HBO Hacks Indicate a Company in Cyber Security Crisis

Hacks in the City: Latest in String of HBO Hacks Targets Company’s Social Media Accounts

Hacks in the City: Latest in String of HBO Hacks Targets Company’s Social Media Accounts

HBO has had a rough summer, and things are getting progressively worse for the cable titan. The HBO hacks began in late June, when an individual hacker or group calling themselves “Mr. Smith” dumped several episodes of upcoming HBO series and the script to an upcoming Game of Thrones episode online. Mr. Smith claimed to have stolen approximately 1.5TB of data and threatened to release all of it unless HBO paid them $6 to $7 million. HBO countered with an offer of $250,000. Mr. Smith apparently found this laughable and continued to leak not only content and scripts but confidential emails and the personal data of the GoT cast.

Hacks in the City: Latest in String of HBO Hacks Targets Company’s Social Media Accounts

While the attention of the media (and HBO) was focused on Mr. Smith, a full upcoming episode of GoT was released online. This wasn’t the work of Mr. Smith but that of malicious insiders at a company called Prime Focus Technologies, a third-party vendor of Star India, HBO’s business associate that airs GoT in India. In other words, HBO was victimized by a hack at a third-party vendor of a third-party vendor.

In Incident #3 in the string of HBO hacks, the company “hacked” itself. This time, an apparent employee mistake at HBO Nordic and HBO España, two European affiliates of HBO, resulted in the first hour of an episode of GoT being aired four days early. It didn’t take long for the content to appear online.

The network’s latest Excederin headache came on last week, when a separate hacker or group calling itself OurMine, which was behind several high-profile social media takeovers at other companies, took control of HBO’s Twitter and Facebook accounts.

It is highly unlikely the HBO hacks will stop anytime soon. Around the same time as the OurMine social media debacle, Mr. Smith contacted Mashable and sent them “what appears to be the login credentials for almost every single HBO social media account. Passwords for everything from @HBO, @GameOfThrones, and @WestworldHBO to various Instagram and Giphy accounts.” Mr. Smith also claimed to be in possession of the season finale of GoT and solemnly vowed to release it if HBO didn’t pay up soon.

Hey HBO, how’s that reactive cyber security working out for you?

The HBO hacks involve multiple cyber security issues, including malicious insiders, innocent but damaging employee errors, third-party vendor hacks, email hacks, corporate espionage, theft of digital IP and company secrets, and login credentials theft – and that’s just what’s happened and what we know about so far. It hasn’t yet been determined exactly how Mr. Smith and OurMine got hold of the credentials they needed to breach HBO’s internal network and social media accounts, but usually, login credential theft occurs through email phishing scams, so we’re probably looking at more employee error.

Two things are clear: HBO is a company in cyber security crisis, and it has inadvertently become a case study of why reactive cyber security doesn’t work. The fact that is being attacked on multiple fronts, by multiple parties, is indicative of a longstanding reactive stance to cyber attacks and deep-rooted security vulnerabilities at all levels of the organization. It desperately needs to implement sound GRC and proactive cyber security practices and wrest back control over its entire enterprise cyber ecosystem.

How much will all of this end up costing HBO in the end? Whatever the final number is, it’s safe to bet that it would have been a lot cheaper and far less damaging if HBO had never lost control over its cyber security in the first place.

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 organizations of all sizes from security breaches. Our full-service risk assessment services and Continuum GRC RegTech software will help protect your organization from data breaches, ransomware 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 your organization adhere to cyber security regulations, maintain compliance, and secure your systems.

Latest Anthem Breach Traced Back to Third-Party Vendor

New Anthem breach underscores the need to manage cyber risk throughout the enterprise ecosystem

New Anthem breach underscores the need to manage cyber risk throughout the enterprise ecosystem

Anthem – yes, that Anthem – has been hacked again. About a month after the beleaguered health insurer agreed to fork over a record-setting $115 million to settle a class action lawsuit related to its massive 2015 breach, it was breached again, or rather, one of its third-party vendors was. The 2017 Anthem breach involves approximately 18,000 Medicare members whose personal information was stolen by a malicious insider employed by LaunchPoint Ventures, a Medicare insurance coordination services firm. Healthcare IT News reports:

LaunchPoint discovered on April 12 that an employee was likely stealing and misusing Anthem and non-Anthem data. The employee emailed a file containing information about Anthem’s members to his personal address on July 8, 2016.

The file contained Medicare ID numbers, including Social Security numbers, Health Plan ID numbers, names and dates of enrollment. Officials said limited last names and dates of birth were included.

New Anthem breach underscores the need to manage cyber risk throughout the enterprise ecosystem

Takeaways from the Latest Anthem Breach

The Anthem breach is the latest to underscore the need for organizations to manage cyber risk throughout their entire enterprise ecosystem. Anthem’s own systems weren’t hacked; their third-party vendor was. Other recent victims of third-party breaches include Netflix, the Republican National Committee, Trump Hotels, Verizon, and Google (which was impacted by a breach at third-party vendor of one of their third-party vendors).

As organizations outsource more and more IT services, from payroll to billing to web development, hackers are increasingly targeting these service providers. It is estimated that 63% of all enterprise breaches can be traced back to a third-party vendor. Hackers may choose to attack these service providers because many of them are smaller firms whose cyber security may not be as robust as that of the national or multinational corporation whose data they really want.

Know Your Vendors

The danger of third-party data breaches is one of the reasons why the U.S. Department of Defense is requiring not only its primary contractors, but any firm they subcontract DoD work to, to be compliant with the DFARS security standard by the end of 2017.

Private-sector organizations should take a cue from the DoD and only do business with IT service providers who have released AICPA SOC / SSAE16 reports and/or who have important IT security certifications such as NIST, ISO, or FedRAMP. These organizations have proven their commitment to the highest levels of data security by undergoing rigorous security audits that require them to adhere to certain procedures and controls and put them in writing.

Likewise, IT service providers should obtain the appropriate data security certifications and demonstrate to their customers that they have strong security controls in place. Continuum GRC’s IT Audit Machine (ITAM) empowers organizations to get and maintain compliance the easy way, with self-help modules covering numerous compliance standards, including FedRAMP, SSAE 16, COBIT, ISO 27001, ISO 27002, ISO 27005, SOX, FFIEC, PCI, GLBA, HIPAA, CMS, NERC CIP, DFARS, and other federal and state mandates.

Don’t Expect to Pass the Buck

Just because a breach is your vendor’s fault doesn’t mean your organization will be shielded from liability. The $300 million Target breach, which resulted in both the CEO and the CISO losing their jobs, involved a third-party point-of-sale vendor.

The scope of potential liability just broadened; shortly after news of the Anthem breach broke, a U.S. Court of Appeals issued a ruling against health insurer CareFirst, allowing a class-action lawsuit filed by customers impacted by a 2014 breach to move forward. The ruling is expected to have wide implications, allowing customers not only of health insurers but any company to sue if their personal information is stolen.

Ensuring good governance, risk management, compliance, and cyber security throughout your enterprise ecosystem takes far less time and costs far less money than doing damage control after a breach happens.

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 organizations of all sizes from security breaches. Our full-service risk assessment services and Continuum GRC RegTech software will help protect your organization from data breaches, ransomware 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 your organization adhere to cyber security regulations, maintain compliance, and secure your systems.