Cybersecurity Update: Latest Impacts on Aerospace & Defense - - PDF document

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Cybersecurity Update: Latest Impacts on Aerospace & Defense - - PDF document

The Aerospace & Defense Forum Arizona Chapter March 9, 2017 Cybersecurity Update: Latest Impacts on Aerospace & Defense Presented d by: Brandon Gunter Senior Manager, Cybersecurity Services Brandon.Gunter@mossadams.com (206)


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The Aerospace & Defense Forum Arizona Chapter March 9, 2017 1

Cybersecurity Update: Latest Impacts on Aerospace & Defense

Presented d by: Brandon Gunter Senior Manager, Cybersecurity Services Brandon.Gunter@mossadams.com (206) 302-6475 2

It’s no longer a question of whether a network will be compromised, but when a network will be compromised.

THE STATE OF CYBERSECURITY TODAY

Source: Ponemon Institute

$445billion

Total cost of data breaches and cybercrime worldwide.

Source: 2014 joint study by antivirus software maker McAfee and the Centerfor Strategic and InternationalStudies

$6.5million

Average cost a company pays for a data breach.

Source: Ponemon Institute

500+ billion

Total number of personal records stolen or lost.

Source: “The Future of Cybercrime & Security: Financial and Corporate Threats & Mitigation” from Juniper and Cimantic Corp.’s 2015 Annual ThreatReport

50%

COMPANIES

that experienced at least

  • ne security incident
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Attack Targets

  • Attacks today are sophisticated
  • Multiple access points to networks,

mobile devices, etc.

  • Not typically targeting systems – they go

after the people

3

Source: Symantec’s Internet Security Threat Report 2016

55%

increase

SPEAR PHISHING

Campaigns targeting employees

35%

increase

Common Cyberattacks

4

Common Cyberattack Approaches

SPEAR PHISHING

This is an e-mail that asks for information—IT system access data or bank details—in the hopes

  • f someone innocently responding and providingit.

WHALING

This method is the same as spear phishing but targets C-level executives.

RANSOMWARE

Hackers gain access to a system using malicious software, then encrypt sensitive data and hold it hostage—along with your ability to conduct business—until a demand issatisfied.

INTERNET OF THINGS

This includes many different types of devices that perform a single function at low processing power and lack security functions.

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5 RECENTCYBERATTACKS

DECEMBER 2013

Target had 70 million customer identitiesstolen.

JULY–AUGUST 2014

JPMorgan Chase discovered unauthorized

individuals accessed more than 90 of its secure servers

  • ver a two-month period. The result was the loss of

personal financial information for at least 76 million households.

NOVEMBER 2014

Sony Pictures found that e-mail systems were

accessed and embarrassing discussions were made public with costly consequences.

JANUARY 2015

Anthem Blue Cross Insurance Companies, the nation’s second largest insurer,

disclosed a breach in which the identities of 80 million customers were potentiallystolen.

FEBRUARY 2015

Intuit had to warn its TurboTax customers to hold off

from filing tax returns to ensure hackers couldn’t steal their refunds.

FEBRUARY 2016

Hollywood Presbyterian Medical Center paid a hacker $17,000 in bitcoin after a

ransomware attack encrypted its electronic medical record system, effectively locking the hospital out of its records for aweek.

2013 2014 2015 2016

The Price of Your Data

Social Security Number (SSN): $1-$5 Credit Card Number: $5-$8 (must have name, type, expiration date, and CCV) Premium Card Number: $30-$40 (must have SSN, address, DOB, plus name, type, expiration date, and CCV) PayPal Account: $20-$300 Medical Record: $50 Treasure trove of personally identifiable information (PII) Barrier to entry for an attacker is low (free tools, cheap card skimmers, cheap programs) Interconnectivity of systems and a lot of attack vectors, including cloud-based systems

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Cost Increases by Size and Industry

