SEC Examines Response From Financial Advisory, Brokerage Firms to Cyber Threats
Posted on February 5, 2015 by Kara Dunlap in Security
An overwhelming majority of brokerage and investment advisory firms examined by the U.S. Securities and Exchange Commission (SEC) have been the subject of a cyber-attack.
In its recent ‘Cybersecurity Examination Sweep Summary‘ report, the SEC took a look at 57 registered broker-dealers and 49 registered investment advisors. Eighty-eight percent of the broker-dealers and 74 percent of the advisers stated that they have experienced cyber-attacks either directly or through one or more of their vendors.
The majority of the cyber-related incidents are related to malware and fraudulent email. In fact, more than half of the broker-dealers (54 percent) and 43 percent of the advisers reported receiving fraudulent emails seeking to transfer client funds. More than a quarter of those broker-dealers reported losses in excess of $ 5,000 related to these emails, with no single loss being greater than $ 75,000. Twenty-five percent of the broker-dealers confessing losses related to the emails said the damage was the result of employees not following their firm’s identity authentication procedures.
<a href="http://redirect.viglink.com?key=11fe087258b6fc0532a5ccfc924805c0&u=http%3A%2F%2Fwww.securityweek.com%2Fcybersecurity-healthcare-retail-sectors-lags-behind-utility-and-financial-industries-report%22%3E"Brokers and advisors, especially those who handle very wealthy clients, are used to dealing with substantial sums of money, but they’re also human beings who can be duped by a well-crafted phishing scam,” said Tim Erlin, director of IT security and risk strategy at Tripwire. “Not all of these brokerages are as big as Wells Fargo and Morgan Stanley. Small and medium financial firms are gaining visibility because criminals are walking away with meaningful sums of money. The criminals are becoming more savvy about which kinds of transactions remain under the radar, and the more success they have with these targets, the more of these businesses they go after.”
The good news is the vast majority of examined broker-dealers (93 percent) and advisers (83 percent) have adopted written information security policies, and 89 percent of the broker-dealers and 57 percent of the advisers conduct periodic audits to determine compliance with these policies. For the majority of both broker-dealers (82 percent) and the advisers (51 percent), these written policies discuss mitigating the effects of a cyber-security incident and/or outline the plan to recover from such an incident. These policies however generally did not address how firms determine whether they are responsible for client losses associated with cyber incidents.
While firms identified misconduct by employees and other authorized users of their networks as a significant concern, only a small proportion of the broker-dealers (11 percent) and the advisers (four percent) reported incidents in which insiders engaged in misconduct resulting in the misappropriation of funds, securities, sensitive client or firm information, or damage to the firms’ networks.
The vast majority of examined firms conduct firm-wide risk assessments on a periodic basis to identify cybersecurity threats, vulnerabilities and any potential impact to business. While most of the broker-dealers (93 percent) and advisers (79 percent) reported considering such risk assessments in establishing their cybersecurity policies and procedures, fewer firms applied these requirements to their vendors. While 84 percent of the brokerage firms require cyber-security risk assessments of vendors with access to their firm’s networks, only 32 percent of the advisers do so.
“Cybersecurity threats know no boundaries,” said SEC Chair Mary Jo White, in a statement. “That’s why assessing the readiness of market participants and providing investors with information on how to better protect their online investment accounts from cyber threats has been and will continue to be an important focus of the SEC. Through our engagement with other government agencies as well as with the industry and educating the investing public, we can all work together to reduce the risk of cyber attacks.”
Brian Prince is a Contributing Writer for SecurityWeek.
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Insider vs. Outsider Threats: Can We Protect Against Both?
Posted on June 26, 2014 by Kara Dunlap in Security
Media reports affirm that malicious insiders are real. But unintentional or negligent actions can introduce significant risks to sensitive information too. Some employees simply forget security best practices or shortcut them for convenience reasons, while others just make mistakes.
Some may not have received sufficient security awareness training and are oblivious to the ramifications of their actions or inactions. They inadvertently download malware, accidentally misconfigure systems, or transmit and store sensitive data in ways that place it at risk of exposure.
Personnel change too. Companies hire new employees, and promote and transfer individuals to new roles. They augment staff with temporary workers and contractors. New leadership comes onboard. Many of these insiders require legitimate access to sensitive information, but needs differ with changing roles, tenure, or contract length. It’s extremely challenging to manage user identities and access privileges in this environment, not to mention the people themselves. A person who was once trustworthy might gradually become an insider threat – while another becomes a threat immediately, overnight.
New technologies and shifting paradigms further complicate matters. The evolving trends of mobility, cloud computing and collaboration break down the traditional network perimeter and create complexity. While these new tools and business models enhance productivity and present new opportunities for competitive advantage, they also introduce new risks.
At the same time, you can’t ignore outsider threats which are responsible for the lion’s share of breaches. Since 2008, the Verizon Data Breach Investigations Report has shown that external actors – not insiders – are responsible for the vast majority of the breaches they investigated. Some of the top reasons why breaches were successful include: weak credentials, malware propagation, privilege misuse, and social tactics. These are precisely the types of weaknesses that trace back to the actions (or inactions) of insiders.
