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Organizational Complexity Poses Critical Cyberrisk

According to a recent survey on IT security infrastructure, 83% of businesses around the world believe they are most at risk because of organizational complexity.

“Employees are not following corporate security requirements because they are too difficult to be productive, plus policies hinder their ability to work in their preferred manner,” noted the Ponemon Institute’s “The Need for a New IT Security Architecture: Global Study,” sponsored by Citrix. “It is no surprise that shadow IT is on the rise because employees want easier ways to get their work done.”

Shadow IT, the information technology systems built and used by an organization without explicit approval, has largely cropped up because employees feel official tools are too complex or otherwise difficult and inefficient. As a result, company data is being put on personal devices and official business is conducted on platforms that enterprise security teams can not monitor or secure.

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Nearly three-quarters of respondents said their business needs a new IT security infrastructure to reduce risk.

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With increasing amounts of sensitive data stored, new technology like the internet of things adopted, and new cyberrisk threats constantly emerging, addressing individual security challenges may be impossible, Citrix Chief Security Officer Stan Black told eWEEK. Rather, companies should focus on larger issues like controlling complexity, developing and maintaining strong incident response plans, and rigorously vetting vendors with access to systems or responsibility for storing data.

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Check out more of the report’s findings in the infographic below:

organizational complexity cyberrisk

Charting the Rise of Ransomware

At the beginning of the year, Risk Management put ransomware at the top of the list when surveying the 2016 cyberrisk threat landscape, and these attacks have arguably come to the fore as cyberthreat of the year, whether you measure by buzz or by increase in incidents.

Indeed, ransomware is not just grabbing headlines—these cyberattacks have quadrupled in 2016, according to a recent Beazley Breach Response Services review of client data breaches. Authorities report a similar surge at large, with the Department of Justice estimating that more than 4,000 ransomware attacks have occurred daily since the beginning of the year, representing a 300% increase from 2015.

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In July and August alone, 20% more of Beazley’s clients suffered a ransomware attack than in all of 2015. While the ransoms remain low, often in the range of $1,000, the firm points out that the true costs are dramatically higher due to the extensive review of company systems and data required to ensure the malware has been removed and data is clean.

Looking at specific industries, Beazley noted a significant uptick in attacks against financial institutions in the first three quarters of 2016, with hacking and malware accounting for 39% of breaches in the sector, up from 26% in 2015, and in higher education, these attacks increased from 38% last year to 46% in 2016. Hacking and malware account for a relatively steady proportion of just over half of breaches in the retail sector.

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Among healthcare organizations, however, human error has spiked, with 40% of industry incidents caused by unintended disclosure compared to 28% last year.

“From what we are seeing, it appears that many hackers are finding it easier to make money by holding companies to ransom for bitcoin than through selling personal data on the dark web,” said Katherine Keefe, global head of BBR Services. “But, the persistently high levels of hacking and malware attacks of all kinds are a reminder that organizations across industries, and of all sizes, need actionable plans ready to implement when a breach occurs.

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Check out the infographic below from security intelligence firm LogRhythm for more background on the rise in ransomware, how these attacks are impacting businesses, and how businesses are responding.

ransomware logrhythm
ransomware logrhythm

Defending Against the Cyberrisk of Malicious Insiders

An overwhelming number of businesses increasingly see their greatest cyber threats coming from within, but figuring out what to do about the risk poses a formidable gap, according to a recent study from Mimecast. The email and data security company found that 90% of organizations globally consider malicious insiders a major threat to security, yet 45% report they are ill-equipped to cope with the risk. Indeed, one in seven IT security decision-makers view malicious insiders as their number one threat.

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Current measures to guard against this risk may still leave significant exposure, and IT managers appear to know it. Those who say they are very equipped on cybersecurity feel virtually just as vulnerable to insider threats as those who believe they are not equipped at all (16% vs. 17%), “indicating that the risk of malicious insiders trumps perceptions of security confidence,” Mimecast reported.

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Mimecast recommends the following strategies to guard against the risk of malicious insiders:

  1. Assign role-based permissions to administrators to better control access to key systems and limit the ability of a malicious insider to act.
  2. Implement internal safeguards and data exfiltration control to detect and mitigate the risk of malicious insiders when they do strike, to cut off their ability to send confidential data outside the network.
  3. Offer creative employee security training programs that deter potential malicious insiders in the first place and help others to spot the signs so they can report inappropriate activity to their managers. Then, back that up with effective processes to police and act swiftly in the event of an attack.
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  4. Nurture a culture of communication within teams to help employees watch out for each other and step in when someone seems like they’ve become disenchanted or are at risk of turning against the company.
  5. Train your organization’s leadership to communicate with employees to ensure open communication and awareness.

Check out more of the study’s findings in the infographic below:

mimecast_5-tips-to-defend-infographic

Ransomware Threats Jump 300%

Businesses have seen a huge increase in ransomware threats—300% from 2015, according to the FBI, which also reports there were 2,400 ransomware complaints in 2015. In addition to its growing frequency, the means of attack have also improved significantly, as hackers get better at social engineering and at developing malware.

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Unlike other types of cyberattack, ransomware attacks are not about extracting data, they are about freezing access, holding businesses functionally hostage, according to Risk Management. When this type of malware infects a system, it encrypts files and documents and demands a ransom, typically in the form of digital currency such as bitcoin, in exchange for a decryption key.

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The most frequent targets of attacks, 23%, were government entities, according to Hiscox. The category of business services was second at 18% and finance and insurance institutions followed with 13% of the attacks.
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Because the encryption can be crippling and circumventing it is difficult, the FBI advises that businesses may be better off paying the ransom, especially if the company’s system backup has also been infected.

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