Cybersecurity in Plain English: How Does Ransomware Work?

I get a lot of great questions from people in all different areas of business, but one comes up more than most: “How does ransomware even work?” Granted, we know what the goal of ransomware is – to get paid to unlock files that are locked down by a threat actor – but how does it operate, function, do what it does? Let’s dive into this topic.

Ransomware is a generic term to refer to any cyber attack where data is encrypted in order to make it unusable to a person or organization until a payment to the threat actor is made. Because locking up the data by encrypting it renders most businesses partially or totally unable to conduct business, it is a devastatingly effective form of attack, and a preferred method of threat activity these days. How it does what it does, however, is a bit more complicated; as the methods and scope of ransomware have changed over the 20-plus years we’ve been dealing with it as a security community.

Modern ransomware can be broken down into two broad categories: Single-extortion ransomware that just locks the data down, and double-extortion ransomware that also steals a copy of all the impacted data before locking it down. Each has evolved to reduce the ability of an organization to recover from backup or otherwise fix things without having to pay the threat actor, but each category is equally popular among criminal groups. 

Single-extortion ransomware works by first gaining access to a desktop, laptop, or server. This can be through one of many initial access methods, but the more commonly used techniques these days are subterfuge and exploiting a vulnerability. See the previous post at https://www.miketalon.com/2024/02/cybersecurity-in-plain-english-how-do-threat-actors-get-in/ for more info on initial access. Subterfuge includes things like tricking a user into visiting a booby-trapped website, hiding malware in what appears to be a valid software application, or otherwise getting a user (or automated system) to install the threat actor’s software on a machine/virtual machine, etc. Exploitation of a vulnerability requires less (or no) interaction by a user, but rather tricks/forces an application or platform into doing something malicious by taking advantage of a weakness in the software or hardware itself. Note that threat actors are aware that anti-malware exists, and so will attempt to hide what they are doing for as long as possible and avoid triggering the anti-malware whenever possible (see dwell time below). This is referred to as “evasion,” and there are many different techniques that are used to different levels of effectiveness, depending on what anti-malware defenses are in place.  

Once they have the first device compromised, the threat actor then will typically attempt to spread their influence to as many other machines as possible (referred to as “propagation”). Since most organizational systems now use some form of Endpoint Detection and Response (an advanced type of anti-malware system), this has to be done carefully and cautiously to evade tripping detection and defensive systems. In fact, a threat actor can take weeks or even months just moving around a victim network in search of more devices and systems to take control of before they do anything like encrypting data. This is most commonly referred to as “dwell time,” with the average being about 10 days in 2023 but many sticking around for far longer to gain control of more systems. It isn’t uncommon to see dwell times stretching into months as double-extortion attacks become more common.

More commonly these days, threat actors will also attempt to disable backup solutions and try to weaken or disable anti-malware solutions as they go. This allows them to spread further, and to ensure that once they do spring the trap, the organization won’t have recent backups to restore from. Both actions make it more likely that the victim organization will pay to have their data unencrypted. Remember that ransomware is a business – a criminal business, but still a business – so the more likely a victim is to make a payment, the more money the criminal business generates. Additionally, many modern threat-actors will install back-door systems which will allow them to re-enter the organization’s systems if the organization does choose not to pay – so that the threat actor can re-encrypt over and over until they get money. 

Once the threat actor has gotten onto as many systems as possible and made sure things like backups have been rendered useless, then single-extortion ransomware enters its final stage. Some, most, or all of the data on each infected machine is encrypted using a key only known to the threat actor. Without going into too much detail here, threat actors use a theory known as asymmetrical encryption – meaning that the key that encrypts the data cannot be used to decrypt it. So even if the organization captures the encryption key, it won’t be useful in getting back to business. Once done, the threat actor either displays a message on the infected systems and/or directly contacts the organization to demand a ransom in exchange for the decryption key; and the attack is then finished.

For double-extortion ransomware, the game changes a bit. While all of the above steps still happen, there is another step added in between the propagation phase – where the threat actor tries to compromise as many systems as possible without being caught – and the encryption phase. As they move across the organization’s systems, the double-extortion ransomware threat actor begins stealing a copy of the data that they discover. There are many methods for performing this step, but the most common involve sending a copy of each file to cloud storage that the threat actor has access to. Many have asked why cloud providers don’t prohibit this activity and stop double-extortion ransomware, and the answer to that question will be in an upcoming article, but suffice it to say that currently; they really can’t police this type of data transfer in order to stop it. Data exfiltration can occur quickly, or very quietly – with different threat actors preferring different techniques in a trade-off between getting everything fast or evading defenses but taking longer to get the job done. 

This dataset is held until after the threat actor encrypts the original data on the organization’s systems, and the data theft can go on for as long as the threat actor is able to dwell within the organization. This means that not only can all current data be stolen, but any new data can also be siphoned off and stolen as the attack progresses. With dwell times adding up to potentially months, this can mean a great deal of current data can be stolen as it is created and modified by employees. 

