Q1. What are some of the most common misconceptions that organizations have when it comes to understanding data loss risk?
Organizations often believe that they have less exposure than they actually do. Digital Shadows' research discovered more than 1.5 billion files were exposed across online file stores, containing documents ranging in topic from employee payroll information to enterprise penetration tests. These points of data exposure are also not necessarily controlled by the organization themselves, as third-party suppliers may handle large amounts of sensitive data including purchase orders or even email communications. Although S3 buckets have received high media attention, FTP databases, SMB file shares, and rsync servers still account for a much larger chunk of the overall pie when it comes to data exposure.
Another misconception is that the data exposed, whether it is employee PII or email communications, will be directly used for identity fraud or a Business Email Compromise attack. In our most recent report, A Tale of Epic Extortions, Digital Shadows noted that stolen data could often be used to directly extort a payment from the organization for which the data belongs. One of the more prolific threat actors responsible for this activity, thedarkoverlord, has repeatedly stolen sensitive data from organizations for the purposes of extortion attempts, and recently adopted a crowdfunding model to source payments in exchange for the release of documents and email communications between insurance providers and legal teams.
As organizations continue to digitally transform their business, data is continuing to expand outside the control of their owners. Taking a holistic approach to addressing the risks of data loss within the network perimeter, as well as monitoring beyond your organizational boundaries, companies can begin to get a more complete picture of their digital risk.
Q2. What are some of the trends driving the recent increase in cyber extortion attacks? What do organizations need to know about these attacks?
Extortion-style attacks increased in 2018 according to the FBI, rising 242% from 2017, resulting in a reported $83 million in losses. The majority of the complaints handled by the IC3 were related to the mass sextortion campaigns being distributed in the latter half of the year. Sextortion, mass email campaigns designed to scare victims by threatening to publish extremely sensitive details about the user's online browsing habits, was a trend Digital Shadows extensively tracked throughout 2018. Though these claims were not true, unsuspecting victims would understandably take the threat seriously as the emails contained the user's credential information for specific services. Going back to the exposed data question from before, this was a new way that public breach information was being used in cybercriminal schemes. From the 792,000 attempts of sextortion we witnessed, attackers gained more than $332,000, likely from regular everyday people. I acknowledge that this is not the entire sextortion picture, which is the most alarming part; thousands of other victims more than likely paid a sextortion demand because of the highly personal and emotional response these campaigns evoked in their recipients.
Ransomware attacks, which serve as another form of technical extortion, can cripple an organization. Any amount of down time for an organization is potentially lost revenue, and the potential brand damage which can be associated with a poorly handled ransomware response can potentially be more harmful than the attack itself. Organizations should have clear guidelines and walkthroughs on how to approach ransomware attacks should they fall victim, not only including technical response but public relations and legal departments should be involved as well.
Q3. What are Digital Shadows' plans at Black Hat USA 2019? What do you plan on highlighting at the event?
Security and threat intelligence teams are increasing their understanding of threats and issues from outside their perimeter. Unfortunately, this is often a massive time suck. When trying to cover new sources of intelligence, it's easy to be quickly be overwhelmed by false positives as teams often lack the time to go and wade through all these alerts. Worse still, even if this is all achieved, the information is rarely actionable. With growing regulatory and compliance pressures, this is not sustainable.
As the market leaders in Digital Risk Protection, Digital Shadows will be showcasing how to quickly triage and remediate phishing, fraud, data loss, and account takeover risks. This includes taking down domains before they're used in phishing campaigns; validating DLP controls and removing exposed data, and detecting exposed employee credentials.