Internet Security

Internet Security Risk Management and SecurityUpdated September 22, 2006

Topics • Risk • Threat • Vulnerability • Event Cost • Security Myths • Global Trends • Addressing Essential not Best Practices

Risk • No system is 100% secure • Get a clear picture • Assess weaknesses • Prepare for the probable • Protect the most critical resources • Risk management is key to Internet security

Risk Equation • Risk = Threat x Vulnerability x Event Cost • If Threat = 0, or • Vulnerability = 0, or • Event Cost = 0, or • Then there is no Risk

Control of Parameters • Risk = Threat x Vulnerability x Event Cost • Vulnerability • Good Control • Event Cost • Some Control • Threat • Minimal Control

Determine the Risks • Malicious Code • Electronic (Hacking) • Physical • Down-Time • Human Factors • Email • X-ware

Malicious Code Trojans, Viruses, & Worms Electronic Port Scanning Hacking/Sniffing Defacement Spoofing Physical Theft Down Time Denial of Service attacks Power/Natural Disasters Human Disgruntled employees Sticky-notes Email Spam Phishing X-ware Adware Spyware Categories of Risk

Malicious Code Trojans, Viruses, & Worms

Trojan Horse • A computer program that appears desirable, but contains a hidden function that causes damage to other programs • Trojan.Vundo

Backdoor Trojans September 1999 September 2000 March 2001 Threat Rate 12 per Day 28 per Day 122 per Day Trojan Horse Threat

Virus • A computer program that is part of another and inserts copies of itself. • It must execute itself. It will often place its own code in the path of execution of another program. • It must replicate itself. For example, it may replace other executable files with a copy of the virus infected file. Viruses can infect desktop computers and network servers alike.

Types of Viruses • File Infector • Jerusalem and Cascade • Boot Sector • Form, Disk Killer, Michelangelo, and Stoned • Master Boot Record • NYB, AntiExe, and Unashamed

Types of Viruses • Multi-partite • One_Half, Emperor, Anthrax and Tequilla • Macro • W97M.Melissa, WM.NiceDay and W97M.Groov

Worm • A computer program that invades computers on a network, replicates itself to prevent deletion, and interferes with the host computer’s operation • This is in contrast to viruses, which requires the spreading of an infected host file. • W32.Mydoom.AX@mm

Malicious code is a growing problem—88% of respondents think that malicious code is "somewhat worse or much worse" than 2002, with only 12% stating the situation was "the same or better" in 2003. Malicious code is costing organizations lots of money—in 2003, disaster recovery costs increased by 23% to almost $100,000 per organization per event.Source: TruSecure, March 22, 2004 Real Threat Rates

Electronic Threats What is out there waiting for the opportunity?

Port Scanning • A port scan is a series of messages sent by someone attempting to break into a computer to learn which computer network services, each associated with a "well-known" port number, the computer provides. • There are 65,536 ports

Port Scanning September 1999 January 2000 October 2000 March 2001 Threat Rate 1 per 6 Days 1 per Day 6 per Day 9 per Day Port Scanning Rates

Web Defacement • Web site defacement, a form of malicious hacking in which a Web site is “vandalized.” Often the malicious hacker will replace the site’s normal content with a specific political or social message or will erase the content from the site entirely, relying on known security vulnerabilities for access to the site’s content.

Web Defacement • Unicef.org

Web Defacement • AirTran.com

Web Defacements May 1999 October 2001 March 2001 May 2001 May 2002 Threat Rate 15 per Day 61 per Day 180 per Day 580 per Day 900 per Day Real Threat Rates

Spoofing • Attempting to masquerade or closely mimic the URL displayed in a Web browser’s address bar. Used in phishing attacks and other online scams to make an imposter Web site appear legitimate, the attacker obscures the actual URL by overlaying a legitimate looking address or by using a similarly spelled URL.

Physical Theft

Physical • Stolen Laptops • May 22, 2006 - A laptop computer and external drive containing personal data on more than 26 million veterans and active duty military personnel was stolen.