Once the trap is sprung and the original data is encrypted, the threat actor now has two threats they can use to extort a payout from the victim organization. First, they will offer the decryption key in much the same way as with single-extortion ransomware. Secondly, they offer to destroy their copy of the data if the ransom is paid; but threaten to release that data to the general public if the ransom is not payed. So, even if an organization can recover without paying the ransom, they still must contend with the fact that highly privileged data could be released to the outside world unless they pay. For organizations like law firms, healthcare companies, payment processors, and other organizations that hold extremely privileged information, such public release of the info could be devastating and even trigger massive regulatory fines and penalties. Even a business that writes off the encrypted data as a loss may not be able to weather all of that data becoming public knowledge to anyone who wishes to view it. The hit to customer trust, regulatory fines, impact to stock prices, loss of investors, and other factors make such a release of data something many companies cannot withstand without going out of business. 

Some ransomware threat actors have even taken things a step further with so-called triple-extortion attacks. The data itself is encrypted, the stolen data is threatened to be released to the general public, and the threat actor also threatens persons and companies that appear in the data to try to get them to pay in addition to the company the data came from. For example, if a ransomware actor compromises a hospital, the data on the hospital data-systems is encrypted, a the threat actor threatens to release the copy of that data which they hold to the general public, and the threat actor reaches out to individual patients and demands that they also pay money to keep their own data that was in the stolen data-set from becoming public. This maximizes the payout the threat actor can get, and makes it even more likely that the original victim organization (the hospital in this scenario) will pay them to make the whole problem go away. 

Many have asked me if they should pay the ransom. While I can’t speak to every situation that ransomware can create, my overall recommendation is not to pay if there is any other way to get back to business. Paying the ransom has several negative effects: First, you’re giving money to one or more people who admit they are criminals. There’s no guarantee that they’ll do what they say they’ll do if you pay them, and they may have back-door access to continue harming your organization even if they do give you the decryption keys. There’s also no way to validate that they deleted their stolen copy of the data, and in fact law enforcement was able to find supposedly deleted data on threat actor systems they took control of in raids and shutdowns [https://krebsonsecurity.com/2024/03/blackcat-ransomware-group-implodes-after-apparent-22m-ransom-payment-by-change-healthcare/]. Second, every time the threat actor is paid, it encourages more threat actors to get into the ransomware business to make money. Third, depending on who the threat actor is and where you are, it might be against the law to send money to the threat actor at all and therefore expose your organization to even more regulatory and/or legal issues. Some information on this for US companies can be found here: https://www.whitehouse.gov/wp-content/uploads/2023/03/National-Cybersecurity-Strategy-2023.pdf . While there are some cases where paying the threat actor is the only way to resolve the situation, every organization should think long and hard about the repercussions to their own business and to the greater business world if they do so. 

Ransomware is an insidious threat that is growing every day. With double- and triple-extortion techniques growing in popularity, even the ability to recover without paying the ransom doesn’t remove the threat that the criminals can hold over an organization and its customers. That being said, it is not all doom and gloom. By keeping software updated, not interacting with links in emails or attachments that come in with them, and practicing basic online hygiene; users can thwart a large number of ransomware attacks. Exploitation of weaknesses in software will still be a problem, and organization must address these by utilizing additional security controls to compensate for the weakness, but effective strategies do exist for minimizing the potential to be struck by ransomware. Together, we can make it less lucrative for a threat actor to use ransomware, causing their business models to break and making the net a safer place. 

Cybersecurity in Plain English: IAM What?

A reader recently asked, “What is IAM and why is it important?” This is a bit of a complex question, but we can definitely dive into some of the higher-level concepts and details to de-mystify Identity and Access Management (IAM).

IAM is simply the series of technologies that control who is allowed to access what on your corporate systems. The complexity comes about because – while the idea is simple – the actual implementation of IAM is one of the most complex operations that many companies will ever undertake. The reason is straight-forward, humans are not generally logical and orderly beings. Because of that, systems which enable humans to do their jobs also tend to be complicated and intertwined, meaning making sure only the right people have access to the right systems and data is often difficult at best. So, let’s have a look at the basic ideas behind IAM and what they do.

First, the Principle of Least Access is the starting ground for any IAM solution set. As its name would imply, this principle says that each user should be first given the absolute minimum amount of access to systems and applications, regardless of any other factor. When a user needs access to something more, they get it quickly and efficiently, but they only get the bare minimum access to that “something more” and no more than that. As an example, a new user needs access to things like file servers, email, and some applications. This access would be very specifically defined, giving them access to just the folders on the file server they require; for example. They get an email box, but don’t get access to shared mailboxes automatically. They get read-only access to applications, not full access. Then, based on the needs of the user and the approvals of management, the user can request and gain additional access as and when required. While this process can be cumbersome – especially when a user is first starting with an organization – it also avoids over-provisioning access that later must be pulled back. Provisioning and de-provisioning solutions can greatly aid with this process, allowing IT teams to quickly add and remove access as needed with a minimum of manual steps. Note that de-provisioning is as critical as provisioning. When an employee changes roles or leaves the organization, or when an application is reconfigured or replaced, access must also be updated to maintain the principle in action; ensuring users have the access they need but no more. 

Second, one source of truth per organization. While it is very possible for every application and site to have their own identity data store, that is a recipe for disaster as a company grows and evolves. Instead, a single source of truth for identity – like Microsoft’s Active Directory or a similar solution – allows for much tighter and effective control over identity and access. Each application would then use that single source to confirm the identity of the person logging in and what they’re allowed to have access to. The most common form of this idea in organizations today is Single Sign-On (SSO) – where you go to log in to an application (like SalesForce) and see your browser re-direct to your company login page. SalesForce is checking with your company’s single source of identity truth, instead of keeping its own database of users within the app. This is a bit of an oversimplification, as the methods and technologies used to do SSO are complex, but the basic theory of using one source of truth to identify users is the goal.

