The recent disruption caused by CrowdStrike has been a wake-up call for financial institutions, highlighting that no cybersecurity system is entirely foolproof. However, this realisation doesn’t lessen the need for rigorous preparation against potential cyber threats.
What Happened with CrowdStrike?
CrowdStrike, a well-known cybersecurity company based in Austin, Texas, recently faced a major issue that caused extensive system crashes. The problem originated from a software update to their Falcon Sensor, which led to a "logic error." This error caused systems to crash, showing the infamous "Blue Screen of Death" (BSOD). The company later revealed that a pre-deployment test, meant to catch such errors, failed, leading to widespread issues.
This incident impacted various organisations, including big names like ICE Mortgage Technology, Fifth Third Bank (with $214 billion in assets), TD Bank, and Canandaigua National Bank in New York, which holds $5 billion in assets.
The Need for Better Planning
Dave Martin, founder of the advisory firm BankMechanics, emphasised that while such events are often discussed in theoretical terms when planning for worst-case scenarios, they can quickly become real, underscoring the ardent need for being well-prepared.
According to Martin, this event has likely prompted bank leaders around the world to focus even more on their contingency plans and backup strategies. The fact that this outage affected so many organisations shows just how unpredictable such crises can be.
As cybersecurity threats become more common, financial institutions are increasingly focused on their defences. The risks of not being adequately prepared are growing. For example, after a cyberattack in June, Patelco Credit Union in California, which manages $9.6 billion in assets, is now facing multiple lawsuits. These lawsuits claim that the credit union did not properly secure sensitive data, such as Social Security numbers and addresses.
Andrew Retrum, a managing director at Protiviti, a consulting firm specialising in technology risk and resilience, pointed out that while organisations face numerous potential threats, they should focus on creating strong response and recovery strategies for the most likely negative outcomes, like technology failures or site unavailability.
Preparing for Future Cyber Incidents
Experts agree on the importance of having detailed action plans in place to restore operations quickly after a cyber incident. Kim Phan, a partner at Troutman Pepper who specialises in privacy and data security, advises financial institutions to be ready to switch to alternative systems or service providers if necessary. In some cases, this might even mean going back to manual processes to ensure that operations continue smoothly.
Phan also suggests that financial institutions should manage customer expectations, reminding them that the convenience of instant online services is not something that can always be guaranteed.
The CrowdStrike outage is a recurring reminder of how unpredictable cyber threats can be and how crucial it is to be prepared. Financial institutions must learn from this incident, regularly updating their security measures and contingency plans. While technology is essential in protecting against cyber threats, having a solid, human-driven response plan is equally important for maintaining security and stability.
By looking at past cyber incidents in the banking sector, we can draw valuable lessons that will help strengthen the industry's overall defences against future attacks.
Introduction:
Phishing attacks have become one of the most prevalent cybersecurity threats, targeting individuals and organizations to steal sensitive information such as login credentials, financial data, and personal information. To combat this growing threat, a comprehensive approach involving the deployment of an anti-phishing product and an efficient take-down strategy is essential.
This case study outlines a generic framework for implementing such measures, with a focus on regulatory requirements mandating the use of locally sourced solutions and ensuring proper validation before take-down actions.
Challenge:
Organizations across various sectors, including finance, healthcare, and e-commerce, face persistent phishing threats that compromise data security and lead to financial losses. The primary challenge is to develop and implement a solution that can detect, prevent, and mitigate phishing attacks effectively while complying with regulatory requirements to use locally sourced cybersecurity products and ensuring that take-down actions are only executed when the orginization is phished/imitated.
Objectives:
1. Develop an advanced anti-phishing product with real-time detection and response capabilities.
2. Establish a rapid and effective take-down process for phishing websites.
3. Ensure the anti-phishing product is sourced from a local provider to meet regulatory requirements.
4. Implement a policy where take-down actions are only taken when the orginization is phished.
Solution:
A multi-faceted approach combining technology, processes, and education was adopted to address the phishing threat comprehensively.
1. Anti-Phishing Product Development
An advanced anti-phishing product from a local cybersecurity provider was developed with the following key features:
Real-time Monitoring and Detection:
Utilizing AI and machine learning algorithms to monitor email traffic, websites, and network activity for phishing indicators.
- Threat Intelligence Integration:
Incorporating global threat intelligence feeds to stay updated on new phishing tactics and campaigns.
- Automated Detection of Brand Violations: Implementing capabilities to automatically detect the use of logos, brand names, and other identifiers indicative of phishing activities.
- Automated Response Mechanisms:
Implementing automated systems to block phishing emails and malicious websites at the network level, while flagging suspicious sites for further review.
- User Alerts and Guidance: Providing immediate alerts to users when suspicious activities are detected, along with guidance on how to respond.
2. Phishing Website Take-Down Strategy
We developed a proactive approach to swiftly take down phishing websites, ensuring a balance between automation and human oversight, and validating the phishing activity before take-down:
- Rapid Detection Systems: Leveraging real-time monitoring tools to quickly identify phishing websites, especially those violating brand identities.
- Collaboration with ISPs and Hosting Providers:
Establishing partnerships with internet service providers and hosting companies to expedite the take-down process.
- Human Review Process and Validation of Phishing Activity:
Ensuring that no site is taken down without a human review to verify the phishing activity, preventing erroneous takedowns/rejections.
- Legal Measures:
Employing legal actions such as cease-and-desist letters to combat persistent phishing sites.
- Dedicated Incident Response Team:
Forming a specialized team to handle take-down requests and ensure timely removal of malicious sites, following human verification.
Results:
1. Reduction in Phishing Incidents: Organizations reported a significant decrease in successful phishing attempts due to the enhanced detection and response capabilities of the locally sourced anti-phishing product.
2. Efficient Phishing Site Take-Downs:
The majority of reported phishing websites were taken down within 24 hours, following human review and validation of phishing activity, minimizing the potential impact of phishing attacks.
Conclusion:
The implementation of an advanced, locally sourced anti-phishing product, combined with a robust take-down strategy and comprehensive educational initiatives, significantly enhances the cybersecurity posture of organizations. By adopting a multi-faceted approach that leverages technology, collaborative efforts, and user education, while ensuring compliance with regulatory requirements to use local solutions and validating phishing activity before take-down actions, organizations can effectively mitigate the risks posed by phishing attacks. This case study underscores the importance of an integrated strategy, ensuring automated systems are complemented by human oversight, in protecting against the ever-evolving threat of phishing.
By
Suriya Prakash & Sabari Selvan
CySecurity Corp