Easy Steps to Managing Cybersecurity

Jonathan Reuvid, Jonathan Reuvid

• Publisher: Legend Business
• Year: 2018
• ISBN:
  9781787197954
• Topic: Negocios y empresa
• Subtopic: Estrategia empresarial

An introductory guide to managing cybersecurity for businesses. How to prevent, protect and respond to threats. Providing an insight to the extent and scale a potential damage could cause when there is a breech in cyber security. It includes case studies and advice from leading industry professionals, giving you the necessary strategies and resources to prevent, protect and respond to any threat:

• Introduction to cyber security
• Security framework
• Support services for UK public and private sectors
• Cyber security developments
• Routing a map for resilience
• Protecting financial data
• Countermeasures to advance threats
• Managing incidents and breaches
• Preparing for further threats
• Updating contingency plans

PART ONE

Cyber security – No Longer an Option

1.1

INTRODUCTION TO CYBER SECURITY RISK

Ben Johnson, Sam Millar and Helen Vickers DLA Piper UK

Cyber crime is a broad term encompassing any crime committed by way of a computer or the internet. We acknowledge that cyber crime is an extremely complex subject; however, we aim to provide readers with an introduction to cyber security risk and to emerging best practice. Cyber crime is a constantly evolving threat. Recent analysis shows that cyber crime cost the UK more than £1.5 billion in 2015.¹ Reading about high profile cyber breaches in the news is becoming the norm. Recent examples of victims of high-profile attacks include Ashley Madison and TalkTalk. The effects of these breaches are clear – a loss of customer data or disruption to service coupled with reputational damage. Often the reputational effects are the most damaging: months after the attack on TalkTalk, its stock market value was still almost £1 billion less than on the day the attack was announced.²

As a result, cyber security is becoming a priority for many businesses. Some small businesses are going so far as to stock up on digital currencies to pay the ransoms of hackers in potential future cyber attacks.³ However, despite the disruption and huge cost a cyber attack can cause to a business, many businesses are not taking the issue seriously enough.

In a recent survey undertaken for the Government, 69% of businesses said that cyber security was a high priority for senior managers. However, only 51% of companies have taken recommended actions to identify cyber risk. Only 29% have formal written cyber security policies. Only 10% have a formal incident management plan. This lack of vigilance seems entirely out of step with the fact that 65% of businesses surveyed had detected a cyber security breach or attack in the last year.⁴ There are myriad statistics in a vast number of surveys relating to cyber security. Without listing them all, the pattern that emerges is that firms, on the whole, are not taking cyber security seriously enough.⁵

There is a schism between the reality of cyber security risk and the number of businesses engaging sufficiently seriously with the threat.

TYPES OF THREAT

There are manifest types of cyber-threats of which businesses should be wary. Some businesses are more at risk than others from certain types of threat.

• FRAUD

The vast majority of cyber incidents fall into the category of fraudulent attacks. These include identity theft, attempts at extortion, and other crimes which specifically target individuals or employees.⁶ Fraudulent attacks often take the form of phishing emails containing ransomware which are sent to employees. A high-ranking employee or executive could receive an email saying that a significant amount of sensitive data has been stolen and will be released publicly on a certain date unless a large sum is paid. The deadline will rarely allow sufficient time for the investigation of such an incident.⁷ Cyber-attackers in these cases are most often motivated by money.

THEFT OF PAYMENT CARD DATA

As we all know, criminals will frequently target locations where they can obtain the most money quickly. Cyber-criminals are no different and arguably, theft of payment card data was the forerunner to what we know as cyber crime today. Criminal gangs are able to launch cyber attacks on businesses which accept or process card payments; for example, by hacking into till systems and leaving software capable of sitting undetected in a system whilst copying card details before that data is extracted to the criminal. Such data is then sold through web-sites to others who are capable of creating plastic cards which are then used to make expensive purchases in countries where PIN numbers are not required.

Card data compromise remains one of the largest areas of potential liability for any party in the payment chain and accordingly careful steps must be taken to guard against losses. We identify below some of the key issues arising in this area.

MERCHANT ACQUIRER OBLIGATIONS

Visa, MasterCard and other card schemes impose upon their merchant acquirer (payment processor) the obligation of ensuring payment card data security of merchants (entities accepting payment cards). The card schemes also administer, as part of their membership rules, methods of fining members who do not comply with data security obligations, and ensuring card issuers are compensated for losses arising from card data breaches.

Acquirers will then impose contractual obligations on merchants to ensure card data is kept securely and will require an indemnity for losses which result from a breach. It is important to understand the potential magnitude of such losses.

PCIDSS COMPLIANCE

Irrespective of whether a data compromise has occurred, the card schemes require members to ensure that they and merchants and third parties handling data on their behalf comply with the Payment Card Industry Data Security Standards (“PCIDSS”). This is a set of standardised obligations (often updated) regarding data security that a number of card schemes (Visa and MasterCard included) agree to enforce. Examples of obligations are: (i) installing appropriate firewalls; (ii) ensuring public access to systems is controlled; (iii) changing vendor passwords on software etc. This information can be accessed at www.pcidss.co.uk.

POTENTIAL LIABILITIES

As acquirers will pass liabilities arising from payment card data breaches to merchants, it is important to understand what these losses may be. These will equate to:

• Significant fines for failing to ensure a merchant is compliant with PCIDSS. It is worth noting that attaining PCIDSS compliance on any particular data does not provide a merchant with protection. Should a data compromise occur in respect of its card data, then there is real risk that a breach of PCIDSS is assumed.

• Card Schemes mandate immediate and urgent forensic investigation of events and the costs of that forensic investigation will be borne by the merchant. Obligations can include requiring a merchant to identify, contain and mitigate the incident, secure all card data and preserve all information/evidence concerning the event within 24 hours. It must document all actions and not reboot any systems. Card Schemes must be constantly updated. Remediation plans must be implemented in a matter of days.

• Card Schemes maintain a process which means they will manage the recovery of losses which Card Issuing banks have incurred as a result of the payment card data breach. These amount to fraud losses that cardholders suffer whilst criminals utilise their card numbers to make purchases.

• Other losses which card schemes enable recovery of are the additional costs which card issuers have suffered for:

• Reissuing potentially compromised cards; and

• Heightened monitoring of non-reissued cards.

Losses can run into millions of pounds and the consequences of an incident do not stop there. Given the significant impact card data loss might have on your business, it is imperative that steps are taken to comply with PCIDSS to ensure the security of systems and those with whom you contract to receive services. If in doubt engage with the rules and your payment processor, who will be able to guide you as needed.

TERMINATION

A retailer can easily find their merchant services agreement terminated due to breach of contract. The Card Schemes operate systems which can make obtaining another facility difficult when you have been terminated for breach of contract and accordingly, suffering a payment card data breach can spell the end of a business.

• DISRUPTION

Disruptive cyber attacks are intended to severely disrupt a business’ operations. These can be instigated by certain agencies, governments, or even sophisticated terrorist groups, using the attacks as a way to make their presence felt.⁸ For example, the North Korean government’s disruptive cyber attack on Sony Pictures in relation to the film The Dictator intended to express its distaste for the depiction of Kim Jong-Un. Such attacks are also undertaken by political groups; for example, part of the Anonymous ‘hacktivist’ network took down the London Stock Exchange’s website for more than two hours as part of its campaign against the world’s banks and financial institutions.⁹ Disruptive attacks may also be undertaken for commercial gain.

• SYSTEM FAILURE

This type of cyber attack would cause an inciden...