Working with the Enemy: Malicious Insiders

No organization wants to think that one of its own trusted employees is out to get the firm. However, a study by Intel found that 43% of data losses are the result of “internal actors” – and about half of these incidents were due to the intentional acts of malicious insiders, not accidents or carelessness. Meanwhile, the rise of the Darknet, a shadowy corner of the internet that can only be accessed using special software that hides users’ locations and identities, has made it easier than ever for disgruntled or desperate people to sell their employers’ information, including system login credentials, to criminals.

Security researcher Brian Krebs reports that some organizations are paying security firms or partnering with law enforcement to monitor Darknet forums for malicious actors attempting to sell company secrets. The problem with this approach is, by the time an employee has put together a package of company information and offered it up for sale on the Darknet, the damage has already been done – and the Darknet ad may not represent the first time the employee has sold information. Many malicious insiders operate for years before being detected. When protecting against malicious insiders, the best defense is a good offense; companies must identify malicious actors and stop them before they attempt to sell data to hackers.

How can organizations monitor insider activity and detect malicious insiders without impeding daily operations or making employees feel they are under lock and key? Lazarus Alliance recommends the following proactive steps:

Develop a comprehensive cyber security policy, including acceptable use.

The first step is to make sure that all of your employees know exactly what is expected of them regarding acceptable use of company hardware, software, and network access. For example, employees may be prohibited from accessing social media networks from company computers or from removing company tablets or laptops from the premises. The policy should include a description of the disciplinary consequences of violations. While an acceptable use policy won’t deter malicious insiders, by establishing specific rules, companies can more easily detect deviations and take corrective measures.

Give employees the minimum level of system access they need to do their jobs.

Employees should have access to the company systems they need to perform their job duties – and no more. For example, a billing clerk has no need to access employee tax and salary data, and employees in the marketing department should not be able to create new user accounts and set network privileges. Restricting system access puts an obstacle in the path of malicious insiders.

Continuously monitor your network for unusual user behavior.

Your organization’s systems should be monitored 24/7 to detect unusual user behavior, such as a user logging in from a different location or at a highly unusual time (such as the middle of the night), or accessing parts of the system they wouldn’t normally need to. Not only will network monitoring allow you to detect the work of malicious insiders; it will also allow you to detect credentials that were stolen via phishing schemes.

Malicious insider threat monitoring is a continuous process, and information security threats are always evolving, which is why it’s a good idea to enlist a professional cyber security firm such as Lazarus Alliance. The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting our clients from insider threats and other security breaches. We offer full-service risk assessment services and Continuum GRC software to protect companies from data breaches, spear phishing attacks, and other cyber threats.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help you protect your organization against insider threats.

Wendy’s Data Breach: Forget the beef, where’s the cyber security?

The scope of the recent Wendy’s data breach, which has already resulted in a class-action lawsuit against the fast-food giant, is about to get much bigger. Krebs on Security reports having received information from “a number of sources in the fraud and banking community” alleging that “that there was no way the Wendy’s breach only affected five percent of stores [as Wendy’s originally reported] — given the volume of fraud that the banks have traced back to Wendy’s customers.” Even worse, these same sources allege that “the breach was still ongoing well after Wendy’s made the five percent claim in May.”

Backed into a corner, Wendy’s finally released a statement to Krebs on Security admitting that the number of locations affected was expected to be “considerably higher” than the approximately 300 originally reported. However, Wendy’s declined to estimate how many locations were involved, citing an ongoing investigation. Interestingly, the company emphasized that the breaches affected only independently owned franchise restaurants, not company-owned locations, and claimed that the breach was the fault of third-party service providers hired by franchisees to service and maintain their POS systems.

If that sounds like Wendy’s is passing the buck, it’s because they are. Rather than taking responsibility for the cyber security shenanigans going on under the Wendy’s banner, Wendy’s is choosing to place the blame on its franchisees and their third-party vendors: “They’re independently owned and operated, so we have no control over what they do!” It remains to be seen whether the courts will side with Wendy’s on this legal hairsplitting, but it’s unlikely that consumers will see things Wendy’s way. To a consumer, a Wendy’s location is a Wendy’s location, regardless of whether the corporation owns it or has franchised it out, and if consumers do not trust that their payment card data is safe at Wendy’s, they’ll stop patronizing their restaurants.

