Marriott Starwood breach compromises 500 million customers and has far-reaching implications

The Marriott Starwood breach, which exposed the personal data of 500 million guests, was not the largest data breach in terms of size; Yahoo still holds that dubious honor. However, because of the nature of the data stolen, it has the potential for a very long reach and highlights multiple cybersecurity and data privacy issues.

The importance of cybersecurity due diligence in M&A transactions

The target of the Marriott Starwood breach was a reservations system for Starwood Hotel & Resorts, which Marriott acquired for $13 billion in 2016. A few days after the acquisition was announced, Starwood disclosed to Marriott that it had discovered malware on its point-of-sale systems at 26 locations but also indicated that the problem had been resolved.

Unfortunately, what no one knew about at the time was that Starwood’s reservations system was the target of an advanced persistent threat that had been going on since 2014 – two years before the deal closed. Hackers remained in the system for two more years before Marriott discovered them. This raises serious questions as to whether Marriott exercised cyber due diligence during the acquisition, especially since its own security team was breached in 2017.

The dangers of advanced persistent threats

The Marriott Starwood breach was an advanced persistent threat, a type of attack where hackers gain access to and remain inside a network undetected for a significant period of time and to achieve a specific goal; in this case, to harvest the personal and travel data of Starwood customers. ATP’s are highly sophisticated attacks that are often launched by nation-states or very large organizations – and at the time of this writing, it is believed that nation-state actors, possibly from China, are responsible.

Why would foreign spies want to breach a hotel’s reservations system?

The value of hotel customer data to real-world and cyber criminals

In addition to personal identifying data and credit card information, hotels aggregate data on travel preferences and patterns, including where a business or leisure traveler goes, who travels with them, and when and where they stay. Hotels may also collect and store passport data, which is the case in the Marriott Starwood breach, car rental information, even information on what meals guests have sent to their rooms, what other hotel amenities they made use of, and the locations they visited while in the area.

Starwood properties are primarily luxury hotel brands, including St. Regis and W Hotels, that cater to very affluent business and leisure travelers, and Starwood’s very popular customer loyalty program was one of the reasons why Marriott was so eager to acquire the company. Starwood customers tend to be frequent travelers who stay at Starwood properties whenever possible.

The Marriott Starwood hackers are in possession of a treasure trove of information on C-level executives, celebrities, politicians, other high-net-worth travelers, and possibly their families. They have everything they need to profile victims for a variety of cyber and real-world crimes, from social engineering schemes to blackmail to stalking.

No wonder Marriott Starwood is now the target of multiple class-action lawsuits, including a $12.5 billion lawsuit filed in Oregon. Marriott Starwood also faces penalties for non-compliance with PCI DSS, various state-level data privacy laws and, because European customers are involved, the GDPR.

The poor handling of data breach disclosure by major corporations

Many organizations are guilty of handling data breach disclosures very poorly, and Marriott Starwood is no exception. The company sat on the breach for three months before disclosing it, and when they finally did email affected guests, they did so using a domain named “email-marriott.com” instead of their primary domain. In addition to being confusing to recipients, who may have thought the emails were fake, this domain is easily spoofed – so easily that many security experts, alarmed, took it upon themselves to register misspellings lest they fall into the hands of cyber criminals, who seek to capitalize on major breaches.

Get ready for a federal data privacy law

Even before news of the Marriott Starwood breach broke, consumer anger over data privacy violations and organizational hand-wringing over the logistics of complying with dozens of different state privacy laws was putting pressure on the federal government to pass nationwide data privacy legislation. Marriott Starwood has added fuel to this fire, and organizations should expect action when the new Congress convenes in 2019.

The cybersecurity experts at Lazarus Alliance have deep knowledge of the cybersecurity 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 cybersecurity®. Call 1-888-896-7580 to discuss your organization’s cybersecurity needs and find out how we can help your organization adhere to cybersecurity regulations, maintain compliance, and secure your systems.

A guide to advanced persistent threats (APTs), a highly sophisticated, highly destructive form of cyber attack.

What is an Advanced Persistent Threat (APT)?

“Advanced persistent threat” is a broad term used to describe a cyber attack where hackers covertly gain access to a system and remain inside it, undetected, for a significant period of time and to achieve a specific goal. Perhaps the most well-known example of an APT is the Stuxnet virus, which infected the Natanz uranium enrichment plant in Iran, slowly, silently, and gradually destroying centrifuges over a long period of time.

APTs are highly sophisticated, and the targets are carefully selected and thoroughly researched. They require significant financial resources and the participation of a group of skilled, experienced hackers, so they are usually launched by nation-states or very large organizations. The targets are generally government institutions, critical infrastructure, or very large private-sector enterprises.

The goal of an APT is usually cyberespionage: the theft of valuable intellectual property, sensitive data or communications or, in the case of a government target, classified information. APTs can also be used to steal cash from financial targets, execute full system takeovers or, as in the Stuxnet attack, damage or destroy systems or critical infrastructure.

Characteristics of an Advanced Persistent Threat

What makes an APT different from other cyber attacks?

• They are custom-tailored to be used against a specific organization for a specific purpose. Most attacks employ malware and methods that work pretty much the same way regardless of who the target is. APTs are designed from the ground-up.
• They’re not automated. An APT requires a lot of manual work.
• They’re not “hit and run” attacks; they unfold slowly, over an extended period. Once they infiltrate a system, hackers remain hidden inside, first carefully mapping the system and expanding their footprint, then exfiltrating as much data or doing as much damage as possible.

Advanced persistent threats unfold in stages:

Initial reconnaissance: A target is selected, and the goals of the APT are determined. A team with the appropriate skills is put together, and the target is researched to determine its strengths and weaknesses and to gather information for use in social engineering schemes. An initial infiltration plan is developed.

