A Lack of Employee Cyber Hygiene is the Next Big Threat

A new report suggests that everything from endpoints, to passwords, to training, to security policies, to a lack of awareness is all contributing to much higher risk of cyberattack.

Employee cyber risk is a multifaceted issue that revolves a lot around cyber hygiene, according to new data in Mobile Mentor’s inaugural Endpoint Ecosystem Report. It involves a number of issues that organizations are going to need to address effectively and quickly.

A few issues I really want to highlight here include passwordsdevice use, and a lack of proper trainingDespite most phishing attacks focusing on credentials, employees still have terrible password hygiene:

  • Gen-Z employees have more than 20 work passwords and type more than 16 passwords daily
  • 69% of employees admit to choosing passwords that are easy to remember
  • 29% of employees write their passwords down in a journal
  • 24% store passwords in a Notes app on their phone

But the device is secure, right? Wrong.

Only 43% of organizations have BYOD securely enabled, with just one-third of employees able to securely access corporate systems, data, and apps from personal devices. With 64% of employees using a personal device for work, this is a massive risk.

So, these companies are making up for it by properly training their employees about cyberattacks, vigilance, good hygiene, etc., right? Again, wrong.

According to the report only 25% of in-office workers receive security training monthly. Remote employees have it a bit better (with 43% receiving training), but it’s evident by just the poor password hygiene that organizational leadership isn’t taking this seriously and aren’t looking to elevate the individual employee’s mindset around the need to be secure while working – and the employee’s role in helping to maintain that state of security.

Those organizations focused on continual Security Awareness Training demonstrate a commitment to seeing every aspect of the employee’s interaction with corporate resources, applications, and data on the one hand (with email and the web on the other) be as secure as possible – starting with the employee’s own awareness being elevated to a state of vigilance to ensure better cyber hygiene and a more secure organization.

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Microcredentials standardised at last

The government has released its National Microcredentials Framework (NMF) to unify the emerging education sector.

Recognising the lack of consensus about just what a microcredential is and how it should be recognised by employers, an expert working group developed the framework after examining over 35 different organisations’ definitions of the word – and consulted with over 120 individuals from 70 academic, business and training organisations in the process.

“Technological change, coupled with rapid transformation brought about by COVID-19, have elevated the potential for microcredentials to rapidly upskill and reskill the workforce,” the report’s authors note while adding that “the microcredentials ecosystem is disparate, lacking even a consistent definition across higher education, vocational education, and industry.”

“A framework can help reduce complications for learners seeking to make a decision on what to learn, for recognising bodies or providers seeking to recognise a microcredential for credit, and for employers or professional bodies seeking to understand the learning outcomes and capabilities of employees.”

The standard sets a national definition of microcredentials, agrees on unifying principles for the courses, establishes critical information requirements, and outlines a minimum standard that microcredentials must meet to be featured on the government’s new Microcredentials Marketplace.

That marketplace – which was announced by the government in June 2020 and awarded to the Universities Admissions Centre (UAC) last July – will provide a consistent view of available microcredentials that will enable potential students to compare short courses and ‘stack’ them to build complete qualifications whose clarity will make them more helpful for potential employers.

To be included in the Microcredentials Marketplace, microcredential institutions must provide clear learning outcomes and transparent assessments; use Australian Core Skills Framework descriptors; and stipulate the volume of learning, which must be more than one hour and less than a formal Australian Qualifications Framework (AQF) qualification.

Microcredentials may use “best-fit or estimate” techniques to recognise non-credit-bearing microcredentials; reflect industry recognition, where they are recognised by professional bodies as counting towards an industry or vendor certification; and clearly demonstrate credit recognition against AQF criteria, where applicable.

The NMF also requires authorities to provide a “statement of assurance of quality” that describes the provider, its quality assurance processes, and the processes by which the microcredentials are reviewed and updated.

“It is hoped that the development and implementation of this framework in conjunction with the Marketplace will encourage greater cohesion in the design, development and delivery of microcredentials across both the Australian education system and broader industry,” the report notes.

Disrupting the unis

Australia’s “massively fragmented and tough” credentialing innovation sector has long kept it lagging behind regional innovators like Singapore, Malaysia and the EU, warned Dr Katy McDevitt, a former Deakin University microcredential designer who is now chief learning officer at multinational microcredentials provider HEX – which has affiliations with 37 universities and has worked with over 5,000 students.

The NMF “is a major practical contribution towards making it simpler for education providers to get traction in designing meaningful credentials,” McDevitt said, warning that “tech-powered transformations are happening at a phenomenal pace.”

