Cybersecurity Threats Challenges Opportunities - November 2016 - ACS
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“It is only when they go wrong that machines remind you how powerful they are.” Clive James Cybersecurity – Threats Challenges Opportunities 3
Contents 01 03 Foreward Executive summary 1 4 Threats in the information age 13 The nature of threats 14 02 The Internet of Things (IoT) 16 Botnet armies 17 When security is an afterthought 18 Autonomous systems 19 Driverless cars and transport 19 ATMs and Point of Sale 21 What about wearables? 22 Cyberwarfare 24 A brave new world 5 Automated attacks 24 Cyber speak! 6 Energetic Bear 24 What is cybersecurity? 7 Cyberattacks on infrastructure 26 And the weakest link is… 9 When software kills 28 A world without cybersecurity 11 Data manipulation 29 Backdoors and espionage 29 Cloud concerns 29 Blast from the past 30 Virtualised threats 32 Industry and the individual 33 Ransomware and Cryptoware 33 Multi-vector attacks 33 Identity theft 34 The world we live in 34
04 The future in our hands The 100% secure computer 35 37 Opportunities 38 05 The data-driven economy 38 Technology as wealth creation 39 Cybersecurity as job growth 39 Leveraging technology talent 39 Challenges 40 Leadership 40 Learning from history 40 Collaboration 41 Education and awareness 41 You are what you do 43 Looking to the road ahead 45 State of the nation 46 Legal and regulatory 43 What role can you play? 47 Services and privacy 43 Government 47 Perception and practicality 44 Education and research 50 Business and industry 50 You, the individual 50 The five pillars of cybersecurity readiness 51 Online resources 52 Through the looking glass 53 Fast facts 55 Glossary 57 References 59 Cybersecurity – Threats Challenges Opportunities 5
Foreword You’ve seen documents like this pass your desk before, but we hope this one is a little different. You can gloss over it, seeking the diamonds in the rough, but take the time to delve into the information presented here and you will walk away with a different appreciation of the laptop on your desk, the car that you drive, and the phone that you carry. Not to mention the planes you fly, Logically, then, protecting that upon Protecting that upon the banks that hold your money, the which we depend should be front which we depend should hospitals that keep you alive and of mind for government, business the very infrastructure that makes and industry, academia and every be front of mind for our cities run. In short: the basis individual with a smartphone in government, business of our modern lives. their pocket. and industry, academia It can be hard to not overuse a word Which is to say, all of us. and every individual that’s become popular thanks to If you are part of government, this with a smartphone in public awareness, but ‘cyber’ is now primer serves as a guide to the firmly entrenched in our language their pocket. greater sphere of cybersecurity and our mindset, by virtue of the fact and how it relates to our national that our society today depends so security, our national interest, and much on technology. our economic prosperity. So we’re going to talk about cyber If you are an executive, board with respect to security, as the two member, business leader, or IT are intimately intertwined. In this professional this is an opportunity guide we aim to break down what to verse yourself in the language is sometimes a large and complex and the ecosystem, the threats and issue into an easy to read and the opportunities, and to better digestible summary that should communicate the issues and – if we’ve done our job well – give responsibilities around cybersecurity you the tools to both talk confidently within your organisation. about the issues, as well as equip you with the core information required to And if you are simply an individual make decisions around cybersecurity. interested in understanding more about the nature of our digitally- Because, despite the technical driven world, this guide will provide nomenclature, the issue of cyber- the basics and a clear overview of security is as vital to our way of life how cybersecurity relates to you. as technology itself. In fact, they can’t be separated: our economic health, At the ACS we welcome every our national security, and indeed the opportunity to educate and assist. fabric of our society is now defined If you have any questions, or would by the technology we depend on like more information, please feel every day. free to contact me at: anthony.wong@acs.org.au. What’s left unsaid here, however, is the assumption that this technology Enjoy this guide. We hope it will make will continue to work as we intend – a difference to you. 01 but this is only true if we can protect it from being hacked, manipulated, Anthony Wong and controlled. President, ACS
SECURING AUSTRALIA’S FUTURE At ACS we are passionate about the services to identify and certify Nations in New York, where the ICT profession being recognised as ICT professionals you can trust, importance of ICT professionalism a driver of productivity, innovation including through the Professional was acknowledged by the UN and business – able to deliver real, Standards Scheme that assures General Assembly President in 2015. tangible outcomes. professionals have the specialist In May 2016 the President of skills business can rely upon. This year ACS celebrates 50 years IFIP participated in the European of advancing ICT in Australia. Our ACS is part of the global federation Foresight Cyber Security founders and pioneers worked of professional ICT societies, Meeting where he advocated on the first innovative computers the International Federation for that professionalism of the ICT in government, academia and Information Processing (IFIP), workforce is “a key element in industry, and our members now and the first professional body to building trustworthy and reliable work at the coalface of technology receive accreditation under the systems” and that it is important development across every industry. International Professional Practice to ensure that “cyber security Partnership (IP3) – providing a and cyber resilience is also a In 2011, ACS brought together its platform for accreditation for duty of care of the individual own Cyber Taskforce from our ICT professionals and mutual ICT professional”. 23,000 members to respond to the recognition across international Federal Government’s new cyber As we move forward another boundaries. The ACS currently discussion paper, ‘Connecting with 50 years, ACS will be there chairs IP3 and plays a leading Confidence’, where we highlighted at the forefront meeting the role in the professionalism of the the need to develop co-ordination challenges and opportunities ICT workforce. and a focus on the pipeline of of ICT, and supporting the cyber professionals. IP3 has since gained global growth and potential of ICT attention after successful professionals in Australia. To play our part in securing engagements at the World Summit Australia’s future, we continue on the Information Society (WSIS) to perform the role of trusted Forum in Geneva and the United advisor to government, and deliver Cybersecurity – Threats Challenges Opportunities 2
