The Internet of Threats

BY Richard Summerfield

Much has been made of the Internet of Things (IoT) over the last few years. Heralded as the dawning of a new technological era, or perhaps the next industrial revolution, the IoT will see smart devices of all shapes and sizes combine to create a network of connected devices communicating and sharing vast quantities of highly valuable data.

Although the technology is still in something of a nascent state, it is slowly beginning to live up to its reputation. Smart or connected devices are becoming more common, and generating considerable amounts of data. The IoT will, and is, changing the way firms do business, making new capabilities possible and introducing efficiencies to companies to help them remain competitive in an increasingly crowded marketplace.

For many companies, these predicted data flows are seemingly too good an opportunity to pass up, and firms are rushing headlong into the burgeoning IoT space. According to a report from AT&T, 'Exploring IoT Security', which surveyed 500 companies around the world with more than 1000 employees, 85 percent of organisations are exploring the prospect of implementing connected devices across their enterprises.

However, the scramble to gain a part of the IoT market is not without risks; indeed, for companies hoping to incorporate the IoT into their wider operations, the proliferation of connected devices will expose their businesses to considerable cyber security risks. AT&T’s data suggests that just 10 percent of the firms surveyed are confident in the security of connected devices. With more and more companies marrying their products with connected technology, the importance of effective and efficient cyber security is obvious. According to AT&T, by 2020 there will be around 50 billion smart devices ‘in the wild’. With smart technology finding its way into everything from home heating systems to cars, organisations cannot afford to neglect their cyber security obligations.

Given that the cost of a cyber attack can run into the millions, organisations must be prepared - yet data suggests that many companies are still scrambling to get their houses in order. Alarmingly, the report notes that only 47 percent of respondents say their organisations analyse connected device security logs and alerts more than once a day. Furthermore, only 14 percent of companies have instituted a formal auditing process to help understand whether their devices are secure and how many devices they have; only 17 percent of companies involve their boards in decision-making around IoT security.Obviously, improvement is needed. 

Efforts are underway to improve cyber security provisions. The report recommends that companies: (i) assess their risk; (ii) secure both information and devices; (iii) align their organisation and governance for IoT; and (iv) define their legal and regulatory issues.

Clearly, these measures would be a good starting point for any firm; however, more must be done - and quickly, if the IoT is to fulfil its potential as a true technological game changer.

Report: Exploring IoT Security

Fifth column risks rise - EY

BY Richard Summerfield

Cyber breaches and the threat posed by malicious insiders are two of the biggest risks driving investment in global forensic data analytics (FDA), according a new report from EY.

EY's 2016 global forensic data analytics survey, ‘Shifting into high gear: mitigating risks and demonstrating returns’, notes that insider threats  in particular offer the biggest risk to organisations becoming a victim of fraud, corruption or data loss. The most prominent forms of inside threat, according to respondents, include malicious insiders stealing, manipulating or destroying data.

The survey questioned 665 executives globally across a wide range of industries including the financial services, life sciences, manufacturing and power and utilities sectors. From the available data, it is clear that concerns around cyber security are helping to crystalise opinions across industry boundaries; indeed, companies are turning to FDA to try to counteract cyber threats.

Companies have been spurred into action by increasing activity among cyber criminals as well as aggressive regulatory pressure. Rising demands from both governmental bodies and the general public is driving much of the investment in FDA, notes EY. Forty-three percent of respondents claimed regulatory pressure was one of the main driving forces behind their FDA investment, second only to the burgeoning threat posed by cyber crime.

Of those executives surveyed, 44 percent reported an increasing level of concern over “bribery and corruption risk” while 62 percent noted an increasing concern over  “cyber breach or insider threat”.

Given the recent spate of major, headline grabbing cyber attacks, it is little surprise that breaches are weighing heavily on executive minds the world over. As companies take steps to protect their physical and digital assets from internal and external threats, the FDA will continue to play an important role in helping them navigate such risks. Given the size of the fines and sanctions imposed on companies and individuals in recent years, c-suites are understandably concerned about regulatory enforcement around cyber risk.

With the c-suite increasingly worried about the threat of cyber risk and malicious internal actors

Many companies have been pouring considerable resources into bolstering their FDA efforts in recent years. Spend is expected to continue throughout 2016. In 2014, 64 percent of those surveyed believed that their investment in FDA was adequate, while in the latest survey only 55 percent felt the same. Furthermore, three out of five respondents said they intend to increase their FDA spend over the next two years.

Report: Shifting into high gear: mitigating risks and demonstrating returns

Cyber jobs boom

BY Richard Summerfield

Thanks to the increasing sophistication of cyber criminals and the technological weapons available to them, instances of cyber crime and terrorism have increased exponentially in recent years.

Though firms have been aware of the nascent threat of cyber crime for some time, many of them are largely unprepared to tackle the problem. However, with more and more high profile cyber breaches occurring, firms are beginning to fight back.