The question isn’t whether to focus on the insider or outsider threat. The question is how to defend against both – equally effectively.
What’s needed is a threat-centric approach to security that provides comprehensive visibility, continuous control, and advanced threat protection regardless of where the threat originates. To enable this new security model, look for technologies that are based on the following tenets:
Visibility-driven: Security administrators must be able to accurately see everything that is happening. When evaluating security technologies, breadth and depth of visibility are equally important to gain knowledge about environments and threats. Ask vendors if their technologies will allow you to see and gather data from a full spectrum of potential attack vectors across the network fabric, endpoints, email and web gateways, mobile devices, virtual environments, and the cloud. These technologies must also offer depth, meaning the ability to correlate that data and apply intelligence to understand context and make better decisions.
Threat-focused: Modern networks extend to wherever employees are, wherever data is, and wherever data can be accessed from. Keeping pace with constantly evolving attack vectors is a challenge for security professionals and an opportunity for insider and outsider threats. Policies and controls are essential to reduce the surface area of attack, but breaches still happen. Look for technologies that can also detect, understand, and stop threats once they’ve penetrated the network and as they unfold. Being threat-focused means thinking like an attacker, applying visibility and context to understand and adapt to changes in the environment, and then evolving protections to take action and stop threats.
Platform-based: Security is now more than a network issue; it requires an integrated system of agile and open platforms that cover the network, devices, and the cloud. Seek out a security platform that is extensible, built for scale, and can be centrally managed for unified policy and consistent controls. This is particularly important since breaches often stem from the same weaknesses regardless of whether they result from insider actions or an external actor. This constitutes a shift from deploying simply point security appliances that create security gaps, to integrating a true platform of scalable services and applications that are easy to deploy, monitor, and manage.
Protecting against today’s threats – whether they originate from the inside or the outside – is equally challenging. But they have a lot in common – tapping into many of the same vulnerabilities and methods to accomplish their missions. There’s no need to choose which to prioritize as you allocate precious resources. With the right approach to security you can protect your organization’s sensitive information from both insiders and outsiders.
Marc Solomon, Cisco’s VP of Security Marketing, has over 15 years of experience defining and managing software and software-as-a-service platforms for IT Operations and Security. He was previously responsible for the product strategy, roadmap, and leadership of Fiberlink’s MaaS360 on-demand IT Operations software and managed security services. Prior to Fiberlink, Marc was Director of Product Management at McAfee, responsible for leading a $ 650M product portfolio. Before McAfee, Marc held various senior roles at Everdream (acquired by Dell), Deloitte Consulting and HP. Marc has a Bachelor’s degree from the University of Maryland, and an MBA from Stanford University.
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FireEye Unveils All-in-One Platform to Detect, Contain and Mitigate Threats
Posted on February 10, 2014 by Kara Dunlap in Security
FireEye, a provider of solutions that help companies block advanced cyber attacks, has expanded its FireEye Security Platform in an effort to offer customers a single solution that spans from threat detection and alerts to remediation.
The enhancements incorporate endpoint protection and managed security services from Mandiant, the company FireEye recently acquired for roughly $ 1 billion. Additionally, the updated platform includes new analytics and intrusion prevention capabilities, FireEye said.
The FireEye Security Platform is powered by the company’s Multi-Vector Virtual Execution (MVX) engine that conducts signature-less analysis in a specialized sandbox to provide protection across the primary threat vectors—Web, email and files. FireEye’s Security Platform also has been updated to include FireEye Dynamic Threat Intelligence.
Overall, FireEye said that the new capabilities of its FireEye Security Platform include:
Intrusion Prevention System – A new intrusion prevention system applies FireEye’s MVX technology to validate attacks and minimize the time and resources security teams spend investigating false alerts. Users get actionable insight from validated alerts so they can focus on alerts that present the greatest risk and accelerate incident response.
Endpoint Threat Detection & Response – The platform now incorporates Mandiant’s endpoint threat detection and response products (formerly sold as Mandiant for Security Operations). FireEye customers can now confirm when network and email alerts result in compromise.
Threat Analytics – New threat analytics capabilities allow security teams to apply FireEye’s threat intelligence to security event data generated from their existing security infrastructure so they can find and scope attacks as they are unfolding. A cloud-based solution, the threat analytics can perform real-time correlation of event logs against FireEye’s threat intelligence to identify when attackers are active in an environment.
Managed Defense Subscription Services – New subscription services build on FireEye’s continuous monitoring subscription service by offering additional expertise from Mandiant’s Managed Defense service. Organizations will now be able to choose from an expanded menu of monitoring and protection services and draw on FireEye security analysts to actively hunt for adversaries to find and stop attacks as they begin to unfold.
“FireEye is enabling us to address new layers of security infrastructure with the advanced technology that made their core products so effective,” said Brandy Peterson, CTO, FishNet Security. “The new platform will allow us to approach our customers with the right mix of new technology, updates for outdated products and services to help protect them from today’s advanced attacks.”
The new products and services are expected to be available during the first half of 2014, the company said.
Managing Editor, SecurityWeek.
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