Executive summary As technology continues to evolve so also do the opportunities and challenges it provides. We are at a crossroads as we move from a society already entwined with the internet to the coming age of automation, Big Data, and the Internet of Things (IoT). But as a society that runs largely Critically, this document clarifies Our aim is that this document on technology, we are also as a result the importance for Australia to take provides an informative primer on dependent on it. And just as technology responsibility for its own cybersecurity, the relevant issues facing Australia brings ever greater benefits, it also especially with regards to essential in relation to cybersecurity, to brings ever greater threats: by the infrastructure and governance. generate discussion and debate, and very nature of the opportunities it to raise awareness with regards to On the flip side – and as one of the presents it becomes a focal point for a fundamental building block of the fastest growth industries globally cybercrime, industrial espionage, and technologically-dependent society – developing our own cybersecurity cyberattacks. Therefore, protecting which we have already become. industry is also an opportunity for it is of paramount priority. economic growth, job creation, and As you will read in the following This guide looks at some of the education – ensuring Australia is pages, cybersecurity is not optional. concerns facing us in the near future well positioned for a future as a It must form part of the design of that include: digitally advanced nation. every product, of every database, of every electronic communication. And • Attack vectors such as botnets, Finally, we look at some of the – through education, awareness, and autonomous cars and ransomware. challenges that countries worldwide proactive change – we can all play a • Threats including data manipulation, are currently dealing with in regards part in securing our future. identify theft, and cyberwarfare. to cybersecurity, including: • Tangential issues such as data • The need for more collaboration sovereignty, digital trails, and in order to mitigate threats. leveraging technology talent. • Education and awareness; and Additionally, it provides some • The balance between privacy and background to the nature of digital security. ecosystems and the fundamentals of cybersecurity. Cybersecurity – Threats Challenges Opportunities 4
A brave new world You’re reading this document written with, laid out by, and printed using computers. From start to finish it existed as 0s and 1s – the binary blood of our modern world. In fact, our lives today are codified by data: almost everything we do, and everything we depend on, involves data and the technology that uses it – there are scant few areas not touched by this revolution we call the information age. 02
CYBER SPEAK! Every industry has its own lexicon, and the cyber world is no different. While built on technological foundations that we all know – computers, the internet, smartphones, and similar – as you delve deeper into the subject you start to encounter acronyms and technical concepts that you may not be familiar with. And, if we’re all to communicate on the subject of cybersecurity – across all sectors of government, business, industry, and academia – then it can help to familiarise yourself with the nomenclature associated with this diverse and compelling subject. To this end we’ve included a Glossary on page 57. Feel free to flick back and forth as you read to ensure you get the most out this document, spending more time expanding your knowledge and less time scratching your head! And so it follows that in order to individual; at other times it can cause billion1 globally in the next seven keep our way of life – and to continue significant financial or operational years alone – and the possibility to prosper through technology – we harm. At its worst, loss of life can be for Australia to establish itself as a must ensure that it always operates a result. leader, pioneering new technologies and works for us as intended. and exporting cybersecurity products Cybersecurity, then, is not optional. to the rest of the world. And for the most part it does, until As our world transitions more it’s hacked. In the hands of less than products and services online, and We are more than just the lucky favourable individuals, organisations, we in turn depend on them, protecting country. We are early adopters. We and governments, technology and this technological infrastructure has are tenacious innovators. We are a the data it depends on can be turned become a fundamental building block nation with the skills and talent to against us. for information systems globally. lead the world in cybersecurity – It must underpin every technology, and with the right mix of leadership When you read yet another report every gadget, every application, and and commitment from government, of a multimillion-dollar bank theft, anywhere data is stored. industry, and academia, we can make yet another million usernames and it happen. passwords leaked on the web, or To help understand the risks, this yet another scam milking millions document will explore the threats What part will you play? from vulnerable people – what you Australia faces in this digital age: are reading about is the lack of to our economy, our sovereignty, cybersecurity: a failure to protect and ultimately, our way of life. systems, processes, or data and It will also cover the opportunities thereby enabling exploitation. as a burgeoning industry – one that Sometimes the end result is just an is projected to be worth $US639 embarrassment for a company or Cybersecurity – Threats Challenges Opportunities 6
46 What is cybersecurity? % OF THE WORLD’S POPULATION IS CONNECTED TO THE INTERNET As with any technological advance throughout history, whenever new opportunities are created, there will always be those that exploit them for their own gain. Despite the threat of viruses and malware almost since the dawn of computing, awareness of the security and sanctity of data with computer systems didn’t gain traction until the explosive growth of the internet, whereby the exposure of so many machines on the web provided a veritable playground for hackers to test their skills – bringing down websites, stealing data, or committing fraud. It’s something we now call cybercrime. Since then, and with internet penetration globally at an estimated 3.4 billion users (approximately 46% 02 of the world’s population2), the