Third, the concept of zero trust. Zero trust has become a bit of a buzzword in the cybersecurity industry of late, but the actual operational methodology is extremely valuable. Zero trust says that whenever a user, systems, application, etc. attempts to access anything; they/it must prove that they are who they are and must have been granted access for that specific operation. This means that even if the user had been logged into an application already, their identity would still be challenged if they attempted to access other areas of the application. A system talking to another system might have to pass an authentication challenge if it tried to access data in another database. This is significantly different than traditional access methods which say that a user who can use an application has all of their access rights “pre-cached” and ready to go. The reason for zero trust is that a user’s device (or a data system itself) could be used in a way that is not appropriate – either because the user is attempting to do something they shouldn’t on purpose or by accident, or because the device has been compromised by a threat actor. This could easily result in access to data and systems that shouldn’t be accessible, or where access has been removed, but that removal hasn’t yet filtered down to the application in question. In short, zero trust gets its name from the fact that a user – even a user who already logged into something – isn’t trusted as they move around applications and systems. They must pass identity checks (which often happen invisibly to the actual user) to gain access to additional resources. 

Identity and Access Management attempts to implement all these theories and more, and so can be a complicated strategy for any organization to undertake. By giving users access to only what they require, forcing all applications and systems to use a single source of identity truth, and ensuring that access requests are dynamic and not static; organizations can begin to tame the beast that is IAM without keeping users and systems from effectively doing their jobs. 

Cybersecurity in Plain English: What is a Firewall?

A reader recently asked, “What is a firewall? How does it work, and what is it doing?” Both good questions, so let’s dig in and uncover what this critical network defense system does.

Most of us that have owned a car know that in an automobile, the firewall is the heavy metal panel that sits between the passenger compartment and the engine. Since the engine (in gas-powered and hybrid vehicles) works by exploding petroleum products, the chance that something could cause a fire is not insignificant. Especially in a crash or after taking damage from other sources, engine fires could pose a huge threat to anyone in the car itself. Therefore, the physical firewall does exactly what it says on the tin – it serves as a barrier between a fire in the engine compartment and everyone sitting in the passenger compartment. Physical firewalls are not uncommon in many other areas, such as in boats, different types of home/office areas, etc.

Digital firewalls are one of those things in cybersecurity that sound incredibly confusing, but the basic functions are actually straightforward. While there are advanced firewall platforms which do a ton of additional things, the primary function of a firewall is to control what comes into and goes out of a network. In essence, it serves the same function as the physical firewall – it keeps something burning through the Internet from getting in to your controlled networks at home or in the office. It does this by looking at the traffic that is being moved into and out of the network itself, trying to find systems and patterns that just don’t belong there and blocking them from entering. The firewall also acts as a boundary to keep internal traffic from going out across the Internet as well, so that network information doesn’t leak. Note that we’re not talking about keeping confidential data from getting stolen here – the firewall deals with network traffic and cannot, alone, stop someone from sending a file outside the org if they’re sending it to a non-malicious target like Dropbox or OneDrive. 

 

One bit of clarification before we move on: Commercial firewalls are designed to be used in corporate networks and are capable of seeing and filtering massive amounts of information – up to several gigabytes of data per second or more. They also can optionally have many of the advanced features that the rest of this post will describe. Home firewalls are significantly more limited, both in the speed of data they can process and in the features that are available. Your home firewall (most likely built into the router/modem you got from your cable provider or phone company) can cover the basics described below, but most likely can’t process more than one gigabyte of data per second or handle IDS/IPS and other advanced feature-sets. 

 

Most of this blocking activity is based on allow and block lists that are updated regularly within the firewall itself. Most commercial (and some home) firewalls come with subscriptions to threat intelligence feeds that provide them with constantly-updated lists of known malicious websites, IP addresses, and known malware file signatures to help make sure that any inbound our outbound traffic isn’t coming from/going to somewhere that is known to be a threat to the org. Most commercial and home firewalls can block traffic that doesn’t conform to known-safe patterns as well, such as when an application attempts to reach out over a weird port and/or some external website or app tries to communicate to your computer without your computer first communicating with that site or app. 

Threat actors haven’t ignored how firewalls act, though, and have begun to take steps to overcome the protection a basic firewall can provide. For example, since most websites now use the more secure “HHTPS” protocol instead of the plainly visible HTTP, threat actors have started to also use HTTPS communication for their malicious actions. As HTTPS transmissions are encrypted, it’s very difficult – if not impossible – for a basic firewall to see if the communication is moving malicious files or performing other forms of bad behavior. While it is still possible to block connections by port or by originating site/URL, the firewall can no longer see the traffic itself, and therefore loses some important functionality. So, how do firewalls evolve to help with this?

Modern firewalls have many additional features, though generally they’re only available on more expensive commercial firewalls or very high-end home firewalls costing about as much as a commercial firewall. These include things like SSL decryption and inspection and Intrusion Detection Systems/Services (IDS) and Intrusion Prevention Systems/Services (IPS). These tool-sets make it significantly more difficult for a threat actor to succeed in getting across the firewall, but also add layers of complexity to cybersecurity that require trained and knowledgeable staff to set up and maintain.