Total cost of a breach varies by the size of the breach: Average cost = $6.53 Million (US Data)

Source: Research Report, 2015 Cost of Data Breach Study: United States, Ponemon Institute (2015)

The cost per record varies by industry: Average cost =$217/record (US Data)

Rising Information Security Risks:

8 SPEAR PHISHING

Sophisticated attacks usually begin here. A social engineering attack preys on the psychological willingness of employees to divulge a company’s confidential digital

  • information. These attacks involve an

e-mail from a hacker who appears to be an individual or business you know. The target tends to be an unaware or untrained employee who may be willing to give up desirable information—their system password or company account details, for example. WHALING When the target is C-level executives, it’s known as whaling. C-level e-mail fraud takes place when a hacker requests that members of an organization’s finance function disburse or wire funds to a third- party in an e-mail that looks like it comes from senior management. (See example atright.) DEFENSE STRATEGY It’s important to remember there isn’t an all-encompassing solution to combat spear phishing or whaling. Prior to an attack, these defenses should be inplace: End-User Security Training

Never forget that people are your first line

  • f defense.

TechnicalControls

This includes e-mail system security, including antispam, URL scanning, and attachment stripping.

Internal Process Controls

Have at least two sets of eyes and approval for requests that meet a certain threshold. WHALING EXAMPLE

Hi Joe

Mary CEO February 29, 2016 at 10:44 AM To: Joe.CFO@example.com HiJoe Are you in the office? Kindly let me know because I need you to send out an important payment for me today. Thank you, Mary CEO Sent from my iPhone In this example, someone named Mary is e-mailing Joe, the CFO of a company,to urgently request payment. What shouldJoe do? Joe’s first step should be to slow down and think about the validity of a request when it comes in. He should take the time to hover over any hyperlinks to see where it’s going or check the e-mail address carefully to be sure it isn’t a fabricatedaccount.

Phishing

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9

Slow down, stop, and think about the validity of the request End user security awareness training – people are the first line of defense Have internal process controls in place (e.g., at least two sets of eyes and approval for a request that meets a certain threshold) Technical controls: e-mail system security, including antispam, URL scanning, and attachment stripping, is not a complete solution PEOPLE ARE PEOPLE ARE THE FIRST LINE THE FIRST LINE OF DEFENSE OF DEFENSE

Successfully Thwarting a Spear Phishing Attack

10

Also known as, Scareware

Allows hackers to access an employee’s computer, encrypt sensitive data and demand some form of payment to decrypt it. Often begins with a spear phishing attack, it infects the system and can propagate from there. McAfee Labs researchers saw instances of ransonware in the 2nd quarter of 2015 and expect this number to continue growing. DEFENSE STRATEGY There are administrative and technical controls to employ in this situation. Administrative Controls

  • End-user security awareness training
  • Internal process controls
  • Disaster recovery and business

continuity plans

  • Contact information for local law

enforcement, the FBI, and service providers

TechnicalControls

  • Frequent backups and snapshots of

databases

  • Test backups for key systems
  • Up-to=date antivirus and system

software through frequent patching

  • Near real-time monitoring services,

such as firewall information networks

4 million Ransomware

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11 Hollywood Presbyterian Medical Center February 2016

40 Bitcoins $17,000

=

  • Hospital in California threatened

with attack on their Medical Records

  • Electronic Medical Record (ERM)

system down for more than a week.

