Information Technology Security: Where are Your Problems?

Precision Plus, Inc.Jeffrey T. Lemmermann, CPA, CITP, CISA, CEHLemmermannJ@preplus.com

International Institute of Municipal Clerks2014 Conference

May 17 - 22, 2014 – Milwaukee, WI

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Information Security

1. Managing & retaining data (2)

2. Securing the IT environment (1)

3. Managing IT risk & compliance

4. Ensuring privacy

5. Managing system implementation (6)

Topping The Charts Everywhere!AICPA 2013 Top 10 Technology Initiatives

6. Preventing & responding to fraud (9)

7. Enabling decision support & managing performance

8. Governing & managing IT investment/spending

9. Leveraging emerging technologies (6)

10.Managing vendors and service providers

Importance of Data Security

Regulations HIPAA GLBA / SOX 404 FACTA Red Flag Rules PCI Standards

Publicity“No such thing is bad publicity

…except your own obituary.”- Brendan Behan, Irish Dramatist

Damage to reputation.

Loss of consumer confidence.

Redirection of resourcesSONY

77 Million User Accounts – 12 Million Unencrypted CC #s

Playstation Network Taken Down – Cost’s over $178 M

Fidelity Info Services

$13M Loss – Unauthorized Credit Card Activities

SEGA

1.3M subscribers: names, birth dates, e-mail addresses, and passwords

UW - Milwaukee

Names and SS #s of 75,000 Students and Staff

Regulation Changes

1. Electronic documents are treated the same as physical documents!

2. Requires Organizations to know what data you have and in which format it exists.

3. Forensic Professionals on many sides of a case:1. Recovering lost or unintentionally deleted items2. Producing evidence that opponent said was not available

4. Handling of computer evidence1. Preserve evidence2. Maintain chain of custody

Changes to the Federal Rules of Civil ProcedureEnacted December 1, 2006

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Where Is Your Data?

The ObviousNetwork File/Data Servers Laptop ComputersBackup Storage Media

The ObscureSmartphones / TabletsPortable Storage (USB Drives)E-Mail Attachments

The ForgottenDisposed Equipment – LEASED Equipment!

Proper Disposal Rules

“Disposal practices that are reasonable and appropriate to prevent unauthorized access to –or

use of- information in a consumer report.”

Burn, pulverize, or shred papers so they cannot be reconstructed. Destroy or erase electronic files or media so information cannot be

read or reconstructed. Conduct due diligence and hire a document destruction contractor.

Due diligence could include: Reviewing contractor’s independent audit Obtain information from several references Require certification by recognized trade association Review contractor’s information security policies or procedures

Hard Drive Data

Study of 2nd Hand DrivesO & O Company:

2004: 88% of Disks from EBay contained recoverable data. 2005: 71%

Edith Cowan University – Annual study of 2nd hand hard drives 2006: 48% 2009: 39% 2012: 47% 2007: 40% 2010: 2008: 38% 2011:

Type of recoverable data: Internal company memos Legal correspondence of governmental agency Credit ratings (Bank owned hard drive)

File erasing Utilities Eraser (Freeware - up to 35 overwrite passes) Steganos Security Suite (up to 100 passes)

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Hard Drive Data Worries

What About Smartphones?Deleting Apps Might Not Delete DataSD Card StorageData Stored By Service Providers

Tablet Computers – Same Issues as Smartphones

Solid State Drives (SSDs) Traditional Disk Wiping Utilities Do Not Work “Nearly impossible to completely delete data from SSD’s”

Physical Destruction Highly RecommendedNewer SSDs – Deletion Utilities with Drives

Data Security

How can we keep our data safe?

Case Study: Open Records

How “open” do you mean?

