Ransomware, Phishing and other Malware

What are the questions business owners ask when considering cyber security?

Another good question, or perhaps it should be, do they ask any questions, other than cost, about cyber security, or do they leave everything up to their IT support, whether contracted or in house?

What is the cost of ignoring cyber security?

Perhaps this is the first question that they should be asking.  The financial hit of a data breach can be crippling, especially for the smaller businesses who are perhaps running on tight margins and for whom cash flow is often critical.  The average clean up for a smallish business is about £27K. this relates to system restoration, hardware replacement, and the implementation of enhanced security measures. and doesn’t include financial loss from the actual data stolen, or whatever scam was perpetrated, and any fall out from compliance failures, such as fines from the ICO.  And at least a third of organisations admit to losing customers post a data breach, highlighting reputational damage and a loss of customer trust.

So, what should owners, managers and board members be asking?

I think many get bogged down in the technicalities of IT and don’t consider it in business terms.  They don’t think about the business impact of cyber security, about what it is they’re trying to protect.  It’s not your IT systems, it’s your data that is the crown jewels.  IT systems can be replaced but once the data is stolen, then you are in very real trouble.

Risk Management

First and foremost, the board members need to ask themselves if they have a good handle on their cyber risk.  Have they identified their cyber assets?  What is a cyber asset? Cyber assets are not just hardware and software, in fact those are often the least of your worries.  It’s the data, where it is and how it’s protected that is important.  Have you assessed the risk to those assets?  Have you assessed the training requirements for your staff, not just the techies but all staff?  Think People, Process and then Technology.

Once you have done this, then you can consider what controls need to be put in place to reduce the risk to an acceptable level.

Below is some of the controls you will need to consider.  This list is not exhaustive

1.        User Access Control (Admin access is a whole other discussion)

This isn’t just about passwords.  Yes, they remain important but on their own, they are no longer sufficient.   Nonetheless weak passwords, password re-use and password sharing remain one of the leading root causes of a data breach.  123456 and, believe it or not, password, remains the most used passwords across the world! 

It is imperative that you have a strong password policy, dictating not just the length of the password, but also its construction, ensuring that there is a good mix of upper and lower case characters, numbers and symbols, that together make things very difficult for password crackers.

On their own though passwords remain a potential weak spot.  Multi factor authentication (MFA), sometimes referred to as 2FA, provides that extra layer of defence and can help to protect against brute-force attacks, phishing scams, key-logging and social engineering.  MFA can be simply implemented on most email platforms and within various apps you are using.  For those of you trying for Cyber Essentials or ISO 27K series, MFA is mandatory, so make sure it’s put in place.  

2.        Are you backing up your files? 

This seems an obvious thing to do but you’d be surprised how often when trying to restore from a backup, it fails.  This is often because the backup routine was set up back in the mists of time and has never been reviewed and even more dangerous, it’s never been tested to see if it works.  Set up your backup regime, have it reviewed regularly and tested regularly to make sure it works.  If you are backing up online, keep in mind that if a cyber-criminal gets access to your systems to, for example, carry out a ransomware attack, then they can probably get at your back up as well.  So, belt and braces, consider having an offline backup as well as an online backup.  The latter is more convenient but can be corrupted.

3.        Do you train your staff in cyber awareness? 

My favourite subject – cyber awareness training.  Your first line of defence is your staff, but if not trained adequately, they can be your greatest vulnerability.  It’s known in the trade as the insider threat but it is caused mainly by human error, staff members doing something they shouldn’t, not maliciously but simply because they didn’t know they shouldn’t.  It actually accounts for 88% of data breaches. Providing your people with training on the threats, current scams and basic cyber awareness reduces the chance of a cyber-attack. This really is the easiest and cheapest quick win any organisation can take in reducing their risk exposure.

4.        Do your employees regularly travel or work remotely? 

This brings us neatly to what Microsoft coined as the New Normal.  Essentially this means remote working shared with in office working, known as the hybrid working model, or for some, moving to a totally remote working system.  Totally remote is not as common as hybrid working but is becoming more normal with certain size businesses in certain commercial verticals.  It’ll never work for everyone, but for those who have embraced it, it saves a considerable amount of expense.  It does however require us to rethink our cyber strategy.

Work-from-home employees are at much greater risk than those in offices. Since home connections are less secure, cybercriminals have an easier entry into the company network.  Furthermore, the explosion of various online tools, solutions, and services for collaboration and productivity tend to have the bare minimum of security default setting, and updates from third-party vendors can change security preferences and be easily overlooked.

Phishing becomes an even greater threat to home workers, often because, in an office environment, they have access to colleagues and managers, who they can approach for advice and guidance.  This is much harder to replicate with remote workers, especially those who may not be particularly tech savvy and who may not wish to become ‘burdensome’ to their co-workers.

Ransomware also enjoys an advantage in the work-from-home model.  If their connection to the company is blocked, it is more difficult for workers to get assistance from the right experts and authorities.  And since trust levels are lower when working from home, some workers will be concerned that they have “done something wrong” and so may be more reluctant to seek help. While this risk can be addressed by increased training, as well as messaging that vigilance and involving IT support will be rewarded, it can still be an uphill battle.

We need to break out of the old ‘bastion’ security model of a network protected by firewalls and other technologies and think about solutions that are designed to protect your assets regardless of where your employees work from.  They exist and aren’t hard to find.

Data tends to proliferate, especially when working remotely.  Cyber awareness training helps here, but it also helps for management to have a handle on data storage.  All organisations have this problem, but it becomes more acute for those businesses that hold large amounts of what is known as Personal Identifiable Information or PII.  This is information that can identify a living individual and compromise their privacy in some way.  Financial advisors, estate agents, solicitors etc, all share this issue.  The data protection act, becoming referred to as UK GDPR, is not a suggestion, it is law.

