the good, the bad and the ugly of the target data breach

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The Good, The Bad and The Ugly of The Target The Good, The Bad and The Ugly of The Target Data Breach Ulf Mattsson CTO, Protegrity [email protected]

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The landscape of threats to sensitive data is rapidly changing.  New technologies bring with them new vulnerabilities, and organizations like Target are failing to react properly to the shifts around them. What's needed is an approach equal to the persistent, advanced attacks companies face every day.  The sooner we start adopting the same proactive thinking hackers are using to get at our data, the better we will be able to protect it.  This webinar will cover: Data security today, the landscape, etc. Discuss a few recent studies and changing threat landscape The Target breach and other recent breaches The effects of new technologies on breaches Shifting from reactive to proactive thinking Preparing for future attacks with new techniques

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Page 1: The good, the bad and the ugly of the target data breach

The Good, The Bad and The Ugly of The Target The Good, The Bad and The Ugly of The Target Data Breach

Ulf MattssonCTO, Protegrity

[email protected]

Page 2: The good, the bad and the ugly of the target data breach

Working with the Payment Card Industry Security Standards Council (PCI SSC):

• PCI SSC Tokenization Task Force - Guidelines

• PCI SSC Encryption Task Force

• PCI SSC Point to Point Encryption Task Force

• PCI SSC Risk Assessment SIG

Ulf Mattsson & PCI Data Security Standards

• PCI SSC eCommerce SIG

• PCI SSC Cloud SIG

• PCI SSC Virtualization SIG

• PCI SSC Pre-Authorization SIG

• PCI SSC Scoping SIG

• PCI SSC 2013 – 2014 Tokenization Task Force – Technical Standard

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Page 3: The good, the bad and the ugly of the target data breach

Data security today

The Target breach

New environments bring new vulnerabilities

Topics

New environments bring new vulnerabilities

Thinking like a hacker - proactive data security

New technologies & approaches to properly secure data

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Page 4: The good, the bad and the ugly of the target data breach

DATA SECURITY TODAYTODAY

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How have the methods of attack shifted?

Page 5: The good, the bad and the ugly of the target data breach

Worries of 800 IT Pros

5

Source: 2014 Trustwave Security Pressures Report

Page 6: The good, the bad and the ugly of the target data breach

Data Loss Worries IT Pros Most

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Source: 2014 Trustwave Security Pressures Report

Page 7: The good, the bad and the ugly of the target data breach

“It’s clear the bad guys are winning at a faster rate than the good guysare winning, and we’ve

The Bad Guys are Winning

7

Source: searchsecurity.techtarget.com/news/2240215422/In-2014-DBIR-preview-Verizon-says-data-breach-response-gap-widening

are winning, and we’ve got to solve that.”- 2014 Verizon Data Breach Investigations Report

Page 8: The good, the bad and the ugly of the target data breach

We Are Losing Ground

“…Even though security is improving, things are getting worse faster, so we're losing ground

8

we're losing ground even as we improve .”- Security expert Bruce Schneier

Source: http://www.businessinsider.com/bruce-schneier-apple-google-smartphone-security-2012-11

Page 9: The good, the bad and the ugly of the target data breach

Organizations are Not Protected Against Cyberattacks

“Cyber attack fallout could cost the global economy $3 trillion by 2020.”

9

Source: McKinsey report on enterprise IT security implications released in January 2014.

2020.”- McKinsey & Company reportRisk & Responsibility in a Hyperconnected World: Implications for Enterprises

Page 10: The good, the bad and the ugly of the target data breach

TARGET DATA BREACHBREACH

10

What can we learn from the Target breach?

Page 11: The good, the bad and the ugly of the target data breach

Target Data Breach, U.S. Secret Service & iSIGHT

Target CIO Beth Jacob resigned

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Page 12: The good, the bad and the ugly of the target data breach

Memory Scraping Malware – Target Breach

Payment CardTerminal

Point Of Sale Application

Memory Scraping Malware

Authorization,Settlement

Web Server

Memory Scraping Malware

Russia

12

Page 13: The good, the bad and the ugly of the target data breach

Credentials were stolen from Fazio Mechanical in a malware-injecting phishing attack sent to employees of the firm by email

• Resulted in the theft of at least 40 million customer records containing financial data such as debit and credit card information

• In addition, roughly 70 million accounts were compromised that included addresses and mobile numbers

The data theft was caused by the installation of malware on

How The Breach at Target Went Down

the firm's point of sale machines

The subsequent file dump containing customer data is reportedly flooding the black market

• Starting point for the manufacture of fake bank cards, or provide data required for identity theft.

