The Evolving Threat

Todays cyber security challenges and solutions

Are Water Lines At Risk?

n

Security lacking in networks controlling critical infrastructure Hackers, terrorists could find way into controls of nuclear power stations, electrical grids, water lines. By Bob Keefe WEST COAST BUREAU Monday, October 02, 2006

The Past

The Present

Source: http://cm.bell-labs.com/who/ches/map/gallery/index.html

The earlier threat landscape

n n n n n n

Human Agents Hackers Disgruntled employees White collar criminals Organized crime Terrorists

Exposures n Information theft, loss & corruption n Monetary theft & embezzlement n Critical infrastructure failure n Hacker adventures, e-graffiti/ defacement n Business disruption

n n n n n n

Methods of Attack Brute force Denial of Service Viruses & worms Back door taps & misappropriation, Information Warfare (IW) techniques

Representative Incidents n Code Red, Nimda, Sircam n CD Universe extortion, e-Toys Hactivist campaign, n Love Bug, Melissa Viruses
n

SOBIG, SLAMMER

The earlier threat:

growth in vulnerabilities
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 171 0
345 311 262 417 1,090 2,437 4,129

(CERT/cc)

1995

2002

The earlier threat:

cyber incidents
120000
110,000

100000 80000
55,100

60000 40000

21,756

20000
6 132 252 406 773 1,334 2,340 2,412 2,573 2,134 3,734 9,859

0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Anyone have a cell phone?

n Companies

have built into their business models the efficiencies of digital technologies such as real time tracking of supply lines, inventory management and on-line commerce. The continued expansion of the digital lifestyle is already built into almost every companys assumptions for growth. ---The Manufacturing Institute July 2006

The changing threat

n The

fast-moving virus or worm pandemic is not the threat.

2002-2004 almost 100 medium-to-high risk attacks. 2005, there were only 6 This year, 0.

The changing threat

n Today,

attackers are motivated to perpetrate fraud, gather intelligence, or gain access to vulnerable systems. are now on client-side devices and applications (word processing, spreadsheet programs, wireless devices) that require interaction, instead of on servers

n Vulnerabilities

The changing threat

n Cybercrime
n 6,110 n Bot
n 4000

growth

Denial of Service attacks per day

in January 06 to 7,500 in June 06

nets are the engine driving growth n Increase in modular malicious code (initially limited functionality but updates itself with new, more damaging capabilities)
n Insider

threats

Economic Effects of Attacks

n 25%

of our wealth---$3 trillion---is transmitted over the Internet daily n FBI: Cyber crime cost business $26 billion (probably a LOW estimate) n Financial Institutions are generally considered the safest---their losses were up 450% in the last year n There are more electronic financial transactions than paper checks now, 1% of cyber crooks are caught.

Im too Small to Attack, Not.

n One

of every three small businesses in America were affected by MyDoom virus---- 2x the proportion of large companies effected by that virus. n Small Businesses get attacked more often, have less defenses, have smaller margins to protect against loss n Small businesses have needs and require a special program

2006 Data Breach Laws

Introduced in at least 35 states Enacted in: IN, ME, WI
Sources: National Conference of State Legislatures U.S. Public Interest Research Group

Enacted in: AZ, CO, KS, UT, NE, ID

Pending Federal Legislation

n

House Judiciary Committee: Passed legislation on Thursday June 1st 2006 House Energy and Commerce Committee Passed legislation on Wednesday May 31st 2006

Senate Judiciary Committee S.1789 Personal Data and Privacy Act - Pending n Sponsor: Sen. Arlen Specter (PA) n Cosponsors: Sen. Patrick Leahy (VT), Sen. Russell D. Fiengold (WI), Sen. Dianne Fienstein (CA)

Whats the result of all the legislative activity?

1. 2. 3.

Confusion for business Inaction in the Congress Growing problems and costs

August 2006 was the worst month for data security breeches on record SANS Institute Sept 2006

Can it be stopped ? YES !

n PricewaterhouseCoopers

conducted 2 International surveys (2004 & 2006) covering 15,000 corporations of all types 25% of the companies surveyed were found to have followed recognized best practices for cyber security.

n Apx

Benefits of Best Practices

n Reduces

attacks n Reduces the amount of down-time suffered from attacks n Reduces the amount of money lost from attacks n Reduces the motivation to comply with extortion threats

the number of successful

Cited in US National Draft Strategy to Protect Cyber Space (September 2002) Endorsed by TechNet for CEO Security Initiative (April 2003) Endorsed US India Business Council (April 2003)

ISALLIANCE BEST PRACTICES

nPractice

#1: nPractice #2: nPractice #3: nPractice #4: nPractice #5: nPractice #6: nPractice #7: nPractice #8: nPractice #9: nPractice #10: Recovery

General Management Policy Risk Management Security Architecture & Design User Issues System & Network Management Authentication & Authorization Monitor & Audit Physical Security Continuity Planning & Disaster

Why Doesnt Everyone Comply with the Best Practices?

n Many

organizations have found it difficult to provide a business case to justify security investments and are reluctant to invest beyond the minimum. One of the main reasons for this reluctance is that companies have been largely focused on direct expenses related to security and not the collateral benefits that can be realizedManufacturers Institute 06

But, management is wrong.

Stanford Global Supply Chain Management Forum/IBM Study: Clearly demonstrated that investments in supply chain security can provide business value such as:
n

* Improved Product Safety (38%) Improved Inventory management (14%) Increase in timeliness of shipping info (30%)

Theres More !!!

n Increase

in supply chain information access (50%) n Improved product handling (43%) n Reduction in cargo delays (48% reduction in inspections) n Reduction in transit time (29%) n Reduction in problem identification time (30%) n Higher customer satisfaction (26%)

Security, like Digital Technology must be Integrated in Bus Plan

n Security

is still viewed as a cost, not as something that could add strategic value and translate into revenue and savings. But if one digs into the results there is evidence that aligning security with enterprise business strategy reduces the number of successful attacks and financial loses as well as creates value as part of the business plan. PricewaterhoseCoopers Sept 2006

So, how do we do that?

n We

have a changing technology environment n We have a changing business model n We have a constantly changing legal and regulatory environment
n Business

must take the lead

Cyber Security is not an IT problem

n Issues

must be addressed simultaneously from the

n Legal

Perspective n The Business Perspective n The Technology perspective n The Policy Perspective

ISAlliance Integrated Business Security Program

n Outsourcing n Risk

Management n Security Breech Notification n Privacy n Insider Threats n Auditing n Contractual Relationships (suppliers, partners, sub-contractors, customers)

ISAlliance Small Business Program

n Special

by: n DHS n Chamber of Commerce n NAM n NFIB n ABA n Wholesale Memberships through trade associations

Set of Best Practices Endorsed

Sponsors

Larry Clinton Operations Officer Internet Security Alliance lclinton@eia.org 703-907-7028 202-236-0001