Social engineering

Social EngineeringHuman aspects of competitive intelligence

Marin IvezicCyber Agency

www.cyberagency.com

Johnson & Johnson vs. Bristol-Myers

Johnson Controls vs. Honeywell

Boeing vs. Airbus

SOME KNOWN CASES

Cyber Agency | www.cyberagency.com2

1. Competitive Intelligence using Social Engineering

2. Competitive Intelligence Countermeasures

SUBJECTS OF TODAY’S DISCUSSION…

It’s not just smart business!


SOME KNOWN CASES

DEFINITION OF SOCIAL ENGINEERING

“Successful or unsuccessful attempts to influence a person(s) into either revealing information or acting in a manner that would result in; unauthorized access, unauthorized use, or unauthorized disclosure, to an information system, network or data.” (Rogers & Berti, 2001)



Any kind of psychological manipulation used to obtain private or sensitive information or to force target to perform some action in target’s disadvantage. (Ivezich, 1998)

EXTENDED DEFINITION OF SOCIAL ENGINEERING

Context for Social Engineering

“Competitive intelligence (CI) is the process of monitoring the competitive environment. CI enables senior managers in companies of all sizes to make informed decisions about everything from marketing, R&D, and investing tactics to long-term business strategies. Effective CI is a continuous process involving the legal and ethical collection of information, analysis that doesn't avoid unwelcome conclusions, and controlled dissemination of actionable intelligence to decision makers.” Source: Society of Competitive Intelligence Professionals

“Competitive intelligence is a systematic program for gathering and analyzing information about your competitors’ activities and general business trends to further your own company’s goal.” Source: Larry Kahaner, “Competitive Intelligence”

DEFINITION OF COMPETITIVE INTELLIGENCE


White

Black Gray



White - company publications, public records, commercial reporting sources

Gray - Not readily available, but can be obtained without civil/criminal liability

Black - Obtained through unethical or illegal means. Can result in civil and/or criminal sanctions.

Black = Espionage

DEFINITION OF COMPETITIVE INTELLIGENCE



Espionage: Information collection operations performed in unethical and/or unlawful manner

Economic Espionage: Government intelligence operation aimed at acquiring the economic secrets of foreign country, including information about trade policies and the trade secrets for its companies.

Industrial Espionage: Intelligence operations conducted by one corporation against another for the purpose of acquiring a competitive advantage in domestic and global markets.

DEFINITION OF ESPIONAGE

Healthcare

Utilities

Industrial

Defense / Aerospace

Banking / Financial

Computers

Information

Communications

Chem / Pharma

Consulting

0 2 4 6 8 10 12 14 16

4

4

4

4

5

5

7

11

13

16

WHO’S DOING COMPETITIVE INTELLIGENCE?


▪ 90% of Fortune 500 firms

▪ Firms with high R&D expenditures

▪ Firms that own many patents

▪ 2-3% of German firms

▪ U.S. & U.K. firms mostly

Motorola, Bell Atlantic, Xerox, Eastman Kodak, Skandia, Ford, SDG, Merck, Amoco, Pacific Enterprises, Sequent, American Express, Boehringer Ingelheim, Procter & Gamble, Dow Chemical, MetLife, IBM, Johnson & Johnson…

COUNTRIES INFAMOUS FOR ECONOMIC ESPIONAGE

• USA

• Japan

• China

• Russia• Germany

• France

UK

• Israel

South Korea, India, Pakistan, Argentina and others…


Machinery (1940s)

Capital / Labor (1950-60s)

Information (1980-90s)

Knowledge (Intelligence)

2000s

WHY NOW?


MechanicalTechnology

• The pace of business has and will increase.

• Most businesses are now in information overload.

• Increased global competition.

• Economic competition has become war.

• Political changes ripple more quickly than in the past.

• Technology changes are more rapid.

• Availability of ex cold-war spies.

Investment Computers

Competitive IntelligenceSystems

Modern Business Drivers

Modern Business Eras

Disgruntled Employees

Independent Hackers

Competitors

Foreign Corp.

Foreign Gov.