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Security Points

Five Key Points of Data Security:Physical SecurityNetwork SecurityApplication SecurityExternal SecurityPlanning & Governance

Physical Security

Access to Equipment Locked server room, mobile equipment logs

Theft Prevention Procedures Cameras, user policies on mobile equipment

Separation of Duties Ordering / Inventory separate from Installers

Hardware Inventory Serial numbers, internal configurations, assignments

Network Security

Password Policies Minimum characters, forced changes, complexity No sticky notes!

Unattended Terminal Protection Password protected screensavers, firm policies

Network File Structure Security User site of files, annual review process!

Auditing Logs Activate logging, review logs

Control of Backup Tapes Physical security, password protection

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Password Complexity Demo

Importance of non-dictionary passwordsDictionaries now including numbers added to wordsAlternate spelling meth0ds 1nclud3d

Importance of lengthEase of brute-force attacks Flaw in some encryption methods

Importance of other charactersAdds to password possibilitiesHelps to beat dictionary cracks

Password Recommendations

Secure Password Techniques:Use modified pass phrases

4score&7yearsagoLet’sg0r3d

Connect words with modifier in middleMilwaukeejtl07BucksAries01thejtlram

Stick with constant formulasUse secure password database managers

PC / PocketPC – KeePass (http://keepass.sourceforge.net)Android – KeePass, LastPass, SplashId iPhone / iPad – DataVault Password Manager (iTunes store)

Application Security

Key Application Security Accounting, HR, or other sensitive data applications Follow password standards of network Segregation of duties / Reporting Controls

Anti-Virus Protection (Symantec, McAfee, etc.) Server based, automatic updates of workstations E-mail protection

Patch Maintenance Windows Update Services

Employee Training Dangerous Files, E-Mail Concerns, Web Surfing

Spyware Protection

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Spyware – Detecting & Eliminating

Signs you have been infected: Random “Security” Pop-up windows appear when browsing. Normal home page has been replaced. Drop in computer performance. New search bars have appeared in web browser.

Removal help: Cleaning Programs: ComboFix, SpyBot Search & Destroy Monitoring & Prevention: SuperAntiSpyware, MS Defender

Other Tools: Startup Inspector Pop-up Blocker - Google www.processlibrary.com

External Access Security

Cannot have without other elements!Weakness in other areas can defeat the best external security.

Access method security (vpn, citrix, etc.) Data Encryption User Education

Activities to avoid Popular methods of capturing data:

Shoulder surfing Key logging / capturing programs Packet sniffingWireless worries

Wireless Security

Control AccessChange Defaults!

Administrator PasswordNetwork SSID

MAC FilteringList of authorized wireless Ethernet cards

Minimize Access PointsScan self for “rogue” access points

HeatmapperWiFi Analyzer (Android Tool)

Control own equipment’s access

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Wireless Security

Control Data - EncryptionWEP – Wired Equivalency Protocol

Set to highest level supportedWEP has deficiencies:

Both 40-bit and 128-bit keys have been hacked Use still will prevent or delay hack attempts

WPA – Wi-Fi Protected Access (WPA2)Subset of developing 802.11i StandardSome devices updateable to support standard

Case Study: Wireless Risks

The “Cantenna” T.J. Maxx Breach

Planning & Governance

Align IT Goals with Business Goals Does the IT Department work for you or run you? Is IT Planning part of the overall strategic planning process? Steering committee: department head involvement!

Must-Have Plans: Disaster Recovery \ Business Continuity

Testing! Involvement of all departments – what are their needs?

Incident Response Plan Data disclosure events Contact Requirements

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Case Study: Incident Response Plans

Starting point: April, 2011Type: Network Intrusion - ExternalRecords affected: 101.6 millionEstimated costs: $171 million outlay

($1025 Million all considered*)Affected entities: Sony Pictures, Sony Corporation of America, Sony Online Entertainment, Sony Play Station Network.* - lost business, various compensation costs and new investments—assuming that no additional security problems emerge.