SSL decryption and inspection is exactly what it says on the packet. HTTPS communications are encrypted between the website and the browser/application, and therefore appear as meaningless garbage when viewed by a normal firewall. With SSL decryption, these streams of data are decrypted by the firewall, examined for malicious content or intent, then re-encrypted and passed to the user’s device that requested them. Outbound data is also examined in this way, to look for signs that a user’s device is compromised, or potentially than an insider threat action is happening. Because of the nature of HTTPS, you can’t just decrypt and then re-encrypt data. That would result in major errors in the applications and browsers communicating over HTTPS and create a lot of headaches for users and app creators as well – as apps and browsers automatically look for and block this kind of activity thinking it is a threat action. So, to set up SSL decryption and inspection, the IT/Cybersecurity team must configure both the network itself and also every device that will communicate over it with policies and security certificates which tell the devices that if traffic is re-encrypted by that known firewall, it should be treated as if it was never decrypted in the first place. This is, of course, very specific to the network in question, and only works if the end user device can confirm that the specific firewall in question was the only device to decrypt and then re-encrypt the data. By implementing SSL decryption and inspection, malware and other malicious traffic can be properly examined before it reaches the end-user device, allowing the firewall to resume its duties even where sites and apps are now sending/receiving data over HTTPS. As you might guess, this system requires not only knowledgable IT/Cybersecurity staff; but also help from Legal, Regulatory, Compliance, and often HR teams to make sure that no privacy or data regulations are being violated – as the organization can now see what would otherwise be unreadable data transmissions to banks, medical providers, and other sensitive/confidential communications.  

IDS/IPS are systems which look at data packets are being moved into and out of the network like a basic firewall, but they also seek out known patterns and behaviors that are malicious. This is accomplished by keeping track of what is being sent and received, and comparing that information to updated lists of data flows and behaviors which would indicate suspicious or outright malicious behaviors. A common example is a compromised endpoint getting data that is identifiable as Command and Control (C2) information from a threat tool or platform like a ransomware operator or criminal threat group. This would indicate that the end-user device is likely being subverted for use by a threat actor. As with blocking known bad websites and URL’s, this requires continuously updated data on what activity and network traffic is considered to be such an indicator of compromise, and IDS/IPS service providers will also provide threat feeds that supply this information to the firewall on an ongoing basis. IDS/IPS can be used in conjunction with SSL decryption and inspection to perform even more effective scanning activities, and it isn’t uncommon for both functions to be part of a next-generation firewall platform, while still allowing the IT team to decide if they will use one, the other, or both. The names (Intrusion Detection vs. Intrusion Prevention) refer to two forms of this kind of protective feature. IDS will alert staff if indicators of compromise are detected, but will not actively block traffic. While IPS will both alert and block traffic when it sees suspicious activity. A firewall may offer one or the other, but rarely both because IPS includes IDS detection features as part of its basic operations. Blocking benign traffic can create massive disruptions to business, so IT/Cybersecurity teams must properly configure and regularly tune these systems to make sure the bad stuff gets blocked, good stuff gets through, and anything else is reported and quickly evaluated to determine what to do next. 

Finally, firewalls can be extended to work with other cybersecurity tools and platforms. Endpoint protection solutions can work cooperatively with firewalls to help detect and deal with malware or other activities that involve more than one stream of data and/or multiple endpoints. Data Loss Prevention tools can integrate with a firewall to block the transmission of data outside of extremely restricted endpoints and business applications. The potential list of integrations is nearly limitless, and your IT/Cybersecurity team can set up the right combination of tools, with the right configurations, to best protect the business while still letting users get their work done. 

So, a firewall is a device (usually physical but sometimes virtual) that sits between your internal network and the outside world. Its job is to make sure any communications coming into the network conform to known traffic patterns and aren’t coming from known malicious sites/URLs. Firewalls can be extended to do additional cybersecurity tasks such as decrypting and examining HTTPS communications, and to detect and block known forms of malicious traffic even if they’re coming from otherwise benign sites and services. They can also be extended by integrating firewalls with other cybersecurity systems to enhance all of your cyber resilience plans. This is a bit of an oversimplification of the full depth and breadth of what modern firewalls can do, but it is a good way to visualize their operations and functionality in your networks. 

Cybersecurity in Plain English: Why and how to keep applications updated

A reader recently asked if just running Operating Systems (OC) updates and anti-virus updates was enough to keep their home devices safe. While that’s a good start, it may not be enough to really stay safe out there, so let’s dive a little deeper into this topic:

OS updating is critical to making sure your home/personal devices stay safe. This also applies to work devices, but your organization may have tools that make that happen automatically, so check with your IT team to find out if you also need to do this on those laptops/desktops/etc. Anti-virus/anti-malware tools also need regular updating, but nearly all of them do that by themselves. The few that require you to manually update them are generally the free AV tools, but they’re also pretty simple to keep up-to-date. Open the app, go to the settings page, and check for updates. By making sure to keep these two things (the OS and your anti-malware tool) updated, you help to ensure that the majority of threat activity which isn’t coming in via social engineering techniques like phishing will get blocked. Don’t forget to do this for your phones, tablets, smart TVs, and other devices around your home. If it has an OS and connects to the Internet, you’ve got to make sure the device is checking for updates, or that you’re doing it yourself. 

Generally, you should be updating once per week. That’s a good trade-off between time spent doing updates and security for your devices. Set aside 30 minutes once per week to run through the process, and you’ll keep everything running smoothly. At the absolute least, you should be updating once per month, but a weekly cadence is a better choice as different vendors release updates on different schedules. 

