The latest McAfee Labs threat report shows that in the last quarter of 2017, organisations faced 8 new cyber threats a second as there was an 18% increase in the number of reported security incidents across Europe.

478 New Cyber Threats Every Minute

The report makes worrying reading as businesses and organisations try to secure their online and data security systems in preparation for the introduction of GDPR.

The McAfee Labs report shows an 18% increase in the number of reported security incidents across Europe with a specific focus the on adoption of newer tools and schemes, such as fileless malware, cryptocurrency mining and steganography.

Cytptocurrency Mining

The rocketing value of the cryptocurrency Bitcoin led to a big increase in cryptocurrency mining / cryptojacking in the last quarter of 2017. For example, cryptojacking involves installing ‘mining script’ code such as Coin Hive into multiple web pages without the knowledge of the website owners. The scammer then gets multiple computers to join their networks so that the combined computing power will enable them to solve mathematical problems. Whichever scammer is first to solve these problems is then able to claim / generate cash in the form of crypto-currency.

Also, at the end of 2017, ransomware operators were found to be hijacking Bitcoin and Monero wallets using Android apps developed exclusively for the purpose of cryptocurrency mining. Many criminals appear to have favoured Litecoin over Bitcoin because there was a lesser chance of exposure.

Fileless Malware Attacks

Another trend uncovered by the McAfee Labs threat report was the adoption of fileless malware and abusing Microsoft PowerShell, which showed a 432% surge over the course of 2017.

Fileless malware involves hijacking tools that are already built-in to Windows rather than installing software on a victim’s computer. It is designed to work in-memory (in the computer’s RAM) and is, therefore, very resistant to existing anti-computer forensic strategies, and is difficult to detect.

The MacAfee report showed a huge 267% growth in the use of the new PowerShell malware. Powershell is a legitimate tool (scripting language) that is built-in to Windows, and provides access to a machine’s inner core, including Windows APIs. This is why it has become a favoured route for fileless malware attacks.

Increase In Attacks On Healthcare

One other disappointing trend uncovered in the McAfee Labs threat report is the dramatic 210% overall increase in incidents against healthcare organisations in 2017. It is believed that these attacks were facilitated by organisational failures to comply with security best practices, or to address many known vulnerabilities in medical software.

What Does This Mean For Your Business?

The report highlights how businesses now face risks on an unprecedented scale, and how, particularly with GDPR on the way, businesses need to prioritise cyber and data security. A collaborative and liberalised information-sharing approach should be taken to improve attack defences and combat escalating asymmetrical cyber warfare.

Cyber-criminals always try to combine the highest returns in the shortest time with the least risk. This is why tactics like cryptojacking, stealthy fileless PowerShell attacks, and attacks on soft targets such as hospitals have become so popular over the last year.

New threats for this year, such as cyber-criminals developing botnets exploiting the Internet of Things (IoT) will pose more challenges to businesses and the security industry.

A freedom of information request by privacy campaign group Big Brother
Watch has revealed the shocking statistic that a quarter of all UK councils have had their IT systems breached in the past five years.

37 Attempted Cyber Attacks Every Minute

The ‘Cyber Attacks In Local Authorities’ report from Big Brother Watch shows that local governments are subject to cyber attack attempts at the staggering rate of 37 per minute!

Thankfully, only a tiny fraction of the attacks launched are successful although this still represents a serious problem. For example, 114 councils experienced at least one incident between 2013 and 2017.

High Stakes

The nature of the work of UK Councils is such that they hold a large amount of up-to-date personal data for people in their areas, so one successful breach can have very serious consequences.

Not Disclosing Breaches

One particularly worrying aspect of council behaviour exposed by the report is that, from the data gathered, few seem to have reported losses and breaches of data, which is something that organisations will be required to do within 72 hours under GDPR when it comes into force in May.

Human Error – Training Needed

As in so many companies and organisations, human error is often a factor in breaches. In 2015, for example, Big Brother Watch has exposed how local authorities committed 4 data breaches a day, all thought to be predominantly caused by human error.

Big Brother Watch has also revealed that that, despite the number and seriousness of the breaches, little action has been taken by UK councils to increase staff awareness and education in matters of cyber security and data protection. For example, it has been disclosed that 75% of local authorities do not provide mandatory training in cyber security awareness for staff, and that16% do not provide any training at all!

What Does This Mean For Your Business?

Some commentators have been quick to point out that bearing in mind how much sensitive data councils hold about citizens, and the incredible amount of attempted cyber attacks against them, they could be making more of an effort and an investment to beef-up security.

Other commentators have noted that cuts to council budgets e.g. with austerity measures may have played their part in limiting cyber security effectiveness in UK councils.

After the shocking findings of the report, Big Brother Watch issued some recommendations to local authorities which could very well apply to other businesses and organisations. These are:

• Cyber security should be prioritised, and that rather than investing too much in surveillance technologies, more should be invested in cyber security strategies and in the training of staff.
• Cyber security incidents should be consistently reported, and that a protocol needs to be established so that incidents are reported quickly and to the right authorities e.g. the police, the ICO, and the National Cyber Security Centre.
• All staff should receive mandatory training in cyber security because Cyber attacks are not only designed to breach computer systems, but also to exploit humans who are often the weakest cyber security link.

The Malwarebytes annual State of Malware report has revealed that the UK
is now the most targeted region in the world for cyber threats.

Big Rises

The UK has been elevated to the unenviable position at the top of the targets table after a huge 165% increase in UK bound ransomware was recorded, and after a 134% rise in hijacking attempts against British machines. This means that as well as being most at risk, the UK’s ransomware attack rate is now double that of the US.

