Category: Cyber Attacks

During a candid discussion with host Scott Pelley of 60 Minutes at FBI headquarters in Washington DC, James Comey speaks out about the threat of cybercrime confronted by American citizens and corporations. Comey declares that cybercrime perpetrated by nation states, criminal syndicates and terrorist organizations has reached epidemic proportions and is directly costing the US economy billions of dollars a year.

Can’t access YouTube? Try Vimeo: https://vimeo.com/108513963

The following is a transcript of the excerpt:

James Comey: Cybercrime is becoming everything in crime. Again, because people have connected their entire lives to the Internet, that’s where those who want to steal money or hurt kids or defraud go. So it’s an epidemic for reasons that make sense.

Scott Pelley: How many attacks are there on American computer systems and on people’s credit card numbers and the whole mass of it? What does a day look like if you’re concerned with crime in cyberspace?

James Comey: It would be too many to count. I mean, I think of it as kind of an evil layer cake. At the top you have nation state actors, who are trying to break into our systems. Terrorists, organized cyber syndicates, very sophisticated, harvesting people’s personal computers, down to hacktivists, down to criminals and pedophiles.

Scott Pelley: What countries are attacking the United States as we sit here in cyberspace?

James Comey: Well, I don’t want to give you a complete list. But I can tell you the top of the list is the Chinese. As we have demonstrated with the charges we brought earlier this year against five members of the People’s Liberation Army. They are extremely aggressive and widespread in their efforts to break into American systems to steal information that would benefit their industry.

Scott Pelley: What are they trying to get?

James Comey: Information that’s useful to them so they don’t have to invent. They can copy or steal so learn about how a company might approach negotiation with a Chinese company, all manner of things.

Scott Pelley: How many hits from China do we take in a day?

James Comey: Many, many, many. I mean, there are two kinds of big companies in the United States. There are those who’ve been hacked by the Chinese and those who don’t know they’ve been hacked by the Chinese.

Scott Pelley: The Chinese are that good?

James Comey: Actually, not that good. I liken them a bit to a drunk burglar. They’re kicking in the front door, knocking over the vase, while they’re walking out with your television set. They’re just prolific. Their strategy seems to be: We’ll just be everywhere all the time. And there’s no way they can stop us.

Scott Pelley: How much does that cost the U.S. economy every year?

James Comey: Impossible to count. Billions.

Scott Pelley: Sounds like cybercrime is a long way from Bonnie and Clyde for the FBI.

James Comey: Bonnie and Clyde could not do a thousand robberies in the same day, in all 50 states, from their pajamas, halfway around the world.

Scott Pelley: The FBI’s had legendary problems upgrading its computer systems. Are you now to a place where you’re satisfied that you’re meeting the cybersecurity threat?

James Comey: We’ve made great progress coordinating better as a government. When I last left government, my sense of us was kind of like four-year-old soccer. So like a clump of four year olds chasing the ball, we were chasing it in a pack. We’re about high school soccer now. We’re spread out. We pass well. But the bad guys are moving at World Cup speed. So we have to get better.

Scott Pelley: Do people understand, in your estimation, the dangers posed by cybercrime and cyber espionage?

James Comey: I don’t think so. I think there’s something about sitting in front of your own computer working on your own banking, your own health care, your own social life that makes it hard to understand the danger. I mean, the Internet is the most dangerous parking lot imaginable. But if you were crossing a mall parking lot late at night, your entire sense of danger would be heightened. You would stand straight. You’d walk quickly. You’d know where you were going. You would look for light. Folks are wandering around that proverbial parking lot of the Internet all day long, without giving it a thought to whose attachments they’re opening, what sites they’re visiting. And that makes it easy for the bad guys.

Scott Pelley: So tell folks at home what they need to know.

James Comey: When someone sends you an email, they are knocking on your door. And when you open the attachment, without looking through the peephole to see who it is, you just opened the door and let a stranger into your life, where everything you care about is.

Scott Pelley: And what might that attachment do?

James Comey: Well, take over the computer, lock the computer, and then demand a ransom payment before it would unlock. Steal images from your system of your children or your, you know, or steal your banking information, take your entire life.

Scott Pelley: We have talked about a lot of menacing things in this interview. Do you think Americans should sleep well?

James Comey: I think they should. I mean, the money they have invested in this government since 9/11 has been well spent. And we are better organized, better systems, better equipment, smarter deployment. We are better in every way that you’d want us to be since 9/11. We’re not perfect. My philosophy as a leader is we are never good enough. But we are in a much better place than we were 13 years ago.

The release of three of the most important annual threat intelligence reports earlier this month confirmed that 2013 was an explosive year for cybersecurity. All three reports point to rising incidences of cyber attack, increasing sophistication of attack vectors and a growing diversity of threat actors and targets.

The first of the reports is entitled M-Trends, compiled by the security forensics company Mandiant, now owned by FireEye. M-Trends is based on the analysis of incidence response data from organisations across 30 industries. While the analysis detected a slight improvement in the average number of days taken by organisations to detect a network breach, there was no discernable improvement in the ability of organisations to detect breaches without outside assistance. Only 33 percent of breaches are discovered by internal resources.