THREAT VECTORS BY INDUSTRY The vectors by which industries are compromised. Source: Verizon 2015 Data Breach Investigations Report FINANCE INFORMATION PUBLIC SECTOR EDUCATIONAL WEB FINANCE APPLICATIONS RETAIL 9.4% ENTERTAINMENT HOSPITALITY CRIMEWARE POINT OF SALE 18.8% 28.5% MISCELLANEOUS 14.7% PRIVILEGE MISUSE CYBER ESPIONAGE 10.6% MINING 18% HEALTHCARE ADMINISTRATIVE PROFESSIONAL INFORMATION MANUFACTURING opportunities for cybercrime have of critical business or government ballooned exponentially. intelligence, that drives the cyber The increasing underworld. prevalence and severity Combating this is a multi-disciplinary affair that spans hardware and One fact remains clear: it’s only of malicious cyber- software through to policy and people going to increase. As we integrate enabled activities… – all of it aimed at both preventing technology further into our lives, the cybercrime occurring in the first opportunities for abuse grow. So too, constitute an unusual place, or minimising its impact then, must the defences we employ and extraordinary threat when it does. This is the practice of to stop them through the education to the national security, cybersecurity. and practice of cybersecurity. foreign policy and There is no silver bullet, however; economy of the United cybersecurity is a constantly evolving, States. I hereby declare constantly active process just like the threats it aims to prevent. a national emergency to deal with this threat. What happens when security fails? While what frequently makes the Barack Obama, news are breaches of user accounts President of the United States, 20153 and the publication of names and passwords – the type that the Ashley Madison hack publicly exemplified – it’s often financial gain, or the theft Cybersecurity – Threats Challenges Opportunities 8
LAST TO KNOW MORE THAN 90% OF BREACHES ARE DISCOVERED BY EXTERNAL PARTIES WHAT’S THE PASSWORD? 63% OF BREACHES ARE CAUSED BY WEAK, DEFAULT, OR STOLEN PASSWORDS EASY HACKS, EASY BREACHES TOP 10 ESPIONAGE TARGETED INDUSTRIES Source: Verizon 2016 Data Breach The most targeted industries in 2015. Investigations Report Source: Verizon 2015 Data Breach Investigations Report MANUFACTURING 27.4% PUBLIC 20.2% PROFESSIONAL 13.3% INFORMATION 6.2% UTILITIES 3.9% TRANSPORTATION 1.8% EDUCATIONAL 1.7% REAL ESTATE 1.3% FINANCIAL SERVICES 0.8% HEALTHCARE 0.7% AND THE WEAKEST LINK IS… Humans are inherently complex In fact a recent study by researchers and multi-faceted creatures with at the Friedrich-Alexander our own agendas, influences, University of Erlangen-Nuremberg, faults, beliefs, and priorities. Germany, revealed that just over 50% of people click on links in Sometimes we’re also simply just emails from strangers, even when too trusting. they were aware of the risks.4 Even the most hardened system And so, as a result, cybersecurity can be breached through social isn’t just about technological engineering – the ‘hacking’ of defences: it’s also about people. people. No amount of secure From the home user through network topologies and firewalls to industry and government, or security software can withstand everyone needs a basic a user innocently clicking on an understanding of cyberthreats email link, or being convinced to 02 and how to recognise them – give up login details over the phone something which comes under the by someone pretending to be from umbrella of digital literacy. the IT department.
Cybersecurity – Threats Challenges Opportunities 10
A world without cybersecurity 93% WHILE One the most damaging targets for a society embroiled COMPANIES OF CASES TOOK in cyberwarfare is infrastructure. HACKERS WEEKS TOOK JUST OR MONTHS TO MINUTES DISCOVER Our reliance on automation focuses single points TO BREACH of failure that can have dramatic consequences if directed at power stations, communication networks, SHOW ME THE 95% transport and other utilities. MONEY OF WEB ATTACKS By way of example, and to draw terrorist, criminal, or foreign power. ARE FINACIALLY from the emerging technology of Australia invaded without the invader MOTIVATED driverless cars gaining popularity ever stepping on our shores. now, is the following example of It’s a stark example, but it EMPLOYEE LOST ASSETS what might happen if we continue to demonstrates the Achilles heel the MISTAKES 100x TIMES MORE create products and services without cybersecurity in mind: inter-connected society that we are heading for right now, and the reason PREVALENT Thirty years from now our society cybersecurity must be part of all THAN THEFT runs on automated cars, buses and technology from the outset. trains. Planes still require human Consider this: the internet has NEARLY 12% DO authority – for now – and drones enabled entirely new business CLICK 30% THE LINK OR line the sky. On the one hand, this advance in technology has brought models that have already shaped our planet. But the Googles and OPEN PHISHING OPEN much greater efficiency: traffic ATTACHED Facebooks and Amazons of this EMAILS FILES jams eliminated, pollution lowered, world are not the most profitable cheaper cost of transport and more. organisations that conduct business It’s a golden age. SIMPLE MISTAKES, COSTLY LOSSES over the internet today – that crown Source: Verizon 2016 Data Breach Then a cyberattack compromises the belongs to cybercrime. It speaks Investigations Report central network. The systems that volumes that the most lucrative co-ordinate all transport shut down, business on the internet today bringing the city of Sydney – now is fraud.9 7 million people – to an abrupt halt. No cars, no buses, no trains. Workers can’t get to and from work, and productivity stops. Life-saving medicine doesn’t arrive and people die. Essential services begin to fail, and chaos ensues. The economic and social fallout is immense: a city held hostage by an external force – be it 02
Q2 2015 saw one of the highest packet rate attacks recorded... which peaked at 214 million packets per second (Mpps). That volume is capable of taking out Tier 1 routers, such as those used by Internet service providers (ISPs). Akamai, State of the Internet Q2 2015 Report10 CHINA 37.01% US 17.88% UK 10.21% INDIA 7.43 SPAIN 6.03% KOREA 4.53% RUSSIAN FEDERATION 4.45% GERMANY 4.29% AUSTRALIA 4.18% TAIWAN 4.0% TOP 10 SOURCE COUNTRIES FOR DDOS ATTACKS, Q2 2015 Top sources of mitigated DDoS attacks on Akamai’s network. Source: Akamai State of the Internet Report, Q2 2015 Cybersecurity – Threats Challenges Opportunities 12
Threats in the information age Every minute, we are seeing about half a million attack attempts that are happening in cyberspace. Derek Manky, Fortinet Global Security Strategist5 03