5.        Where is all your data stored and who has access to it? 

One of the biggest issues we find with organisations of all sizes, is that they think they know where all their data is but get quite a surprise when they discover multiple instances of the same data set.  This has become a real issue in that the new normal tempts users when working remotely, with possibly less than robust broadband, to copy data from cloud storage to their PC or laptop to ensure they can keep working on it.  Then they upload it again when they’ve finished but forget to delete their copy.  That’s just one instance but it is vital to understand where all this data is.  What if for instance, you get what is known as a subject access request, where a client or other member of the public wants to know exactly what personal data you have on them, and why.  I spoke to a financial advisor recently who told me that it took one of their partners off the road for 3 weeks, to discover where all the data was kept on just one person.  But under the law, they had no choice but to bite the bullet.

There are several systems on the market which will help with this but what most need now is a system that works regardless of the location of the user and continues providing that cover when the user moves from one location to another.  This is just a suggestion, but we’d be delighted to demo it to anyone who is interested.  https://hah2.co.uk/gdpr-data-protection/

6.        Disaster Recovery and Business Continuity

Business Continuity refers to the proactive strategies and plans put in place to ensure that essential business functions can continue in the event of a disruption or disaster. This could include natural disasters, cyber-attacks, power outages, or any other event that could disrupt normal business operations. Business Continuity planning typically involves identifying critical business processes, implementing redundant systems and processes, and developing communication plans to ensure that the organisation can continue to operate smoothly in the face of adversity.

Disaster Recovery, on the other hand, is focused specifically on restoring IT infrastructure and data after a disaster has occurred. This could involve recovering lost data, restoring systems and networks, and ensuring that IT operations can resume as quickly as possible. Disaster Recovery planning typically involves creating backup systems, implementing data recovery procedures, and testing these plans regularly to ensure they are effective.  Both are critical components of a comprehensive risk management strategy and should be integrated into an organization’s overall resilience planning efforts.

Just like backups, which are a crucial part of Disaster Recovery, these plans can become very quickly out of date and useless, unless reviewed periodically and tested to see if they actually work.

7.        Vulnerabilities and Threats 

A vulnerability is a flaw or weakness in an asset’s design, implementation, or operation and management that could be exploited by a threat. A threat is a potential for a threat agent to exploit a vulnerability.  A simple way to explain this is that a vulnerability is the inability to resist a hazard or to respond when a disaster has occurred. For instance, people who live on plains are more vulnerable to floods than people who live higher up.  The threat is the flood itself.

IT risks and vulnerabilities are the potential threats and weaknesses that can affect the performance, security and reliability of your business function and processes. They can have serious consequences for your business goals, customer satisfaction, and competitive advantage.

Identifying vulnerabilities to your cyber security assets and then identifying the threat to those assets in terms of the vulnerability being exploited, informs your risk and enables you to assign a value to it.  Financial value can be assigned to the risk score if you so wish.  You then apply controls to bring the risk down to an acceptable level, starting with the Very High risks, and then bringing them down to whatever is acceptable to you.  That acceptable level, known as the risk appetite, will vary business to business, risk to risk.

8. Supply Chain Security? 

In short, a supply chain attack is a cyber-attack that seeks to damage an organisation by targeting less-secure elements in the supply chain.

An example of such an attack was published by NCSC and points out that many modern businesses outsource their data to third party companies which aggregate, store, process, and broker the information, sometimes on behalf of clients in direct competition with one another.

Such sensitive data is not necessarily just about customers, but could also cover business structure, financial health, strategy, and exposure to risk. In the past, firms dealing with high profile mergers and acquisitions have been targeted. In September 2013, several networks belonging to large data aggregators were reported as having been compromised.

A small botnet was observed exfiltrating information from the internal systems of numerous data stores, through an encrypted channel, to a botnet controller on the public Internet. The highest profile victim was a data aggregator that licenses information on businesses and corporations for use in credit decisions, business-to-business marketing, and supply chain management. While the attackers may have been after consumer and business data, fraud experts suggested that information on consumer and business habits and practices was the most valuable.

The victim was a credit bureau for numerous businesses, providing “knowledge-based authentication” for financial transaction requests. This supply chain compromise enabled attackers to access valuable information stored via a third party and potentially commit large scale fraud.

NCSC also cited what is known as a watering hole attack, which works by identifying a website that’s frequented by users within a targeted organisation, or even an entire sector, such as defence, government, or healthcare. That website is then compromised to enable the distribution of malware.

The attacker identifies weaknesses in the main target’s cyber security, then manipulates the watering hole site to deliver malware that will exploit these weaknesses.

The malware may be delivered and installed without the target realising (called a ‘drive by’ attack) but given the trust the target is likely to have in the watering hole site, it can also be a file that a user will consciously download without realising what it really contains. Typically, the malware will be a Remote Access Trojan (RAT), enabling the attacker to gain remote access to the target’s system.

If you are in someones supply chain, then you need to make doubly sure that your security protects your customer as well as yourself.  And conversely, if you are connected electronically to someone who supplies you, are you sure that you are protected from any vulnerability they may have.

KASPERSKY BANNED IN THE US

The US has announced plans to ban the sale of antivirus software made by Russian firm Kaspersky due to its alleged links to the Kremlin (source article https://www.bbc.co.uk/news/articles/ceqq7663wd2o).  This shouldn’t have come as a great shock.  In 2017 the Department of Homeland Security banned the anti-virus product from federal networks, and it has long been a target for US regulators.

There have always been some rather vague clouds over Kaspersky.  I well remember going back to 2010//11, working on a major UK Government sensitive project where we had one guy pushing Kaspersky hard, really fighting its corner but it soon became clear that the customer wasn’t going to use it under any circumstances.  But why?  Kaspersky has always scored very high, in fact near perfect scores, when tested independently by AV-TEST, the most trusted source for independent testing. 

Well, it’s all about the problem that it’s Russian owned and to provide a transliteration from Russian, Laboratoriya Kasperskogo.  In the UK it’s operated by a holding company.  Nonetheless the code comes from Russia and that’s going to have a very real impact on the US, especially given it’s almost total breakdown of relations and the ongoing Ukraine conflict.  Only the US Dept of Homeland Security knows whether this is a very real threat to western company’s using this suite of products, or if there’s a political element to it.  Either way, it’s going to damage Kaspersky, totally decimating its sales in the US.