Organisations worldwide are looking to bolster their cyber security defences, and though the demand for competent and effective cyber security professionals is high, there is still a serious skill shortage. In the US alone, more than 209,000 cyber security jobs are currently unfilled, and job postings for cyber professionals are up 74 percent over the past five years, according to a 2015 analysis from the Bureau of Labour Statistics by Peninsula Press.

Globally, the figure for cyber security job openings is believed to be around one million, according to a new report from Cisco.

Cisco’s report notes, however, that the hiring of a raft of new cyber security officials should form just part of a wider cyber response plan. The report recommends that all organisations establish a separate security incident response team. The importance of this response team is likely to increase as organisations become more reliant on technology.

The Internet of Things (IoT) will also have a profound impact on the way companies conduct business. With the IoT security market expected to grow from $6.89bn in 2015 to nearly $29bn by 2020, the opportunities for cyber security professionals in the near future will be plentiful. As more connected or smart devices find their way into our personal and professional lives, the size of the market will grow exponentially.

However, the growth of IoT will present a number of challenges in the years to come. Organisations will need to marry IT and operational technology, in turn giving adversaries new targets such as vehicles, buildings and manufacturing plants, according to Cisco.

Moving forward, the report recommends that companies look to appoint a varied and diverse number of cyber security professionals. The modern chief information security officer should have at her disposal skilled security professionals covering a range of areas. This is particularly important given consumers' growing awareness of cyber and data security issues.

Report: Mitigating the Cybersecurity Skills Shortage

NYC banking regulator reveals cyber security guidelines

BY Richard Summerfield

Unless you have been living under a rock for the last few years, it will not have escaped your attention that instances of cyber crime have become increasingly prevalent in the business community. It seems not a week goes by without a cyber breach grabbing the headlines – along with a swathe of sensitive data.

Various regulatory bodies have taken steps to guide firms through the minefield of cyber security. This week, New York’s leading banking regulator – the New York Financial Department of Services (NYDFS) – became the latest to follow suit. The NYDFS felt motivated to act as, in its own words, it "considers cyber security to be among the most critical issues facing the financial world today".

In a letter to other state and federal regulators, including the US Office of the Comptroller of the Currency and Federal Reserve Board of Governors, the NYDFS revealed details about its potential new cyber security regulations for the banks and insurance companies which fall under its jurisdiction. These regulations could include a requirement for institutions to notify companies of data breaches. "It is our hope that this letter will help spark additional dialogue, collaboration and, ultimately, regulatory convergence among our agencies on new, strong cyber security standards for financial institutions," wrote Anthony Albanese, NYDFS’ acting superintendent.

Organisations would also be obliged to ensure that contracts with third parties included a set of rules designed to keep sensitive data safe, including the use of multi-factor authentication, both internally and on customer log-on pages, and data encryption. Two step authentication is becoming increasingly popular online. Social media giants like Facebook and Twitter, services such as Gmail, and even online video games now offer multistep authentication. As such, it seems only logical that financial institutions embrace the technology.

Firms would also be required to appoint a chief information security officer if they do not already have one. The CISO would be responsible for overseeing policy, while cyber security staff would be required to undergo mandatory training.

Under potential new regulations, third party vendors – such as law firms, data processors and auditors – would also be required to achieve compliance moving forward.

News: NY banking regulator unveils details on planned cyber security rule

Lessons not learned as cyber crime still rife

BY Richard Summerfield

Companies operating in the current business climate face myriad difficulties and obstacles. One of the most potent and potentially damaging of these challenges is the scourge of cyber crime and cyber terrorism.

One need only look at the attacks on Ashley Madison, Sony and Target to see the extent of the financial, personal and reputational damage that cyber crime can inflict on companies and individuals.

Given the size and scale of some the most recent cyber attacks, it is difficult to imagine companies neglecting their cyber security obligations. However, according to a new report from PwC, nearly 10 percent of UK companies do not know how many cyber attacks they have suffered in recent years.

Furthermore, 14 percent of companies do not know how the attacks occurred. This is particularly disturbing as detected breaches in workplace security systems increased by 38 percent in the past year, according to PwC.

Cyber attacks via mobile phones in particular are becoming much more common. Thirty-six percent of respondents reported an increase in mobile attacks, up considerably from the 24 percent recoded last year. The average cost of those attacks is around £1.7m, the report notes.

PwC’s annual survey took in the opinions of more than 10,000 executives in more than 127 different countries. Much of the damage caused by cyber crime, according to the report, results from the actions of current staff members. Former employees were also a major source of cyber criminality.

But attitudes toward cyber security are changing. According to Dave Burg, global and US cyber security leader at PwC, the survey demonstrated a burgeoning awareness among corporates, many of whom are starting to act and think seriously about cyber security.

“We are seeing an increase in awareness of the risk and opportunities, and more boards are becoming more actively engaged in cyber security preparedness," said Mr Burg.

Despite the increase in boardroom awareness, more can and should be done at board level. The survey noted that 55 percent of boards do not participate in the overall security strategy. Furthermore, 42 percent of companies do not have an overall information strategy.

Report: The Global State of Information Security Survey 2016