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Today’s big news is the hack against banking systems to pre-authenticate thousands of ATM and pre-paid debit cards. The attackers essentially modified debit card databases in several Middle Eastern banks, then leveraged their virtual cards into cash. From AP Newswire: Hackers got into bank databases, eliminated withdrawal limits on pre-paid debit cards and created access codes. Others loaded that data onto any plastic card with a magnetic stripe – an old hotel key card or an expired credit card worked fine as long as they carried the account data and correct access codes. A network of operatives then fanned out to rapidly withdraw money in multiple cities, authorities said. The cells would take a cut of the money, then launder it through expensive purchases or ship it wholesale to the global ringleaders. Lynch didn’t say where they were located. The targets were reserves held by the banks to fund pre-paid credit cards, not individual account holders, Lynch said … calling it a ”virtual criminal flash mob,”. The plundered ATMs were in Japan, Russia, Romania, Egypt, Colombia, Britain, Sri Lanka, Canada and several other countries, and law enforcement agencies from more than a dozen nations were involved in the investigation, U.S. prosecutors said It’s not clear how many of the thieves have been caught, or what percentage of the cash has been retrieved. Apparently this was the second attack, with the first successfully pulling $5 million from ATMs. Police only caught up with some of the attackers on the second attack, after they had managed to steal another $40M. How the thefts were detected is not clear, but it appears that it was part of a murder investigation of one of the suspects, and not fraud detection software within the banking system. The banks are eager to point to the use of mag stripe cards as the key issue here, but if your database is owned an attacker can direct funds to any account Share:

In hindsight we should have seen this coming. I mean it’s not like McAfee even showed up for the most recent NSS Labs next-generation firewall (NGFW) test. They made noise about evolving their IPS, I mean Network Security Platform, to offer integrated firewall capabilities. But evidently it was either too hard or would have taken too long (or both) to provide a competitive product. So McAfee solved the problem by writing a $389MM check for Stonesoft. You haven’t heard of Stonesoft? They weren’t a household name but they have had a competitive firewall product for years. Decent distribution in Europe and a very small presence in the US. They did about $50MM in revenues last year and are publicly traded in Finland. I guess what’s surprising is that it wasn’t Cisco, Juniper, IBM, or HP. What about Cisco’s blank check to regain competitiveness in the security business? If it’s not connected to an SDN apparently Juniper isn’t interested. I guess IBM and HP hope that if they continue to ignore the NGFW market it will just go away. Hope is not a strategy. And as perimeter consolidation continues (and it is happening – regardless of what IPS vendors tell you), if you don’t have a competitive integrated product you won’t be in the game for long. So McAfee needed to make this move. Certainly before someone else did. But it’s not all peaches and cream. McAfee has their work cut out for them. It’s not like they have really excelled at integrating any of their larger acquisitions. And they have to reconcile their existing IPS platform with Stonesoft’s integrated capabilities. Don’t forget about the legacy SideWinder proxy firewall, which continues to show up a lot in highly secure government environments. Why have one integrated platform when you can have 3? How they communicate the roadmap and assure customers (who are already looking at other alternatives) will determine the success of this deal. To further complicate matters, integration plans are basically on hold due to some wacky Finnish laws that prevent real integration until the deal is basically closed. It is unlikely they will be able to do any real planning until the fall (when they have acquired 50% of the stock), and cross-selling cannot start until they have 90% of the stock tendered – probably early 2014. Details, details. The NGFW game of musical chairs is about to stop, and the move towards the Perimeter Security Gateway is going to begin. The M&A in the space is pretty much done because there just aren’t any decent alternatives available to buy without writing a multi-billion-dollar check any more. Those vendors without something NGFW are likely to see their network security revenues plummet within 2 years. Select your network security vendors accordingly. Photo credit: “Stone Pile” originally uploaded by Mark McQuitty Share:

Do you ever look at your To Do list and feel like you want to just run away and hide? Me too. I talk a lot about consistent effort and not trying to hit home runs, but working for a bunch of singles and doubles. That works great for run rate activities like writing the Incite and my blog series. But I am struggling to move forward on a couple very important projects that are bigger than a breadbox and critical to the business. It is annoying the crap out of me, and I figure publicly airing my issues might help me push through them. I have tried to chunk up these projects into small tasks. That’s how you defeat overwhelm, right? But here it just means I need to push a bunch of tasks back and back and back in my Todo app rather than just one. I think my problem is that I feel like I need a block of time sufficient to complete a smaller task. But I rarely have a solid block of a couple hours to focus and write so I get stuck and don’t even start. But that’s nonsense. I don’t have to finish the entire task now – I just need to do a bit every day, and sure enough it will get done. Is that as efficient as clearing the calendar, shutting off Twitter and email, and getting into the zone? Nope. It will definitely take longer to finish but I can make progress without finishing the entire task. Really, I can. As much as I try to teach my kids what they need to know, every so often I learn from them too. XX1 just finished her big year-end project. It was a multi-disciplinary project involving science, language arts, and social studies. She invented a robot (J-Dog 6.2) that would travel to Jupiter for research. We went to the art store and got supplies so she could mock up the look of the robot; she had to write an advertisement for the product, a user manual, and a journal in the robot’s voice to describe what was happening – among other things. She did a great job. I’m not sure where she got her artistic chops or creativity but the Boss and I didn’t help her much at all. How does that relate to my issue getting big things done? She worked on the project a little every day. She cut the pieces of the model one day. Painted it the next. Outlined the journal on the third. And so on. It’s about making progress, one step at a time. She finished two days early so she didn’t have to do an all-nighter the day before – like her old man has been known to do. So I need to take a lesson and get a little done. Every day. Chip away at it. I have an hour left in my working day, so I need to get to work… –Mike Photo credits: XX1 Geobot project – May 2013 Heavy Research We are back at work on a variety of blog series, so here is a list of the research currently underway. Remember you can get our Heavy Feed via RSS, where you can get all our content in its unabridged glory. And you can get all our research papers too. Defending Cloud Data/IaaS Encryption Object Storage Encrypting Entire Volumes Protecting Volume Storage Understanding Encryption Systems Security Analytics with Big Data Use Cases Introduction The CISO’s Guide to Advanced Attackers Evolving the Security Program Breaking the Kill Chain Verify the Alert Mining for Indicators Newly Published Papers Email-based Threat Intelligence: To Catch a Phish Network-based Threat Intelligence: Searching for the Smoking Gun Understanding and Selecting a Key Management Solution Building an Early Warning System Implementing and Managing Patch and Configuration Management Incite 4 U I (for the record) am not the world’s greatest lover: I don’t know Troy Hunt but he probably isn’t either. But this awesome post basically supports his claim as the world’s greatest lover by stating “I could quite rightly say that nobody has ever demonstrated that this is not the case and there are no proven incidents that disprove it.” Then he goes on to lampoon the web site security seals from your favorite big security vendor. Not just that they can’t really justify their assurances that something is secure, but showing screenshots of these ‘protected’ sites busted by simple attacks. As funny (in a sad way) as this is, ultimately it won’t make much of a difference because the great unwashed think those seals actually mean something. – MR Nuclear powered 0-day: This is a bit of a weird one. Internet Explorer 8, and only IE version 8, is being actively exploited in the wild with a 0-day attack. It is always interesting when a vulnerability only works on one version of IE and doesn’t affect earlier or later versions. Additionally the malware was propagated through a US Department of Labor website, and only to people researching illnesses associated with work on nuclear weapons. Clearly the attackers were targeting a certain demographic, but I haven’t seen any reports of actual exploitation, which is the part we should be most interested in (except the DoL website – they totally pwned that one). It seems like a bit of an outlier attack because I don’t expect too many of their targets to look on the DoL site for that information, but what do I know? As we have learned, these espionage attacks are basically a targeted spray and play: attacking every possible path to their desired targets, understanding that the law of averages is in their favor. – RM Learn it. Know it. Live it.: Security professionals talk about how developers don’t understand security, but the Coverity team throws it right back at them with 10 Things Developers Wished Security People Knew. This is sound advice for security people working with software development. The underlying belief is that all these things require security to get to know the people, process, and code

Japanese Coast Guard ship (indirectly) sold to North Korea: “The vessel was sold in a state in which information regarding operational patterns of the patrol vessel could have been obtained by some party,” an official told the paper. “We were on low security alert at that time.” That is certainly not the case these days, with heightened tensions on the Korean peninsula and the Japanese coast guard regularly involved in patrols around the disputed Diaoyu (Senkaku) islands. Like hardware, data has a lifecycle. Eventually you will need to dispose of the data and/or the device that stores/processes/transmits it (and these days, all the cloudy services connecting to it…). Embedded systems, from ship navigation system to “quantified self” device such as Fitbit, should be included in data lifecycle analyses when relevant, and treated as appropriate for the sensitivity of the data that could be extracted. As this story shows, sensitivity of data or business processes is not static and changes with political tensions – among other factors: It is important to periodically re-assess policies on information disposal and how sensitive information may be hiding in the nooks and crannies of devices you thought were harmless at the time. …the Coast Guard admitted that there were no policies in place to remove data recording equipment or wipe data before selling decommissioned vessels, meaning the same thing could have happened on other occasions. Oh goodie. Share:

Dennis Fisher writes in Finger-Pointing on Cyberespionage does little good without a plan: The acknowledgement from the Pentagon, in truth, feels fairly anticlimactic. It’s the equivalent of Mark McGwire admitting to using steroids-10 years after every fan in the country had already accepted that fact. At some point it becomes sort of silly to even mention it. Water is wet, ice cream is delicious and China is attacking our networks. It just is. It’s a good piece but misses a couple key elements: in geopolitics, finger-pointing is an essential part of every plan, and execution on cybersecurity started a few years ago (Aurora/Google and Lockheed). This is a propaganda campaign to generate political and popular support, and nothing – nothing – progresses without this foundation. The problem is the invasion by other special interests, including copyright holders, that complicates the narrative. Make no mistake – this story was written years ago, and we are just watching the latest episodes to air. Share:

Sorry, but the title is a bit of a bait and switch. Before we get into object storage encryption we need to cover using proxies for volume encryption. Proxy encryption The last encryption option uses an inline software encryption proxy to encrypt and decrypt data. This option doesn’t work for boot volumes, but may allow you to encrypt a wider range of storage types, and offers an alternate technical architecture for connecting to external volumes. The proxy is a virtual appliance running in the same zone as the instance accessing the data and the storage volume. We are talking about IaaS volumes in this section, so that will be our focus. The storage volume attaches to the proxy, which performs all cryptographic operations. Keys can be managed in the proxy or extended to external key management using the options we already discussed. The proxy uses memory protection techniques to resist memory parsing attacks, and never stores unencrypted keys in its own persistent storage. The instance accessing the data then connects to the proxy using a network file system/sharing protocol like iSCSI. Depending on the pieces used this could, for example, allow multiple instances to connect to a single encrypted storage volume. Protecting object storage Object storage such as Amazon S3, Openstack Swift, and Rackspace Cloud Files, is fairly straightforward to encrypt, with three options: Server-side encryption Client/agent encryption Proxy encryption As with our earlier examples overall security is dependent on where you place the encryption agent, key management, and data. Before we describe these options we need to address the two types of object storage. Object storage itself, like our examples above, is accessed and managed only via APIs and forms the foundation of cloud data storage (although it might use traditional SAN/NAS underneath). There are also a number of popular cloud storage services including Dropbox, Box.com, and Copy.com – as well as applications to build private internal systems – which include basic object storage but layer on PaaS and SaaS features. Some of these even rely on Amazon, Rackspace, or another “root” service to handle the actual storage. The main difference is that these services tend to add their own APIs and web interfaces, and offer clients for different operating systems – including mobile platforms. Server-side encryption With this option all data is encrypted in storage by the cloud platform itself. The encryption engine, keys, and data all run within the cloud platform and are managed by the cloud administrators. This option is extremely common at many public cloud object storage providers, sometimes without additional cost. Server-side encryption really only protects against a single threat: lost media. It is more of a compliance tool than an actual security tool because the cloud administrators have the keys. It may offer minimal additional security in private cloud storage but still fails to disrupt most of the dangerous attack paths for access to the data. So server-side encryption is good for compliance and may be good useful in private clouds; but it offers no protection against cloud administrators and depending on configuration it may provide little protection for your data in case of management plane compromise. Client/agent encryption If you don’t trust the storage environment your best option is to encrypt the data before sending it up. We call this Virtual Private Storage because, as with a Virtual Private Network, we turn a shared public resource into a private one by encrypting the information on it while retaining the keys. The first way to do this is with an encryption agent on the host connecting to the cloud service. This is architecturally equivalent to externally-managed encryption for storage volumes. You install a local agent to encrypt/decrypt the data before it moves to the cloud, but manage the keys in an external appliance, service, or