90%

70%

50%

30%

20%

SECURITY THREATS


TerroristInsider Foreign AgentCompetitor Activist

Most Likely(annoyance)

Least Likely(strategic impact)

Adversary Motivation

Visibility, Publicity, Chaos, Political Change

Information for Political, Military, Economic Advantage

Military Advantage, Chaos, Target Damage

Competitive Advantage, Revenge

Monetary Gain, Revenge

Thrill, Challenge, Prestige

Revenge, Financial Gain, Institutional Change

Who thinks we are important? Or interesting?Competitors, Suppliers, Customers, Investors, Critics, Regulators, Hackers

SECURITY THREATS

National Intelligence

Information Warfare

Terrorists

Industrial Espionage

Organized Crime

Insider

Hacker


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• “Spies” are putzes that do nothing brilliant

• They take advantage of what they have access to

• They abuse human nature• They luck into it, because there are

no or minimal countermeasures

HOW IS IT DONE?

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Reality

• Industrial spies are well trained James Bonds that can get anything they want

• Hackers are geniuses that can look at a computer and take it over

• It takes super advanced methods and a billion dollars in new research to figure out how to stop them

Myths

TechnicalPeople

Physical

WHY IS SE SO EFFECTIVE?

• The Security Field has focused primarily on technical security and protection of physical assets

• Security is only as strong as the weakest link - People are the weakest link

• Why spend time attacking the technology when a person will give you access or information

• Extremely hard to detect as there is no ID’S for “lack of common sense” or more appropriately ignorance



Two Primary Factors: Business Environment and Human Nature

Business Environment Service Oriented Time Crunch Distributed Outsourcing Virtual Offices

Human Nature Helpful Trusting Naive

WHY IS SE SO EFFECTIVE?

Very similar to how intelligence agencies infiltrate their targets. Usually a vey methodical approach. 3-phased approach:


Intelligence gathering

The attack

Step 2

Step 1

Step 3

• Primarily Open Source Information such as: Dumpster diving, Web pages, Ex-employees, Contractors, Vendors, Partners

• Looking for weaknesses in the organization’s personnel: Help desk, Tech support, Reception, Admin. support, Etc.

• Commonly known as the con• Three broad categories of attack: Ego attacks, Sympathy attacks,

Intimidation attacks.• Other elicitation techniques …

Target selection

ANATOMY OF AN SE ATTACK

COMMON SE ATTACKS

1. Ego attacks


Attacker appeals to the vanity, or ego of the victim Usually targets someone they sense is frustrated with their

current job position The victim wants to prove how smart or knowledgeable they

are and provides sensitive information or even access to the systems or data

Attacker may pretend to be law enforcement, the victim feels honored to be helping

Victim usually never realizes

COMMON SE ATTACKS

2. Sympathy attacks


Attack pretends to be a fellow employee (new hire), contractor, employee or a vendor, etc.

There is some urgency to complete some task or obtain some information

Needs assistance or they will be in trouble or lose their job etc. Plays on the empathy & sympathy of the victim Attackers “shop around” until they find someone who will help Very successful attack

COMMON SE ATTACKS

3. Intimidation attacks


Attacker pretends to be someone influential, authority figure, and in some cases law enforcement

Attempts to use their authority to coerce the victim into cooperation

If there is resistance they use intimidation, and threats (e.g., job sanctions, criminal charges etc.)

If they pretend to be Law Enforcement they will claim the investigation is hush hush and not to be discussed etc.

OTHER ELICITATION TECHNIQUES

• Elicitation

• Interview process which avoids direct questions and employ a conversational style to reduce concerns and suspicions…

• Collecting information without asking questions.


ELICITATION - CONVERSATIONAL HOURGLASS

• People remember questions more clearly and longer

• People remember the beginning and end of a conversation

• Concentration is on the “muddle in the middle”

Style

• Innocuous and non-threatening

• Testing of generalizations and presumptions

about human factors in elicitation

• Reading signals from source

• Pleasant and non-confrontational

Elements

• Pre-selected introductory questions about general topics

• Stacking of elicitation techniques

• Attention to details of information being provided

• Additional “cool down’ questions about other general topic

What you already know• personal/professional background• techniques that have worked well before• areas of expertise or knowledge

Macro topics

Macro topics

Micro topics


WHY DOES IT HAPPEN?