“The longer we spend defining the basics of a form of education technology that has now existed for the best part of a decade, the more out of step we become with the real and fast emerging future needs of the economy.”

Momentum for microcredentials has been building in recent years as increasing demand for current IT and other skills challenges universities that require years of commitment to complete broad degrees whose specific deliverables are often hard for employers to evaluate.

In 2019, a review of the AQF warned that existing “highly generic” credentials were unsuitable for the modern workforce and relied on outcome statements that were “not meaningful” in a world characterised by “a constant state of disruption and innovation.”

Aiming to help workers better understand the skills they need to get IT jobs, organisations such as the Australian Computer Society (ACS) and OpenLearning have worked to establish standards for microcredentials – but the NMF aims to simplify the landscape by mapping these and other courses against common definitions.

Standardising the currently disjointed market for microcredentials – and ensuring that certifications are universally recognised – could threaten the tertiary sector’s long-held control over formal knowledge acquisition, former educational director and consultant Paul Corcoran argued in a recent evaluation of the sector’s biggest challenges.

“Current discussions around microcredentials sometimes have the feel of an answer in search of a question,” he said, noting that “the virtues of microcredentials are being extolled but take-up is fragmented and stakeholders appear to have mixed views on the utility and quality of those credentials.”

Microcredentials allow job seekers to demonstrate more specific skills than is possible using ‘macrocredentials’ such as university degrees, Corcoran notes in advocating for a standardised national framework – as well as allowing individuals to have their skills “recognised in a more timely manner than is possible with macrocredentials”

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Email Conversation Hacking to Distribute Malware

Researchers at Intezer warn that attackers are hijacking email conversations to distribute the IcedID banking Trojan. This technique makes the phishing emails appear more legitimate and helps them bypass security filters.

“In the new IcedID campaign we have discovered a further evolution of the threat actors’ technique,” the researchers write. “The threat actor now uses compromised Microsoft Exchange servers to send the phishing emails from the account that they stole from. The payload has also moved away from using office documents to the use of ISO files with a Windows LNK file and a DLL file. The use of ISO files allows the threat actor to bypass the Mark-of-the-Web controls, resulting in execution of the malware without warning to the user. With regards to targeting, we have seen organizations within energy, healthcare, law, and pharmaceutical sectors.”

The researchers explain that conversation hijacking is “a powerful social engineering technique” because the phishing email appears to be coming from a trusted contact.

“The attack-chain starts with a phishing email,” the researchers write. “The email includes a message about some important document and has a password protected ‘zip’ archive file attached. The password to the archive is given in the email body…. What makes the phishing email more convincing is that it’s using conversation hijacking (thread hijacking). A forged reply to a previous stolen email is being used. Additionally, the email has also been sent from the email account from whom the email was stolen from.”

While this tactic isn’t unique to this threat actor, the researchers note that this development shows that the attackers are continuing to improve their operations.

“In the current mid-March campaign, we have discovered reuse of the same stolen conversation now being sent from the email address that received the latest email,” Intezer says. “Back in January when this conversation was also used, the “FROM” address was “webmaster@[REDACTED].com” with the name of the recipient of the last email in the conversation. By using this approach, the email appears more legitimate and is transported through the normal channels which can also include security products.”

New-school security awareness training can enable your employees to thwart social engineering attacks.

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Buy Now, Pay Later Scams

Fraudsters are taking advantage of the buy-now, pay-later (BNPL) payment model, according to Jim Ducharme, COO of Outseer. On the CyberWire’s Hacking Humans podcast, Ducharme explained that scammers can either impersonate victims or take over their accounts in order to make fraudulent purchases.

“In some cases, you know, it’s really what’s old is new,” Ducharme said. “Attackers are using a lot of the same techniques they used before, either account takeover or, in some cases, a new type of fraud called synthetic identity fraud. And what that really is, in synthetic identity fraud, when a fraudster goes to check out, they’ll use social engineering or other means to basically steal somebody’s identity and pretend to be you and just have the merchandise shipped to them. So, we see this quite a bit where, you know, somebody creates an identity or uses a synthetic identity to pretend to be somebody, get that installment plan, purchase the goods and services, and then by the time fraud is detected, the rip-off has already happened, if you will. In the case of account takeover, you know, again, a similar sort of thing where people are stealing credentials or ways to get into an account so that they can again enable this new way to pay and basically steal those goods and services using somebody else’s account or identity.”