Infiltration: The target is compromised using malicious uploads, phishing or other social engineering schemes, and/or SQL or RFI injections. To distract security personnel and further weaken defenses, hackers may simultaneously launch a DDoS or another “smokescreen” attack.

Mapping and expansion: Once inside, hackers install a backdoor Trojan to ensure uninterrupted, covert system access. They poke around, exploring the system, mapping its infrastructure, locating the target, and determining the best way of getting to it. They will look for other vulnerabilities that can be exploited and to compromise employees with appropriate access levels.

Exfiltration/execution: The data theft or system damage commences. During the exfiltration process, they may employ another smokescreen to cover their tracks. Multiple attacks/thefts are conducted over a long period.

Detecting & Preventing Advanced Persistent Threats

By their nature, APTs are exceedingly difficult to detect; hackers go to great lengths to cover their tracks and use sophisticated, next-generation malware that evades antivirus software. Warning signs of an APT include:

• An increase in logins late at night or at other unusual hours. Hackers may be hoping to access the system at times when no one is around.
• Unexpected data bundles. Hackers often steal data piecemeal, storing it in another part of the system until they have amassed enough to exfiltrate it.
• Large data flows, to other parts of the system or to external sources, that significantly deviate from the norm.
• Lots of backdoor Trojans.
• Spear phishing attacks aimed at high-level employees. This is a red flag that an APT is being planned or is already underway.

Visibility across the enterprise IT environment, including the network and all endpoints, is key to preventing advanced persistent threats. Enterprise networks must be continuously monitored to establish a baseline for system activity and enable security personnel to detect aberrations from that norm. Other preventative measures include:

• Keeping all systems and software up-to-date.
• Filtering incoming emails.
• Improving endpoint security using methods such as 2FA and VPNs.
• Protecting web applications against attacks such as XSS and SQL injections.
• Training employees on basic cyber hygiene, including how to spot phishing and other social engineering schemes.

The cybersecurity experts at Lazarus Alliance have deep knowledge of the cybersecurity 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 cybersecurity®. Call 1-888-896-7580 to discuss your organization’s cybersecurity needs and find out how we can help your organization adhere to cybersecurity regulations, maintain compliance, and secure your systems.

The top cybersecurity threats your organization may encounter in 2019

 The cyber threat environment is becoming more dangerous every day. A recent survey by the World Economic Forum revealed that cyber-attacks were the number-one concern of executives in Europe and other advanced economies. As we approach the winter holidays and the end of the year, let’s examine the top cybersecurity threats enterprises can expect to grapple with in 2019.

Phishing Schemes

Nearly all successful cyber-attacks begin with a phishing scheme. Business email compromise (BEC), a highly targeted spear phishing technique, is responsible for over $12 billion in losses globally. Although many people still equate phishing with emails, this cybersecurity threat has evolved, with hackers employing text messages, phone calls, and even social media “quizzes” to trick unwitting victims.

Cloud Cybersecurity Threats

Cloud computing has transformed the ways in which we live and conduct business, but it has also given hackers a broader attack surface and created a host of brand-new cybersecurity threats and vulnerabilities, from cloud malware to misconfigured AWS buckets. Cloud security must be addressed differently than on-premises security, and solid cloud security starts with a secure cloud migration.

Shadow IT

Over 80% of employees admit to using shadow IT apps at work. Most of the time, their motivations are not malicious or negligent; they’re just trying to do their jobs better. However, shadow IT usage is a serious compliance and cybersecurity threat. These rogue apps may have security or compliance issues that users are unaware of, and since internal IT departments aren’t even aware of the apps, they cannot monitor access logs, ensure that regular backups are performed, or apply important software updates.

Cryptojacking

Cryptojacking malware, which allows hackers to hijack enterprise computer equipment for the purpose of “mining” cryptocurrencies, is now more common than ransomware. Once a minor annoyance that primarily targeted small consumer devices, modern cryptojacking malware is designed to go after enterprise networks, where it poses a very serious cybersecurity threat, crashing applications and even damaging hardware.

Ransomware

Cryptojacking malware may be more common, but that doesn’t mean ransomware is any less of a cybersecurity threat. Healthcare and critical infrastructure systems are particularly at risk. One-quarter of SamSam ransomware victims are in the healthcare sector, and SamSam was the culprit in the City of Atlanta ransomware attack. Authorities believe the SamSam hackers have earned over $6 million from their malware.

Unsecured IoT Devices

Smart devices are proliferating like rabbits, but a lack of common security standards means many devices suffer from serious security vulnerabilities. Forty-five percent of enterprise IoT buyers cite cybersecurity as a significant barrier to purchase, and as cases of everything from baby monitors to home security cameras being hacked hit the news, cybersecurity threats loom large over consumer purchases as well. Both the public and private sector are scrambling to secure the Internet of Things. In recent weeks, NIST released guidelines for securing for medical IoT devices, and Microsoft launched a public preview of its new solution for developing secure smart devices.

Attacks on Operational Technology (OT) Systems

Cyber-attacks on operational technology (OT) – the “behind-the-scenes” systems and equipment that power factories, mining operations, and critical infrastructure –don’t just cripple business operations. They present threats to the health and lives of employees and the general public, and they are increasing in frequency. OT systems face vulnerabilities and cybersecurity threats that are starkly different from those that threaten IT systems, and air-gapping, a common fix, cannot be depended on as a standalone solution.

The cybersecurity experts at Lazarus Alliance have deep knowledge of the cybersecurity 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 cybersecurity®. Call 1-888-896-7580 to discuss your organization’s cybersecurity needs and find out how we can help your organization adhere to cybersecurity regulations, maintain compliance, and secure your systems.