Mueller indictments of Russian cyber criminals put election hacking at top of mind

State officials expressed grave concerns about election hacking the day after Special Counsel Robert Mueller handed down indictments of 13 Russian nationals on charges of interfering with the 2016 presidential election. The Washington Post reports:

At a conference of state secretaries of state in Washington, several officials said the government was slow to share information about specific threats faced by states during the 2016 election. According to the Department of Homeland Security, Russian government hackers tried to gain access to voter registration files or public election sites in 21 states.

Although the hackers are not believed to have manipulated or removed data from state systems, experts worry that the attackers might be more successful this year. And state officials say reticence on the part of Homeland Security to share sensitive information about the incidents could hamper efforts to prepare for the midterms.

Granted, the Mueller indictments allege disinformation and propaganda-spreading using social media, not direct election hacking. However, taken together with the attacks on state elections systems, it is now indisputable that Russian cyber criminals used a highly sophisticated, multi-pronged approach to tamper with the 2016 election. While there have been no reported attacks on state systems since, there is no reason to believe that election hacking attempts by Russians or other foreign threat actors will simply cease; if anything, cyber criminals are likely to step up their game during the critical 2018 midterms this November.

These aren’t new issues; cyber security was a top issue leading up to the 2016 election. Everyone agreed then, and everyone continues to agree now, that more needs to be done to prevent election hacking. So, what’s the holdup?

One of the biggest issues in tackling election hacking is the sheer logistics of U.S. elections. The United States doesn’t have one large national “election system”; it has a patchwork of thousands of mini election systems overseen by individual states and local authorities. Some states have hundreds, even thousands of local election agencies; The Washington Post reports that Wisconsin alone has 1,800. To its credit, Wisconsin has encrypted its database and would like to implement multi-factor authentication. However, this would require election employees to have a second device, such as a cell phone, to log in – and not all of them have work-issued phones or even high-speed internet access.

Not surprisingly, funding is also a stumbling block. Even prior to the 2016 elections, cyber security experts were imploring states to ensure that all of their polling places were using either paper ballots with optical scanners or electronic machines capable of producing paper audit trails. However, as we head toward the midterms, five states are still using electronic machines that do not produce audit trails, and another nine have at least some precincts that still lack paper ballots or audit trails. The problem isn’t that these states don’t want to replace their antiquated systems or hire cyber security experts to help them; they simply don’t have the budget to do so.

Congress Must Act to Prevent Election Hacking

Several bills that would appropriate more money for states to secure their systems against election hacking are pending before Congress, including the Secure Elections Act. Congress can also release funding that was authorized by the 2002 Help America Vote Act, but never appropriated.

The integrity of our elections is the cornerstone of our nation’s democracy. Proactive cyber security measures can prevent election hacking, but states cannot be expected to go it alone; cyber attacks do not respect borders.

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.

Crypto-Mining Malware is Crippling Enterprise Networks

Cryptocurrencies such as Bitcoin and Ethereum have gone mainstream; it seems like everybody and their brother is looking to buy some crypto and get their piece of the digital currency gold rush. Hackers want a piece of it, too. In addition to hacking ICO’s and cryptocurrency exchanges, they’re using crypto-mining malware to “mine” their own “coins.”

Crypto-mining malware isn’t new; last summer, this blog reported on a crypto-mining malware variant called Adylkuzz that came to light in the wake of the WannaCry attacks. Adylkuzz took advantage of the same Windows exploit as WannaCry. In fact, it acted as a sort of “vaccine” against the ransomware, preventing it from taking root in Adylkuzz-infected computers lest it interfere with its Monero-mining operations. However, Adylkuzz wasn’t a kinder, gentler malware. While it didn’t directly lock down systems or access data, it did hijack infected machines’ processing power, and it proved to be far more lucrative than WannaCry; it’s estimated that Adylkuzz raked in 10 times more money for its users than WannaCry.

At first, rogue crypto-miners were viewed as an annoyance; the most they did was slow down machines and perhaps cause problems accessing certain network folders. They were also seen as more of a threat to consumers than businesses. Many variants went after IoT devices, such as smartphones, overwhelming their processors to the point where the devices could be damaged or even destroyed. However, as crypto-mining malware has evolved, it has become more sophisticated, and hackers are looking to harvest enterprise processing power.

Move Over, WannaCry; Here Comes WannaMine

Recently, Dark Reading reported on yet another exploit of the Eternal Blue tool stolen from the NSA, a crypto-mining malware variant dubbed WannaMine. WannaMine doesn’t attack smartphones and other small IoT devices; it goes after Windows computers, and isn’t just slowing systems down. Security firm CrowdStrike reports having seen it cause “applications and hardware to crash, causing operational disruptions lasting days and sometimes even weeks.”