  • Ransom request paid by CEO

Ransomware Example Successfully Thwarting a Ransomware Attack

Administrative Controls

  • End user security awareness training
  • Internal control processes
  • Disaster recover / business continuity
  • Ensure you have contact information for law

enforcement, FBI and service providers Technical Controls

  • Ensure end-user security / access is sufficient to

perform job function – audited regularly

  • Proper backup methods are necessary – ensure
  • ffline copies of critical data
  • Up-to-date anti-virus and system software through

frequent patching (e.g. firewall information networks) PREPARATION CHECKLIST IT infrastructure assessment - Ensure proper controls are in place and security is defined for network resources Test your systems - Infrastructure architecture, design and validation for business continuity plan/disaster recovery requirements Prepare your people - Establish policies and procedures Active monitoring, alerting, management, and issue remediation - Detection should be immediate to limit the spread of the infection Monthly software updates and security patching Mobile device management

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13

90%

  • f consumer products will have

the ability to interact with other devices in 2015. Source:Samsung

26–50 billion

IoT devices will be connected by 2020. Sources: Gartner and Cisco, respectively

Another entry point to hackers.

These devices – such as a wireless HVAC controller, smart watch or drug-infusion pump that dispenses medication – are particularly vulnerable due to vendors rushing to get products out in the market place without considering security elements. CHARACTERISTICS: limited processing power, sensor triggers, actuators, “machine-to-machine” communication OTHER EXAMPLES OF IOT DEVICES

  • AVL sensor in a public transportation card
  • Smart video conferencing systems
  • Radio frequency identification (RFID)systems

used for inventory

  • Vending machines
  • Fitbits
  • Wireless HVAC systems
  • Medical devices

Internet of Things

14 YOUR DEFENSE STRATEGY

Know where IoT devices are in the environment Develop a policy for governing the use of IoT devices Have governance and risk assessment processes in place when new IoT devices are considered Use a separate wireless network to separate devices from the corporate network Use encryption while data is in transit

Protecting Against IoT Threats

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Dozens of Defense Contractors, Agencies Hacked

Forbes Magazine: The Pentagon's forensics-focused Cyber Crime Center found that between August 2007 and August 2009, 71 government agencies, contractors, universities and think tanks with connections to the U.S. military had been penetrated by foreign hackers, in some cases multiple times. In total, the center performed 116 investigations following spying breaches and found that in all but 14 of those cases the intruders had gained complete administrator-level access to the victim's network. According to Forbes, "military contractors General Dynamics and Northrop Grumman have both been successfully breached by cyber spies in the last two years, according to sources familiar with the security situations of those companies." Sound Familiar?

  • Almost every breach investigated, began when an employee was sent a highly

targeted and convincing phishing email.

  • When the recipient opened a file attached to that message, it used a flaw in the

target computer’s software to invisibly plant malicious software on the machine and give it access to the user’s network.

  • The large majority of attacks didn’t use previously unknown software
  • vulnerabilities. Instead, they exploited old software bugs that IT administrators

had failed to patch, configuration errors and even poor password practices.

A&D – An industry with a target

"We can say that any company that's involved in high-technology research and development is a target for these adversaries."

Steven Shirley Executive Director Pentagon Cyber Crime Center 2010

“We were surprised to see that even companies that we regarded as tech savvy in a lot of cases had significant vulnerabilities correlated with inattention to the basic blocking and tackling of information assurance,”

16

What you need to know: What is CUI? Controlled Unclassified Information is any information that law, regulation or government- wide policy requires to have safeguarding or disseminating controls, excluding information that is classified under Executive Order 13526, any predecessor or successor order, or the Atomic Energy Act of 1954, as amended. CUI Examples: Many federal contractors, for example, routinely process, store, and transmit sensitive federal information in their systems to support the delivery of essential products and services to federal agencies (e.g., providing credit card and

  • ther financial services; providing Web

and electronic mail services; conducting background investigations for security clearances; processing healthcare data; providing cloud services; and developing communications, satellite, and weapons systems

Security Requirements Access control Awareness and training Audit and accountability Configuration management Identification and authentication Incident response Maintenance Media protection Personnel security Physical protection Risk assessment Security assessment System and communications protection System and information integrity

NIST SP 800-171r1

If you have a government contract with a federal agency, such as the DoD, or with a primary government contractor, you may be required to be compliant with NIST SP 800-171 Revision 1, issued in December 2016. If you fall into this category, a recently implemented rule from the Department of Defense called the Defense Federal Acquisition Regulation Supplement (DFARS) 252.204-7012 will impact how you handle controlled unclassified information (CUI). You now have until December 31, 2017 to become NIST SP 800-171r1 compliant or risk losing your government contract.