The big question here in the UK, and across Europe and many Asian countries, is, is it safe to use?  In the UK, the British Standards Institute (BSI) has found no evidence of current problems with Kaspersky products.  However, it went on to recommend that its anti-virus products be replaced with alternatives.  Talk about sitting on the fence and damning with faint praise! 

On 29 March the UK’s National Cyber Security Centre (NCSC)  issued refreshed guidance on UK organisations’ use of technology originating from Russian companies, saying it is not at this time necessary, or necessarily wise, to discontinue use of products such as Kaspersky antivirus (AV) products.  That guidance is now nearly 3 months old, and it remains to be seen if it gets updated following the US action.

The judgement that companies will need to make is, whether renewing or looking to replace a current vendor, do we take a risk on Kaspersky?  Having been in this industry for many years, I know that there are lovers out there, of specific products and/or vendors, who will make this a hill to die on, but there are others who will adopt a much more cautious approach.  I don’t expect to see organisations rushing to ditch Kaspersky but I think their sales people, and their resellers, will find new sales and renewals, a real challenge.

Of course I can’t let this pass without a pitch.  So, if you want to take what I say as being tainted by the fact that I re-sell another product, then guilty m’lud, and I’ll take that on the chin.  The product we sell is one that is in heavy use by the US Department of Defense, as well as industries akin, including the nuclear industry.  It’s been pen tested to death and proof can be shown.  It has a unique approach in that it simply stops unauthorised programs from running.  But how?  Data is stored either as non-runnable info data or runnable application programs. Malware is a type of runnable program with undesirable behaviours.  The system uses what is called a Hard Disk Firewall (HDF).  HDF prevents malware infection, stopping malware program files from being stored and run on a computer.  Simply put it takes about a 30 day period to examine your network and end points, identifying what executables are being run and then, working with you, we decide which of those should be whitelisted to ensure your business isn’t impacted in any way, and anything not on the whitelist is blocked from running.  If you want to know more you can contact us on the links below.

Cyber Security Defence

When you are an owner or director of a company, you will have to face many challenges starting from employing the right people to protecting the sensitive data regarding the company, your workers, suppliers and clients, who buy products and services from you. Nowadays, data leakage prevention is essential in every business. Last week I touched on cyber security strategy, and I’ll expand on that a little more in a week or two, but I’ll just reiterate here that cyber security and data protection are inextricably linked, both practically and legally.  They apply equally to the large corporate entities and SMEs alike.  It’s purely a matter of scale.  So, let’s dive in and learn more about the security and data protection services that you may wish to consider, having first identified your risks and come up with what is called a risk treatment plan, ie a plan to remediate the identified risks to an appropriate level, taking account of the residual risk that your organisation finds acceptable.

Cyber Security Defence – What Are the Most Common Services?

The Insider Threat

There are a lot of actions that can be taken regarding cyber defence. You need to cover both external and insider threat detection. We need to simplify, and where possible, automate our responses and solutions.  The more complicated we make it, the more chance of it becoming a liability rather than a solution. The insider threat is one that is often misunderstood and in fact, often ignored.  It is one of the most fascinating and alarming aspects of cybersecurity! It refers to the potential risks posed by individuals within an organisation who have access to sensitive information and can misuse it for personal gain or to sabotage the company. These insiders could be employees, contractors, or even business partners who have intimate knowledge of the company’s processes and systems. It’s like a real-life spy thriller unfolding right within the walls of your own organisation! The challenge lies in identifying and mitigating these risks before they cause serious damage. It’s an adrenaline-pumping game of cat and mouse that keeps cybersecurity professionals on their toes!  It is important to note that many insider threats come not from any intended action by an employee, but rather a mistaken action taken by an employee who didn’t know they shouldn’t do whatever it is they had done.  It’s a primary reason why cyber awareness training is so important.  I can’t stress enough how important a comprehensive campaign of such training is.

To protect against insider threats you need, as well as awareness training, a good mix of procedural and technical security.  You need a sound access control policy that clearly lays down how to onboard an employee, what access to allow, and how to protect against employees gaining privilege they don’t need and shouldn’t have.  That policy should also cover off-boarding when an employee leaves.  Here at H2 we have partnered with Cyber Elements to provide solutions to provide the correct provisioning in an easy to administer way.

External Threats

These are the threats that everyone thinks of when the subject of cyber security comes up.  It can be very easy, such as identifying and blocking a virus, or it can be very complex. It all depends on the size and range of the problem. For example, ransomware protection. We have partnered with Platinum-HIT (UK) to provide the HDF concept.  This provides a unique approach to anti malware and provides a good level of ransomware, and indeed, phishing, protection. On any computer system, data is stored either as non-runnable information data or runnable application programs. Malware is a type of runnable program with undesirable behaviours. HDF prevents malware infection by stopping malware program files from being stored and run on a computer. Simply put, if a program can’t run, it can’t infect your system.  This does require a period of examination of your system to identify what does need to run, to run the business, and that is provided within the product.

We have introduced a fully managed proactive cyber defence solution that complements our data protection solution, described below, whilst remaining able to stand alone, in the unlikely event that the data protection element is not required.

In the dynamic world of cybersecurity, staying ahead of evolving threats requires a comprehensive approach that adapts to the ever-changing landscape. At H2, we recognize that one-size-fits-all solutions often fall short, which is why we’ve developed a flexible and scalable cybersecurity solution powered by Guardz, to address the needs of our clients.

Our approach is grounded in sound risk management principles, ensuring that our solutions are aligned with your specific cybersecurity requirements. Whether you need one or more of our solutions, we can tailor an approach that meets your exact needs and budget.

