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How Cybercrime is Breaking Down Barriers to your Data

Etay Maor

Sr. Fraud Prevention Strategist

March 2016

Borderless Breaches and Migrating Malware

Limor Kessem

Cybersecurity Evangelist

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is the foundation for advanced security and threat research across the IBM Security Framework.

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The IBM X-Force Mission Monitor and evaluate the rapidly changing threat landscape Research new attack techniques and develop protection for tomorrow’s security challenges Educate our customers and the general public Integrate and distribute Threat Protection and Intelligence to make IBM solutions smarter

Expert analysis and data sharing on the global threat landscape

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Key Trends from 2015

4

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Attacks are focusing on higher value data targets

2013800,000,000+ records breached, with no signs of decreasing in the future

20141,000,000,000 records

breached, while CISOs cite increasing risks from external threats

2015Healthcare mega-breaches

set the trend for high value targets of sensitive information

Source: IBM X-Force Threat Intelligence Report - 2016

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The number of security incidents involving the leak of healthcare records doubled from the previous year

Banking / Financial;

22%

Citizen Reg-istry; 34%

Creden-tials; 35%

Health; 10%2014

Banking / Financial;

14%

Citizen Reg-istry; 32%Creden-tials;

33%

Health; 20%

2015

Source: IBM X-Force Interactive Security Incidents, count by incident based on type of records breached

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Attacks on retail companies now include refined POS malware and niche payment systems

Source: IBM X-Force Threat Intelligence Report - 2016

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Classic attacks like DDoS and malware continued to be successful because of a lack of practiced security fundamentals

Source: IBM X-Force Threat Intelligence Report - 2016

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Breaches of durable PII bring attention to the complex intersection between digital and physical identities

• 100M healthcare records were exposed in five mega-breaches• Durable PII is harder to replace

Healthcare PII

• Breaches at adult dating websites exposed sexual preferences and infidelities• Opens opportunities for extortion and increased social engineering intelligence• The breaches were linked to a number of suicides of affected victims

Sensitive Personal

Data

• Increasing amounts of bandwidth, with the highest reported attack >600Gbps.• The attack can affect not only the targeted domain, but also other sites and

services managed by the ISP.DDoS

• The success of ransomware laid the groundwork for other types of cyber-extortion.

• Bitcoin ransom demands range from a few hundred to tens of thousands of US dollars.

Cyber-Extortion

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Source: IBM X-Force Threat Intelligence Report - 2016

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Our predictions on cybercrime for 2015 not only came true, but also exceeded expectations

Cybercriminals breaking borders

Card-not-present (CNP) fraud rise and attacks on EMV

Escalation of sophistication of mobile threats, including exploit packs and device takeover

Widespread use of anonymity networks and stronger encryption

Burgeoning fraud methods for new payment schemes

Biometrics as a target

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Cybercrime is no longer the domain of amateurs, but rather organized gangs

Source: IBM X-Force Threat Intelligence Report - 2016

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Malware is migrating across borders…

Malware leaps across target countries are indicative of increasing sophistication and organization in crime rings because they

require more than simple changes to configuration files.

Source: IBM X-Force Threat Intelligence Report - 2016

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… indicating growing sophistication needed to organize these new geographic targets

Develop or buy social engineering emails for the target geography

Rent or pay for localized spam spreading

Study local banks’ authentication requirements

Develop web-injections to correspond with the transaction flow, language, and look & feel for each target

Have local criminals and money mules ready to use

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Malware scaled up by shifting some targets to businesses rather than consumers

New malware modules, like “pn32” in Dyre, can harvest user credentials

for enterprise email servers.

BEC fraud initiates credible-looking email to company accountant to

make large wire transfers.

Extortion and ransom demands are targeted at company’s or client data.

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New malware techniques include overlay malware on the mobile operating system

Mobile overlay malware offers a one-stop shop for blackhats– Works with bank apps and other applications that use HTML/JS injections– Enable credential collection

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Cybercrime predictions for 2016

• CNP will grow and increase in sophistication

• Skimming will die out, give way to ATM “shimmers”

• Novel EMV attacks will emerge, such as automated EMV replay attacks

Card Fraud

• Apps run in a compromised OS, creating uncontrollable security gaps

• New Windows 10 app platform enables one app to run on every Windows device, including phones, tablets, laptops, and Xbox gaming platform

Mobile Malware

• Biometric repositories hacked

• Biometric ID used in fraud and sold or traded by cybercriminals

Biometrics

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Many of the incidents we’ve seen could be avoided with a focus on security basics

Instrument your environment with effective detection.

Keep up with threat intelligence.

Maintain a current and accurate asset inventory.

Maintain identity governance to audit and enforce access rules & permissions.

Have a patching solution that covers your entire infrastructure.

Implement mitigating controls.

Create and practice a broad incident response plan.

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