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Tesla Brings Driverless Technology—and Cybersecurity Concerns—to the Masses

Last week, Tesla Motors unveiled another first for the auto industry: starting immediately, the company will be delivering upgrades directly to vehicles via the Internet.

“We view it the same away as updating your phone or your laptop,” said CEO Elon Musk, as reported in the Wall Street Journal on March 19.

Remote updates for cars was not the only taste of the future that Tesla announced last week. Talk is buzzing even louder about the new “driverless” capability that Tesla’s cars will get this summer (via wireless download, of course). The New York Times says that once your vehicle gets the upgrade, you will be able to turn on an “autopilot” when on major highways.

Tesla’s move further disrupts the traditional way of business in the automotive industry—the direct-to-consumer updates eliminate yet another reason to buy and service through a dealer. The convenience potential to consumers is obvious, and everyone is excited about driverless technology finally being within reach. What could be the downside?

Enter that fear du jour, cybersecurity. Capitol Hill is considering the unpleasant potential of bad guys being able to hack your car’s sophisticated computer system.

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Last year, Senator Edward Markey (D-MA) sent a letter to 20 car manufacturers asking them about their vehicles’ reliance on wireless computing technology and, in turn, the vulnerability of their systems. In February, he published the companies’ replies, and they weren’t completely reassuring (the full report is here).

According to Wired, Sen. Markey found that “nearly 100%” of vehicles sold today use wireless connections that could be used to access “sensitive systems or [to] compromise privacy.” Combine these findings with the recent exposé on 60 Minutes—where a DARPA hacker demonstrated the ability to hack into a Toyota Prius and gain control of the vehicle’s braking and acceleration—and you have a pretty good understanding of why Sen. Markey is concerned.

Manufacturers that responded to the Senator’s inquiry gave mostly ambiguous answers about the cybersecurity of their products. Some said they encrypt information such as driving history and physical location, while others admitted that they don’t use encryption.

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The same is true for third-party testing of vehicle cybersecurity—some do it, but many do not.

Tesla was one of three companies that chose not to respond to Sen.

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Markey’s questions. Do concerned consumers have cause to worry? After all, last year, Chinese hackers publicized their successful hack of a Tesla, although they limited their efforts to unlocking the doors and opening the sunroof.

The company is generally tight-lipped, but Musk has said that he is committed to security. He recently stated at a tech conference that “one of the key areas of focus for the company is…protecting…self-driving software from malicious attacks.”

Let’s hope so. A breach of self-driving software would, of course, be a much bigger problem than the Chinese hack of the car’s more superficial systems. And the non-response to Sen. Markey’s investigation would then start to resemble a self-inflicted wound.

For more on the risks of computerized vehicles, see “Robots Take the Wheel” in the March issue of Risk Management.

Insider Threats Missing from Most Cybersecurity Plans

When it comes to damaging cyberattacks, a horror movie cliche may offer a valuable warning: the call is coming from inside the building.

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According to PwC’s 2014 U.S. State of Cybercrime Survey, almost a third of respondents said insider crimes are more costly or damaging than those committed by external adversaries, yet overall, only 49% have implemented a plan to deal with internal threats. Development of a formal insider risk-management strategy seems overdue, as 28% of survey respondents detected insider incidents in the past year.

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In the recent report “Managing Insider Threats,” PwC found the most common motives and impacts of insider cybercrimes are:

Insider Cybercrime Consequences

These threats can come from a variety of sources, from employees to trusted business partners who are given extensive access. Even after the costly lesson from the Target breach about the risk of contractors with system access, only 44% of respondents in PwC’s survey have a process for evaluating third parties before engaging in business operations with them, and just 31% include security provisions in contract negotiations.

To fortify against the risk, the firm recommends that organizations use a phased approach to build an insider threat management program over time.

