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Internet Security

Risk Management and Security

Updated September 22, 2006

Threat Vulnerability Event Cost

Security Myths Global Trends Addressing Essential not Best Practices

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
Good Control

Event Cost
Some Control

Minimal Control

Determine the Risks

Malicious Code Electronic (Hacking) Physical Down-Time Human Factors Email X-ware

Categories of Risk
Malicious Code
Trojans, Viruses, & Worms

Disgruntled employees Sticky-notes

Port Scanning Hacking/Sniffing Defacement Spoofing

Spam Phishing

Adware Spyware


Down Time
Denial of Service attacks Power/Natural Disasters

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 Horse Threat

Backdoor Trojans
September 1999 September 2000 March 2001

Threat Rate
12 per Day 28 per Day 122 per Day

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
One_Half, Emperor, Anthrax and Tequilla

W97M.Melissa, WM.NiceDay and W97M.Groov

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

Real Threat Rates

Malicious code is a growing problem88% 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 moneyin 2003, disaster recovery costs increased by 23% to almost $100,000 per organization per event.
Source: TruSecure, March 22, 2004

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 "wellknown" port number, the computer provides.
There are 65,536 ports

Port Scanning Rates

Port Scanning
September 1999 January 2000 October 2000 March 2001

Threat Rate
1 1 6 9 per per per per 6 Days Day Day Day

Web Defacement
Web site defacement, a form of malicious hacking in which a Web site is vandalized. Often the malicious hacker will replace the sites 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 sites content.

Web Defacement

Web Defacement

Real Threat Rates

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

Attempting to masquerade or closely mimic the URL displayed in a Web browsers 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.


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

Earth Quake Tsunami Volcanic

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.

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

Sticky Notes Spouses Children Pets Mythology

Spam and Phishing

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.


Adware and Spyware

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.

Programs that have the ability to scan systems or monitor activity and relay information to another computer or locations in cyberspace.

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

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, 2005 http://www.computerworld.com/securitytopics/security/story/0,10801,106180, 00.html

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

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
Increasing complexity drives exponential growth in vulnerability Rapidly changing environment drives rapidly changing risks Greater all-to-all connectivity drives greater potential for malicious connectivity

Internet Security
Growth in Internet users drives growth in Internet abusers Anonymity of the Internet drives tendency towards abuse

Essential Practices
What must be done?

Mitigating Global Trends

Move to dynamic security methods Move to distributed security methods Move toward outsourcing security solutions

In Practice
Block (deny access by default) Turn-off Services / Ports (off by default) Substitute low-risk methods for highrisk methods Update (apply service packs that affect your situation) Patch (apply hot fixes that affect your situation) Configure Monitor

Presentation Sources
Where did all of this information come from?


International Computer Security Association http://www.ICSALabs.com/


Insider Threat Study: Illicit Cyber Activity in the Banking and Finance June 2005
http://www.sei.cmu.edu/pub/docume nts/04.reports/pdf/04tr021.pdf