I talked earlier about the symbiotic relationship between cyber security and data protection, which of course includes data leakage prevention, data privacy and compliance. Once again, we have this covered.  Our data protection solution is very comprehensive and looks not just at the technical, but also at the procedural aspect of data protection, from providing a virtual data protection officer, to writing and/or reviewing your policies and processes, to identifying where your data actual is, what it’s status is ie sensitive or non-sensitive, and provides the ability to encrypt the sensitive data in order to reduce your risk.  If you have a data leak and the data is encrypted, then you are significantly reducing any risk.

Summary

All cyber security defence solutions are designed and implemented in collaboration with the client, during a trial period that consists of between 14 and 30 days, depending upon the solution. All actions can be performed remotely and online and there is no requirement for us to be on site, thus reducing time and expense.  Additionally, all solutions are based on SaaS and therefore there is no expensive infrastructure or hardware requirements and being cloud based, it provides the additional advantage that it can monitor and protect end points regardless of where they are, in the office, on the move, or at home.

What’s the advantage of using a cyber defence managed service?

This will differ company to company, and some will have more of an issue, certainly regarding the protection of what is known as Personally Identifiable Information or PII, as defined in the Data Protection Act 2018.  Each must decide what their threshold is for residual risk, ie what risk is acceptable to them, once protections have been put in place.

Professional cyber security staff are, currently, difficult to source.  There is a global shortage of experienced personnel.  They are also expensive to employ.  You could also argue that there isn’t a full time job for more than one or two, in many organisations.  It therefore makes both operational and financial sense, to outsource at least some of your security operations.

Phishing – as much a problem today as it’s ever been

Think phishing is old news? You won’t believe why it’s still the number one nightmare for CEOs and business owners.

Ever find it odd that phishing, an old trick in the cyberbook, keeps CEOs awake at night? Guess what, it’s not budging from that top spot.

Here’s the deal: cyber villains always stay ahead. If you develop a shield, they craft a spear. They’re all out to make your employees act impulsively, falling into traps on all communication fronts.

Ever thought about arming your business against phishing, without the tech jargon? Let’s discuss uncomplicated, everyday measures to secure your digital turf.

1. Training: Educating your team about phishing scams is the first step. A well-informed team can spot such scams.

2. Double-checking: Emails from ‘official’ sources often aren’t. Encourage your team to verify before replying.

3. Regular updates: Keep your systems and software updated, they often include security enhancements. Phishing is a persistent threat, but with the right non-technical measures, your business can uphold security. Ready to fortify your cyber defences? I’m here to help.

Questioning the efficiency of your cyber defence is valid. But to provide any assurance about your training methods and protections, we need to monitor and measure.

Here at H2 we take place great store in crafting solutions for SMEs that are appropriate to them, and as such, are very affordable.  We know how difficult it is to keep up with everything that is going on around you, it can be an absolute nightmare and you are going to be laser focused on your core business.  We believe we have come up with a service that is very affordable, and that provides SMEs with the protections they need, in an appropriate way.

In the dynamic world of cybersecurity, staying ahead of evolving threats requires a comprehensive approach that adapts to the ever-changing landscape. At H2, we recognize that one-size-fits-all solutions often fall short, which is why we’ve married together two solutions which we fully manage, to address the needs of our clients.

Our approach is grounded in sound risk management principles, ensuring that our solutions are aligned with your specific cybersecurity requirements. Whether you need one or more of our solutions, we can tailor a solution that meets your exact needs and budget.

We offer a fully managed Security Monitoring Data Protection (GDPR) that provides the following:

  • External and Insider threat detection.
  • Ransomware protection.
  • Data Leakage Prevention.
  • Data privacy and compliance.
  • Inbuilt encryption capability.
  • Automated cyber awareness training programme.
  • Vulnerability Assessment.
  • Phishing simulation.

Innovation – Why Do Many Shy Away from it?

I read an interesting piece recently where the thrust was that true innovation consists of doing now what you should have done ten years ago.  Harsh, maybe, but also fair.  I’m constantly reading industry surveys which highlight the low level of cybersecurity maturity amongst large firms and, increasingly, an even lower level amongst smaller firms.  We never seem to learn.

Of course, and as I’ve mentioned before, many of these surveys are written, or at least sponsored, by cybersecurity vendors and largish consultancies, who could potentially be seen as biased in that they are pushing their own solutions.  But keeping that in mind, there is still and underlying truth.

My focus remains on SMEs, so I’ll skip more talk about the corporate world.  In conversation with people I’ve worked with for years, their anecdotal evidence supports the underlying truth of these surveys.  SMEs in particular struggle with the basics of good cybersecurity housekeeping, such as monitoring of basic network events, timely removal of user accounts, timely deployment of security patches, and revalidation of access level, particularly privileged access.  This list is far from exhaustive.  Whilst this message has been pushed over and over by cybersecurity professionals over the last 10-15 years, SMEs continue to rely on technical solutions which simply don’t stack up in many areas.  Why?  Simple, because they are relying on local IT providers to give them solutions and those IT providers continue to push the technologies that they sell.  SME owners and managers are very reluctant to relinquish that argument.  Strange when often the best solutions are procedural and as such, much much cheaper than a technology that probably doesn’t quite match up anyway.

Before we go any further, let’s briefly explore some issues that are common amongst SMEs.  Some common myths first:

  • Small to medium size businesses are not worth attacking.
  • Cyber Security is an IT Issue.
  • Technology will keep me safe.
  • My policies and procedures are up to the job.
  • My staff are young and have been brought up with IT.  They know the score.

Now let’s look at some of the more common issues that we see often amongst SMEs:

  • Lack of awareness around the current real-world cybersecurity risks
  • False sense of security, with a heavy reliance and dependence on an external IT third-party provider
  • Lack of cybersecurity knowledge, and understanding
  • Poor cybersecurity maturity and posture within their businesses
  • Lack of staff training (at all levels) – just like Health & Safety, cybersecurity is everyone’s responsibility.