500 500,000 ATTACKS AGAINST FORTINET EVERY MINUTE To understand just how technology becomes vulnerable to cybercrime, it helps to first understand the nature of threats and how they exploit technological systems. You might first ask why technology is vulnerable at all, and the answer is simple: trust. From its inception, the protocols that drive Internet, by and large, were not designed for a future that involved exploitation – there was little expectation at its birth that we might need to one day mitigate against attacks such as a distributed considered. Thousand for nefarious purposes isn’t even And the result is that today cybercrime almost exclusively leverages the lack of security-focused design in everything from your smartphone and web browser through to your credit card and even the electronic systems in your car. The nature of threats Cybercrime comes in a variety of forms ranging from denial of service attacks on websites through to theft, by hardware and software. That is, if a hacking exploit works on Apple iPhones for example, and everyone in your organisation has one, then by definition the attack surface could range in the dozens to the thousands depending on the size of your company. Or, looking at it another way, if anyone with an iPhone is vulnerable, the attack surface worldwide totals in the hundreds of millions. This is further compounded by the fact that hardware and software denial of service (DDoS), or that a blackmail, extortion, manipulation, may provide multiple vectors for webcam you buy off the shelf might and destruction. The tools are many attacks, such that – and using the need security protocols to prevent it and varied, and can include malware, above example again – an iPhone being hacked and used to spy on you. ransomware, spyware, social might have multiple different engineering, and even alterations vulnerabilities, each of them a There is much greater awareness to physical devices (for example, possibility for exploitation. In some today, but even so you can still buy ATM skimmers). cases, multiple exploits can be used devices that connect to the internet in tandem to hack a device, as the that have poor security measures or It’s no surprise then that the sheer FBI recently demonstrated when it no security at all built-in, because up scope of possible attacks is vast, gained access to the San Bernardino until recently this simply wasn’t part a problem compounded by what’s shooter’s iPhone (yes, the good guys of the design scope. In many cases, known as the attack surface: the can hack you, too…) the idea that a device might be used size of the vulnerability presented Cybersecurity – Threats Challenges Opportunities 14
And this is to say nothing of According to network security and There were 19 distributed embedded systems the type that services company Fortinet, 500,000 denial-of-service (DDoS) of which power our infrastructure attacks occur against its networks including transport, electricity, and every minute5. And that’s just one attacks that exceeded communications. Here, attacks are service provider. 100 Gbps during the often more targeted – even down to The bottom line is this: almost first three months of the specific to systems in a particular anything controllable by technology year, almost four times plant – but the repercussions are will have a weak spot. In the past also considerably more dangerous. more than in the previous Shutting down an electrical grid, for year we’ve seen everything from cars (“Hackers remotely kill jeep quarter. In some cases example, can have life-threatening on highway”6) to medical devices attackers don’t even consequences. (“Hackers can send fatal dose to have to deliver on their What you also don’t see – because drug pumps”7) to toys (“Hackers threats. Researchers it’s hidden in the millions of fibre- hijack Hello Barbie Wi-Fi to spy optic networks and routers that on children”8) succumb to anyone from CloudFlare reported form the internet – is that attacks with a little knowledge, time, and that an extortion group are happening constantly all around opportunity. earned $100,000 without the world, even as you read this. To appreciate the scope of the ever launching a single Your modem at home that gives you challenge that lies ahead – the new access to the internet is constantly DDoS attack. types of threats that we are starting fending off queries to see if your to see emerge now – and thus the IP address has any open ports (the Lucien Constantin, importance of cybersecurity for Network World, 201628 virtual addresses that allow software the government, industry, and the to communicate to and from your 03 individual, the following section computers and network). delves into our predictions of where cybercrime is heading, and the type of attacks we can expect to see.
The Internet of Things (IoT) Perhaps the most recognised buzzword of the For $6 in Bitcoin, I can moment, the Internet of Things (IoT) encompasses rent time on a DDoS tool and bring down most the many and varied devices currently on the market, websites. Better yet, if I or soon to be on the market, that will connect to and send just the right type stay connected to the internet 24/7. of packet to their web Typically this includes products like But this is just the beginning. IoT servers, I can crash the webcams, smart TVs, and even the has the potential to encompass a lot site for free. much touted internet-connected more – heart monitoring implants, fridges. But IoT actually encompasses pathogen monitoring for food, A Thief’s Perspective (interview), a broad range of products most of transponders for animals on farms, Intel Security, 201518 which you won’t actually see – environmental waste monitoring, electronics, sensors, actuators field devices for police to detect and software soon to be built into threats, feedback sensors for everything from your car to your home: firefighters in search and rescue technology to unlock your door and and much, much more. turn on the lights when you arrive Perhaps the best way to imagine home; technology to allow cars to IoT is – and to borrow a phrase talk to other cars and traffic lights from a research paper at the Social to prevent accidents; technology to Science Research Network – is let entire cities regulate air-quality, to think of IoT as an “inextricable manage energy distribution, and mixture of hardware, software, data regulate water supply all in real-time and service”11. Which of course is from thousands of buildings, each with to say that the potential is close to thousands of sensors, all communi- limitless. cating through a city-wide network. According to the CEO of Cisco, Chuck Sound like fantasy? There is already a Robbins, the IoT industry is expected development in the UK by River Clyde to be worth $US19 trillion globally Homes and the Hypercat Consortium by 202012. Closer to home, Frost & to build a Smart Neighbourhood in Sullivan is tipping the Australian Scotland by installing hundreds of market for IoT – just in terms of IoT devices to monitor everything home devices, such as in security or from temperature and local weather energy management – to be worth through to carbon monoxide levels, $200M by 2020.13 potential gas leaks, lift maintenance, smoke detection and communal Taken together, this means is that in lighting to name a few. All of these the near future just about everything talk to each other to provide an you use, and everywhere you go, overall real-time knowledge base devices will be hooked up to each for the operating of neighbourhood other communicating, sharing data, services, and to minimise health and and enabling a future that once safety risks. was the realm of science-fiction. The potential boon for society is immense, but so too are the risks. Cybersecurity – Threats Challenges Opportunities 16