Ducharme added that these BNPL providers may also be more susceptible to fraud because they have less experience than traditional credit card companies.

“With your credit card, as you probably know, the consumer is typically not responsible for the fraud, and the credit card company’s responsible for that,” Ducharme said. “And so they’ve put a number of controls in place to help prevent fraud and mitigate that risk. And so what we’re seeing is in – you know, with these new buy-now, pay-later methods, you know, we have to look at those same things. And in these cases, these buy-now, pay-later companies are typically going to be held liable to that fraud. But, again, some of the newer companies don’t necessarily have the decades of fraud prevention capabilities in place or even the sophistication of the new attack patterns of, you know, fraud at the point of an account enrollment versus what we’re typically, you know, what we’ve traditionally done for fraud prevention at the point of a transaction.”

New-school security awareness training can give your employees a healthy sense of suspicion so they can avoid falling for social engineering attacks.

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Fidelity: “Why cybersecurity is material to all industries”

Fidelity just published an article titled “Cybersecurity: A growing risk”. They note that the threat of Russian cyberattacks highlights vulnerabilities across industries. I’m quoting a small section and I suggest you read the rest of the article here.

Why cybersecurity is material to all industries

At Fidelity, we view cybersecurity as a material consideration across its proprietary environmental, social, and governance (ESG) research and ratings.
For example, within the “E,” cyberthreats are relevant to drinking water and wastewater systems that are infrastructure-intensive; in the “S,” lax supply-chain management can hurt data security; and in the “G,” cyberattacks can disrupt business operations, hurt share prices, and threaten management. We have found that cybersecurity is impacting every industry, in part due to accelerated trends in digitization and use of the cloud.
Utilities and energy companies have traditionally emphasized physical security of their assets over cybersecurity, but we expect the trend to shift for a number of reasons. First, critical infrastructure has increasingly been a target for cyber and ransomware attacks. Second, the increased connection of smart devices, coupled with legacy infrastructure that was not built to be connected to the internet, elevates potential vulnerabilities. Third, the Biden administration and Department of Energy recently issued a “100-Day Plan for Cybersecurity” for the electric power sector to identify and deploy new technology to identify and prevent such attacks.
CONTINUED:
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Phishing Attack-Turned-Wire Fraud Case Sees a Win for the Policyholder

In an unusual turn of events, a recent court decision sided with the policyholder, despite specific policy language that probably should have favored the insurer.

The case of Ernst & Haas Mgt. Co. v. Hiscox, Inc isn’t entirely unique. The simple version of the case is an employee at Ernst & Haas gets a BEC phishing email impersonating a superior and the employee wires $200K to a cybercriminal-controlled bank account. Ernst & Haas submit a claim against their cyberinsurance with insurer Hiscox that is denied. And so we find the two in court.

What makes this an interesting case is cyberinsurers are *very* specific about policy verbiage to define what is and isn’t covered. In this case, the two coverage parts in question were:

(1) the Computer Fraud coverage, which covers losses “resulting directly from the use of any computer to fraudulently cause a transfer of that property”; and (2) Funds Transfer Fraud coverage, which covers loss “resulting directly from a [Fraudulent Instruction] to transfer, pay or deliver money” from the policyholder’s bank. Fraudulent Instruction was defined as an “instruction initially received by [the policyholder] which purports to have been transmitted by an Employee but which was in fact fraudulently transmitted by someone else without … the Employee’s knowledge or consent.”

The court sided with Ernst & Haas, despite the specifics of the attack not meeting either clause: The attack wasn’t Computer Fraud (as defined above), as it was a social engineering attack with the employee using the company computer. And it doesn’t appear to be Funds Transfer Fraud (again, as defined above), as the fraudulent instruction wasn’t initially sent to the policyholder.

The takeaway from this case is that insurers don’t always win. However, organizations shouldn’t count on this; it’s one of the reasons such specificity is used when defining the circumstances in which a policy claim will be paid. It’s a far better position to simply put procedures in place that require validating wire transfer requests using a separate medium, as well as have employees with access to perform transfers enroll in Security Awareness Training to maintain a sense of vigilance when interacting daily with such requests.

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Published Zelenskyy Deepfake Video Demonstrates the Modern War is Online

The video uploaded to a hacked Ukrainian news website shows how far the technology has come, how it can be used in social engineering, as well as how the tech still needs to improve.

While much of the headlines today around the Russian invasion of Ukraine focus on the war on the ground and in the air, behind the scenes, a cyberwar is being waged. It began with wiper ransomware attacks on Ukrainian businesses and government agencies, and has culminated so far with a newly released deepfake video of Ukrainian president Zelenskyy asking his troops to lay down their weapons and surrender.