Sony – Breach Timeline

2009 – “geohot” announces intention to jailbreak PS3 March, 2010 – Sony removes functionality on PS3 to

install another O/S (to block jailbreak effort.) January 2, 2011 - Geohot (George Holtz) jailbreaks

PS3 and publishes code online January 11, 2011 – Sony sues geohot – seeks to stop April 2, 2011 – Sony announces settlement April 13, 2011 – Anonymous announces attack on Sony“In the eyes of the law, the case is closed, for Anonymous it is just beginning… prepare for the biggest attack you have ever witnessed, Anonymous style.”

Sony – Breach Timeline

April 16 – Sony Online Entertainment (SOE) 25 million user details / 23 K credit/debit cards

April 17 – PlayStation Network 77 million user details

April 20 – Sony shuts down PlayStation Network April 26 – Sony publically discloses PlayStation breach May 1 – Investigators discover SOE breach May 2 – Sony publically discloses SOE breach“We are trying to fight criminal activities by corporations and governments, not steal credit cards.”

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Sony – Lesson 1

In the public eye - assume you are going to be a targetWas Sony right to go after geohot?

Doesn’t matter if you are in IT If the effort is coordinated they will get in

Limit the attack surfaceOnly ask for and store necessary data from usersWhat really needs to be exposed to the Internet?

Sony – Lesson 2

PR Campaigns MatterMinimize enemy creationResponse to hacking incident is critical to retention

People hate being lied to!

Contingency Plan DevelopmentDDOS attacks are form of disaster eventPractice recovering from them

Policies & Procedures

Policies in general: Signature requirements \ acknowledgement Redistribution of policy \ general availability Centralize & minimize total number Training opportunity on changes!

Important groupings: Computer Use Policy

Internet Use E-Mail Use

IT Security Policy Confidentiality statements Data handling and storage Data retention & destruction

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Policies & Procedures – Updating

The importance of reviewing and updating policies:

What happens when two worlds collide? Can social media be used for public debate? What rules are in place for posting information by the elected? How can the use of social media be policed?

Sunshine Laws

Data Security

Updating our policies and procedures is a critical part of the circle.

Knowing Our Enemies

Is that all there is to it?

FRAUD:deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.

No functional network is impervious.

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Internal Fraud

Fraud usually comes from within: On average, 6% of an organizations revenue is lost to internal

fraud. Small company loss - $127,500 per incident Large company loss - $97,000 per incident Schemes involving non-cash assets are more costly Men out-steal women $200,000 to $60,000 per incident Education levels:

Those with a high school education steal $70,000 per incident Those with a post-graduate degrees steal $162,000 Those with a bachelor degrees steal $243,000

45% of companies report unauthorized access of data by insiders!

Case Study: The City of San Francisco

Who’s network is it anyway?Terry Childs – Cisco Certified Internetworking EngineerBuilt & Managed the city-wide network (core of networks)Elevated rights to sole administrator – always on call

Attack Origins

Points of Origins of Network Attacks InternalHarder to protect against – productivity vs. securityMotivations:

Personal GainRevenge (Missed promotion, about to be fired) Job Security

ExternalHard to identify sourceMotivations:

Random AttackRevenge (Former employee, angry client, competitor) Industrial Espionage

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A Typical IT Hack

Organization Data Store

Unethical Hacker

SS’s Information

SS’s Information

Employee

Customer

Vendor

HH Buys Information

Transfers Money

Opens Charge Account

UH Steals Information

Cracks Database

Wireless Sniff

Social Engineering

UH Posts Information

Computer Fraud – First Steps

1. Stop using compromised system! Every action changes computer environment Preservation of hard drive and memory contents

Isolate System Physically disconnect system from Internet if exposed If intranet threat is possible, isolate from local network

1. Record visual information from PC Running applications Items in system tray

2. Utilize drive duplication tools to create copy of drive Refer to item #1 Allows for other tests to be tried without losing original evidence

Goals of Computer Forensics

Preservation of EvidenceAdherence to carefully developed set of procedures thataddress security, authenticity, and chain-of-custody.