IOT – A FUTURE OF CONNECTED DEVICES As barriers to entry drop we will see an uptake of IoT, creating a future where attack vectors are everywhere. Source: IoT Alliance Australia 99% 1T 20x 40x 60x OF THINGS IN THE COST OF COST OF COST OF 1 TRILLION WORLD ARE STILL SENSORS BANDWIDTH PROCESSING CONNECTED NOT CONNECTED PAST 10 YEARS PAST 10 YEARS PAST 10 YEARS THINGS BY 2035 Considerably more devices will be Botnet armies the Googles and Akamais of this world connected to each other and the – are able to withstand. Somewhat related are botnets. A bot internet: Intel predicts there will be as (sometimes called a ‘zombie’) is a Analysis of the attack on OVH revealed many as 200 billion devices by 2020.14 remotely-controlled and compromised – it consisted of some 145,000 devices, And if you remember our primer at unbeknownst to the owner – computing the majority of which belonged to the start of this document, that is device that’s connected to the internet. internet-connected CCTV cameras one very large, very vulnerable attack This could be a desktop computer or a and DVRs (digital video recorders) surface. It should go without saying laptop, but it can also be a webcam, typically used in business and home that the threat potential from IoT is a modem, or a Wi-Fi router, all of surveillance. beyond vast, and therefore which almost everyone has in their Such products make ideal bots because cybersecurity practices must form home today. Unfortunately, again, poor their limited functionality provides less part of IoT development from the security design sees devices like scope for security software; they’re ground up. For example, car manufac- these come with only basic security often headless, meaning a user doesn’t turers need to build security protocols that can be easily bypassed, allowing have a display or other means to into the sensors in smart cars to cybercriminals to install malware and interact with them to monitor activity. ensure they can’t be turned against control the device remotely. They almost always come with a the driver to cause injury or death. Collect enough bots and you have default administrator password that Something which, unfortunately, is a botnet, and with a botnet you can nobody changes because it requires currently not the case (see next launch a distributed denial-of-service effort and a bit of technical know-how section, Autonomous systems). (DDoS) attack. In large enough – allowing cybercriminals to walk numbers, such an attack can take through the front door and take it over. down websites and knock services This is a great example of how lack of offline – something we saw first-hand Although a successful earlier this year when the Australian security design enables cybercrime attack on industrial IoT – who would think to hack a CCTV? Bureau of Statistics eCensus website But that’s the line of thinking that devices with an installed was very publicly attacked. engenders security flaws. And once a base of hundreds of This is to say nothing of what happens flaw is out there, it often can’t be fixed: millions would likely when IoT devices take part in a DDoS, the cost of updating the devices could which we know they already do. In fact, be ruinous for a company if they need cause havoc, one device the world’s largest DDoS occurred in to be recalled, as not every device sup- at a key point in a critical August of this year knocking out French ports the ability to be updated remotely. infrastructure control internet service provider OVH, suffering Prevention, then, is better than cure. system could be far more an attack that transmitted a record- breaking 1Tbps17. To put this into Recently, cybercriminal botnet devastating. perspective, a 1Gbps attack is sufficient operators have moved to self- to knock most businesses anywhere in sustaining botnets that continually McAfee Labs 2016 Threats Predictions15 the world offline, and this attack was find new devices to infect and add to 1000 times stronger. It was only earlier the flock, even while others may in 2016 that the previous record came be taken offline16. This has led to in at 579GBps. That is, we have already cybercriminals to sub-lease access to 03 seen almost a doubling of capability their botnets on the cheap, meaning in less than a year, and at a volume so anyone with a grudge and $50 can high that very few very large players – bring down a website.
TABLETS WEARABLE DEVICES 2015 – 248 MILLION 2019 – 269 MILLION 2015 – 200 MILLION 2019 – 780 MILLION IOT DEVICES GLOBAL PUBLIC CLOUD MARKET SIZE 2015 – 15 BILLION 2020 – 200 BILLION 2015 – $97 BILLION 2020 – $159 BILLION MORE DEVICES, MORE THREATS The growth in user-centric mobile and IoT devices will see greater exploitation of personal data. Source: McAfee 2016 Threats Predictions WHEN SECURITY IS AN AFTERTHOUGHT One of the most potent botnets and passwords (usually all related to date is Lizardstresser, by the to administrator logins). infamous Lizard Squad DDoS It’s so successful because many group. In 2015 the group released IoT devices are manufactured with the source code, allowing others to the same default login credentials. make their own. This has resulted Additionally, these same devices in copy-cat groups and a stark are also often simply plugged in increase in botnets-for-hire. and turned on, and have unfettered Lizardstresser relies on cheap access to the internet through IoT hardware to build large botnet whatever corporate or home armies, using shell scripts (simple networks they are connected to. text-based scripted programs) This makes them easy targets to scan IP ranges and to attempt to enslave into botnets.19 access using hardcoded usernames Cybersecurity – Threats Challenges Opportunities 18
Attacks on automobile systems will increase rapidly in 2016 due to the rapid increase in connected automobile hardware built without foundational security principles. McAfee Labs 2016 Threats Predictions15 Autonomous systems As technology continues to permeate our lives, we move from operating technology to integrating with it. This is especially true of autonomous systems that are by definition designed to blend in with our society, becoming second nature. By the same token however, Similar abuse of access has also reliance on such systems makes the been demonstrated with cars from outcome of their abuse potentially Mercedes, BMW, Toyota, Audi and more damaging. Typically, these Fiat – all due to poor security in the technologies also integrate into design process.20 21 22 critical infrastructure, such as It’s not hard to see that in the wrong payment systems and – in the case hands such abuse could result in of autonomous cars – the transport cars being used as weapons to maim network, making protecting them or kill pedestrians – or even the from a cybercrime a pivotal focus for occupants themselves – on the road. cybersecurity. According to Business Insider in its Connected-Car Report, there will be Driverless cars and transport 220 million autonomous cars on the At the moment, driverless cars are road by 2020.23 stealing the limelight of autonomous McAfee’s 2016 Threats Predictions systems. While so far there have Report notes that “poorly secured been no documented cases of driverless cars and smart highways wilful misuse, it’s already been will further expose drivers and demonstrated that autonomous cars passengers in 2017 and beyond, can be remotely controlled. likely resulting in lost lives…”, and In 2015, 1.4 million Jeep Cherokees that “recent vehicle hacks are a were recalled after hackers great example… selectively modifying demonstrated that the cars could communications and commands be taken over remotely through the so they can take control or affect 03 entertainment system.6 what the vehicle does. This has a potentially terrifying result.”15