 

At face value, the deepfake looks pretty good, but if one is paying attention, it becomes obvious this isn’t the real president and the video can be seen for what it truly is. The use of cyberattacks – whether based on malware, social engineering, or both – is the new front lines of modern warfare. Yesterday, the White House even put out a statement about how both government and private sector businesses should harden their cyberdefenses immediately in light of possible cyberattacks from Russia.

And because the modern war is online, no business within a targeted country is safe – that’s not FUD; that’s fact. We’ve historically seen cyberattacks executed in both a random spray using millions of email addresses, as well as precision-targeted attacks on specific people within one organization – and everything in between.

The deepfake video also shows how cyberattackers will use the most credible and effective means to get targeted victims of an attack to take the desired action – whether it’s laying down a weapon, clicking a link, or opening at attachment; each one can have devastating results in their own right.

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Chameleons Phish, Too

One of the challenges cyber criminals face is that their scams often have a relatively short shelf-life. Once they’ve been used, the gaff is quickly blown, and the scammers hope to realize their gains before most of the potential marks are wise to the scam.

Researchers at Trustwave describe a way in which criminals are trying to get more mileage out of their coding, specifically by developing “chameleon” phishing pages that adapt to their victims’ expectations and so escape exposure. They’re turning up in scams that seek to harvest credentials from unwary victims.

“Recently, we encountered an interesting phishing webpage that caught our interest because it acts like a chameleon by changing and blending its color based on its environment. In addition, the site adapts its background page and logo depending on user input to trick its victims into giving away their email credentials,” the researchers say. “This custom phishing site acts like a chameleon, by changing and blending its images to camouflage itself. There were four noticeable web elements that changed whenever we tested a crafted email address in the browser:

  • “The page’s background
  • “A blurred logo
  • “The title tab
  • “The capitalized text of the domain from the email address provider.”

The goal, again, is to give the scam legs, to enable it to stay in use longer. Here’s an example of how it changes for Gmail vs Outlook:

Trustwave-chameleon-phishing-website-pagesSource: Trustwave

“Phishing webpages are often taken down in a matter of minutes or become unavailable as soon as information security companies detect them as being malicious,” Trustwave explains. “These templated, or so-called chameleon phishing sites, are used repeatedly by malware authors using the clever tricks we just detailed to fool the user into thinking these pages are real. The phishers can easily customize the template and use other domains to host these scripts, allowing attackers to prey on unsuspecting users over and over again.”

Chameleon phishing sites represent another move toward commodifying malware and scamming techniques. New school security awareness training can help users see through the impostures that make their way through an organization’s filters.

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[Heads Up] New Evil Ransomware Feature: Disk Wiper if You Don’t Pay

There is a new ransomware-as-a-service (RaaS) strain called LokiLocker, researchers at Blackberry warn. The malware uses rare code obfuscation and includes a file wiper component that attackers can deploy if their victims don’t pay. “It shouldn’t be confused with an older ransomware family called Locky, which was notorious in 2016, or LokiBot, which is an infostealer.

“LokiLocker is a relatively new ransomware family targeting English-speaking victims and Windows PCs. The threat was first seen in the wild in mid-August 2021,” researchers from BlackBerry’s Research & Intelligence Team said in a new report.  The BlackBerry researchers estimate that LokiLocker currently has around 30 affiliates.

LokiLocker’s technical capabilities

When first executed on a computer, LokiLocker copies itself as %ProgramData%/winlogon.exe and then sets up persistence by using a scheduled task and a start-up registry entries. The malware has a config file that affiliates can customise and which can be used to instruct the malware to:

  • Display a fake Windows Update screen
  • Kill specific processes and stop specific system services
  • Disable the Windows Task Manager
  • Delete system back-ups and Shadow Volume copies
  • Disable the Windows Error Recovery and Windows Firewall
  • Remove system restore points
  • Empty the Recycle Bin
    Disable Windows Defender
  • Change the message displayed on the user’s login screen

“At the time of writing this, there is no free tool to decrypt files encrypted by LokiLocker,” the BlackBerry researchers said. “If you are already infected with LokiLocker ransomware, the recommendation by most official security authorities such as the FBI is to not pay the ransom.”

There are options to only encrypt the C drive, or to skip the C drive. The malware also has network scanning functionality, which can be used to detect and encrypt network shares, but using this functionality is also configurable.