A&D – New Compliance Concerns

The effect NIST SP 800-171r1 has on these organizations can be significant, especially if they currently do not practice basic fundamental security and controls.

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  • The industry’s attackers are becoming more sophisticated and

professional

  • Over 150 countries now have active cyber warfare divisions
  • Well resourced and financed organized crime, terrorist
  • rganizations, and data leakage organizations
  • It is no longer a “script kid” threat
  • Evolving workforce technologies
  • Mobile device usage is only increasing
  • Increasing need for connectivity to critical systems
  • Elasticity of the A&D enterprise
  • Need to do more with less
  • Virtualization – expanding geometrically
  • Highly interdependent supply chain
  • Tight integration specialized suppliers
  • Many companies coming together for mega-projects
  • Global program footprints
  • Internet of Things (IoT)
  • First generation devices
  • Poor security controls
  • Rush to add enhanced value and control

What makes A&D vulnerable?

18

  • Recognize and acknowledge the threat
  • It is not longer a matter of if, it is a matter of when
  • According to the FBI, many organizations have been breached and

don’t know it

  • Prepare, Prepare, Prepare
  • Focus on blocking and tackling; return to the basics
  • Develop/maintain/bolster Information Security Governance
  • Develop robust ISG programs to identify, monitor, reduce, and

remediate risk exposures

  • Develop information security strategies and roadmaps to provide

direction on risk reduction.

  • Know your data, information assets, business, customers, suppliers,

contractors

  • Drive security awareness
  • Religiously monitor, analyze, and correlate events (SIEM)
  • Incident response planning
  • Be proactive and get ahead of the threats and innovation
  • Know where your business is heading, plan for it, know the risks
  • Research thoroughly new technology implementations with an eye

to cyber security risk

  • Continue to invest in cyber security research an analysis
  • Collaborate with your peers and industry specialists

What can we do?

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Examine these cybersecurity controls

  • n a regular basis

Administrative Security Controls Policies and procedures related to IT security, incident response plans and disaster recovery plans Technology Controls Networks, servers, mobile devices and workstations Physical Controls Access rights to your data center and server rooms Social Engineering Controls Confront the news forms of people driven cyberattacks through security awareness training

PENETRATION TESTING Penetration testing allows highly skilled security consultants to identify vulnerabilities by invading your systems from a cyber-attacker’s perspective. Or “Ethical Hacking” Helps to identify: Holes or flaws in IT systems Patches that were installed to fix issues Incorrect or inadequate configurations Updates and upgrades that have and haven’t been performed

IT Security Risk Assessment and Analysis

Often a company’s biggest weakness is not knowing how vulnerable it is to a cyberattack. An IT security risk assessment and analysis can identify holes in your operation. Answering several key questions What systems are most at risk? Who has access to the most significant data? How was mission-critical data acquired? What vital data is being processed, and how? What essential data is being stored, and how? What valuable data is being transmitted, and how? Where is crucial data being transmitted?

Assessing Your Vulnerabilities

20 If your organization does experience a data breach, there are immediate steps that should be taken to stem the damage and minimize the impact as well as to stay compliant with regulatory requirements.

01

Exercise Your Security

Incident Response Plan

02

Bring In a Fresh Set ofEyes

03

Know YourNotification

Responsibilities

04

Call Your InsuranceCarrier

05

Develop Remediation

Plans

06

Include SecurityProtocol and Controls in Your Business Processes

In the Unfortunate Event of a Breach

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Questions?

Presented d by: Brandon Gunter Senior Manager, Cybersecurity Services Brandon.Gunter@mossadams.com (206) 302-6475