We're all targets

Last week, another email provider announced their systems had a security incident. Mandrill’s internal security team detected unusual activity and took the servers offline to investigate. While there’s no sign any data was compromised or servers infiltrated, Mandrill sent an email to their customers explaining the incident was due to a firewall rule change.
Email service providers are a high value target for hackers, even if all they have is email addresses. Selling the email addresses is extremely profitable for hackers who can either sell the list outright or sell access to the list. In addition to gaining access to the email addresses, hackers often use the ESP to send these messages essentially stealing the ESP’s reputation to deliver the spam.
It was just over four years ago when a number of major ESPs were targets of a large attack and multiple ESPs were compromised. Earlier this month, three people were arrested for their roles in the attack. While the attacks four years ago were primarily spear phishing attacks, the security incident at Mandrill shows that hackers and botnets are actively probing the ESP’s network looking for access or known vulnerabilities. Spear phishing is an attempt to gain unauthorized access to a system by specifically targeting an individual, group, or organization. The scam attempts to have the user to click a link to infect their computer and network or capture their user id and password via a fake website. The scam email may appear to be sent from the company’s security or human resources department, but the email is either forged or another user’s account has been compromised.
Just because recent arrests have been made does not mean the threat is over. Systems often change, are upgraded, and are integrated with many additional services and systems can become vulnerable.  Security will never be a set and forget policy. In the last 12 months there has been two significant vulnerabilities discovered, first Heartbleed and second was POODLE. Security professionals from all industries had to react quickly to secure their systems and hackers immediately began probing for systems that were unpatched. GFI reports there were over 7,000 vulnerabilities discovered in 2014 with 24% of them being rated as high severity. Security must not only cover servers, but the transmission of the data internally and with third-party vendors, and the workstations of employees.
IT and security professionals must be ever vigilant in protecting their network and their customers data. SANS Institute provides a number of security control best practices including a document on Data Protection. The control recommendations range from quick wins to advanced considerations such as monitoring all traffic leaving the organization and being able to detect any unauthorized or unusual transfer of data, blocking access to file transfer protocols and file sharing websites, performing annual reviews of all keys, certifications, and security procedures.
One of the best ways to help the entire industry to be secure is to be transparent and open when incidents happen. Mandrill has published a blog post with the results of their investigation.

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Time for a real security response

I’ve seen a number of people and blogs address the recent breaches at some large ESPs make recommendations on how to fix things. Most of them are so far from right they’re not even wrong.
One group is pointing at consumers and insisting consumers be taught to secure their machines. But consumers weren’t compromised here.
Another group is pointing to senders and insisting senders start authenticating all their email. But the failure wasn’t in authentication and some of the mail is coming through the ESP systems and is authenticated.
Still others are claiming that ISPs need to step up their filtering. But the problem wasn’t with the ISPs letting too much email through.
The other thing that’s been interesting is to watch groups jump on this issue to promote their pet best practices. DKIM proponents are insisting everyone sign email with DKIM. Extended SSL proponents are insisting everyone use extended SSL. But the problem wasn’t with unsigned email or website trust.
All of these solutions fail to address the underlying issue:
ESPs do not have sufficient security in place to prevent hackers from getting into their systems and stealing their customers’ data.
ESPs must address real security issues. Not security issues with sending mail, but restricting the ability of hackers to get into their systems. This includes employee training as well as hardening of systems. These are valuable databases that can be compromised by getting someone inside support to click on a phish link.
Not everyone inside an ESP needs access to address lists. Not everyone inside an ESP customer needs full access to address lists. ESPs must implement controls on who can touch, modify, or download address lists.  These controls must address technical attacks, spear phishing attacks and social engineering attacks.
What’s happening here actually looks a lot like the Comodo certificate attack or the RSA compromise.
It’s time for the ESP industry to step up and start taking system security seriously.

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ESPs and consolidation

Earlier this week Bloomberg news reported that an anonymous source  told them Verizon was looking to acquire or investigate a partnership with AOL. It didn’t take long for the Verizon CEO to quash the acquisition rumors. Acquisitions and partnerships have always been around in technology, this is nothing new. But it made me think a little bit about the acquisitions and mergers in the ESP space.
The last 2 years have seen unexpected purchases of ESPs. Oracle bought Eloqua. Deluxe acquired Vertical Response. IBM has acquired a number of players in the email space, including parts of mail.com, SilverPop and Pivotal Veracity. eBay acquired e-Dialog. Salesforce acquired ExactTarget. Big companies seem to use the acquisition process to acquire the technology needed to send mail to and on behalf of their customers.
I’ve heard some people claim this is the beginning of the end of the stand alone ESP. I disagree. I think there is enough market demand to support stand alone ESPs. But the market is crowded and there are a lot of ESPs out there. There will be some consolidation. Some ESPs will be bought, either for their technology or their staff. Some ESPs will change and add more features. Some big companies will decide to install big appliances to run their own marketing in house.
Things will change but that’s what happen as a market matures. And the ESP market is maturing.
Who do you think will be bought next?

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Aetna, phishing and security

We’ve just gotten home from M3AAWG and I’m catching up with a lot of the administrative stuff that’s gotten ignored while we were soaking up the tons of information from some of the smartest Internet security folks around. One of the tasks I’m working on is checking on our recent bills from our health insurance provider. Their website seems to be down, so I called them up and asked them if it was down or if something was broken on my end.
They did confirm there was a problem with the site “earlier today” but then started asking me for my account information. They’ve promised to email me a new password because of reasons.
One of the things about M3AAWG is that concentrated discussions about spam and online criminals and security can make everything feel so fragile and security so inadequate to protect us against criminals. I start thinking that everything is compromised. It doesn’t help that websites fail just at the time when I start trying to figure out if my personal information leaked out.
In the course of trying to figure out if there is something wrong at Aetna and if my personal information is safe, I find an article about how poor security is for health companies. “Health companies flunked an email security survey—except Aetna.” Apparently, out of all the health companies out there, Aetna are the only ones fully implementing DMARC on all their mail streams.
The problem is that for the mail I received from Aetna, the visible From: address is AetnaeBilling@aetnagroupbilling.com. This is one of the major vulnerabilities of DMARC. How can I, as a recipient, tell that this is officially mail from Aetna? Any phisher could register “aetnabilling.com” or “aetnagoupbilling.com” or “aetnaebilling.com” and publish DMARC records and use those records to phish customers. Even worse, aetnagroupbilling.com isn’t a SSL registered website.
This is exactly the type of setup a phisher would use to gain access to people’s health insurance accounts. And Aetna offers the ability to draft payments directly from a business checking account, so breaking into the billing account also offers some level of access to the business money.
Do I think this is a phish? No.
Do I think the average person would be able to tell that? No.
There’s got to be a better way to secure folks online.

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