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Understanding Cyberrisks From Insider Threats

insider threat cyber risk

As cyberrisks evolve, enterprises have begun to focus on the insider threat by adding specialized capabilities for behavioral analytics on top of endpoint and network monitoring. In order for these tools to be most successful, there must be a fundamental understanding of the role an insider plays in a breach. Not every employee-caused breach is malicious, but they certainly are numerous. In fact, according to Verizon’s most recent Data Breach Investigation Report, 90% of breaches have a human component, regardless of intent.

Insider threats are a rampant problem exemplified by several recent headline-making incidents: the indictment of six Chinese nationals on suspicion of stealing intellectual property worth millions from two U.S. technology firms; accusations from financial giant Morgan Stanley toward an employee believed to have stolen client information with the intent to sell it; and claims from wearable-maker Jawbone that its competitor Fitbit regularly courted its privileged employees, enticing several of them to switch companies and bring sensitive details on its products. The uncertainty around all of these cases begs a couple of important questions: how can intent be determined, and how can employee privacy be maintained while ensuring business security?

Malicious or Careless?

Many think of insider threats only in terms of deliberate attacks, but the risk includes damage caused by simple carelessness. It is important to note the differences between malicious and careless incidents to ensure you are taking the right steps to mitigate the threat to your organization.

“Malicious incident” means an employee or someone trusted with network access has acted deliberately, either of their own volition or under the influence of others. A rogue malicious employee usually breaches security policy intentionally for personal gain. This type of incident is illustrated by the Jawbone/Fitbit controversy, as well as the case of the accused Chinese nationals mentioned above.

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Three of those six individuals allegedly leveraged their positions at tech firms to steal research and technology they could replicate and profit from in China.

Conversely, the non-malicious insider threat often stems from employees’ inadvertent mistakes. There is no endgame, just a failure to follow security protocol. This can happen when employees breach policy intentionally but without malicious intent, not recognizing the risk. Sensitive data may be lost due to use of an unauthorized app (“shadow IT”) or manipulation through social engineering attacks, for example. This is easily the most common form of insider threat and can be seen in any case where employee credentials are stolen due to carelessness. To create a truly complete response plan to address insider threats, these incidents must be accounted for as well.

The Most Common Attack Vectors

Through our customer assessments, we have found that most threats stem from two common groups: employees who are planning on leaving the company, and privileged users who are targeted by outside actors.

We’ve come across employees attempting to steal sensitive information before leaving their employers a shocking number of times. In a large portion of investigations launched within three months of working with new customers, we’ve discovered employees attempting to leave with trade secrets that will help them down the road. In recent customer assessments, we found staff using hacking tools not required for their job—like Wireshark and Process Hacker —in two-thirds of cases, and we found staff actively bypassing company security measures 96% of the time.

But the bigger problem we have noticed is outsiders targeting privileged users in order to get into an organization’s networks. Attackers seek out privileged users in order to get quicker and deeper access to sensitive and strategically important information. It’s not as hard as you’d think; 75% of assessments found staff using pirated software, and 93% found sensitive information both in the cloud and on unencrypted USBs.

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These risky practices open the door for phishing schemes, watering-hole attacks, and a slew of other approaches aimed at gaining access to user credentials. A growing number of these highly targeted forms of attack are being perpetrated by sophisticated, well-managed criminal organizations.

Don’t Compromise Privacy

Knowing the varying possibilities, organizations are hard-pressed to guarantee awareness of suspicious or dangerous activities without impacting their employees’ rights to privacy. To address this, start by focusing monitoring on rich, context-heavy data that truly describes typical workforce activity—for example, baseline user behavior over a set period of time to identify uncharacteristic access to sensitive data, running new and unusual applications, or downloading files that an employee has never touched before.

But don’t forget the need to protect the privacy of your employees. Conversations with the legal and HR departments are critical to ensure your plan abides by the legal and ethical limits on gaining insight into user activity.

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Be sure the efforts to stamp out an insider threat don’t come at the expense of the rights of the rest of your workforce.

How Does This Affect the Enterprise?

Whether driven by a careless user, a disgruntled employee looking for quick monetary gain or state-backed espionage, insider threats can have a huge and devastating impact on an organization. Enterprises are beginning to realize they need to understand not only their networks and systems but also their employees and their activities. Historically, a majority of businesses ignored the issue. The most recent Vormetric Insider Threat Report shows 89% of organizations feel vulnerable to the risk of insider threats, but organizations taking a proactive approach still remain in the minority.