That being said, your OS is not the only software running on your home systems. Windows, MacOS, and Linux devices – along with phones, TVs, and other smart devices – all run applications, and those applications can also get out of date. As these apps age, security researchers and threat actors alike find vulnerabilities in the software that can be used to make the app misbehave, gain access to things outside of the app itself, or cause damage to your data and/or steal it. Because of this, you’ll need to make sure you’re updating those apps regularly, but it doesn’t have to be a big time-sink. If an app is no longer supported by its vendor, then it is definitely time to start seeking out an alternative that is actively being updated. Legacy applications (apps that are no longer in active development) are a massive problem in the cybersecurity world, and while updating to a new app or a new version of the old app isn’t easy, it is absolutely necessary. Get that process started as soon as possible to give yourself time to make the change before a security vulnerability is discovered in that legacy application that forces you to migrate with no warning. 

Let’s look at how to do these kinds of updates on the major operating systems and for lots of applications:

 

To update your OS…

 

On Windows 7 and higher:

Go to Settings from the Start menu, then look for Windows Update. Check for Updates, then install anything it finds. You may need to reboot, and if so be sure to check Windows Update again after your reboot to make sure there aren’t any further updates to apply.  

On MacOS 12 and higher:

Go to the Apple Menu in the upper-left of the screen and choose System Settings. Then go to General, then Software Update. Let the system check for updates, and if it finds any go ahead and install them. In nearly every case this will require a reboot, but it needs to happen so give your Mac the time it needs.

On Linux:

Open a Terminal window and use your preferred package manager (like APT or yum) to look for updates. If any are found, install them. The good news is that, while you do this via the terminal, package managers also update any other software that was installed via the package manager in question, so you update nearly everything all at once. Reboots are rarely required, but if one is needed then you should let it go ahead and restart.

 

For applications, things are a bit different for Windows versus MacOS and Linux. Let’s step through the three major OS types and how you can keep up to date.

Windows: The elephant in the room. By default, you can get Microsoft application updates for apps like Office via Windows update (you may have to tell Windows Update to do that in its own settings page), but any other apps are not included in that check. This means you have to either use an app updater or go app-by-app to check for updates manually. You can typically find the update check in the Settings or Help sections of the application. There are some app managers like PatchMyPC ( https://patchmypc.com/home-updater ) that can help with many apps, and they’re worth checking out. Keep in mind that you should not use a patch manager unless you have reviews from trusted sources that they’re legitimate and safe. It’s unfortunate, but there are several “app manager” tools for Windows that are actually malware/spyware themselves. Microsoft themselves has tried to help here, with the Microsoft Store app allowing you to keep any apps you buy through that tool updated, but only a small portion of the available Windows apps are currently in the Store just yet. 

MacOS: Apps from the App Store can be updated by just going to the Store, then clicking Updates on the left-hand menu. For other apps, you’ll need to either check the apps manually (usually it’s in the applications main menu or the Help menu) or use an app manager for any apps you have that didn’t come from the App Store. MacUpdater (note the spelling, with an “r” at the end) is a great app manager for MacOS, and is reasonably priced ( https://www.corecode.io/macupdater/ ). It tracks tons of apps, and let’s you update with a simple click when it finds one that’s outdated. I’m not being compensated by them, I just use the tool myself and know it works really well. The Standard version will get the job done for most, but there are lots of options to choose from. Between the App Store covering a huge number of apps, and tools like MacUpdater taking care of the rest, you will be covered.

Linux: As mentioned in the OS section, package managers for Linux also update any applications installed from packages – which is the vast majority of apps you’d run on Linux. There are exceptions here and there, and you’ll need to manually check those periodically to stay up to date. 

Don’t forget to also have your phone, smartTV, smart home devices, and other things connected to the Internet also check for updates. This includes both OS and app updates! For example, you can ask Alexa to “Check for software updates,” and it will look for any new software it needs. iPhones and iPads can be updated by going to Settings: General: Software Update for the OS, and the Updates page of the App Store for apps. Android is a bit different, but Google has instructions for OS updates here: https://support.google.com/android/answer/7680439?hl=en and the Play store can help keep your apps up to date. 

Keeping both your Operating Systems and applications updated is critical to staying safe. Even with a great anti-malware system, outdated applications can let threat actors perform attacks that can succeed. Taking half an hour once per week to keep things up to date is an easy – and effective – way to make sure you’re not giving an attacker any low-hanging fruit to take advantage of. 

Cybersecurity in Plain English: What Happened With LockBit?

Earlier today, a reader asked “What happened with LockBit today? They’re all over the news.” Probably a question that a lot of people have, so let’s dive in and spell it out!

First things first, who or what is LockBit? Starting life as a ransomware gang some time ago, LockBit has been responsible for attacking the infrastructure and data systems of everything from small sole-proprietorships to multinational organizations. Tactics varied, but their primary operations revolved around double-extortion ransomware: where a copy of victim data is first removed from the environment and sent to LockBit servers in the cloud, then the original data is encrypted and rendered unusable to the victim organization. This allowed LockBit to demand payment for decryption of the data, but also to threaten to make all the stolen data public if the victim org decided they didn’t want to pay for the decryption itself. In this way, LockBit had multiple avenues of extortion to bring to bear in order to get paid by the victim. More recently, LockBit branched out into Ransomware as a Service, where they would create tool-kits and host infrastructure for other criminals to use when performing ransomware attacks against victims, with LockBit getting a cut of the criminally-acquired funds.