A natural tendency• to need recognition (as an expert)• toward self-effacement• to correct, advise, challenge others• to prove others wrong• to discuss things that are not their concern• to gossip• not to be able to keep secrets• to underestimate the value of information• toward indiscretion when not in control of one’s

emotions• to show off (professionally)• to complainNolan 2000Cyber Agency | www.cyberagency.com23

TYPICAL ELICITATION TOOLS

1. Provocative statements evoking:– quid pro quo– naïveté– disbelief– criticism

2. quid pro quo3. Simple flattery4. Exploiting the instinct to complain5. Word repetition vs. “emphatic loading”6. Quotation of reported facts(?)7. Naïveté 8. Oblique reference9. Criticism10. Bracketing11. Feigned or real disbelief12. Purposely erroneous statement

Nolan 2000Cyber Agency | www.cyberagency.com24

DEFENSE FRAMEWORK

Protect

Detect/Respond

Survive

Physical

Personnel

Procedures

Design Features

Attacks

Critical Project

Situational Awareness


DEFENSE FRAMEWORK


People

Process

Technology Organization

Effective Policies • Enforcement of effective policies• Staff knowledge and skill development

Secure SystemsTechnology implementationfor end-to-end security

Effective support structure

Managed ProcessesSecurity is not about products - it is the effective management of processes between Policy, Technologyand Support Structure

THERE ARE MANY WAYS TO “BUG” A ROOM

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COUNTERINTELLIGENCE

Measures to prevent a competitor from gaining data or knowledge that could give them competitive advantage over your company.

• What assets, resources & information should be protected?

(e.g., new technologies, new products/services)

• How can you safeguard what might be penetrated?


PROTECTION - DON’T OVERDO IT


▪ What is the cost vs. benefit?▪ Are you creating another vulnerability?▪ How long is the countermeasure needed?

PROTECTION – COST vs. BENEFITS


Cost ofLoses

Cost of Security

Non

-Sys

tem

atic

Thre

ats

Risk Investment

USER

HACKER

SoundSecurityPolicy

ImplementationEnforcementAuditing

Total Systematic Risk

Threat Level

Security Engineering and Intelligence Function

COMPETITION

FOREIGN THREATS

Mitigationfor specific threats

Acceptable RiskRegion

PROTECTION – COST vs. BENEFITS


OPERATIONS VULNERABILITIES

Procedures in Practice

• Sales & Marketing• Public Relations• Help Wanted Ads• Internet Usage• Credit Cards and other travel records• Telephone records and conversations• Casual conversations• Supplier records• Personal aggrandizement• Taking work home• Poor incident-reporting procedures• Human weaknesses


OPERATIONS COUNTERMEASURES

1. Awareness Training

2. Classifying Information

3. Security Alert System

4. Reward Programs

5. Callbacks before Disclosing Sensitive Info

– Verifying the Need for Information Access

– Verifying Identities and Purposes

6. Removing Personal Identifiers from Access Badges

7. Nondisclosure/Non-compete Employee Agreements and business partners

8. Prepublication Reviews for Employees

9. Review of Corporate Releases

10. Strict Guidelines for Marketers and Salespeople


It takes only one… Are You The Weakest Link?

Questions? Experiences?

France: Generale de la Securite Exterieure (DGSE). Service 7 seems to have responsibility for this function. Typical activities include: Bugging hotels, airlines, conferences, etc;

Black bag operation in French hotels to photograph and download information from laptops; Bribes and prostitutes; Business infiltration; Eavesdropping of telephone and electronic communications.

The French are very open about their operations and seem to take a great deal of national pride in this area.

Germany: Bundesnachrichtendienst (BND). Division II seems to have prime responsibility for technical information. Typical activities include: Telephone monitoring; Establishing

"agents of influence“; Business infiltration; Active hacking function; Seduction, Blackmail, Bribery.

MAJOR FOREIGN AGENCIES

Russia: External Intelligence Service of Russia (EISAR) formerly the First Directorate of the KGB. Section T specifically targets foreign Technology. Typical operations include: A well-established network of moles

and operatives; Indications are that every major US company has at last one mole; Primary targets are approached indirectly through suppliers, etc; Bugging, monitor truck/railroad lines; Spy satellites, sensors on Aeroflot airplanes, etc; Joint ventures.

Israel: Scientific Affairs Liaison Bureau (LAKAM). Typical operations include: Business Infiltration; Ethnic Targeting; Believed to have moles in major technology industries; Bugging hotel rooms, monitor telephone lines, etc; Extensive support for hacker activity. Israel, man for man, is reputed to have the best intelligence

capability in the world.


China: Guojia Anguan Bu, or Ministry of State Security (MSS). Qing Bao offices are scattered throughout China with responsibility for assuring that economic intelligence flows to the factories. Typical operations include: Ethnic targeting; Business fronts in

third countries to purchase sensitive business technology; Open sources (China has the largest foreign presence in US); Import and Export companies; University students; University graduates become moles in high technology companies; Bait and switch, make a scene, etc; Wiretaps, satellites, spy ships, etc.


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