Your best bet is to adhere to the philosophy of “trust, but verify.” Rather than focus on locking down certain applications and limiting access to many or all users at the network perimeter, organizations must gain broad visibility into behavior across the company to identify the most pressing vulnerabilities. Not until that has become a widespread practice will enterprises have a true handle on the insider threat.

Miller and Valasek Show the Real-World Impact Hackers Can Have

Charlie Miller and Chris Valasek at Black Hat USA 2015Photo: Black Hat USA 2015

LAS VEGAS—At Black Hat 2015, Charlie Miller and Chris Valasek gave one of the most highly anticipated and best-attended presentations, even far beyond the elite infosecurity experts gathered here this week. The already notable duo of hackers made international headlines two weeks ago when they demonstrated more than a year’s worth of work figuring out how to hack into and remotely control unaltered cars—and used Wired reporter Andy Greenberg as their test driver.

Greenberg’s article and video of the test paint a compelling portrait of just what Miller and Valasek’s hack means in practice. “As the two hackers remotely toyed with the air-conditioning, radio, and windshield wipers, I mentally congratulated myself on my courage under pressure. That’s when they cut the transmission,” Greenberg wrote. “Immediately my accelerator stopped working. As I frantically pressed the pedal and watched the RPMs climb, the Jeep lost half its speed, then slowed down to a crawl.

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This occurred just as I reached a long overpass, with no shoulder to offer an escape. The experiment had ceased to be fun.”

From a couch in Miller’s basement 10 miles away, they were able to seize control of the Jeep, and their methods could be applied to any car operating the same technology: Uconnect, an internet-connected computer feature in hundreds of thousands of cars that controls the entertainment and navigation systems, enables phone calls and, with a subscription purchase, offers a Wi-Fi hotspot. The hackers’ exploit can also be used for surveillance, using the Jeep’s GPS to track location to measure speed, and even drops pins on a map at regular intervals to trace its route. And, because of the system’s cellular connection, this can be done on any car from anywhere with access to the same cellular network (Sprint) as long as hackers know the car’s IP address.

In the wake of the Wired article, Sprint has blocked the kind of phone to car traffic and car to car traffic that facilitates remote hacking. What’s more, Fiat Chrysler announced the recall of 1.

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4 million cars and trucks that could be vulnerable to hacking—more than three times as many as the pair originally estimated may be at risk.

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Miller and Valasek approached the company with their findings as early as 2014, and said the automaker was responsive to their report. Unauthorized remote access was blocked with a network-level improvement, the company announced shortly after Greenberg’s article went to print. In addition to the recall to update software in the infotainment system, affected customers will receive a USB device to upgrade vehicles’ software with internal safety features.

And lest anyone still question the impact hackers can have on a business’s bottom line, as they were only too happy to point out, here’s a look at Chrysler’s stock from a week before to a week after the Wired story:

chrysler stock

Part of their aim was to increase consumer awareness and provoke greater scrutiny of technology they are being told is safe. “If consumers don’t realize this is an issue, they should, and they should start complaining to carmakers,” Miller told Wired. “This might be the kind of software bug most likely to kill someone.” Their research has already effected concrete change beyond the cars recalled. Partially spurred by the team’s earlier demonstrations in the arena, Senators Edward Markey of Massachusetts and Richard Blumenthal of Connecticut introduced legislation on July 21 that would direct the National Highway Traffic Safety Administration and the Federal Trade Commission to establish rules to secure cars and protect consumer privacy. The bill would also establish a rating system to inform owners about how secure their vehicles are beyond any minimum federal requirements, Bloomberg reported. “Controlled demonstrations show how frightening it would be to have a hacker take over controls of a car,” Markey said in a statement to Wired. “Drivers shouldn’t have to choose between being connected and being protected…We need clear rules of the road that protect cars from hackers and American families from data trackers.”

Miller and Valasek have done a lot more than present a frightening demonstration of just how vulnerable so many cars are, and it involves everyone here at Black Hat. In their presentation, Valasek opened with a blunt public service announcement: Please stop saying anything is “unhackable,” because you are wrong and you are just going to look silly. Proving that took more than a year of meticulous work, much of which could not be easily reproduced and applied any time soon, but they did prove it, and in doing so, they prompted the first formal safety campaign in response to a cybersecurity threat. That may be the biggest impact, he told the audience: “Hackers did something, fiscal change happened and it wasn’t in infosec—it was in the real world.”

