with a peak of 19 launches in 2012. The findings highlight China’s commitment to commercial space applications, specifically stating that the data “points to a robust future in Chinese spaceflight.”

For many industries, the idea of planning for the risks involved in a space expansion might seem too far off to devote resources. But, with commercial airliners, telecommunications companies, international markets like China and even a bunch of seventh-graders already investing in opportunities in space, it might be time to reconsider the possibilities and the risks.

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65% of Businesses Unprepared For Email-Based Cyber Threats

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In a recent threat report, cloud email management company Mimecast warned they had seen a 55% increase in whaling attacks over the past three months. As we reported in this month’s Risk Management cover story “The Devil in the Details,” social engineering fraud schemes like whaling (which is phishing that targets higher-profile employees and executives) resulted in a total losses of more than $1.2 billion worldwide between October 2013 to August 2015. According to the Mimecast Business Email Threat Report 2016, released yesterday, IT security professionals clearly recognize the risk, with 64% of respondents in the new saying they see email as a major cybersecurity threat to their business. Yet only 35% feel confident about their level of preparedness against data breaches, while 65% feel ill-equipped or too out of date to reasonably defend against the risk.

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“Our cyber-security is under attack and we depend on technology, and email in particular, in all aspects of business. So it’s very disconcerting to see that while we might appreciate the danger, many companies are still taking too few measures to defend themselves against email-based threats in particular,” said Peter Bauer, chief executive officer of Mimecast. “As the cyber threat becomes more grave, email attacks will only become more common and more damaging. It’s essential that executives, the C-suite in particular, realize that they may not be as safe as they think and take action. Our research shows there is work still to be done to be safe and we can learn a lot from the experience of those that have learnt the hard way.”

Even the most secure companies feel the most at risk of these scams. Of the top 20% of organizations that feel most secure, 250% are more likely to see email as their biggest vulnerability. Those who feel most confident about guarding against the risk are 2.7 times more likely to have a C-suite that is extremely or very engaged in email security. Among the IT security managers who feel most prepared, five out of six say that their C-suite is engaged with email security, Mimecast reports. However, of all IT security managers who were polled, only 15% say their C-suite is extremely engaged in email security, while 44% say their C-suite is only somewhat engaged, not very engaged, or not engaged at all.

The firm also had some insight on best budgeting against the risks of phishing. Those who feel better prepared to handle email-based threats also allocate higher percentages of their IT security budgets toward email security, the firm found, with these IT security managers allocating 50% more of their budgets to email security compared to managers who were less confident in their readiness. Mimecast found 10.4% of the total IT budget toward email security is the ideal intersection between email security confidence and spend.

To reduce the threat of whaling, Mimecast recommends that companies:

  • Educate your senior management, key staff members and finance teams on this specific type of attack. Don’t include whaling in a general spear-phishing awareness campaign—single out this style of attack for special attention to ensure key staff remain vigilant.
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  • Carry out tests within your own business. Build your own whaling attack as an exercise to see how vulnerable your staff are.
  • Use technology where possible. Consider an inbound email stationery that marks and alerts readers of emails that have originated outside of the corporate network.
  • Consider subscribing to domain name registration alerting services so you are alerted when domains are created that closely resemble your corporate domain.
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    Consider registering all available TLDs for your domain, although with the emergence of generic TLDs (gTLD) this may not be scalable.

  • Review your finance team’s procedures; consider revising how payments to external third parties are authorized. Require more than single sign-off, or perhaps use voice or biometric approval only with the requestor to ensure validity of the request.

Check out the infographic below for more on business email threats:

mimecast business email threats

Gaining Cyber Confidence With a CISO

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Businesses aren’t the only ones struggling to ramp up budget allocations to fortify against cyberrisk.

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In his new $4.1 trillion budget proposal, President Obama has asked for billion for cybersecurity efforts, a 35% increase from last year.

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The president directed his administration to “implement a Cybersecurity National Action Plan (CNAP) that takes near-term actions and puts in place a long-term strategy to enhance cybersecurity awareness and protections, protect privacy, maintain public safety as well as economic and national security, and empower Americans to take better control of their digital security.” In addition to a cybersecurity awareness campaign targeting both consumers and businesses, the plan calls for government-wide risk assessments, a nation-wide push for a range of better consumer data security measures, and a range of initiatives to attract more and better cybersecurity personnel. Some of these new employees will offer cybersecurity training to more than 1.4 million small businesses, and the Department of Homeland Security is expected to double the number of cybersecurity advisors available to assist private sector organizations with risk assessments and the implementation of best practices.

Obama’s plan also takes a page from the private sector, creating the position of Federal Chief Information Security Officer to drive cybersecurity policy, planning and implementation across the federal government.

Many organizations have begun to see concrete value from adding CISOs to the C-suite. According to a recent study from ThreatTrack Security, companies with a CISO are more confident about the technology they use to combat malware (83% versus 63% at organizations without one). This is particularly notable as only 20% of those surveyed said their defenses against hackers have improved in the past year—about half of those who said the same in 2013.

“Perhaps CISOs have a better handle on what solutions to implement or are better equipped and positioned in the organization to ensure their team has the solutions they need to defend the organization,” the report said.

Organizations with a CISO also feel more confident about their ability to address cyberrisk. When asked if they felt able to personally guarantee the security of customers’ data, 71% of respondents from companies with a CISO said yes, while only 29% could say the same without someone in this role. CISOs are also making a huge impact on breach preparation and incident response. When it comes to having an incident response team or security operations center to identify and respond to cyberattacks, 94% of respondents at organizations with a CISO had these resources in place, compared to just 49% without one. Concerningly, however, the overall number was 80%, 6% lower than in 2013.

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When asked how defending their organization against cyberthreats had changed over the last year, 45% of respondents said nothing had changed, while 35% recognized that it has gotten harder to fight cyberrisks.

ThreatTrack Security found CISOs have also boosted corporate compliance with regard to cybercrime, with only 11% of companies failing to report breaches to customers, partners or other stakeholders, compared to 57% in 2013.

The 25 Worst Passwords of 2015

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In another reminder that users are always the biggest security weakness, “123456” and “password” have once again been named the most commonly used bad passwords.

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In SplashData’s fifth annual “Worst Passwords List,” the company has compiled the most common weak, easily guessable passwords that leave users vulnerable to hacking and identity theft.

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Pulling from more than 2 million leaked passwords revealed during the year, the list highlights just how vulnerable users are.

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Some new and longer passwords made the top 25, reflecting some effort by websites, system administrators and perhaps users themselves to try to force better security practices by requiring more characters. Unfortunately, these longer passwords are so simple that the extra characters mean little, particularly given how few passwords utilize both letters and numbers.

Some new bad passwords may seem a bit more complex, for example, “1234567890,” “1qaz2wsx” (first two columns of main keys on a standard keyboard), and “qwertyuiop” (top row of keys on a standard keyboard), but are easily guessable—and clearly not quite as innovative as these users may have thought. It seems the excitement over Star Wars also had an impact: with common passwords “starwars,” “solo” and “princess,” the force of bad information security awakens.

Check out the infographic below for the top 25 worst passwords and some of SplashData’s top tips to build ones that stay off the list.

SplashData worst passwords of 2015