How Could the Wendy’s Data Breach Have Been Prevented?

Wendy’s claims that its POS systems were compromised using credentials stolen from POS service providers; these credentials allowed hackers to remotely access the POS systems. As discussed in a previous blog, there are numerous measures that restaurants and retailers can take to secure their POS systems, including monitoring the system for suspicious activity, such as someone logging in from an unusual location or accessing parts of the system they would have no legitimate reason to. The Wendy’s data breach could have been prevented had the company taken its cyber security seriously and implemented proactive security measures, but the company chose not to. Instead, it chose to pass the buck on its POS security, and then attempt to deflect responsibility onto its franchisees instead of getting out in front of the problem.

This begs the question, is the Wendy’s data breach a harbinger of things to come as the fast-food industry transitions from human clerks to automated ordering kiosks and touch screens? Consumers and the government are not yet asking this question, but if incidents like the Wendy’s data breach multiply, it’s certain they will be.

The core competency of a restaurant is food preparation, not information security, which is why restaurants should partner with a professional cyber security firm such as Lazarus Alliance. The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting retail and restaurant POS systems from security breaches. We offer full-service risk assessment services and Continuum GRC software to protect companies from data breaches, spear phishing attacks, and other cyber threats, as well as help them get and remain PCI DSS compliant.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help your restaurant protect its POS data and ensure compliance with PCI DSS.

When contracting with a service provider, such as a data center, it is important for companies to ensure that their provider possesses the cyber security-related certifications and compliance standards that are applicable to the company’s industry. Data centers, as well as service providers who contract with data centers, sometimes claim to be “SSAE 16” certified. In an effort to cut through the noise and clear up some of the confusion regarding SSAE 16 compliance, Lazarus Alliance would like to clarify what SSAE 16 compliance is—and isn’t.

What is SSAE 16?

SSAE 16 is an internationally recognized auditing standard for service organizations. It was developed by the American Institute of Certified Public Accountants (AICPA) and replaces the previous standard, SAS 70. SSAE 16 reporting helps service organizations comply with the requirements of Sarbanes Oxley (section 404) to demonstrate effective internal controls covering financial reporting. SSAE 16 applies to data centers that host systems that are involved in their clients’ financial reporting, as well as web hosting providers, ASPs, and ISPs who perform services that are relevant to their clients’ financial reporting.

There are three types of reports that can be issued: an SOC 1, an SOC 2, or an SOC 3, all of which address different controls. Performing an SSAE 16 audit and issuing an SOC report demonstrates a service provider’s commitment to maintaining a sound control environment that protects their clients’ data and confidential information.

Some service providers who use SSAE 16-compliant data centers imply that they are, somehow, SSAE 16 compliant by proxy. This is not the case; just because you use a provider who is SSAE 16 compliant does not mean that your company is SSAE compliant, and to imply such is black-hat marketing.

There is No Such Thing as SSAE 16 “Certification”

A Google search on “SSAE 16” reveals numerous instances of companies claiming to be “SSAE 16 Certified.” Organizations are compliant with SSAE 16; there is no such thing as becoming “SSAE certified.” SSAE 16 has to do with issuing SOC reports; no “certification” is awarded to anyone. Beware of any service provider that claims to possess an SSAE 16 “certification” or purports to be working towards getting one.

Need SSAE 16 Compliance Auditing Services?

If you have questions about SSAE 16, or if your company needs SSAE 16 auditing services, Lazarus Alliance can help! Depending on your team’s availability, our SSAE 16 audit process initially takes just a few weeks from start to completion. We realize that our clients have full-time, everyday obligations in addition to dealing with auditors, so we will be happy to work around your schedule and provide a quality audit and report in the time frame you desire.

Lazarus Alliance’s primary purpose is to help organizations attain, maintain, and demonstrate compliance and information security excellence in all jurisdictions. Lazarus Alliance specializes in IT security, risk, privacy, governance, cyberspace law, and compliance leadership solutions and is fully dedicated to global success in these disciplines. Learn more about Lazarus Alliance and why Lazarus Alliance is Proactive Cyber Security™!