Down Time Denial of Service and Natural Disasters

Down Time • Denial of Service • A user or program that takes up all of the system resources by launching a multitude of requests, leaving no resources, and thereby denying service to other users. • W32.DoS.funtime, Solaris.DoS.stacheld.c, Solaris.DoS.stacheld.t, Solaris.DoS.stacheld.m

Down Time • Natural Disasters • Weather • Katrina • Earth Quake • Tsunami • Volcanic

Human • Disgruntled Employees • Insider Activity in the Banking And Finance Sector This report examines 23 incidents carried out by 26 insiders in the banking and finance sector between 1996 and 2002.

Human • Disgruntled Employees • In 87% of the cases studied, the insiders employed simple, legitimate user commands to carry out the incidents • In 70% of cases studied, the insiders exploited or attempted to exploit systemic vulnerabilities in applications and/or processes or procedures

Human • Passwords • Sticky Notes • Spouses • Children • Pets • Mythology

Email Spam and Phishing

Email • Spam • 64% of the world's estimated 300,000 spam servers are located in Taiwan. About 23% are located in the United States. Computer World July 10, 2006.

Email • Phishing • PayPal

X-Ware Adware and Spyware

Adware • Programs that facilitate delivery for advertising content to the user and in some cases gather information from the user's computer, including information related to Internet browser usage or other computer habits.

Spyware • Programs that have the ability to scan systems or monitor activity and relay information to another computer or locations in cyber-space.

Vulnerability Where are the holes in your systems?

Vulnerability Prevalence • Over 70% of sites with firewalls are still vulnerable to known attacks • Over 80% of sites do not know what is on their networks and what is visible to the Internet

Mac/OS, How Safe? • Symantec, a provider of antivirus and other security software, released a report stating that it has identified an increasing number of vulnerabilities in the current version of Apple Computer's Macintosh operating system (Mac OS X). • Symantec reported that it had identified 37 high-impact Mac OS X vulnerabilities in the preceding year. • The Macintosh installed base is relatively small, with only about 3 percent of systems in use today running the Mac OS.Source: Gartner, April 1, 2005

Event Cost How much will recovery cost you?

Event Cost • Hard to Determine • Cost of recovery can be more than a company can bear • Organizations are often time reactive, not proactive

Melissa Virus • Data Taken from 131 corporations immediately after Melissa period • 25 companies were compromised by Melissa between Monday, March 29, and Friday, April 5 1999 • 20 experienced major “disaster” (>25 workstations infected)

Melissa Virus • Average of 196 infected workstations and 9 servers per company • 7,824 North American companies experienced compromise of more than 200 workstations • 1,205,000 computers infected • ICSA estimates total cost at $93 million dollars

Costs • Price of Security Breaches reaches nearly $14 million per incident. That's according to a study conducted by Ponemon Institute LLC for PGP Corp., a security software vendor in Palo Alto, California.Source: Computerworld, November 14, 2005http://www.computerworld.com/securitytopics/security/story/0,10801,106180,00.html

Costs • It is estimated that the worldwide impact of malicious code was 13.2 billion dollars in the year 2001 alone, with the largest contributors being: • SirCam at $1.15 Billion • Code Red (all variants) at $2.62 Billion • NIMDA at $635 Million.Source Computer Economics, 2 January 2002, http://www.computereconomics.com/cei/press/pr92101.htm

Costs • An estimated $7.8 Billion was lost to malicious code attacks in 2004 and 2005 combined. • More than 35% of computer users do not have protective software installed on their computers.Source: CNN Headline News August 8, 2006

Security Myths Separating Fact from Fiction

Top Security Myths • Encryption over the Internet is important (SSL) • Complex user passwords are good • Daily anti-virus updates are required • All vulnerabilities should be patched • Businesses should focus on firewall maintenance and management

Global Trends Where is all of this going?

Internet Security