Now on to what happened: Early in the morning of Feb 20 here in the US, a coalition of law enforcement groups led by the National Crime Agency (NCA) in the United Kingdom and the FBI in the USA struck hard at the LockBit web infrastructure. In addition to many other operations – including multiple arrests of high-ranking LockBit members in multiple countries – law enforcement took down the dark-web back-end systems and the website that drove the Ransomware as a Service platform, effectively rendering the system useless for hundreds of affiliates of LockBit. The website itself was replaced with new information: First was a fairly standard notification that law enforcement agencies had seized the website and affiliated domains. As this site is where LockBit and their affiliates posted victim information if they didn’t pay up, this was a massive blow to the organization as a whole. Shortly after, however, this placeholder notification was itself replaced with a website that looked very similar to the original LockBit leaks site, but now showing information about the group itself, its members, its operations, and links for victims to get help and assistance from law enforcement. In short, the site returned to doing what it did prior to the seizure, but now hosting the information on LockBit; instead of on their victims. 

The operation – code-named “Cronos” – was carried out quickly and efficiently; with the entire process taking just a couple of hours from start to finish. The coordinated takedown of both the web infrastructure and arrest of LockBit leaders in multiple countries crippled the ransomware gang and their affiliates effectively – and even humorously – as LockBit’s own infrastructure was suddenly converted into a weapon against them and their affiliate network. 

It should be noted that this crippling of the gang could be temporary. Not all suspected LockBit leaders were arrested, and dark-web infrastructure has a very nasty habit of being resurrected quickly somewhere else. That being said, for now, I think we can call this a total win for law enforcement and a complete loss for LockBit and their Ransomware as a Service affiliate groups. 

One only wonders, will LockBit now be offering one year of complimentary identity protection services for their affiliates like many of organizations they attacked had to do for their customers after suffering a LockBit-affiliated attack?

Cybersecurity in Plain English: What is MFA?

Multi-Factor Authentication can be confusing for those who haven’t used it regularly before, and that leads to lots of questions like “What the heck is MFA, and why should I use it?” Let’s dig into that topic and demystify something that is becoming part of our daily lives more and more often.

Multi-Factor Authentication (MFA) is primarily exactly what it says on the tin: in order to log in, a user must be able to satisfy challenges that revolve around more than one piece of data, information, hardware, or some other combination of factors. If you’ve ever had your bank tell you that you must put in the code they just emailed you when you go to log in, then you’ve experienced an MFA challenge – but not all such challenges are quite as visible. Simply stated, an MFA challenge requires a user to present more than one security factor before they’re allowed to access something. Keep in mind that your username and password – while being two bits of data – are actually just one factor for authentication, so it’s best to see them as a single item to keep things simple as we explore.

Primarily, factors in authentication (the process by which a system confirms you are who you say you are) are broken down into several types:

Something you know: This includes things like your username and password combo. While they are preferably unique to you, it’s entirely possible that two people have the same username/password either by accident or because your data was leaked or stolen. Security questions (“What is your mother’s maiden name,” etc.) are also considered something you know in most security contexts. 

Something you are: Biometric data is a factor used to prove who you are because it is – at least theoretically – entirely unique to you. This factor can include things like your fingerprint, specific topographical maps of your face, the pattern of blood vessels in your retina, etc. While biometric data is difficult to steal or fake, storing it brings with it privacy issues, and accurately collecting and reading it can be challenging for a lot of devices. 

Something you have: Tokens that you have physical and/or digital control of can be used to prove who you are by having you show information on or in those devices and/or present the device itself. While tokens can be stolen, when combined with other factors they can be a great way to show a system you are really you. Some tokens generate one-time passcodes using a physical key-fob or an app on your phone. Others work by generating and sending a unique code through near field communication (NFC) – like holding your phone or a smart-card near a reader. In some cases, your laptop/desktop/phone itself can be this factor – by looking at things like geo-location, software installed, networks connected to, etc. authentication systems can confirm that the machine you are using is known to be used by you alone. 

MFA is simply the use of at least two of these factor types in each login/access event. So, for example, when you log into a website; the site may ask for a username and password, and then send a one-time passcode to your phone via text-message. You type the code from the phone (something you have) into the site after you put in your password (something you know) to gain access to the website as a user. Apple devices like iPhones/iPads have been using biometrics as a second factor for some time (TouchID and FaceID), and Windows has begun to use it for laptops and desktops (Windows Hello).

Why are you seeing MFA being used more and more often? MFA offers much better security than a username/password alone. Since the user must also provide some other proof they are who they say they are, it becomes significantly harder for a threat actor to gain access to things they shouldn’t be able to touch. As usernames are typically easy to figure out – most systems use your email address, which is already public information – and passwords tend to either be weak and easy to guess, re-used on multiple sites, get stolen quite often, or any combination of the three; a username and password alone just isn’t proof you are who you say you are anymore. MFA therefore becomes necessary to allow a system to know you are who you say you are without relying solely on information that could be in the hands of anyone. 