The analysis also revealed that cybercriminals are deploying a wider variety of attack methodologies against targets. Traditional approaches involve the detection and exploitation of vulnerabilities in Web applications which enable attackers to move laterally through connected systems after a successful compromise. According to M-Trends, attackers are shifting focus from Web applications to exploiting workstations and other systems infected with botnets and Trojans. These tools are designed to create backdoors for the installation and propagation of more powerful  forms of malware designed to seek out and extract sensitive data.

The report notes that sensitive data goes beyond proprietary intellectual property. State-sponsored attackers target a wide variety of information sources to understand how businesses work including emails, procedural and workflow documents, plans, budgets, organisational charts, and meeting agendas and minutes.

M-Trends concludes that the list of potential targets has increased, and the playing field has grown. Threat actors are not only interested in seizing the corporate crown jewels, but are also looking for ways to publicize their views, cause physical destruction, and influence decision makers.

The second report is also the most long-standing and well-known. The Verizon Data Breach Investigations Report (DBIR) is now in its eighth year and includes contributions from organisations such as the U.S Secret Service, US-CERT, Europol and the Council on Cyber Security. The 2014 DBIR analyzed over 1300 confirmed data breaches and 63,000 security incidents in 95 countries.

The highest number of security incidents analyzed by the DBIR affected organizations in the financial, retail and public sector. This is unsurprising since such organizations tend to store or process financial and other sensitive information. However, the DBIR did not observe any industry that was not impacted by security incidents that led to confirmed data losses. This underscore the DBIR finding that “everyone is vulnerable to some type of event. Even if you think your organization is at low risk for external attacks, there remains the possibility of insider misuse and errors that harm systems and expose data. To illustrate, 30% percent of security incidents impacting manufacturing companies can be classified as acts of cyber espionage. In comparison, less than 1 percent of incidents in public sector organisations are caused by cyber espionage. However, public sector organisations experience three times as many incidents of insider abuse as manufacturing companies.

The third and final threat intelligence report released in April was Symantec’s Internet Security Threat Report which revealed a 62 percent year-on-year increase in data breaches with 8 breaches exposing more than 10 million identities each. According to the report, the industries most at risk of a targeted attack are mining, government and manufacturing. The likelihood that organisations in such industries will experience an attack are 1 in 2.7, 1 in 3.1 and 1 in 3.2 respectively.

The report also revealed that there were more zero-day vulnerabilities in 2013 than other year on record. The number of zero-day vulnerabilities discovered last year were 61 percent higher than the year before and more than the previous two years combined.

The report recommends multiple and mutually-supportive defense-in-depth strategies to guard against single-point failures. It also recommends continuous monitoring and automatic alerting for intrusion attempts, as well as aggressive updating and patching. These recommendations are echoed by both M-Trends and the DBIR. According to the former, organisations require “visibility into their networks, endpoints and logs. Organisations also need actionable threat intelligence that identifies malicious activity faster.

Layer Seven Security enable SAP customers to meet this challenge by hardening every component of the SAP technology stack for defense in depth including underlying networks, databases and operating systems. We also configure comprehensive network, system, table and user logs to enable organisations to track, identify and respond to cyber attacks. Finally, we unlock standard, powerful security monitoring mechanisms in SAP Solution Manager to automatically detect and alert of potential malicious activity.

The rise in the rate and sophistication of cyber attacks has predictably fuelled the pressure on security resources. However, the precise complexion and source of the pressure was largely unknown until the recent release of the Trustwave Security Pressures study. The study examines the threats most concerning to security professionals and the preferred responses.

The results of the study are based on survey responses from over 800 decision makers in the US, UK, Canada, and Germany including CIOs, CISOs, and IT Directors / Managers. Almost 60 percent of respondents were IT/ Security Directors or higher and 75 percent represented organisations in North America.

Over 50 percent of IT professionals experienced more security-related pressures in 2013 than the year before and almost 60 percent expect the pressure to grow in 2014. The source of the greatest pressure is the threat of external attack through targeted malware. The threat of data loss arising from a successful network and system breach also ranked highly as a stressor. Only 5 percent of respondents believe their organisations are not susceptible to attack.

The study revealed that owners, boards of directors and C-level executives exert the most pressure on IT professionals. This reflects the high visibility and growing board-level presence of security concerns. Cyber risk is a common and recurring subject on board agendas. According to Trustwave, executives and board members are increasingly demanding a deeper explanation from IT professionals on security postures and often display a lack of confidence in IT risk management strategies. This wariness stems partly from the seeming inability of conventional security products and solutions to stem the tide of cyber attack and data loss.

The study also revealed that respondents struggle with the complexity of security solutions, shortages in dedicated resources and controlling capital and operational budgets.

The study recommends a number of specific actions to relieve the pressure. The first involves accepting the growing level of scrutiny from boards and other sources over security practices and managing security programs as strategic business initiatives with regular reporting to executive management. Other recommendations include augmenting in-house security expertise by partnering with outside security consultants, performing periodic risk assessments and penetration tests, focusing upon securing external-facing systems, controlling third party access and avoiding over-reliance upon security tools that provide a false sense of security.

Layer Seven’s Cybersecurity Framework delivers a comprehensive strategy to protect SAP systems from cyber attack and data breach. The framework provides a series of actionable recommendations to alleviate the growing pressure on IT professionals while avoiding the need for capital expenditure in security software. The framework equips security professionals with the insight and expertise required to safeguard mission-critical SAP resources from cyber risks. Learn more.