A report in Security Week elaborates on how WannaMine appears to be designed to specifically target enterprise networks:

WannaMine, the security researchers explain, employs “living off the land” techniques for persistence, such as Windows Management Instrumentation (WMI) permanent event subscriptions. The malware has a fileless nature, leveraging PowerShell for infection, which makes it difficult to block without the appropriate security tools.

The malware uses credential harvester Mimikatz to acquire legitimate credentials that would allow it to propagate and move laterally. If that fails, however, the worm attempts to exploit the remote system via EternalBlue.

To achieve persistence, WannaMine sets a permanent event subscription that would execute a PowerShell command located in the Event Consumer every 90 minutes.

The malware targets all Windows versions starting with Windows 2000, including 64-bit versions and Windows Server 2003. However, it uses different files and commands for Windows Vista and newer platform iterations.

WannaMine isn’t the only crypto-mining malware harnessing Eternal Blue and using the Windows Management Infrastructure to propagate. Another Monero-mining worm, dubbed Smominru (aka Ismo), has infected over a half a million Windows hosts, most of them servers.

These “next-generation” crypto-mining malware variants have proven extremely difficult to take down. First, the malware is distributed. Second, even if all machines on a network are patched against Eternal Blue, the malware will seek to use the Mimikatz credential harvester to get in by cracking a weak password. Finally, some legacy antivirus products do not detect crypto-mining malware because it doesn’t actually write files to an infected machine’s disk.

Protecting Your Organization Against WannaMine and Other Crypto-Mining Malware

There are several ways to protect your enterprise systems from being hijacked for illegal crypto-mining:

• Keep your systems and software up-to-date; only older Windows machines are susceptible to the Eternal Blue exploit.
• Use network security software to monitor for and block the activity needed for crypto-miners to work.
• Ensure that all system users are using strong passwords that cannot be cracked by Mimikatz.

In addition to doing damage to enterprise systems, crypto-mining malware can be employed by real-world threat actors to fund their criminal activity. It’s in everyone’s best interest to put a stop to it.

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 FINRA Examination Findings Reveal That Firms Have Made Progress with Cyber Security, but Problems Remain

Cyber security remains “one of the principal operational risks facing broker-dealers,” according to the FINRA 2017 Examination Findings Report, and while progress has been made, many broker-dealer firms still have work to do to protect themselves against hackers.

Firms More Aware of Cyber Security Risks

FINRA noted a significant uptick in firms’ awareness of cyber security risks, noting a substantial increase in “attention to cybersecurity challenges over the past two years, including at the executive management level.” Most of the firms FINRA examined had already established or were in the process of establishing risk management programs to address security issues. FINRA noted that firms with the most effective cyber security programs tended to have:

• Strong, risk-based governance structures and processes
• Conducted regular risk assessments and followed up to address areas of concern
• Conducted regular vulnerability and penetration tests
• Conducted regular employee cyber security training
• Conducted comprehensive cyber security reviews of any branch offices

But Better Risk Management & Data Governance Needed

FINRA noted that the quality of firms’ cyber risk management programs varied widely, not only from firm to firm but also within the same organization. By far, the biggest security vulnerability was firms’ own people; the most common threats observed in 2016 and 2017 were all rooted in social engineering: phishing and spearphishing schemes, ransomware (which usually begins with a phishing email), and fraudulent third-party wires (again, usually involving phishing schemes).

The agency highlighted a number of frequent problem areas:

• Access Management – Some firms didn’t adhere to basic procedures such as terminating system access for former employees and monitoring systems for anomalies, such as logins from unusual locations or privileged users granting themselves additional, unwarranted system privileges.
• Risk Assessments – Despite the importance of regular risk assessments, some firms still aren’t doing them; even worse, the firms “could not effectively identify their critical assets and the potential risks to those assets.”
• Vendor Management – Third-party vendor hacks are a serious problem, but some broker-dealers are still not properly vetting their business associates’ cyber security preparedness or sufficiently documenting vendors’ responsibilities in service level agreements.
• Branch Offices – Branch offices tended to have less robust cyber security than home offices; FINRA noted problems with password management, software updates, removable storage device security, data encryption, and reporting incidents.
• Segregation of Duties – Some small and medium-sized firms are not properly segregating responsibilities for cyber security rules and systems changes; for example, at some firms, network engineers are performing cyber security functions without any supervision from cyber security experts.
• Data Loss Prevention – Many firms need stronger DLP protocols, such as applying the same rules that currently protect clients’ Social Security Numbers to other sensitive data, such as account numbers.

Since cyber attacks represent such a serious threat to the U.S. and global financial systems, both FINRA and the SEC, NFA have indicated that cyber security will be of high priority throughout 2018. Firms that run afoul of SEC, NFA and FINRA standards – or, worse yet, suffer a breach – can face millions of dollars in fines. The good news is that a data-centric, integrated risk management approach to cyber security will head off all of the problem areas FINRA discusses in its report.

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.