Not all MFA is created equally, of course. Email and SMS text message one-time-passcodes can be problematic if a threat actor gains access to your email inbox and/or tricks your phone service provider into re-routing text messages to them instead (a technique called “SIM Swapping”). While events like this are rare, they do happen, so email and text validation for MFA are better than nothing, but not the best. Authenticator apps like Microsoft Authenticator, Google Authenticator, and others make things more secure and harder for a threat actor to overcome easily. Biometric factors are even better, but can be difficult to use effectively. Not for the user, who just taps a finger or looks into a camera, but for the technology itself. Fingerprints can be subtly altered based on pressure against the reader. Facial recognition can be impacted by lighting, glasses, and a host of other factors. Retinal scanning requires the user to hold still and stare into a camera. Researchers and vendors have been making these things better and better over time, but they can still be tricky to deal with. 

In the end, MFA is here to stay. Since usernames/passwords alone are considered nearly the same as not authenticating at all these days, more and more organizations are adopting some form of MFA to allow you to gain access to company resources safely. It doesn’t need to be difficult, however. Having an MFA challenge that just asks you to type to two numbers on your screen into your phone is easy, fast, and effective – with Microsoft and others adopting this methodology to make life easier for users while making it much harder for threat actors. Leveraging hardware “fingerprints” like the apps you have installed and the location the device appears to be sitting at can reduce the total number of MFA challenges a user has to deal with each day. The combination of known successful defenses with evolving technologies allows for MFA to better protect the organization without putting a burden on the users, allowing for better security while keeping users happy and productive. 

Cybersecurity in Plain English: How Do Threat Actors Get In?

I’ve written a blog series like this for many companies I’ve worked for, now I’m doing it on my own blog for everyone to read. Please drop me questions you’d like answered to me via Twitter/X/whatever it’s called this week @miketalonnyc – I’d love to get you answers explained without the jargon! 

A very common question I get from the field is, “How do threat actors actually get into the network in the first place?” It’s a good question, with some possibly surprising answers, so let’s talk about initial access and how threat actors take that first step.

Initial access is the term used for how a threat actor gains their first entry into a protected environment. This could be your home PC, or a corporate network – whatever they’re eventually attempting to get access to within the target environment itself. Generally, the point of initial access is not the end goal of the threat actor; since it’s highly unlikely they land on the machine or system they actually want to get hold of. More often, initial access happens on a user’s laptop, or a web server, or an application platform instead; and the threat actor then must jump from system to system to get where they want to be. This means that by minimizing initial access points, you also minimize the ability of the threat actor to do what they want to do.  

So, how do they accomplish that first step? There are quite a few different ways this can be done, but four of them stand out as being (by far) the most commonly encountered techniques. First, compromise of credentials – the threat actor gains control of legitimate usernames and passwords. Second, compromise of a vulnerable application – where a threat actor is able to exploit a vulnerability. Third is coercion or trickery used to get a user to run a malicious application. Finally, there are initial access brokers that use all of the above to amass initial access that they can sell to the highest bidder.

Credential compromise is the most common technique used. Threat actors use phishing, smsishing (phishing by text message) and a host of other social engineering techniques to get hold of legitimate credentials that they can use to access systems in your organization. Alternately, they could guess or discover credentials without having to phish or otherwise grab them from users directly. Methods such as exploiting weak and/or default passwords, credential stuffing, or even brute-force attacks can get them what they need if other security controls aren’t in place. Weak passwords that are too short (less than 8 characters), too simple (no punctuation/special characters), and/or extremely common (password123) all allow a threat actor to successfully guess in just a few tries. Credential stuffing is trying a list of passwords from one breach to attack a totally different organization that shares users who may have re-used passwords. Brute-force is exactly what it sounds like – threat actors simply try password after password until they find one that works. 

In all of these cases of credential compromise, layered defenses can be a huge help in defending the organization. The use of (and enforcement of the use of) multi-factor authentication (MFA) will help to block a threat actor with otherwise valid credentials from actually using them. Enforcing passwords which meet basic complexity rules such as including special characters (?, /, $, !, etc.) and requiring 12 or more characters makes it much more difficult for a threat actor to successfully guess a valid password. Blocking the most common passwords used online outright is also a great method to bring to bear. Troy Hunt (curator of HaveIBeenPwned.com [https://haveibeenpwned.com/ ] has worked with many government and private entities to keep lists of the most common passwords. For example, the National Cyber Security Center of the UK has worked with Troy to produce a list of the top 100 [[https://www.ncsc.gov.uk/blog-post/passwords-passwords-everywhere ]]. Enforcing restrictions on the number of incorrect entries a user can try before they’re locked out helps derail brute-force attacks. Encouraging users to not re-use passwords by utilizing password managers helps curtail credential stuffing success.

 

 Remember that most usernames are known these days. Users utilize their email address, or some combination of first/last name/initials, so the username is no longer a big secret. Passwords – when well-managed – are still secret, but additional controls are required to ensure that a threat actor can’t walk in the front door. Utilizing complex passwords and MFA, limiting re-use, and blocking commonly known passwords all help to keep the password itself from becoming known and/or useful to a threat actor.  