Back to the topic in hand, innovation and how and when should we be seriously considering it.  Ideally, we should be constantly looking for innovations, not just to keep us safe, but to encourage efficiency and cost savings, and I’m sure all SME owners would love to have the time and resource to do just that.  But we live in the real world and will be cost, and resource constrained.  But that’s not an excuse to not keep a weather eye on the need to innovate.  We live in a changing world and what we in the business call the threat landscape, changes constantly.  This simply means that threats evolve all the time, often to meet new circumstances, and AI for instance, is reducing the response time of cyber criminals to new technologies and changes in working patterns, to almost what is known as the zero day threat, ie zero days from the release of something new, to a threat being created to exploit it.

When COVID hit, many SMEs had to move very quickly to keep going, adopting remote working without the time or luxury of any real planning.  It was a knee jerk born of necessity and certainly not the way they would have liked to do it.  There are multiple cases of companies not having the necessary equipment, in terms of hardware, desktop, laptops etc, and allowing staff to work from home using their own home machines, connecting to both office and cloud-based systems, without any check on how those machines were configured, whether or not they were kept up to date with the latest patches, or whether they were used by other family members. 

In terms of equipment, cloud usage and some working practices, that situation is righting itself, sort of.  There are now surveys by HR consulting companies, suggesting that 60 to 70% of companies of all sizes are either planning to, or have adopted a hybrid model.  In the IT industry, particularly amongst IT consultancies, this model has been in use for many years and is well regarded, allowing the downsizing of office space and a lower cost base.  That new working model has arguably had the biggest effect on working practices and in turn, cyber security as it affects SMEs, since the innovation of IT itself. 

So, what needs to be done if hybrid working patterns are to continue?  Well, first and foremost comes your policies.  Do they reflect the new hybrid working model?  Have you laid down what is and what is not an acceptable use of company IT equipment if it’s being transported to a home address?  Do you allow the use of home machines, and have you laid down how those machines must be configured before they can be used for company business?  That list is not exhaustive.

Secondly comes user training.  Cyber awareness training for staff, along with a broad understanding of data protection principles, becomes even more important when staff are working from home.  It is a clear no brainer which many SMEs still don’t recognise as necessary.

Of course, those 2 things are hardly innovation, unless of course, you haven’t taken any of those measures and then it becomes innovative within your company.  Real innovation perhaps comes from reviewing the technologies you have in place, and have relied on, possibly for years.  Most, if not all those technologies will be based on the old bastion model of security, ie a network perimeter with a secure gateway, protecting your assets within that perimeter.  With the new working model, relying usually on cloud connectivity, your staff could be working in the office, at home, from a coffee shop etc etc.  You now have a mobile workforce.  What is needed is real innovation that protects your data regardless of where it is, technologies which themselves are cloud based, not caring where the end point it is monitoring actually is, whilst maintaining cost effective pricing.  This is something we’ve been at great pains to research and have now come up with such solutions.

We are holding a webinar to discuss and highlight these solutions and would love to see you there:

Event Details:

Is Cyber Security making the grade for Small to Medium Enterprises?

I’ve touched on this subject several times in the past but was encouraged to revisit it after reading a book by Jean-Christophe Gaillard entitled The Cyber Security Spiral of Failure.  A provocative title and of course, the subject matter was aimed at the corporate sector.  But my view is the difference between the 2 sectors, in terms of solutions is often one of scale, with corporations being more complex and faced with many problems that the SME sector doesn’t.  They do however have the same threats and consequences of failure, as each other.

The author argues that for a couple of decades now, many organisations have been trapped in this spiral of failure, driven by endemic business short termism and the box-ticking culture of many executives in regard to compliance.  This really does resonate in the SME world with short termism often driven by financial necessity and especially during and since COVID, where survival was paramount, often requiring day to day management.  Of course, no SME owner or manager likes that and would love to have a solid and well-funded plan going forward, if only! 

Successful transformation takes time and often requires changing the culture of the organisation, and this at a time when many owners are struggling with the emerging business practices of a more distributed work force, following the pandemic.  Coming up with any transformative planning around IT naturally comes below that required for the business in general.  Bottom line is often that if it isn’t our core business, it can wait.  Even though of course, there are very few businesses that can continue to operate efficiently without their IT systems.

Which brings us to compliance.  For most SMEs compliance often means data protection, although there are the financial services regulations, and many do have industry standards governing IT and data, that they must comply with.  This often means that owners and managers undertake quick wins using box-ticking measures which often come a cropper sooner or later.

The book quotes from the BT Security survey released in January 2022.  One aspect which I fully agree with is the emphasis on getting security basics right and the importance of awareness development amongst employees.  Getting this right and training our employees are essential pillars of any cyber security practice, so as the book says, the question remains, why are we still banging on about it? – and everyone who reads my stuff knows I do that a lot.

There are a lot of traditional good security practices which have been pushed and re-emphasised time and time again.  Patch management, access management, anti-virus/malware, firewalls etc, and from my time working in the corporate space, I know that large enterprises have spent millions on traditional areas of cyber security over the last 2 decades.

But are we really still stuck there, entrenched in traditional thinking when our working practices are changing, technology is changing, compliance requirements are changing?

SME management is often completely left behind by these changes.  They have enough problems just keeping their businesses afloat and trying to grow, they don’t have enough time or resource to keep abreast of these many and varied issues.  Let’s face it, if corporate management is struggling with this changing landscape given their resources, what hope for the SME.

More than half (54%) of SMEs in the UK had experienced some form of cyber-attack in 2022 (stats for 2023 are starting to trickle through), up from 39% in 2020 (Vodafone Study, 2022).  As we travel around and visits clients or potential clients, it is common to find that they have the view that adequate security is provided by technology.  They rely on their IT provider to provide the guidance they need which tends to involve firewalls, anti-malware software and perhaps a backup regime.  All well and dandy.  A quote from Bruce Schneier, Fellow at the Berkman Center for Internet & Society at Harvard Law School, goes like this:

If you think technology can solve your security problems, then you don’t understand the problems and you don’t understand the technology’. 