Source: Brian Krebs and www.zdnet.com/how-hackers-stole-millions-of-credit-card-records-from-target-7000026299/

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Page 14: The good, the bad and the ugly of the target data breach

The FTC is probing the massive hack of credit card information

Target could face federal charges for failing to protect its customers' data from hackers

When you see a data breach of this size with clear harm to consumers, it's clearly something that the

Target May Face Federal Suit Over Privacy Fumble

harm to consumers, it's clearly something that the FTC would be interested in looking at," said Jon Leibowitz, a former FTC chairman

Sen. Richard Blumenthal, a Connecticut Democrat, urged the FTC to investigate the Target hack soon after it became public in December

Source: Bloomberg Businessweek

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Page 15: The good, the bad and the ugly of the target data breach

WHO IS THE NEXT TARGET?TARGET?

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Page 16: The good, the bad and the ugly of the target data breach

Who Is The Next Target?

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Page 17: The good, the bad and the ugly of the target data breach

It’s not like other businesses are using some special network security practices that Target

doesn’t know about.

They just haven’t been hit yet.

No number of traps, bars, or alarms will keep out the determined thief

Source: www.govtech.com/security

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Page 18: The good, the bad and the ugly of the target data breach

Who is the Next Target?

Services

Retailers

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Healthcare

Government

Page 19: The good, the bad and the ugly of the target data breach

BEWARE MALWAREBEWARE MALWARE

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Page 20: The good, the bad and the ugly of the target data breach

FBI uncovered 20 cyber attacks against retailers in the past year that utilized methods similar to Target incident

Believe POS malware crime will continue to grow over the near term

Despite law enforcement and security firms' actions to mitigate it

FBI Memory-Scraping Malware Warning

mitigate it

Report: “Recent Cyber Intrusion Events Directed Toward Retail Firms”

Source: searchsecurity.techtarget.com/news/2240213143/FBI-warns-of-memory-scraping-malware-in-wake-of-Target-breach

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Page 21: The good, the bad and the ugly of the target data breach

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Page 22: The good, the bad and the ugly of the target data breach

New Malware

Source: mcafee.com/us/resources/reports/rp-quarterly-threat-q3-2013.pdf

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Page 23: The good, the bad and the ugly of the target data breach

Total Malicious Signed Malware

Source: mcafee.com/us/resources/reports/rp-quarterly-threat-q3-2013.pdf

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Page 24: The good, the bad and the ugly of the target data breach

Targeted Malware Topped the Threats

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Source: 2014 Trustwave Security Pressures Report

Page 25: The good, the bad and the ugly of the target data breach

US - Targeted Malware Top Threat

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Source: 2014 Trustwave Security Pressures Report

Page 26: The good, the bad and the ugly of the target data breach

BIG DATA PROBLEMSPROBLEMS

What effect, if any, does the rise of “Big Data” have on breaches?

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Page 27: The good, the bad and the ugly of the target data breach

Has Your Organization Already Invested in Big Data?

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Source: Gartner

Page 28: The good, the bad and the ugly of the target data breach

Holes in Big Data…

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Source: Gartner

Page 29: The good, the bad and the ugly of the target data breach

Many Ways to Hack Big Data

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Hackers& APT

RoguePrivileged

Users

UnvettedApplications

OrAd Hoc

Processes

Page 30: The good, the bad and the ugly of the target data breach

Many Ways to Hack Big Data

MapReduce(Job Scheduling/Execution System)

Pig (Data Flow) Hive (SQL) Sqoop

ETL Tools BI Reporting RDBMS

Avr

o (S

eria

lizat

ion)

Zoo

keep

er (

Coo

rdin

atio

n)

Hackers

UnvettedApplications

OrAd Hoc

Processes

Source: http://nosql.mypopescu.com/post/1473423255/apache-hadoop-and-hbase

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HDFS(Hadoop Distributed File System)

Hbase (Column DB)

Avr

o (S

eria

lizat

ion)

Zoo

keep

er (

Coo

rdin

atio

n)

PrivilegedUsers

Page 31: The good, the bad and the ugly of the target data breach

Big Data (Hadoop) was designed for data access, not security

Security in a read-only environment introduces new challenges

Massive scalability and performance requirements

Big Data Vulnerabilities and Concerns

Sensitive data regulations create a barrier to usability, as data cannot be stored or transferred in the clear

Transparency and data insight are required for ROI on Big Data

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Page 32: The good, the bad and the ugly of the target data breach

THINKING LIKE A HACKERHACKER

How can we shift from reactive to proactive thinking?