• Analysis of User ActivityReporting of all user activity on computer and companynetwork including, but not limited to,e-mail, Internet andIntranet files accessed, files created and deleted, and useraccess times.

• Password RecoveryAccessing and recovering data from password protected files.

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Fraud: Preemptive Tools

Computer audit logs Enable auditing (default is normally not enabled) Ensure size is sufficient (avoid overwriting) Copied to remote storage/permanent media on regular intervals

Utilize other logging tools: Keystroke Loggers Screenshot Recording Shadowing Capabilities E-Mail and Instant Messaging Archives

Ethical Considerations Computer Use Policy – notification of right to trace actions Control access to implemented tools Ensure proper and ethical use

Other Threats:

PhishingBanking Spoofs, E-Bay Accounts, etc.New Evolution: Pharming

“Poisoning” of DNS Record to redirect requestSite could be exact duplicate of intended site

MalwareKey-loggers & Screen Capture ProgramsBrowser Hi-jacks

Phishing – How can you tell?

How can you tell a legitimate email from a phony?

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Other Threats:

URL ShortenersTinyurl, bit.ly, sn.imCreates a short link from a long internet address

Problem if malware site is being hidden Study of URL shorteners:

Stage 1 Compliant if it appears to use a security service or blacklist to identify malicious domains and does not allow a user to create a shortened link to any infected domain.

Stage 2 Compliant if it uses a security service or blacklist to identify malicious domains and does not allow a user to create a shortened link to any infected domain or malicious full URL hosted on that domain.

Scanning Yourself

Footprinting Gaining parameters of network Areas of search

Google Searches Usegroup/Newsgroup Searches ARIN Records – DNS Stuff

Vulnerability Assessments Finding rabbit holes - weak points in your network Online Tools Nessus (www.nessus.org)

Registered vs. Direct Feed Windows & Linux Versions External Use Internal Use

Penetration Testing How far down does the rabbit hole go? Care in performing exploits – not for amateurs! Metasploit

Understand Your Enemies

You have to understand their tactics to better stop them.Hacking for Dummies by Kevin Beaver, Stuart McClure

Certified Ethical Hacking – Training & Certification Vulnerability Assessments Penetration Testing

On-line Resources

Print Resources

The Elements of IT Security

Example one: PHISHING

Right click the message and select “VIEW SOURCE”

The Elements of IT Security Actual source of the e-mail in html format:

The Elements of IT Security

Example 2: Citibank Phishing

FRAUD ALERT

CitiBank phishing email - "Read Now! Important Message From Citibank"

Date Issued: April 13 2004

Customers of CitiBank are the targets of the latest phishing email scams.

The email claims to be from "Citi Identity Theft Solutions", and directs customers they must update their ATM/Debit Card PIN. Users are instructed to click on a link within the email and enter their debit card number and ATM PIN in a form on a fake website. The fake website is displayed in a small window, while the real CitiBank website is displayed in the background. This gives the users a false sense of security in entering their personal information.

A copy of the email is displayed below:

The WebSite is shown below:

What to do?

If you receive an e-mail similar to this, do nothing. Do not reply to the e-mail and do not give any personal details to the sender.

If you do receive similar emails, or any email that you think may be fraudulent, please forward to FraudWatch International at: scams@fraudwatchinternational.com