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This should be formed with an eye to compliance with the National Institute of Standards and Technology (NIST) framework, which highlights the key functions: Identify, Protect, Detect, Respond, and Recover. To explain how and when to tackle these, the report explains:

building an insider threat program

Key Takeaways from the White House Summit on Cybersecurity

Stanford University, Feb. 13, 2015

It was an honor to attend the White House Summit on Cybersecurity and Consumer Protection and I applaud President Obama’s efforts to bring together an impressive group of leaders across a broad range of industries, government and law enforcement officials, and consumer and privacy advocates to discuss cybersecurity. This is an issue that affects us all and clearly has no borders.

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While there were several core themes discussed throughout the day, three key takeaways are of particular interest to private industry:

Public-Private Collaboration is Critical
The overarching theme presented by the White House was how to boost the collaboration between companies and agencies in order to combat hackers. The announcement in the days preceding the Summit of the new Cyber Threat Intelligence Integration Center (CTIIC) was just a first step. As a further validation of the importance and urgency on behalf of the White House surrounding the issue at hand, at the Summit President Obama signed an Executive Order directing the creation of Information Sharing and Analysis Organizations (ISAOs) which will enable companies and the government to share classified cyber threat information. Only with an ongoing sharing of threat information between the government, including the Department of Homeland Security and the Federal Bureau of Investigation, and companies across industry groups, will we be successful.

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With much of the order voluntary, companies across all industries are also being asked to step up to the table now to not only share threat information but to establish best practices within their organizations in order to protect their constituencies in the future. This too is critical, since the maintenance of best practices is closely tied to a company’s ability to get cyber insurance.

Understanding Vulnerabilities is Key to Improving Best Practices
While the need to focus on the security systems operating behind consumer payment systems in order to make it harder for hackers to steal information is absolutely critical, and Apple CEO Tim Cook was quite persuasive on this point, to stop at payment systems alone would not solve cyber hacks. In order to enhance consumer protections online, single factor authentication, or the password as the primary form of security, is a dated practice that should be replaced with more secure technologies.

Companies also need to be mindful that criminals can breach a business’ defenses in any number of ways – directly through company networks and also indirectly through the network of vendors and third party service providers. What is needed is a fuller understanding of all the possible threats, malicious actors and the broad range of tactics those actors will employ. Across all industries, companies are facing a highly complex and constantly evolving threat environment with new attackers and attack methods to be wary of in order to protect their partners, clients and customers.

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What Comes Next is Even More Meaningful
While it is essential for the United States to take a leadership role on this important issue, with guidelines and processes for internal consumption, we cannot merely look inward. We are living and working in an increasingly interconnected and globalized environment, and that environment also includes criminal elements. Cyber threats from foreign countries, such as Russia, China and North Korea, keep growing. Sharing information alone won’t stop them. The next steps from our government in protecting our nation’s business must be even more meaningful. We urge cooperation with international law enforcement agencies to help protect companies from foreign-based threats and to help make significant progress in this area.

Most Companies Miss Easiest Ways to Boost Workplace Cybersecurity

Despite increasing attention to cybersecurity and a seemingly constant stream of high-profile data breaches, the primary security method used in businesses worldwide remains the simple password. According to a recent study, the average person now has 19 passwords to remember, so it is not surprising that the vast majority of passwords are, from a security perspective, irrefutably bad, including sequential numbers, dictionary words or a pet’s name.

A new report by software firm Software Advice found that 44% of employees are not confident about the strength of their passwords. While many felt their usage was either extremely or very secure, the group reported, “our findings suggest that users either remain unaware of the rules despite the hype, do not believe them to be good advice or simply find them too burdensome, and thus opt for less secure passwords.

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Among the biggest password sins employees commit:

Employee Password Worst Practices

But company culture and IT leadership may be partly to blame. “If management is lax about enforcing best practices, then leadership must share the blame when workers take shortcuts—and perhaps even accept the lion’s share of it,” the report reads.

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Only 54% of businesses require complex passwords, and other shortcomings in best practice enforcement include:

Enforced Workplace Password Best Practices

White House Cybersecurity Coordinator Michael Daniel has previously said that he “would love to kill the password dead as a primary security method,” and 14% of companies are leading the charge, using biometric identification instead. Clearly, however, there is plenty that IT departments can implement now to boost cybersecurity without adopting advanced and costly measures like retina scans or fingerprints.

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