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Page 33: The good, the bad and the ugly of the target data breach

How do hackers think?

Like a business.

Go where the money is

Thinking Like A Hacker

Multiple touches to get in

Easier targets = Higher ROI

Page 34: The good, the bad and the ugly of the target data breach

The Modern Day Bank Robber

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Page 35: The good, the bad and the ugly of the target data breach

COMPLIANCEVS.

SECURITYSECURITY

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Page 36: The good, the bad and the ugly of the target data breach

Target was certified as meeting the standard for the payment card industry in September 2013

Compliance can protect us from liability, but whether it actually protects us from loss of business and loss of data is not so clear

Compliance is a minimal deterrent that everyone

Target Breach Lesson: PCI Compliance Isn't Enough

Compliance is a minimal deterrent that everyone has to have in place

If you're driving a car, you're expected to have a driver's license. That doesn't make you a safe driver

Source: TechNewsWorld

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Page 37: The good, the bad and the ugly of the target data breach

Protection of cardholder data in memory

Clarification of key management dual control and split knowledge

Recommendations on making PCI DSS business-as-usual and best practices

Security policy and operational procedures added

PCI DSS 3.0

Security policy and operational procedures added

Increased password strength

New requirements for point-of-sale terminal security

More robust requirements for penetration testing

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Page 38: The good, the bad and the ugly of the target data breach

TURNING THE TIDE

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What new technologies and techniques can be used to prevent future attacks?

Page 39: The good, the bad and the ugly of the target data breach

What if a

Social Security number or

Credit Card Number Credit Card Number

in the Hands of a Criminal

was Useless?

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Page 40: The good, the bad and the ugly of the target data breach

Coarse Grained Security

• Access Controls

• Volume Encryption

• File Encryption

Fine Grained Security

Evolution of Data Security Methods

Time

Fine Grained Security

• Access Controls

• Field Encryption (AES & )

• Masking

• Tokenization

• Vaultless Tokenization

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Page 41: The good, the bad and the ugly of the target data breach

Old and flawed:

Minimal access

levels so people

can only carry

Access Control

Risk

High –

can only carry

out their jobs

41

AccessPrivilege

LevelI

High

I

Low

Low –

Page 42: The good, the bad and the ugly of the target data breach

Applying the Protection Profile to the

Structure of each Sensitive Data Fields allows for Sensitive Data Fields allows for

a Wider Range of Granular Authority Options

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Page 43: The good, the bad and the ugly of the target data breach

Risk

High –

Old:

Minimal access

levels – Least New :

Much greater

The New Data Protection - Tokenization

AccessPrivilege

LevelI

High

I

Low

Low –

levels – Least

Privilege to avoid

high risks

Much greater

flexibility and

lower risk in data

accessibility

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Page 44: The good, the bad and the ugly of the target data breach

Examples: De-Identified Sensitive Data Field Real Data Tokenized / Pseudonymized

Name Joe Smith csu wusoj

Address 100 Main Street, Pleasantville, CA 476 srta coetse, cysieondusbak, CA

Date of Birth 12/25/1966 01/02/1966

Telephone 760-278-3389 760-389-2289

E-Mail Address [email protected] [email protected]

SSN 076-39-2778 076-28-3390

CC Number 3678 2289 3907 3378 3846 2290 3371 3378

Business URL www.surferdude.com www.sheyinctao.com

Fingerprint Encrypted

Photo Encrypted

X-Ray Encrypted

Healthcare / Financial Services

Dr. visits, prescriptions, hospital stays and discharges, clinical, billing, etc.Financial Services Consumer Products and activities

Protection methods can be equally applied to the actual data, but not needed with de-identification

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Page 45: The good, the bad and the ugly of the target data breach

Use

Case

How Should I Secure Different Data?