Reprinted from: http://www.sans.org/resources/policies/Acceptable_Use_Policy.pdf

Sample Acceptable Use Policy 1.0 Overview InfoSec's intentions for publishing an Acceptable Use Policy are not to impose restrictions that are contrary to <Company Name>. established culture of openness, trust and integrity. InfoSec is committed to protecting <Company Name>'s employees, partners and the company from illegal or damaging actions by individuals, either knowingly or unknowingly. Internet/Intranet/Extranet-related systems, including but not limited to computer equipment, software, operating systems, storage media, network accounts providing electronic mail, WWW browsing, and FTP, are the property of <Company Name>. These systems are to be used for business purposes in serving the interests of the company, and of our clients and customers in the course of normal operations. Please review Human Resources policies for further details. Effective security is a team effort involving the participation and support of every <Company Name> employee and affiliate who deals with information and/or information systems. It is the responsibility of every computer user to know these guidelines, and to conduct their activities accordingly. 2.0 Purpose The purpose of this policy is to outline the acceptable use of computer equipment at <Company Name>. These rules are in place to protect the employee and <Company Name>. Inappropriate use exposes <Company Name> to risks including virus attacks, compromise of network systems and services, and legal issues. 3.0 Scope This policy applies to employees, contractors, consultants, temporaries, and other workers at <Company Name>, including all personnel affiliated with third parties. This policy applies to all equipment that is owned or leased by <Company Name>. 4.0 Policy 4.1 General Use and Ownership

1. While <Company Name>'s network administration desires to provide a reasonable level of privacy, users should be aware that the data they create on the corporate systems remains the property of <Company Name>. Because of the need to protect <Company Name>'s network, management cannot guarantee the confidentiality of information stored on any network device belonging to <Company Name>.

2. Employees are responsible for exercising good judgment regarding the reasonableness of personal use. Individual departments are responsible for creating guidelines concerning personal use of Internet/Intranet/Extranet systems. In the absence of such policies, employees should be guided by departmental policies on personal use, and if there is any uncertainty, employees should consult their supervisor or manager.

3. InfoSec recommends that any information that users consider sensitive or vulnerable be encrypted. For guidelines on information classification, see InfoSec's Information Sensitivity Policy. For guidelines on encrypting email and documents, go to InfoSec's Awareness Initiative.

4. For security and network maintenance purposes, authorized individuals within <Company Name> may monitor equipment, systems and network traffic at any time, per InfoSec's Audit Policy.

5. <Company Name> reserves the right to audit networks and systems on a periodic basis to ensure compliance with this policy.

4.2 Security and Proprietary Information

1. The user interface for information contained on Internet/Intranet/Extranet-related systems should be classified as either confidential or not confidential, as defined by corporate confidentiality guidelines, details of which can be found in Human Resources policies. Examples of confidential information include but are not limited to: company private, corporate strategies, competitor

sensitive, trade secrets, specifications, customer lists, and research data. Employees should take all necessary steps to prevent unauthorized access to this information.

2. Keep passwords secure and do not share accounts. Authorized users are responsible for the security of their passwords and accounts. System level passwords should be changed quarterly, user level passwords should be changed every six months.

3. All PCs, laptops and workstations should be secured with a password-protected screensaver with the automatic activation feature set at 10 minutes or less, or by logging-off (control-alt-delete for Win2K users) when the host will be unattended.

4. Use encryption of information in compliance with InfoSec's Acceptable Encryption Use policy. 5. Because information contained on portable computers is especially vulnerable, special care should

be exercised. Protect laptops in accordance with the “Laptop Security Tips”. 6. Postings by employees from a <Company Name> email address to newsgroups should contain a

disclaimer stating that the opinions expressed are strictly their own and not necessarily those of <Company Name>, unless posting is in the course of business duties.

7. All hosts used by the employee that are connected to the <Company Name> Internet/Intranet/Extranet, whether owned by the employee or <Company Name>, shall be continually executing approved virus-scanning software with a current virus database. Unless overridden by departmental or group policy.

8. Employees must use extreme caution when opening e-mail attachments received from unknown senders, which may contain viruses, e-mail bombs, or Trojan horse code.