Morpho Hacker Group Targets Intellectual Property

With the highly-publicized rise in cyberbreaches, we have seen hackers break into systems for a variety of reasons: criminal enterprises simply stealing money, thieves gathering Social Security or credit card numbers to sell on the black market, state-sponsored groups taking confidential information, and malicious actors taking passwords or personal data to use to hit more valuable targets. Now, another group of financially-motivated hackers has emerged with a different agenda that may have even riskier implications for businesses.

According to a new report from computer security company Symantec, a group it calls Morpho has attacked multiple multibillion-dollar companies across an array of industries in pursuit of one thing: intellectual property. While it is not entirely clear what they do with this information, they may aim to sell it to competitors or nation states, the firm reports. “The group may be operating as ‘hackers for hire,’ targeting corporations on request,” Symantec reported. “Alternatively, it may select its own targets and either sell stolen information to the highest bidder or use it for insider trading purposes.”

Victimized businesses have spanned the Internet, software, pharmaceutical, legal and commodities fields, and the researchers believe the Morpho group is the same one that breached Facebook, Twitter, Apple and Microsoft in 2013.

Symantec does not believe the group is affiliated with or acting on behalf of any particular country as they have attacked businesses without regard for the nationality of its targets. But, as the New York Times reported, ” the researchers said there were clues that the hackers might be English speakers — their malicious code is written in fluent English — and they named their encryption keys after memes in American pop culture and gaming. Researchers also said the attackers worked during United States working hours, though they conceded that might just be because that is when their targets are most active.”

The researchers have tied Morpho to attacks against 49 different organizations in more than 20 countries, deploying custom hacking tools that are able to break into both Windows and Apple computers, suggesting it has plenty of resources and expertise. The group has been active since at least March 2012, the report said, and their attacks have not only continued to the present day, but have increased in number. “Over time, a picture has emerged of a cybercrime gang systematically targeting large corporations in order to steal confidential data,” Symantec said.

Morpho hacking victims by industry

Morpho hackers have also been exceptionally careful, from preliminary reconnaissance to cleaning up evidence.

In some cases, to help best determine the valuable trade secrets they would steal, the group intercepted company emails as well as business databases containing legal and policy documents, financial records, product descriptions and training documents. In one case, they were able to compromise a physical security system that monitors employee and visitor movements in corporate buildings. After getting the data they wanted, they scrubbed their tracks, even making sure the servers they used to orchestrate the attacks were rented using the anonymous digital currency Bitcoin.

In short, the hackers are really good, according to Vikram Thakur, a senior manager of the attack investigations team at Symantec. “Who they are? We don’t know. They are virtually impossible to track,” he said.

Cyberattacks Targeting Big Companies Up 40%

Five out of six companies with more than 2,500 employees were targeted in cyberattacks in 2014, representing a 40% increase last year, according to Symantec’s annual Internet Security Threat Report. But by no means does that imply big businesses are the primary target: 60% of all targeted attacks struck small- and medium-sized organizations.

The spear-fishing and fraudulent email scams deployed in these hacks have also become more effective. Overall, 14% less email was used to infiltrate an organization’s network, yet 2014 saw a 13% increase in attackers as the cause of a data breach, and the total number of breaches rose from 253 in 2013 to 312 in 2014. This notable increase in precision is a clear indication that companies are not updating their defenses to match current threats.

Fortifying against cyberbreach continues to demand even more concerted effort as malicious actors grow more sophisticated, introducing more and better malware to their campaigns. “While advanced targeted attacks may grab the headlines, non-targeted attacks still make up a majority of malware, which increased by 26% in 2014,” Symantec reported. More than 317 million new pieces of malware were created last year, meaning almost a million new threats were released daily.

Changes in the top causes of data breach offer both good and bad news. While 13% more cyberbreaches were caused by attackers and breaches due to insider theft increased 3%, Symantec found that 15% fewer were due to accidental exposure, theft or loss.

Check out the infographics below for more of Symantec’s findings and insights on how hackers operate:

Symantec 2015 Internet Security Threat Report

Symantec Path of a Cyber Attacker