DRX-BASED AIRBAG ECU USB RECEIVER (VX2) REMOTE LINK ONBOARD BLUETOOTH REMOTE KEY TYPE APP DEVICES STEERING AND PASSIVE BRAKING ECU TPMS KEYLESS ENTRY LIGHTING SYSTEM VEHICLE ACCESS ENGINE AND ECU (INTERIOR AND ADAS SYSTEM SYSTEM ECU TRANSMISSION ECU EXTERIOR) ECU THE ATTACK SURFACE OF A MODERN CAR Many car systems have not been designed with security in mind, making it possible to hack into a car via smartphone or laptop. Source: McAfee 2016 Threats Predictions Cybersecurity – Threats Challenges Opportunities 20
EMAIL LINK PHISHING PERSON USER DESKTOP EMAIL ATTACHMENT MALWARE INSTALLATION ALTER BEHAVIOUR STEAL CREDENTIALS USE OF STOLEN CREDENTIALS DIRECT INSTALL MALWARE BACKDOOR, C2, RAMSCRAPER, EXPORT DATA PAYMENT POS TERMINAL/CONTROLLER BIRTH AND REBIRTH OF A DATA BREACH An example of how one breach can lead to another (in this case, harvesting payment data of consumers after first breaching a POS vendor). Source: Verizon 2016 Data Breach Investigations Report ATMs and Point of Sale processing system, and so it’s They’d been inside our Credit cards have long been the not uncommon to find malware network for a long period, specifically designed to pull data target of fraudsters, spurring the from embedded systems in POS about two years. And the development of RFID chips and terminals (see ‘Birth and re-birth other protective technology in the way it was described to of a data breach’ diagram, above.) banking ecosystem. However, us was they’re so deep security is an arms race and threats Now, of course, the technology has inside our network it’s such as skimming is now a global progressed further with contactless like we had someone phenomenon that allows data from pay systems from the likes of Apple cards to be read and transmitted (Apple Pay) and Google (Android Pay), sitting over our shoulder wirelessly in real time from ATM as well as players like Samsung for anything we did. machines and point of sale devices. (Samsung Pay, of course) that allow consumers to pay simply by waving Daryl Peter, IT Manager, Indeed, point of sale systems as a their smartphone over a device – NewSat 2012-201485 whole are their own a sub-category which presents yet another attack of cybercrime infiltration, being surface for cybercrime. the weakest point of the payment 03
WHAT ABOUT WEARABLES? Wearables are rapidly gaining Wearables are tracking all sorts popularity with smartwatches such of personal information including as the Apple Watch and Samsung GPS location, blood pressure, Gear, as well as exercise wearables heart rate, and anything else like those from FitBit and Jawbone. you feed them such as weight or According to ABI Research, an diet. Such personally identifiable estimated 780 million wearable information could be used as a devices will be in circulation base to target you for spear-phishing, by 2019. or aid in identity theft. But the real opportunity is these devices Now you might be wondering linking to your smartphone, where just what would be so bad about phone numbers, more personally hacking a fitness wearable? This identifiable information, emails, is exactly the line of thinking web logins etc. could theoretically that allows cybercrime to occur. be compromised. Cybersecurity – Threats Challenges Opportunities 22
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Cyberwarfare Once the domain of science fiction, cyberwarfare Most modern countries is now very real, with most superpowers now now are treating cyberspace as another having dedicated cyberwarfare divisions of the military domain, in military. And while there have been few known, addition to land, air co-ordinated cyberattacks on physical targets, and sea. we don’t need a crystal ball to predict the future: they will only increase. Dmitri Alperovitch, Cybersecurity industry executive25 It’s telling that we are now in an Automated attacks age where governments, political Much of what we talk about with groups, criminals and corporations regards to ‘hacking’ is a function can engage in cyberespionage, of people at keyboards finding and cyberwarfare, and cyberterrorism. abusing weak links in security. It is a The Prime Minister, Malcolm Turnbull, skilled and time-consuming process. announced at the Australia-US Cyber Security Dialogue in September However, in the ever-evolving arms that Australia is well equipped to race between subversive elements both defend against and carry out and cybersecurity, a move to cyber-operations. automating such attacks would have clear benefits: whereas exfiltration We now live in a world where warfare may have taken days by skilled can be conducted entirely virtually – personnel, automated attacks can though the consequences will almost reduce this to hours – infiltrating, always have repercussions in the searching for a payload, gobbling it physical world. ENERGETIC BEAR One of the more well-known in manufacturing, construction, nation-state sponsored tools of health care and defence companies. cyberwarfare currently active is Primarily designed for Energetic Bear. First uncovered in cyberespionage, when the threat 2012, and believed to be sponsored was first mapped in 2014 by by Russia, Energetic Bear used security firm Kaspersky Labs, the Havex Trojan to gain access to it identified nearly 2,800 victims company networks, particularly worldwide, affecting countries those in the energy sector, including the US, Spain, Japan though it has also been found and Germany.44 Cybersecurity – Threats Challenges Opportunities 24
Almost half the security professionals surveyed think it is likely or extremely likely that a successful cyberattack will take down critical infrastructure and cause loss of human life within the next three years. Critical Infrastructure Readiness Report, Aspen Institute and 2 up, encrypting it, and sending it out over the network before the host machine’s security personnel even knows what’s happened. The defence to which, of course, is to automate security to combat automated attacks – computer software fighting computer software, all without human intervention. And while this sounds like a sci-fi movie, the reality is it’s already here – in August this year the world’s first automated cyber-hacking contest was held at DARPA (Defence Advanced Research Projects Agency), Intel Security, 201525 which saw supercomputers battle it out for a $2 million prize, the win going to a perhaps appropriately named machine called ‘Mayhem’.45 03