Why Is The UK Being Targeted?

One reason is that ransomware use worldwide saw a 90+% increase against businesses in 2017 up until the end of year, when ransomware’s use began to decrease as criminals turned more to the use of banking Trojans and cryptocurrency mining. In 2017, the UK was famously hit by the massive WannaCry ransomware attack, which is believed to have originated in North Korea, claimed victims in 150 countries, and led to around 130,000 infections of computers. Older computer systems, such as those in the NHS, were particularly badly affected.

Spyware Increase

The Malwarebytes data also showed a big increase in the use of spyware last year – an increase of 882%.

Move To Trojans

The report data also shows that cyber-criminals are turning to different attack methods as awareness is raised about ransomware and more measures are taken to combat it. For example, Trojans are now being used in more than 20% of global attacks, and the use of banking Trojans doubled in the second half of 2017.

Earlier this month, security researchers discovered a new type of malware (called Android.banker.A2f8a) targeting 232 banking apps on Android devices, stealing login details, hijacking SMSs, as well as uploading contact lists and SMSs on a malicious server. Banking Trojans of this kind can spy on the credentials entered by the user, and intercept incoming and outgoing SMS.

Move To Crypotocurrency Mining

It appears that cyber-criminals are also moving into cryptocurrency mining, using cryptomining tools to exploit malware infected machines in order to generate and steal digital currencies. Criminals were attracted by the rapid growth in the value of cyptocurrencies such as Bitcoin and Malwarebytes is reported to have blocked an average of 8 million drive-by mining attempts each day in September.

A recent report by Ernst & Young has also highlighted the fact that 10% of all funds raised through Initial Coin Offerings (ICOs) are stolen by hackers using techniques such as Phishing.

What Does This Mean For Your Business?

In 2018, some security experts and commentators are predicting a further rise in the use of drive-by mining tools, new mining platforms and new forms of malware to steal virtual currencies. It seems that 2018’s criminals are more likely to be interested in simply stealing than rather than trying to hold businesses to ransom.

The IoT may continue to be a target, and businesses should be careful to guard against supply chain attacks, malware possibly targeting Mac computers, and more weaponised zero-day vulnerabilities. Giving 3rd parties in your company supply chain / value chain access to systems and sensitive data, combined with increased levels of sophistication in hacking tools and strategies, plus increased oversight from regulators, and potentially ‘weak link’ companies in terms of cyber-security now make the risk of supply chain attack very real for companies in 2018.

Businesses need to increase cyber-security awareness and training, and employ a holistic risk-based authentication infrastructure across multiple vectors in order to stay one step ahead of the developing cyber threat.

The use of enhanced technologies, and the assistance of  greater regulation for cryptocurrencies may also help to reduce some of the risks shown in the Malwarebytes report.

Cyber-security Company, Pan Test Partners, have warned that schools with building management systems that are linked to the Internet could face the risk of hackers turning the school heating system off – or worse.

The Problem

The problem is that many electricians and engineers may be lacking in knowledge about cyber security and/or may have linked a school’s HVAC system to Internet controls against the manufacturer’s guidelines. Also, many smart school heating systems may have vulnerabilities in them that hackers may find easy to exploit.

Tested

The researchers at Pan Test Partners tested for potential hacking risks by looking for building management system controllers made by Trend Control Systems via IoT search tool Shodan. This online tool (see https://www.shodan.io) provides a public API and enables anyone to discover which devices are connected to the Internet. Where they are located and who is using them.

In a test, it was revealed that it took less than 10 seconds to find more than 1,000 examples of a 2003 model of a school heating system known to be vulnerable when connected to the Internet. The visibility of a known vulnerable system via a public website is a clear example that the risk of school heating systems being controlled remotely by hackers is real.

Not Just Schools

The same/similar heating systems may also be used in buildings used by retailers, government offices, businesses and even military bases, thereby highlighting a much wider potential risk.

Incentive

Security commentators have pointed out that there would be very little incentive for hackers to access school systems. Because many hacks are carried out for financial gain.

The risks could, however, increase in future as more devices and systems become part of the IoT.

What Does This Mean For Your Business?

It is possible that some businesses may be in buildings where the heating systems are exposed to a hacking risk. Risks could be reduced if companies used skilled IT workers who are aware of the potential risks and if systems are checked properly after installation.

To make heating systems really secure they should also be configured behind a firewall or virtual private network, and they should have the latest firmware and other security updates.

It is also important to note that some responsibility rests with the manufacturers of heating and other smart building systems. They need to design security features into them because even if a device is not directly connected to the internet, there may be an indirect way to access it.

This story also highlights the wider challenge of tackling security for IoT devices and products. There have been many occasions in recent years when concerns about the security/privacy vulnerabilities in IoT/smart products have been publicly expressed and reported. The truth is that the extent of the current vulnerabilities are unknown because the devices are so widely distributed globally, and many organisations tend not to include them in risk assessments for devices, code, data, and infrastructure. Home users have no real way of ascertaining the risks that smart devices pose, probably until it’s too late.

It has also been noted that not only is it difficult for businesses, including manufacturers of smart products, to ascertain whether all their hardware, software, and service partners are maintaining effective IoT security. But there is also still no universal, certifiable standard for IoT security.

What do you need to do

For businesses, it’s a case of conducting an audit and risk assessment for known IoT devices that are used in the business. One basic security measure is to make sure that any default username and passwords in these devices are changed as soon as possible. For home users of smart products (who don’t run checks and audits), it appears that others need to step in on their behalf and force the manufacturers to take security risks seriously.