So, what does he mean?  As he’s not here to ask I suggest that he’s saying is that essentially the technology available can be an essential part of your protection but it has to be targeted in the right way, which not only means you have the right piece of kit doing the right thing, but that you are targeting your IT spend to support your business goals and give a maximum return on investment (ROI).  It should also be married to good policies and processes that are enforceable and auditable and fully understood by your work force.  To do this you have to understand exactly what your risks, vulnerabilities and threats are to ensure that your solution to those risks, vulnerabilities, and threats, is targeted for maximum effect and ROI and that the technology is supporting the policies and processes, all of which is underpinned with good security awareness training.

But now we have the ‘new normal’ with many businesses enjoying the financial bonus of having a smaller office footprint whilst many people work remotely, bringing with it an increase in security problems.  Earlier we mentioned traditional security solutions that have been around for a long time, most of which pre-date the pandemic and were based on the old bastion security methodology ie a network perimeter, protected with traditional solutions.  But that bastion model no longer exists in many places, or if it does, it only protects half the workforce in the office, whilst the other half work remotely.  What is needed is new solutions that protect your staff wherever they might be working from.

Luckily for you, we have such a solution.

A Company’s Tale – From COVID to Hybrid

This is a tale that could be told regarding many organisations, especially since COVID hit.  Names have been changed and certain other details have been omitted or masked.

Hawk Engineering Ltd is a company that provides high quality environmental engineering services to its clients, and began operations on 16 July 2019, not long before COVID hit. It’s a limited company owned and operated by Norman Jones and Rupert Smith.  Mr. Jones and Mr. Smith both left their respective jobs to specialise in environmental engineering consulting to small and medium sized businesses.

The company was set up to target small to medium sized companies and government organisations within the UK.  They have managed to secure several contracts and have grown from the original 2 man team to 8 consultants/engineers and 3 support staff, housed in a serviced building where they rent 4 rooms, one for the admin staff, one for the consultants, another for the 2 partners and a small conference room.  The support staff cover finance, HR and general admin duties.  The building shares a reception area and a cleaning contract.  The cleaners operate out of hours, cleaning after everyone has left for the evening.  The consultants are provided with laptops, tablets and smart phones whilst the admin staff use desk top PCs, and all are connected to a large printer.

Rather than ramp up its permanent staff too quickly, they use relevant qualified consultants when necessary.  These consultants are given an email address and access to the data they need to work on projects.

The 2 partners are aware that they now hold a growing amount of personal and corporate data, not just about their own staff and systems but also about their clients.  They are aware of the Data Protection Act 2018 and GDPR but are not sure about how much this will affect them.  They have a local IT management company under contract and up to the start of COVID had an onsite server which stored their data and an email server providing mailboxes to the staff and contractors.  At the outbreak of COVID, this caused an issue.

In terms of policies, they have very little that references the DPA 2018 and/or GDPR.  Their website does not contain the necessary privacy statement or statements regarding the use of Cookies.  They don’t have an overarching security policy or a cyber security strategy in place.

But everything in the garden was rosy, the company was doing well, it was in profit and had a relatively full order book, at least for the foreseeable future.  And then along came COVID and everything changed.

At first it wasn’t a problem, we all remember how the UK ramped up relatively slowly, with lockdowns coming after those in other countries, but come along they did. The full implications of not being able to work in the office only started to become apparent after the office was out of bounds.  They couldn’t claim any sort of immunity because they were simply not in an industry that required such immunity, so the office closed.  The consultants used laptops and they could continue to work, but not securely.  They didn’t have a remote access system in place as consultants worked on client site and tended to use client networks through which they could connect.  Not optimum but cheap and cheerful and cash flow was everything to a small business.  The real hit was on the admin staff as they used desktop PCs which they had left behind when they went home.

So initially the admin staff were the priority to find a solution for and the first issue was to be able to find machines they could use at home, and then connect them to the office file and mail servers, the latter applied to consultants as well.

I’m sure most reading this will remember the issues as many of you will have faced the same problems.  So long story short, the problem was to establish as near to normal operations as possible and they ignored security as firstly, they didn’t grasp the implications, and secondly, they didn’t know what to do about it.  Their IT management company wasn’t a lot of help in the latter regard simply because they were firefighting issues for all or most of their clients and didn’t have the time or resource, and frankly, didn’t really have the skill set either.

In many respects recovering an operational capability in that instance, wasn’t much different in recovering from any natural disaster and much of the planning required for a disaster recovery and business continuity situation, would have applied, with perhaps the difference that the office would continue to be out of bounds.  So, plans could be adapted, assuming of course you had a plan in the first place, and they didn’t.

What they were able to do was to set up a contract with a cloud provider and as their IT support got some bandwidth, they migrated their data from the office based server to the cloud storage and at the same time migrated their email.  Getting staff to connect to the cloud was an issue and some found it easier than others as that had to be done remotely and some were more IT savvy than others.

It didn’t solve the desktop PC problem though and staff continued to use home PCs, the same PCs their kids were gaming on, to connect to the company data.  A recipe for disaster.  Of course, this was solved by purchasing and shipping laptops which the IT support set up before shipping.  But by then their data could easily have been compromised via the home PCs.  There is no way of knowing whether or not they were compromised and if this is a problem which could come back to bite them.

Work-from-home employees are at much greater risk than those in offices. Since home connections are less secure, cybercriminals have an easier entry into the company network.  Furthermore, the explosion of various online tools, solutions, and services for collaboration and productivity tend to have the bare minimum of security default setting, and updates from third-party vendors can change security preferences and be easily overlooked.

Phishing becomes an even greater threat to home workers, often because, in an office environment, they have access to colleagues and managers, who they can approach for advice and guidance.  This is much harder to replicate with remote workers, especially those who may not be particularly tech savvy and who may not wish to become ‘burdensome’ to their co-workers.