4.3. Unacceptable Use The following activities are, in general, prohibited. Employees may be exempted from these restrictions during the course of their legitimate job responsibilities (e.g., systems administration staff may have a need to disable the network access of a host if that host is disrupting production services). Under no circumstances is an employee of <Company Name> authorized to engage in any activity that is illegal under local, state, federal or international law while utilizing <Company Name>-owned resources. The lists below are by no means exhaustive, but attempt to provide a framework for activities which fall into the category of unacceptable use. System and Network Activities The following activities are strictly prohibited, with no exceptions:

1. Violations of the rights of any person or company protected by copyright, trade secret, patent or other intellectual property, or similar laws or regulations, including, but not limited to, the installation or distribution of "pirated" or other software products that are not appropriately licensed for use by <Company Name>.

2. Unauthorized copying of copyrighted material including, but not limited to, digitization and distribution of photographs from magazines, books or other copyrighted sources, copyrighted music, and the installation of any copyrighted software for which <Company Name> or the end user does not have an active license is strictly prohibited.

3. Exporting software, technical information, encryption software or technology, in violation of international or regional export control laws, is illegal. The appropriate management should be consulted prior to export of any material that is in question.

4. Introduction of malicious programs into the network or server (e.g., viruses, worms, Trojan horses, e-mail bombs, etc.).

5. Revealing your account password to others or allowing use of your account by others. This includes family and other household members when work is being done at home.

6. Using a <Company Name> computing asset to actively engage in procuring or transmitting material that is in violation of sexual harassment or hostile workplace laws in the user's local jurisdiction.

7. Making fraudulent offers of products, items, or services originating from any <Company Name> account.

8. Making statements about warranty, expressly or implied, unless it is a part of normal job duties.

9. Effecting security breaches or disruptions of network communication. Security breaches include, but are not limited to, accessing data of which the employee is not an intended recipient or logging into a server or account that the employee is not expressly authorized to access, unless these duties are within the scope of regular duties. For purposes of this section, "disruption" includes, but is not limited to, network sniffing, pinged floods, packet spoofing, denial of service, and forged routing information for malicious purposes.

10. Port scanning or security scanning is expressly prohibited unless prior notification to InfoSec is made.

11. Executing any form of network monitoring which will intercept data not intended for the employee's host, unless this activity is a part of the employee's normal job/duty.

12. Circumventing user authentication or security of any host, network or account. 13. Interfering with or denying service to any user other than the employee's host (for example, denial

of service attack). 14. Using any program/script/command, or sending messages of any kind, with the intent to interfere

with, or disable, a user's terminal session, via any means, locally or via the Internet/Intranet/Extranet.

15. Providing information about, or lists of, <Company Name> employees to parties outside <Company Name>.

Email and Communications Activities

1. Sending unsolicited email messages, including the sending of "junk mail" or other advertising material to individuals who did not specifically request such material (email spam).

2. Any form of harassment via email, telephone or paging, whether through language, frequency, or size of messages.

3. Unauthorized use, or forging, of email header information. 4. Solicitation of email for any other email address, other than that of the poster's account, with the

intent to harass or to collect replies. 5. Creating or forwarding "chain letters", "Ponzi" or other "pyramid" schemes of any type. 6. Use of unsolicited email originating from within <Company Name>'s networks of other

Internet/Intranet/Extranet service providers on behalf of, or to advertise, any service hosted by <Company Name> or connected via <Company Name>'s network.

7. Posting the same or similar non-business-related messages to large numbers of Usenet newsgroups (newsgroup spam).

5.0 Enforcement Any employee found to have violated this policy may be subject to disciplinary action, up to and including termination of employment. 6.0 Definitions Term Definition Spam Unauthorized and/or unsolicited electronic mass mailings. 7.0 Revision History

Questions & Answers

"The search for static security - in the law and elsewhere -is misguided. The fact is security can only be achieved through constant change, adapting old ideas that have outlived their usefulness to current facts."

- Canadian physician, William Osler

Jeffrey T. Lemmermann, CPA, CITP, CISA, CEHChief Financial Officer / Information Officer

Precision Plus, Inc.840 Koopman Ln.Elkhorn, WI 53121

LemmermannJ@preplus.com