230 PEOPLE LOST POWER WHEN 30 SUB-STATIONS IN WESTERN UKRAINE WERE SHUT DOWN VIA A REMOTE ATTACK ,000 Cyberattacks on Iran’s nuclear-enrichment program French Coldwell, Chief Evangelist infrastructure by sabotaging centrifuges.40 at governance, risk, and compliance • In 2014 a German steelworks was apps company Metricstream, at a As societies around the world disabled and a furnace severely cybersecurity summit earlier this depend ever more heavily on damaged when hackers infiltrated year noted that “this is the canary technology, the ability to shut down its networks and prevented the in the coalmine. Much more of this or destroy infrastructure, take furnace from shutting down.41 will come.”43 control of machines and vehicles, and directly cause the loss of life • In 2015, with an attack strongly We can expect governments around has become a reality. To date, some suspected to have originated the world to strengthen their of the more well-known examples from Russia, 230,000 people lost cyberattack and defence capabilities, of cyberattacks on infrastructure power when 30 sub-stations in spurring an arms race that will include: Western Ukraine were shut down operate at a much faster pace than via a remote attack. Operators at we saw in the Cold War. But here • In 2008 when Russia sent the Prykarpattyaoblenergo control the results could be much more tanks into Georgia, the attack centre were even locked out of subtle – as noted in the McAfee 2016 coincided with a cyberattack on their systems during the attack and Threats Predictions report, “they will Georgian government computing could only watch it unfold.42 improve their intelligence-gathering infrastructure. This is thought to capabilities, they will grow their be one of the first land and cyber In all of these, and as an indication ability to surreptitiously manipulate coordinated attacks.39 of how the landscape of war is markets, and they will continue to • Also in 2008, Stuxnet – a computer changing, the weapon of choice for expand the definition of and rules of worm purportedly jointly designed these attacks wasn’t guns or bombs engagement for cyberwarfare.”15 by the US and Israel – crippled – it was a keyboard. Cybersecurity – Threats Challenges Opportunities 26
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WHEN SOFTWARE KILLS It’s easy to forget that computers Toyota’s ETCS America’s top spies say can have life-threatening con- Toyota recalled 8 million vehicles the attacks that worry sequences. Here are some well- worldwide starting in 2009 after known examples of what happens them don’t involve the faults with the Electronic Throttle when technology fails due to small Control System resulted in the theft of data, but the mistakes in computer code. direct manipulation of death of 89 people.31 it, changing perceptions Therac 25 Tesla’s autopilot of what is real and This is so well known that it’s now In July 2016 a man died while what is not. taught in computer science relying on the autopilot function of curriculums. Therac 25 was a his Tesla Model S when it failed to Patrick Tucker, Defense One27 Canadian medical machine designed detect a trailer, crashing into it.32 to help save lives by administering targeted doses of radiation to kill These are examples of unintended cancer. Instead, a rare software software faults, but subtle manip- glitch saw patients receiving 100 ulation of data could intentionally times the necessary dose. In a result in loss of life, and remain period from 1985-1987 five patients undetected until this occurs. died, while many others were Military officials in the US have seriously injured.29 even raised concerns that Chinese hackers known to have infiltrated Patriot missile defence contractors over the last decade could have already During the Gulf War in 1991 a altered code for weapon systems, Patriot missile failed to intercept sitting dormant until the next a Scud missile due to a software major conflict.33 fault, resulting in the death of 28 US soldiers and injuring 100 others.30 Cybersecurity – Threats Challenges Opportunities 28
Data manipulation Not all attacks are about theft or destruction. The biggest threats in A more sinister cause is the manipulation of data cybersecurity today are around the large in place – such that machines can be controlled scale proliferation – or the wrong information reported to human of targeted attacks – operators without their knowledge. from breach and email It’s clear if a cybercriminal releases By way of example, in 2015 Juniper distribution of socially stolen usernames and passwords Networks announced it had engineered ransomware on the web. It’s much less clear if discovered multiple backdoors in data belonging to a business has its firewall operating system code to potentially harmful been modified – with those who installed with its products – the same attacks on critical own the data none the wiser. As no products used to protect corporate infrastructure like destruction is caused such intrusions and government systems around the energy networks. here can be harder to detect, if world. These backdoors had been they’re detected at all. Yet even the active for at least three years. Rodney Gedda, smallest alterations can have serious One of the backdoors gave remote Senior Analyst, Telsyte53 consequences and implications. control of the firewall to an outside James Clapper, Director of US user, while another disturbingly National Intelligence, said it allowed for the decryption of traffic succinctly when he stated, “Decision running through a Juniper Networks making by senior government firewall, allowing traffic to be officials (civilian and military), eavesdropped. The sophistication corporate executives, investors, and nature of this breach points to or others will be impaired if they a nation-state as the culprit.34 cannot trust the information they are receiving.”27 Cloud concerns As with any successful technology, Backdoors and espionage the more popular it becomes the Backdoors are particularly larger a target it also becomes. concerning because they can be Cloud is now well entrenched as a both hard to discover and provide concept and a service offering, and unfettered access to a system or indeed many businesses now rely on entire network. cloud services to operate. A compromised system can provide On the one hand this can make cybercriminals or a nation-state the security easier for companies ability to spy on data, or alter the outsourcing their data to lie on data in place. And for as long as a a cloud service where the cost of system is compromised, abuse of security is carried by the vendor, privilege will be ongoing. but on the other it centralises cloud services as highly viable targets 03 for attack.