server. Technically you could manage locally, as with instance-managed encryption, but it is even less useful here than for volume encryption because object storage is normally accessed by multiple systems, so we always need to manage keys in multiple locations. The minimum architecture is comprised of encryption agents and a key management server. Agents implement the cloud’s native object storage API, and provide logical volumes or directories with decrypted access to the encrypted volume, so applications do not need to handle cloud storage or encryption APIs. This option is most often used with cloud storage and backup services rather than for direct access to root object storage. Some agents are advances on file/folder encryption, especially for tools like Dropbox or Box.com which are accessed as a normal directory on client systems. But stock agents need to be tuned to work with the specific platform in question – which is outside our object storage focus. Proxy encryption One of the best options for business-scale use of object storage, especially public object storage, is an inline or cloud-hosted proxy. There are two main topologies: The proxy resides on your network, and all data access runs through it for encryption and decryption. The proxy uses the cloud’s native object storage APIs. The proxy runs as a virtual appliance in either a public or private cloud. You also set two key management options: internal to the proxy or external; and the usual deployment options: hardware/appliance, virtual appliance, or software. Proxies are especially useful for object storage because they are a very easy way to implement Virtual Private Storage. You route all approved connections through the proxy, which encrypts the data and then passes it on to the object storage service. Object storage encryption proxies are evolving very quickly to meet user needs. For example, some tie into the Amazon Web Services Storage Gateway to keep some data local and some in the cloud for faster performance. Others not only proxy to the cloud storage service, but function as a normal network file share for local users. Share:

The tactics we have described so far are very useful for detecting and disrupting advanced attackers – even if used only in one-off situations. But you can and should establish a more structured and repeatable process – especially if you expect to be an ongoing target of advanced attackers. So you need to evolve your existing security program, including incident response capabilities. But what exactly does that mean? It means you need to factor in the tactics you will see from advanced attackers and increase the sophistication of your intelligence gathering, active controls, and incident response. Change is hard – we get that. Unless you have just had a recent breach – then it’s easy. At that point instead of budget pressures you get a mandate to fix it no matter the cost, and you will face little resistance to changing process to ensure success with the next response. Even without a breach as catalyst you can make these kinds of changes, but you will need some budgetary kung fu with strategic use of recent high-profile attacks to make your point. But even leveraging a breach doesn’t necessarily result in sustainable change, regardless of how much money you throw at the problem. Evolving these processes involves not only figuring out what to do now, or even in the future. Those are short term band-aids. Success requires empowering your folks to rise to the challenge of advanced attackers. Pile more work on to make sure they can accept their additional responsibilities, and recognize them for stepping up. This provides an opportunity for some managers to take on more important responsibilities and ensures everyone is on the hook to get something done. Just updating processes and printing out new workflows won’t change much unless there are adequate resources and clear accountability in place to ensure change takes place. Identify Gaps Start evolving your program by identifying gaps in the status quo. That’s easiest when you are cleaning up a breach because it is usually pretty obvious what worked, what doesn’t, and what needs to change. Without a breach you can use periodic risk assessment or penetration testing to pinpoint issues. But regardless of the details of your gaps or how you find them, it is essential that you (as senior security professional) drive process changes to address those gaps. Accountability starts and ends with the senior security professional, with or without the CISO title. Be candid about what went wrong and right with senior management and your team, and couch the discussion in terms of improving your overall capability to defend against advanced attackers. Intelligence Gathering The next aspect of detecting advanced attackers is building an intelligence gathering program to provide perspective on what is happening out there. Benefit from the misfortune of others, remember? Larger organizations tend to formalize an intelligence group, while smaller entities need to add intelligence gathering and analysis to the task lists of existing staff. Of all the things that could land on a security professional, needing to do intelligence research isn’t a bad extra responsibility. It provides exposure to cutting-edge attacks and makes a difference in your defenses. That’s how you should sell it. Once you determine organizational structure and accountability for intelligence you ll need to focus on integration points with the rest of your active (defensive) and passive (monitoring) controls. Is the intelligence