Brian Krebs answers questions

IDCardForBlogBrian Krebs did an AMA on Reddit today answering a bunch of questions people had for him. I suggest taking a browse through his answers.
A few quotes stood out for me.
Q: Why do you think organizations seem to prefer “learning these lessons the hard way”? It doesn’t seem to be an information gap, as most IT executives say security is important and most individual contributors share risks upward with specific steps that can be taken to remediate risks. Given the huge costs for some breaches, why do you think more organizations don’t take the easy, preventative approach?

Security in general is a hard sell. It does nothing to contribute to the bottom line, and it very often gets in the way of productivity, or stands in the way of business getting done in the way that the business has always done it. Aside from the up-front investments required, it’s even more difficult to justify sustained expenditures on security, because it’s hard to put a price on a thing not happening (that thing being a breach or incident). Full Answer

Q: We saw what happened to big-box retail last year. What’s the next big vertical to be hit?

[…] my sense is that insurance firms and healthcare providers of all sizes will be the big target, if they’re not already; they have financial and identity data, and they are ripe targets for extortion (the pay-us-or-we’ll-leak-all-your-patient-data type extortion). Full answer

Q: Android Pay, Apple Pay, and any other emerging NFC payment technologies – Do you see these as friend or foe to financial institutions?

I think mobile payments is almost a distraction from the real issue: which is how are financial institutions maturing their ability to onboard new customers beyond requiring them to regurgitate static identifiers (name, dob, ssn, address, previous address, etc) — information, by the way, which is all for sale in the underground. If you’re an FI and you’re not going beyond that stuff, all these emerging payment technologies aren’t going to help much with your fraud losses; if anything, they will compound them. Full Answer

Q: What do you think about risk vs. prevention? Has everyone “already been breached” as some analysts say?

Good cybersecurity is not about eliminating risks, but rather about managing them to an acceptable degree. There are trade-offs between security and usability, for example, or between security and privacy to a degree. I don’t believe that everyone has already been breached — not to the degree they’ve had material losses. But give it time, sure. Full Answer

Q: What about “hacktivists”?

I have a grudging respect for a lot of people involved in traditional cybercrime activities; they may have predictable and highly suspect justifications for their actions, but a lot of these guys truly are pros and have really dedicated themselves to their profession. But that’s never stopped me from outing someone who has sloppy operational security. Full Answer

Go check out the whole thing.

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Back from M3AAWG

Last week was the another M3AAWG meeting in San Francisco. The conference was packed full of really interesting sessions and things to learn. Jayne’s keynote on Tuesday was great, and brought up a lot of memories of just what it was like to be fighting spam and online abuse in the mid to late 90s. It’s somewhat amazing to me that many of the people I first met, or even just heard about are still actively working to fight abuse and make the Internet safer.
Wednesday was another great keynote from Facebook, discussing security. Facebook is committed to sharing threat information and has started the ThreatExchange website as a hub for sharing data among large companies.
One thing that was amusing was during one talk someone mentioned YubiKey for managing logins. They said many people were sharing long strings of random keys that sometimes happen because someone has accidentally triggered the one time passcode. YubiKey is awesome, if sometimes ccccccdkhjnbitklrrtnhjrdfgdlhektfnfeutgtdcib inscrutable.
As has become a bit of a M3AAWG tradition lately, Wednesday was also kilt day. There may be pictures. For those of you planning to go to Dublin, Wednesday will be kilt day as well.
The conference was great, but ended on a bit of a down note. We received word that Wednesday night a long time friend, Ellen R., passed away due to complications from a stroke. The conference held a moment of silence for her at the end. Ellen was a friend as well as a colleague. She was around on IRC when we started this crazy experiment called Word to the Wise and was always helpful and insightful. She volunteered with, and then worked for, Spamcop and then volunteered with Spamhaus. Ellen will be very missed.
I started off the conference remembering all the friends I made back in the late 90s and ended it remembering and missing those who are no longer around. Email has been one amazing journey, and doesn’t look like it’s going away anytime soon.

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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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Compromises and phishing and email

Earlier this month, Sendgrid reported that a customer account was compromised and used for phishing. At the time Sendgrid thought that it was only a single compromise. However, they did undertake a full investigation to make sure that their systems were secure.
Today they released more information about the compromise. It wasn’t simply a customer account, a Sendgrid employee’s credentials were hacked. These credentials allowed the criminals to access customer data, and mailing lists. Sendgrid has a blog post listing things customers should do and describing the changes they’re making to their systems.
Last month it was Mandrill. Today it’s Sendgrid. It could be anyone tomorrow.
Security is hard, there’s no question about it. Users have to have access. Data has to be transferred. Every user, every API, every open port is a way for a bad actor to attempt access.
While it wasn’t said directly in the Sendgrid post, it’s highly likely that the employee compromise was through email. Most compromises go back to a phish or virus email that lets the attacker access the recipient’s computer. Users must be ever vigilant.
We, the email industry, haven’t made it easy for users to be vigilant. Just this weekend my best friend contacted me asking if the email she received from her bank was a phishing email. She’s smart and she’s vigilant, and she still called the number in the email and started the process without verifying that it was really from the bank. She hung up in the transaction and then contacted me to verify the email.
She sent me headers, and there was a valid DMARC record. But, before I could tell her it wasn’t a phishing email, I had to go check the whois record for the domain in question to make sure it was the bank. It could have been a DMARC authenticated email, but not from the bank. The whois records did check out, and the mail got the all clear.
There’s no way normal people can do all this checking on every email. I can’t do it, I rely on my tagged addresses to verify the mail is legitimate. If the mail comes into an address I didn’t give the sender, then it’s not legitimate – no matter what DMARC or any other type of authentication tells me. But most people don’t have access to tagged or disposable addresses.
I don’t know what the answers are. We really can’t expect people to always be vigilant and not fall for phishing. We’re just not all present and vigilant every minute of every day.
For all of you who are going to tell me that every domain should just publish a p=reject statement I’ll point out DMARC doesn’t solve the phishing problem. As many of us predicted, phishers just move to cousin and look alike domains. DMARC may protect citi.com, but citimarketingemail.com or citi.phisher.com isn’t.
We’ve got to do better, though. We’ve got to protect our own data and our customer’s data better. Email is the gateway and that means that ESPs, with their good reputations and authentication, are prime targets for criminals.

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