Simple –PCI

PII

Encryption

of Files

CardHolder Data

Tokenization of Fields

Personally Identifiable Information

Type of

DataI

Structured

I

Un-structured

Complex – PHI

ProtectedHealth

Information

45

Personally Identifiable Information

Page 46: The good, the bad and the ugly of the target data breach

Tokenization Research

Tokenization Gets Traction

Aberdeen has seen a steady increase in enterprise use of tokenization for protecting sensitive data over encryption

Nearly half of the respondents (47%) are currently using tokenization for something other than cardholder data

Tokenization users had 50% fewer security-related incidents than tokenization non-users

46

Source: http://www.protegrity.com/2012/08/tokenization-gets-traction-from-aberdeen/

Page 47: The good, the bad and the ugly of the target data breach

Security of Different Protection Methods

High

Security Level

I

Format

Preserving

Encryption

I

Vaultless

Data

Tokenization

I

AES CBC

Encryption

Standard

I

Basic

Data

Tokenization

47

Low

Page 48: The good, the bad and the ugly of the target data breach

Fine Grained Data Security Methods

Tokenization and Encryption are Different

Used Approach Cipher System Code System

Cryptographic algorithms

Cryptographic keys

TokenizationEncryption

48

Cryptographic keys

Code books

Index tokens

Source: McGraw-HILL ENCYPLOPEDIA OF SCIENCE & TECHNOLOGY

Page 49: The good, the bad and the ugly of the target data breach

10 000 000 -

1 000 000 -

100 000 -

10 000 -

Transactions per second*

Speed of Different Protection Methods

10 000 -

1 000 -

100 -I

Format

Preserving

Encryption

I

Vaultless

Data

Tokenization

I

AES CBC

Encryption

Standard

I

Vault-based

Data

Tokenization

*: Speed will depend on the configuration

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Page 50: The good, the bad and the ugly of the target data breach

Different Tokenization Approaches

Property Dynamic Pre-generated Vaultless

Vault-based

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Page 51: The good, the bad and the ugly of the target data breach

Protecting Enterprise Data Flow

123456 123456 1234

CCN/SSNSocial MediaBlogsSmart PhonesMetersSensorsWeb LogsTrading SystemsGPS Signals

Stream

051

123456 999999 1234

Protecting Data Flows – Reducing Attack Surface

Big Data (Hadoop)Aquisition

Analytics & Visualization

Enterprise Data

Warehouse

Page 52: The good, the bad and the ugly of the target data breach

Current Breach Discovery Methods

52

Verizon 2013 Data-breach-investigations-report & 451 Research

Page 53: The good, the bad and the ugly of the target data breach

You must assume the systems will be breached.

Once breached, how do you know you've been compromised?

You have to baseline and understand what 'goodness' looks like and look for deviations from goodness

McAfee and Symantec can't tell you what normal looks like in your own systems.

Only monitoring anomalies can do that

CISOs say SIEM Not Good for Security Analytics

Only monitoring anomalies can do that

Monitoring could be focused on a variety of network and end-user activities, including network flow data, file activity and even going all the way down to the packets

Source: 2014 RSA Conference, moderator Neil MacDonald, vice president at Gartner

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Page 54: The good, the bad and the ugly of the target data breach

Use Big Data to Analyze Abnormal Usage Pattern

Payment CardTerminal

Point Of Sale Application

Memory Scraping Malware

Authorization,Settlement

Web Server

Memory Scraping Malware

Moscow, Russia

FireEye

Malware?

Page 55: The good, the bad and the ugly of the target data breach

Trend - Open Security Analytics Frameworks

55 Source: Emc.com/collateral/white-paper/h12878-rsa-pivotal-security-big-data-reference-architecture

Enterprise Big Data Lake

Page 56: The good, the bad and the ugly of the target data breach

ConclusionsChanging threat landscape & challenges to secure da ta:

• Attackers are looking for not just payment data – a more serious problem.

• IDS systems are lacking context needed to catch data theft

• SIEM detection is too slow in handling large amounts of events.

What happened at Target ?• Modern customized malware can be very hard to detect

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• They were compliant, but not secure

How can we prevent what happened to Target and the next attack against our sensitive data?

• Assume that we are under attack - proactive protection of the data itself

• We need Big Data event information analysis & context to catch modern attackers

• Use security methods that require less cleartext in use, such as tokenization

Page 57: The good, the bad and the ugly of the target data breach

Thank you!

Questions?

Please contact me for more information

[email protected]