you receive formatted to integrate directly into your firewall, IPS, and WAF? What about integration with your SIEM or forensics tools? Don’t forget about analyzing malware – isolating and searching for malware indicators is key to detecting advanced attackers. Understand that more sophisticated and mature environments should push beyond just searching for technical indicators of compromise. Mature intelligence processes include proactive intelligence gathering about potential and active adversaries, as we described earlier. If you don’t have those capabilities internally which of your service providers can offer it, and how can you use it? Finally you will need to determine your stance on information sharing. We are big fans of sharing what you see with folks like you (same industry, similar company size, geographical neighbors, etc.) to learn from each other. The key to information sharing networks (aside from trust) is reducing the signal-to-noise ratio – it is easy for active networks to generate lots of chatter that isn’t relevant to you. As with figuring out integration points, you need accountability and structure for collecting and using information from sharing networks. Tracking Innovation Another aspect of dealing with advanced attackers is tracking industry innovation on how to manage them. We have done considerable research into evolving endpoint controls, network-based advanced malware detection, and the application of intelligence (Early Warning, Network-based Threat Intelligence, Email-based Threat Intelligence) to understand how these technologies can help. But all those technologies together cannot provide the sustainable change you need. So who in your organization will be responsible for evaluating new technologies? How often? You might not have budget to buy all the latest and greatest shiny objects to hit the market – but you still need to know what’s out there, and you might need to find the money to buy something that solves a sufficiently serious problem. We have seen organizations assemble a new technology task force, comprised of promising individual contributors within each of the key security disciplines. These folks monitor their areas of expertise, meet with innovative start-ups and other companies, go to security conferences, and leverage research services to evaluate new technologies. At periodic meetings they present what they find. Not just what the shiny object does but also it could would change what the organization does, and why that would be better. This shows not just whether they can parrot back what a vendor tells them, but how well they can apply that capability to existing control sets. Evolving DFIR As we have discussed throughout this series, a key aspect of detecting advanced attackers is digital forensics and incident response (DFIR). First you need to ensure responders have an adequate tools to determine what happened and analyze attacks. So you need to revisit your data collection infrastructure, and

The arms race goes on and on. The folks at Trusteer recently found an evolved type of malware designed to game financial institutions’ two-factor authentication (2FA) mechanisms on compromised devices. This is Darwin at work, folks – why should attackers try to rob banks, when they can mug everyone who comes out with money? Whatever gun you have, they come back with a bigger one. This is fun, right? Trusteer’s security team recently analyzed a Ramnit variant that is targeting a UK bank with a clever one-time password (OTP) scam. The malware stays idle until the user successfully logs into their account,.. The most interesting part is the reconnaissance and detailed understanding of the process and transaction types & formats required to successfully perform this attack. This is no smash and grab – it’s a very sophisticated set of technologies used to game a bank’s security controls. 2FA is still a good thing. But don’t think it’s the only thing, and definitely don’t think it makes you secure. Many of us learned that from the RSA hack, but for those who didn’t get the message the first time, your strong authentication isn’t strong enough. At least not all the time… Photo credit: “Big Guns” originally uploaded by DM Share:

Okay, it is entirely possible he paid for it, but HOW DO WE KNOW? U.S. Finds Porn Not Secrets on Suspected China Spy’s PC A Chinese research scientist suspected of spying on the National Aeronautics and Space Administration – and pulled from a plane in March as he was about to depart for China – is set to plead to a misdemeanor charge of violating agency computer rules. Bo Jiang, who was indicted March 20 for allegedly making false statements to the U.S., was charged yesterday in a separate criminal information in federal court in Newport News, Virginia. Jiang unlawfully downloaded copyrighted movies and sexually explicit films onto his NASA laptop, according to the court filing. A plea hearing is set for tomorrow. This is why it’s important to read breaking news with skepticism. Not that China is above this sort of theft, per documented history, but that doesn’t mean everyone is working for APT1138. Share:

