Tag Archives: cyberrisk

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New Studies Highlight Sources, Patterns of Data Breach—And How to Do Better

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Three recent studies provide a great reminder of the threats of data breach—and the role workers and IT departments play in either maintaining a company’s defense or letting malware storm the gates.

In its 2014 Data Breach Investigations Report, Verizon identified nine patterns that were responsible for 92% of the confirmed data breaches in 2013. These include: point of sale intrusions, web application attacks, insider misuse, physical theft/loss, miscellaneous errors, crimeware, card skimmers, denial of service attacks, and cyber-espionage. They have also identified the breakdown of these patterns in various industries, highlighting some of the greatest sources of cyber risk for your business:

Verizon Data Breach Investigations Report

Verizon’s report also offers specific information about the patterns and advice on how to respond to them.

Many sources of vulnerability come from within, and there is less variation than you might expect in terms of who the riskiest workers may be.

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A survey by the Pew Research Center found that 18% of adults have had important personal information stolen online, including Social Security number, credit card, or bank account information—an 8% increase from just six months ago. Further, 21% of adults who use the internet have had an email or social networking account compromised. Two groups that make up a large part of the workforce were hit particularly hard during this period: young adults and baby boomers. The percentage of individuals in these groups who had personal information stolen online doubled between July 2013 and January 2014.

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stolen personal data by age

But as this chart shows, all age ranges have experienced a significant amount of data theft as of the beginning of the year.

Indeed, according to meetings-software company TeamViewer, 92% of IT administrators have seen troublesome habits among office workers using company computers. These risky behaviors are frequently known to open the work system to viruses or other malware, including:

  • Browsing social media websites (reported by 82% of IT admins)
  • Opening inappropriate email attachments (57%)
  • Downloading games (52%)
  • Plugging in unauthorized USB devices (51%)
  • Plugging in unauthorized personal devices (50%)
  • Illegal downloads, such as pirated movies, music or software (45%)
  • Looking for other jobs (39%)

Further, nine out of 10 IT administrators reported witnessing problems to company equipment because of these actions, including viruses (77%), slow computers (74%), crashed computers (55%), mass popups (48%) and inability to open email (33%). Not only do these behaviors leave corporate infrastructure at risk, but they may endanger the overall HR program, as a vast proportion of IT workers report feeling frustrated, angry and discouraged.

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Up to 12% even said that they were considering quitting over these bad behaviors and increased strain on the IT department.

So what can you do? Administrators agreed that better security software, using remote access to fix problems, installing disk cleanup software, integrating automatic backup solutions, and offering the ability to telecommute would all help mitigate these issues and make their jobs easier.

Who’s Committing Economic Crime?

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According to a recent survey from PricewaterhouseCoopers, economic crime is on the rise, particularly in the United States. Of organizations in the U.S., 45% suffered from some type of fraud in the past two years, compared to the global average of 37%. Further, 23% of companies that reported economic crime experienced accounting fraud, up from 16% in 2011.

So who is committing these crimes?

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External perpetrators are on the rise, closing the gap with internal perpetrators — it’s now 45% versus 50%, respectively. But the profile of these internal actors has changed since the last survey in 2011.

Now, most internal frauds are perpetrated by middle management (54%, compared to 45% in 2011), and fraud by junior staff has dropped by almost half, now totaling 31%.

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The typical internal fraudster is now a white male in middle management, age 31-40, who has been with the company for six years or more.

Internal Fraudster Profile

In good news, PwC also found that awareness of risk is higher among U.S. companies, for example, seven out of 10 American respondents perceived an increased risk of cybercrime in the last two years, compared to just under half globally. The C-suite is also increasingly getting the message about the risk of economic crime:

C-Suite and Economic Crime

For more details on the 2014 Global Economic Crime Survey, check out the report from PwC here.

New Preliminary Cybersecurity Framework Champions Risk Management

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Cybersecurity

In February, President Obama issued an executive order instructing the Commerce Department to lead a task force of security experts and industry insiders to develop a voluntary framework to reduce cyberrisk. Last week, the National Institute of Standards and Technology officially released an initial draft of the cybersecurity framework and announced a 45-day open comment period for public input.

The full Preliminary Cybersecurity Framework can be viewed here on the NIST website. After the review period and subsequent revisions, a more complete version will be released in February.

Risk management is a primary focus of the new framework, from the language used to analyze potential exposure to express endorsements in the policy itself. According to a press release, “The Preliminary Framework outlines a set of steps that can be customized to various sectors and adapted by both large and small organizations while providing a consistent approach to cybersecurity. It offers a common language and mechanism for organizations to determine and describe their current cybersecurity posture, as well as their target state for cybersecurity. The framework will help them to identify and prioritize opportunities for improvement within the context of risk management and to assess progress toward their goals.”

Under Secretary of Commerce for Standards and Technology and NIST Director Patrick Gallagher, who was tasked with overseeing development of the framework, emphasized the risk management as a critical component of strengthening national infrastructure in line with the president’s executive order. “We want to turn today’s best practices into common practices, and better equip organizations to understand that good cybersecurity risk management is good business,” Gallagher said.

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“The framework will be a living document that allows for continuous improvement as technologies and threats evolve. Industry now has the opportunity to create a more secure world by taking ownership of the framework and including cyber risks in overall risk management strategies.

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”

The framework outlines key functions that should organize cybersecurity activities: Identify, Protect, Detect, Respond and Recover. These functions are designed to aid the risk manager in evaluating, communicating and fortifying against cyberrisks. The document even suggests itself as a potential opportunity for risk managers to seize the opportunity to get involved in proactive cyberrisk strategy. It reads, “The functions also align with existing methodologies for incident management, and can be used to help show the impact of investments in cybersecurity.”

Authors also added the following visual to highlight the critical role of risk management at every level of suggested implementation:

Risk Management in Cybersecurity Framework

In a blog post, the White House encouraged businesses to evaluate the initial framework and their current cyberrisk position, and to consider their cyber risk appetite in the form of a projected target state for cybersecurity.