Ransomware also enjoys an advantage in the work-from-home model.  If their connection to the company is blocked, it is more difficult for workers to get assistance from the right experts and authorities.  And since trust levels are lower when working from home, some workers will be concerned that they have “done something wrong” and so may be more reluctant to seek help. While this risk can be addressed by increased training, as well as messaging that vigilance and involving IT support will be rewarded, it can still be an uphill battle.

The company has now evolved further, and expanded a little, and has adopted the hybrid method of working, saving money on floor space, fuel and light etc.  But this has come with problems of its own which we’ll look at next week.

Cyber Security Policies – A Must Have or a Nice to Have

How important are policies and processes in comparison with technology, when it comes to Cyber Security and its sister discipline, data protection.  The clue is that in Cyber Security we refer to People, Process and Technology, in that order.

Top of this list is People, and I’ve written extensively about how important cyber awareness training is for all, managers and employees alike.  This piece is all about policies and processes.  First and foremost, policies have to be relevant to the organisation and not just downloaded from the internet, maybe with a few modifications, before applying a tick in the box and moving on.  Policies have to mean something and have a purpose.  Many organisations I go to either have some very scant policies or actually, none at all.

I often talk about risk in terms of cyber security and how managing that risk is extremely important.  And that means understanding what those risks actually are, and then taking steps to mitigate them.  When I talk about this, I can often see the wheels turning and the audience thinking technology and how much is that going to cost them.  Well, it’s very often the case that technology is not the answer.  There are many risks where a good policy, promulgated to, and understood by all, can save the company money.

A good example of that is a fairly common scam that tends to costs SMEs between 5 and 50K depending upon the size of business.  How this is achieved is that the scammer or let’s call him/her what he/she is, the criminal, spends some time profiling the company, using various social engineering techniques to work out how the company is organised and who is who.  You may be surprised as to how much of that information is freely available on the company website, companies house and other sources. Having discovered who the boss is, and who looks after invoice payments, the criminal then ‘spoofs’ the bosses email.  Email spoofing, in simple terms, is sending an email purporting to come from someone else.  So, it arrives purporting to come from the boss, but actually it’s from the scammer.  Such an email is sent to the person who pays invoices, with an invoice attached, saying please pay this as a matter of urgency.  This happened recently to someone I know, and when it arrived in the accounts department it didn’t look cosher to the payments clerk, who replied to the email asking if the boss was sure.  Of course, she got an email back saying yes, I’m sure.  She paid it and the company lost over 30K.  The accounts clerk was clearly switched on but she made a basic error, because she didn’t know any different.  If she had sent a fresh email to the boss querying the invoice, it would have gone to the boss who could have stopped the transaction.  Instead, she replied to the email and her reply went back to the scammer.  A policy which dictates fresh emails rather than using the reply function, and known to all, would have saved the company a lot of money.

Policies and attendant processes are essential for the protection of company data and the bottom line, company money.  What needs to be covered and in what depth, depends on the risks that the company is facing, and will differ company to company depending on its type.  In broad terms, and as an absolute minimum, the following are required:

  • Overarching IT security policy – often this only needs to say very clearly what responsibilities employees have in regard to security and data protection, lay down a requirement and responsibility for cyber awareness training, and state that all employees are to be cognisant of all the policies and are to sign that they have read and understood them.  And most importantly, it must be signed off at board level making it clear that this is a crucial requirement.
  • IT Acceptable Use Policy – what is, and what is not, an acceptable use for company IT.
  • IT Email Policy
  • IT password policy
  • IT Mobile working policy – essential for mobile workers who may be tempted to work from a coffee shop, and of course, working from home.  This latter might be a separate policy or can be part of the mobile working policy.
  • Data Protection Policies – a whole other subject.
  • Social media policy – this can be really important.  Probably 100% of your employees will have a social media presence and will use it daily. How important is it that they don’t associate themselves with the company on their private social media?  Depends on the person but it could be damaging in reputational terms.  The company might also do some digital marketing on social media.  Who is, and who is not, allowed to get involved with that function.

This is not an exhaustive list.  It depends very much on risks that needs mitigating.  They will also be accompanied by processes to support the policy.

Does this resonate with you.  If you’d like to know more, we’d like to help.

Another Tilt at AI

At the risk of boring you about the risks inherent in AI, I’m going to have another go, simply because it’s a fascinating subject.  AI can really become the gift that keeps on giving.  We’ve always played catch up to the cyber criminals, trying and often failing to anticipate what the next attack will be, what the next series of attacks will be.  Will it be ransomware, denial of service or perhaps a new and more sophisticated scam?  Who knows?  But there is no doubt that AI is raising the bar.

I have talked a lot about the re-emergence of the script kiddie and how AI in enabling this particular breed of wannabe criminals.  But it’s also true that the more skilled and sophisticated criminal is making use of AI and finding new and innovative ways of relieving you of your hard earned cash.

There is a lot going around within the IT and cyber industry about the ethical usage of AI, its ethical development, and that IT system integrators have a cast of thousands working on such ethical development and usage.  Fine, I applaud them.  But what does that mean for cyber security, and indeed data protection?  Well, I have to say, in my humble opinion, not a great deal.  I say that simple because no matter how ethical we are, the criminal doesn’t give a damn, he or she will continue on their own sweet way and do what criminals have always done, which is to completely disregard ethics.  So, whilst we can applaud and support those companies who are producing software and systems which use AI ethically, for the good, but just like old times, the criminals will do their own thing.