In our last post in the CISO’s Guide to Advanced Attacks, you verified the alert, so it’s time to spring into action. This is what you get paid for – and to be candid your longevity in the CISO role directly correlates to your ability to contain the damage and recover from the attacks as quickly and efficiently as possible. But no pressure, right? So let’s work through the steps involved in breaking the kill chain, disrupting the attackers, taking counter measures, and/or getting law enforcement involved. Incident response needs to be a structured and conditioned response. Work to avoid setting policies during firefights, even though it’s not possible to model every potential threat or gain consensus on every possible countermeasure. But try to define the most likely scenarios and get everyone on board with appropriate tactics for containment and remediation. Those scenarios provide a basis for making decisions in scenarios that don’t quite match your models. Then at least you can spin why you made certain decisions in the heat of battle. Contain the Damage As we described in Incident Response Fundamentals, containment can be challenging because you don’t exactly know what’s going on but you need to intervene as quickly as practical. The first requirement is very clear: do not make things worse. Make sure you provide the best opportunity for your investigators (both internal and external) to isolate and study the incident. Be careful not to destroy data by turning off and/or unplugging machines without first taking appropriate forensic images. Keeping the discussion high-level, containment typically involves two main parts: Quarantine the device: Isolate the device quickly so it doesn’t continue to perform reconnaissance, move laterally within your network, infect other devices, or progress toward completing its mission and stealing your data. You may monitor the device as you figure out exactly what you are doing but make sure it doesn’t cause any more harm. Protect critical data: One reason to quarantine the device is to ensure that it cannot continue to mine your network and possibly exfiltrate data. But you also can’t assume the compromised device you identified is the only one. So go back to the potential targets you outlined when you sized up the adversary, and take extra care to protect the critical data most interesting to your adversary. One thing we know about advanced attackers is that they generally have multiple paths to accomplish their mission. You may have discovered one (the compromised device), but there are likely more. So be a little extra diligence with monitoring data access and egress points, to help disrupt the kill chain in case of multiple compromises. Investigate and Mitigate Your next step is to identify the attack vectors and determine appropriate remediation paths. As mentioned above you want to be sure to gather just as much information as you need to mitigate the problem (stop the bad guys) and collect it in a way that doesn’t preclude subsequent legal (or other) action at some point. For more details on malware investigation techniques, we point you again to Malware Analysis Quant for a very granular attack investigation process. When it comes to mitigation you will set a series of discreet achievable goals and assign resources to handle them. Just like any other project, right? But when dealing with advanced attackers you have a few remediation paths to consider: Clean: People also also call this the Big Bang approach because you need to do it quickly and completely. Because if you leave the attacker with any foothold in your environment you will start all over again sooner than later. Most organizations opt for this approach – the sooner you clean your environment the better. Observe: In certain instances, such as when you are dealing with an inside job or law enforcement is involved, you may be asked not to clean all the compromised machines. But as described above, you need to take extra care to ensure you don’t suffer further losses while observing the attackers. That involves deep monitoring (likely network full packet capture and memory forensics) on traffic in and out of critical data stores – as well as tightening controls on egress filters and/or DLP gateways. Disinformation: Another less common alternative is to actively provide disinformation to adversaries. That might involve dummy bids, incorrect schematics, or files with tracking data which might help identify the attacker. This is a very advanced tactic, generally performed with the guidance of law enforcement or a very select third-party incident response firm. Executing the Big Bang To get rid an advanced attacker you need to find all compromised devices. We have been talking about how to do that by searching for indicators of compromise but you cannot assume you have seen and profiled all the malware in use. Those pesky advanced attackers may be throwing 0-day attacks at you. This, again, is where threat intelligence comes in to look for patterns others have seen (though not likely your specific files). Once you have identified all the affected devices (and we mean all of them), they need to go dark at the same time. You cannot leave the adversary with an opportunity to compromise other devices or execute a contingency plan to retain a foothold while you work through your machines during cleanup. This probably entails wiping the machines down to bare metal – even if that means losing data. Given the capabilities of advanced attackers, you cannot be sure of totally eliminating the device compromise any other way. When the affected devices are wiped and rebuilt you need to monitor them and capture egress traffic during a burn-in period to make sure you didn’t miss anything. That means scrutinizing all configuration changes for indications that the attacker is breaking back in or finding new victims, as well as looking for command and control indicators. The moment the adversary is blown out they will start working double-time to get back in. You are never done. So you need to ensure your