Finally, LokiLocker contains a wiper module that will attempt to delete files from all local drives and then overwrite the hard drive’s Master Boot Record (MBR), which will leave the system unable to boot into the operating system.

Instead, the user will see a message reading: “You did not pay us, so we deleted all your files.” The wiper functionality will automatically trigger based on a timer that’s set to 30 days but is configurable.

It’s not clear who are the authors of LokiLocker, but the BlackBerry researchers noted that the debugging strings found in the malware are written in English without any major spelling mistakes that are sometimes common with Russian or Chinese malware developers. Instead, there are some potential links to Iran, but these could be planted to throw off malware researchers.

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Will Russia unplug from the world? China-style filter to block outside war reporting.

More than 114 million Internet users in Russia may be disconnected from the global Internet within days, with reports suggesting the country’s government will use technical measures to block its population from foreign reporting about its invasion of Ukraine.

Reports suggest Russia is now transitioning Internet service providers to state-controlled DNS (domain name service) servers, enabling government regulator Roskomnadzor to explicitly ban outside news, video, communication and other services.

That amounts to an information blackout for the estimated 76.9 per cent of the population that has Internet access in Russia, whose government has blocked Western information services such as Twitter and Meta-owned Facebook and Instagram.

The latter service was recently blacklisted after suspending normal content rules that would have previously banned users who called for violence against Russian President Vladimir Putin and the soldiers currently demolishing Ukraine’s civilian areas.

Yet banning those services is just the run-up to what analysts believe could be the complete disconnection of the country’s population.

Russia’s government has been preparing for such a move for years – banning virtual private networks (VPNs) and proxy services; blocking access to the Tor anonymity network used by the BBC and others; and passing a ‘sovereign Internet’ law in 2019 enabling complete disconnection that would shift the country to a Russia-only domestic Internet.

Yet while it might block consumer services, the system is unlikely to prove impenetrable, argue analysts from threat-intelligence firm Flashpoint, who note that hackers are already trading strategies for bypassing technical controls.

“Due to the infrastructure of Russia’s Internet,” the firm notes, “a ‘kill switch’ for outside Internet communication is a significant undertaking.”

“Although the Russian government claims to have already set up this infrastructure, it remains questionable whether the infrastructure would pass its first real-life test.”

The great Ural filter

Russia’s push to block access to unfiltered reporting is a deep nod to China’s long-running ‘Great Firewall of China’ – a collection of URL blockers and other technical controls that prevent Chinese citizens from accessing Western Internet services.

The Great Firewall works at low level to actively interfere with requests to outside services using a combination of blocking methods that include deep packet filtering, DNS spoofing, IP range banning, packet forging, and more.

Its pervasive interference has complicated life for outside information services like Google, which exited the Chinese market after government demands for censorship.

In 2019 Google shut down Project Dragonfly, a skunkworks project initially designed as a compromise before widespread employee protests saw it axed.

“We’ve seen forever that the Fourth Estate is a valid intel gathering target for governments with different levels of, shall we say, ability to absorb negative press,” said Alex Tilley, counter threat unit lead researcher with Secureworks, who was watching media organisations become prime targets of information warfare even before the invasion.

“Everyone’s come to understand that this is how intelligence is done in the 2020s,” Tilley said, referencing ongoing hacking and blocking campaigns such as the recent hack of News Corp attributed to the Chinese government.

“There’s a thirst for information to understand how they how their response is being viewed, and who is talking to journalists about what they’re doing inside their country.”

“That level of understanding of what’s going on is at its highest peak now, if not during a time of war. It’s just how this is all done now.”

The success of China’s nationwide filter has had a chilling effect on freedom of expression in that country and seems to have become an aspirational goal for Russia, which has cosied up to its increasingly uncomfortable neighbour and this week asked China to provide military and economic assistance.

Just as the government of Iran also orchestrated a nationwide shutdown of Internet services, blocks on popular content-sharing services will support Russia’s propaganda machine by letting it control the public narrative around its systematic annihilation of Ukrainian civilians.

Yet whether Russia can completely disconnect from the world remain to be seen, Flashpoint analysts warn: “While Russian domestic technology firms can make some restrictions possible,” they concluded, “claims that the Kremlin can ‘flip a switch’ and isolate their population from the Internet are mostly propaganda.”

“Unlike Iran or China, which built a disconnected Internet infrastructure much earlier, the scale of the task for Russia is enormous and requires immense coordination…. It is presently unclear whether Russia meets the technical conditions for an effective disconnection.”

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