BLAST FROM THE PAST Perhaps one of the more it was visible from space. Later prominent examples of the cause was revealed to be a cyberwarfare – even before the Trojan horse implanted by the US internet became ubiquitous – in pipeline equipment sold from a comes from the cold war in 1982 Canadian company on to Russia. when a Siberian oil pipeline End result: economic sabotage exploded, creating at the time facilitated by computer software. one of the largest non-nuclear explosions in history, so large 22° LOCAL WEATHER GAS DETECTION 0% 22° TEMPERATURE LEL CARBON MONOXIDE 0 50% CISTERN AND TANK LEVELS PPM OVERFLOW PIR SENSORS 180° 40% HUMIDITY LEVEL COMMUNAL WINDOWS 35° ANGLE 0% SMOKE DETECTION COMMUNAL LIGHTING KWH 1344 LIFTS MOVEMENT AND NOISE RELATED TO ASB 80 17% COMMUNAL DBR OPEN DOORS SMART CITIES – BRITAIN’S NEIGHBOURHOOD@BROOMHILL PROJECT A small sample of the types of IoT sensors in a smart city apartment block. Source: IoT Alliance Australia Cybersecurity – Threats Challenges Opportunities 30
90% OF AUSTRALIANS WILL BE ONLINE BY 2017 2 IN 3 AUSTRALIANS HAVE SOCIAL MEDIA ACCOUNTS 1 IN 2 AUSTRALIAN MOST AUSTRALIANS SMALL AND MEDIUM SPEND ALMOST 1 DAY BUSINESSES RECEIVE ONLINE PER WEEK PAYMENTS ONLINE THE MARKET BY 2019, THE AVERAGE 84% OF AUSTRALIAN FOR CONNECTED AUSTRALIAN HOUSEHOLD SMALL AND MEDIUM HOME DEVICES IS WILL HAVE 24 DEVICES BUSINESSES ARE ONLINE EXPECTED TO GROW CONNECTED ONLINE 11-FOLD TO 2019 AUSTRALIANS ARE BECOMING INCREASINGLY CONNECTED ONLINE As Australia becomes ever more connected, cybersecurity becomes ever more important. Source: Commonwealth of Australia, Department of the Prime Minister and Cabinet, Australia’s Cyber Security Strategy. But there’s also a less obvious A good example of how the landscape Nation-state concern here: sovereignty. can change is the news earlier this cyberwarfare will year that in Russia, ISPs are now Security of cloud data is not just required to store both the metadata become an equaliser, about encryption, but also the and content of communications, sovereignty of access when data is shifting the balance and hand over encryption keys for physically located in an overseas of power in many jurisdiction. The internet may have any encrypted data36. Any cloud data international passing through an ISP can become no borders, but data itself still readable by Russia’s government and relationships just as lies within traditional real-world intelligence services. This had the boundaries and in turn may be bound nuclear weapons did immediate fallout of some popular by the laws of a foreign nation.35 starting in the 1950s. VPNs closing their Russian nodes, Further, even if we trust in the and in at least one known case37 McAfee Labs 2016 laws of a foreign nation there’s no servers were seized from the VPN Threats Predictions15 guarantee they won’t change, and provider under this law. data that was previously protected With cloud expected to grow by could be subpoenaed, accessed by around 18% through 201638, government departments, or shared concerns around the sanctity and with third parties without consent. sovereignty of cloud data are only going to increase. 03
MORE USERS 2015 – 3.0 BILLION 2019 – 4.0 BILLION MORE SMARTPHONE CONNECTIONS MORE DATA 2015 – 3.3 BILLION 2015 – 8.8 ZETTABYTES 2020 – 5.9 BILLION 2020 – 44.0 ZETTABYTES MORE IP-CONNECTED DEVICES MORE NETWORK TRAFFIC 2015 – 16.3 BILLION 2015 – 72.4 EXABYTES PER MONTH 2019 – 24.4 BILLION 2019 – 168.0 EXABYTES PER MONTH THE GROWING CYBERATTACK SURFACE More devices, more users, more data – every year. Source: McAfee 2016 Threats Predictions Virtualised threats run different operating systems and different applications), we As a result of the growth in cloud have substantially broadened the services, there has been an explosion attack surface.” in the use of virtual machines for business, making these prime targets Indeed, the use of apps that rely for cybercrime. on the cloud will also allow mobile devices running compromised apps Fortinet notes, “growing reliance on as a way for hackers to remotely virtualisation and both private and attack and breach public and private hybrid clouds will make these kinds corporate networks.5 of attacks even more fruitful for cybercriminals.”5 Finally, there’s one other consideration: cybercriminals can And, as the McAfee’s 2016 Threats use cloud services themselves, Predictions report notes, “how do providing powerful resources for you accurately track and attribute processing power and storage, and an attack, with all of the obfuscation the ability to appear and disappear possible with clouds and at the click of a button. virtualisation?”15 It goes on to state, “if we keep our stuff in the cloud and access it from a phone, tablet, kiosk, automobile, or watch (all of which Cybersecurity – Threats Challenges Opportunities 32
Industry and the individual While large security breaches make the news, Malware is still very the majority of cybercrime involves fraud targeting popular and growing, but the past year has businesses and individuals. Here, a mixture of marked the beginnings malware and social engineering can see financial of a significant shift fraud resulting in the loss of thousands, all the way toward new threats that up to millions, of dollars. are more difficult to And, it’s also some of the hardest encourage extortion as a business detect, including file- crime to combat – largely due to the model – with victims opting to less attacks, exploits sheer scope of attack surfaces which restore data from backups instead, of remote shell and can range from desktop computers the reality is that this isn’t always through to laptops, tablets and practical. This is especially true for remote control protocols, smartphones. companies, where the downtime or encrypted infiltrations, lost productivity from denied access Sometimes, the vector is simply and credential theft. a phone: using social engineering to the data can be higher than the price of the ransom. through an employee to gain access McAfee Labs 2016 to a network, or con an individual out Recently, however, the ante was Threats Predictions15 of money – as in the classic technical upped with the appearance of support scam, of which the ransomware that claims to have Government has a great summary encrypted files and asks for payment at www.scamwatch.gov.au (also a for the decryption key, but in fact great site to learn about other the files have simply been deleted online scams). unbeknownst to the owner.46 Known as Ranscam, the one upside to this Ransomware and Cryptoware change in tactics is that if it becomes The ease with which amateur the prevalent form of ransomware, cybercriminals can get their hands it will destroy the trust – or what on tools to extort money is increasing. little there is – between the criminal So far in 2016 we’ve seen a prevalence and the victim that the data will of cryptoware targeting both be recoverable. No honour among enterprise and individuals, requiring thieves, it seems. the payment of a ransom to unlock encrypted files. Multi-vector attacks Taking advantage of multiple The most well-known of these was concurrent attack mechanisms, a Cryptolocker, said to have earned its single attacker may try to penetrate creators $US3 million before it was an organisation on multiple levels in shut down by a consortium involving order to access different data, such the US, the UK, and a number of as targeting the CFO with social security vendors and researchers. engineering, with the aim to secure 03 While in an ideal world these ransoms financial information while using would never be paid – and thus not spear-phishing targeted at office staff to get malware installed.
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