So, let’s take a look at some of what is at risk in terms of our data and systems:

  1. Data Protection.  AI systems tend to be extremely good at analysing, organising, and harvesting vast amounts of data, raising concerns about privacy breaches and unauthorized access to sensitive information.  A good AI powered attack could capture huge amounts of personally identifiable information (PII), in a ridiculously short amount of time.
  • Data Integrity.  In the good old days (please indulge me – I’ve been around a long time), we used to talk about CIA, no, not the infamous US intelligence agency, but Confidentiality, Integrity, and Availability.  We now have something we call the Adversarial Attack.  This is where attackers can manipulate AI algorithms by feeding them misleading data, causing them to make incorrect predictions or classifications, in turn destroying the integrity of your data, not just rendering it useless, but dangerous.
  • Model Vulnerabilities.  This next one is relatively new, at least to me, and as I never tire of saying, I’ve been this game as long as there’s been a game.  It’s something call Model Vulnerabilities.  AI models can be vulnerable to exploitation, such as through model inversion attacks or model extraction, where attackers can reverse-engineer proprietary models.  So, if you’re in the dev game, this is a very real nightmare.
  • Bias and Fairness.  AI systems may inherit biases from training data, leading to unfair or discriminatory outcomes, which can have legal, ethical, and reputational implications.  This could be used as another form of extortion, playing with the integrity of your data, to the point where you can no longer trust it.
  • Malicious Actors.  These can compromise AI systems at various stages of development, deployment, or maintenance, posing risks to organisations relying on these systems.  This has a play in supply chain security.
  • Attackers can leverage AI techniques to enhance the effectiveness of cyberattacks, such as automated spear-phishing, credential stuffing, or malware detection evasion.

Addressing these risks requires a multi-faceted approach, including robust security measures, thorough testing, ongoing monitoring, and regular updates to mitigate emerging threats.

The real danger is complacency.  AI isn’t a future hypothetical threat but is very real and here now, already making itself felt, for both good and bad.

Scams v Hacks – how does this effect SMEs?

When I speak to SMEs, I make the point that the chances of being ‘hacked’ is relatively low when compared with being scammed.  Why?  In my view, I look at a hack as being a technical attack on a target by someone who is technically savvy and skilled in identifying and exploiting weaknesses in a company’s defence.  A scam on the other hand can be perpetrated by people with relatively low levels of technical ability and scams are in fact, a con, just like any other old fashioned con, in that they get the target to agree to, or to do something, that will benefit the con artist.

We always recommend that our clients try as best as they can to have defence in depth.  That’s an old military term which is often used in cyber security now to describe multiple layers of defence.  This can be expensive though and it must be tempered by budget, targeting controls where they are most needed.  What this does is to deter many attackers who are looking for a quick win, so if they have to work long and hard to break in, they’ll often go elsewhere, where the pickings might be easier.  And of course, whilst an SMEs defence might be somewhat less than those of an enterprise organisation, the pickings are likewise smaller, making it not cost effective for the attacker to take too much time with a technical hack.

Does this make scams much more attractive to the criminal?  Yes, I believe it does, simply because the amount of effort required is low and they are skilled in manipulating people, especially those that have had minimal cyber awareness training.  Scamming, just like hacking is generally preceded by some form of social engineering.  Social engineering refers to techniques aimed at talking a target into revealing specific information or performing a specific action for illegitimate reasons.  So, whilst a hacker modifies a computer’s software and hardware structure to carry out certain tasks, social engineering uses people as weapons to attack selected targets. In this way the manipulation is accomplished by employing trust through different forms of communication.

Typically, social engineering is achieved via Phishing, Vishing (video), Smishing (via SMS), malware and Spear phishing where the targets are selected for their importance to a specific attack.  Whatever method is used the aim remains the same, it is to persuade the unwary to give up sensitive information, install malicious software or do things that compromise your business security.  The best protection against social engineering remains a work force that are aware of the techniques and dangers posed by this.

What is the cost of scams to the across the globe?  One statistic suggests that public sector fraud losses amount to about £50.2 billion whilst frauds committed directly against individuals, including marketing fraud and identity fraud, is around £8.3 billion. The total cost of fraud has risen from about £190 billion in 2017 to almost £219 billion.  (Source Peters, Peters and Crowe). Of course, not all of this is via online fraud, but it is becoming the most common type of scam we see today.

Some of the most common types of scams that we see include, but are not limited to:

  • Copycat government websites. Some scams involve websites designed to look like official government websites such as HMRC. …
  • Dating and romance scams. …
  • Holiday frauds. …
  • Mandate fraud. …
  • Pharming. …
  • Phishing emails.

I received an email only yesterday purporting to come from someone called, and I kid you not, Lisa Monaa, inviting me to partake in an extremely profitable project, and I just couldn’t bring myself to read anymore.  It was a badly written phishing email with little chance of success.

AI is having an effect as well.  I’ve written earlier about the CEO scam whereby a CEOs email is spoofed and sent to an accounts department with an invoice attach, stating that the CEO has received a complaint from a supplier that their invoice is late and to get it paid without delay.  That scam has now been updated to a voice simulated by AI, over the phone, demanding the same.

Whilst that scam is quite old, it shows how social engineering has a play.  Firstly, they have to find out what the CEOs email is.  Not difficult.  The company’s email form will almost certainly be shown on their website with a contact like sales@abc.com.  So, the attacker knows that the suffix is abc.com.  They may well also be able to get the CEOs name from the website or even Company’s House.  Next send an email to JSmith@abc.com.  If that bounces send it to John.Smith@abc.com and so on until it goes through.  Next phone the accounts department, ask for Mary in accounts payable.  No Mary here I’m afraid.  Oh sorry, I was sure it was Mary, who handles accounts payable then, Oh that’s Julie.  So, he now has CEOs email and someone to send the email to.  That would probably take about 30 minutes of the scammers time.

The impacts of scams can be very far reaching.  Firstly, there is financial loss, which to many SMEs operating on tight margins, can be quite devastating.  Then there is the possibility of data breach.  If you are a business with lots of client personal data, say a financial advisor, a lawyer, an estate agent, pharmacist, you get the drift, and the aim was to steal data, then you could be hit with a substantial fine from the Information Commissioner not to mention lawsuits from those whose data has been stolen.  Reputational damage can be disastrous and then there is the effect on staff who can suffer greatly thinking they have damaged the company and put everyones job at risk.

Bottom line – scamming is endemic, it’s going nowhere, and AI is going to make it more prevalent, not less.  SMEs spend far less on their defences and on cyber awareness training making them more likely to be targeted.  Combating this threat should be high on your to do list.

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