 

Exploitation of a vulnerability is common in the quest to gain initial access. If a system or platform has a known vulnerability that can be exploited, then a threat actor will not have to gain credentials – they can just take control of the system or platform itself. Defenses here are two-fold, first it is important to patch/upgrade systems with known vulnerabilities; but that’s not always a possibility. If budget doesn’t exist for upgrades, or if the patch or upgrade would significantly impact a business process, it’s unlikely that closing the vulnerability directly will be allowed. Here again, compensating controls can save the organization. If a threat actor gains control of one application, then blocking their ability to move through the network or gain control of additional applications becomes a vital step in limiting damage. Endpoint controls (on servers as well as user systems), restricting network access, and the ability to be alerted on anomalous activity all aid in catching a threat actor attempting to move from an exploited system to others in the environment. Of course, patching or upgrading is the optimal strategy and should be done whenever possible; but additional controls may be required when that patch or upgrade just cannot be applied.

Coercion and trickery are incredibly common in the threat landscape today. While forms of social engineering, they typically do not follow the same path as a phishing or smshing attack. Instead, a user may be tricked into installing malicious software that masquerades as legitimate software the business would regularly use. A common example is a threat actor taking over a mis-spelled domain for a popular software tool, and any user who accidentally goes to the mis-spelled site (which might even be performing search engine optimization to trick the user) downloads and installs the malware instead of the real software. Supply-side compromise – where a threat actor replaces the real software with malware on the vendor’s systems – is also a serious threat. Another common technique is the invocation of authority to coerce a user into installing malware. A threat actor may call or email pretending to be a software vendor, a bank, a government agency, or even your own IT department and pressure a user to download an install malware, spyware, or more. Of course, a user who has been doing things they should not be doing online could also be blackmailed into installing malware on company systems; but while fake attempts at this technique are common (such as “clean up software” emails that try to get a user to install something because they were “caught” on a site they shouldn’t have been on), confirmed real use of this tactic is thankfully rare. Proper security awareness training and periodic testing is the key to derailing this form of initial access attack. When users know what to look for, who to ask for help, and where to go to legitimately get software and updates will keep them from accidentally downloading malware or doing so under duress. Combining these methods with strong endpoint controls (like anti-malware tools) can help to ensure that the fake software is blocked from running. Last, but not least, running software updates in a lab to ensure that they are legitimate before deploying them across the organization – combined with ensuring vendors are following security best-practices – limits damage from supply-side attacks. 

Finally, there are entire categories of threat actor groups who perform just initial access attacks, using all of the above methods to accomplish their goals. They curate massive lists of legitimate and validated credentials, previously exploited systems that they still have active access to, automation to perform coercion and trickery on a massive scale, host and deploy malware as valid updates, etc. – but they don’t actually perform other attacks. What they do is sell that information to other threat actors who then use it to perform more extensive attacks like major data theft, ransomware, or disruptive actions. These initial access brokers make good money re-selling the access they gain to the highest bidder, allowing them to gain financial success without having to worry about extorting an actual payoff from a company. Careful monitoring of user activity and network operations to determine if there are anomalies going on can allow you to detect if credentials or systems have become compromised before that access gets sold to another threat actor. Many managed security service providers (MSSPs) can assist with that effort for those organizations who cannot do that kind of monitoring in-house.

Initial access is the first step in a sequence of events that leads to data loss, ransomware payouts, downtime and business loss, and a host of other problems for any organization. Defending against the most common forms of initial access can derail attacks before they get farther than that first step, and help keep your organization safer over time. 

Cybersecurity in Plain English: What is a SIEM?

I’ve written a blog series like this for many companies I’ve worked for, now I’m doing it on my own blog for everyone to read. Please drop me questions you’d like answered to me via Twitter/X/whatever it’s called this week @miketalonnyc – I’d love to get you answers explained without the jargon! 

As more organizations beef up their cybersecurity resilience, many new tools and platforms become part of organizational operations. This has led to several contacts of mine asking, “What is a SIEM, and what does it do for cybersecurity, and how the heck do you pronounce it?” Let’s dive in and find out.

A Security Incident and Event Management (SIEM) platform is a tool-set used to bring together information from applications, systems, services, hardware, and other operational components into one place so that all of that information can be used to try to find cybersecurity incidents taking place. Think of it as a gigantic database that pulls in data from hundreds or thousands of sources within the organization and from threat intelligence feeds. Coupled with that database, a SIEM includes systems to remove redundant information and process all the information to look for points of correlation – sequences of events that, when viewed together, indicate something is going on. As for pronunciation, there is a difference of opinion on that. The two top pronunciations are sim (as in simulation or simple) and seem (as in seemingly or seams). Either is generally accepted by the technology community. 

The first step in SIEM operations is ingestion – pulling in data from multiple sources and de-duplicating it. SIEM solutions integrate with thousands of different tools and platforms to ingest data. These can include things like Active Directory and other Identity and Access Management (IAM) systems, hardware platforms, cybersecurity tools like firewalls, anti-malware, and others, Operating System and application logging systems, and quite a large number of other sources. All this information is brought into a de-duplication system that removes redundant data-points to reduce the amount of information being sent into the database for correlation. Because of the sheer number of logs and events being ingested and de-duplicated, SIEM solutions must be highly robust and capable of dealing with massive amounts of data at once, and therefore are typically cloud-based solutions where they can be elastic – able to expand to use more resources as needed, but contract and reduce the amount of resources they use when the extra capacity isn’t needed to reduce costs. 

Once data is being ingested efficiently and de-duplicated, the second phase of SIEM operations – correlation – takes place. Correlation is a real-time operation which looks at the sum total of ingested information to attempt to define patterns within that data which indicate threat activity. For example, odd network behavior alone could be indicative of a threat, but could also be indicative of a user doing something unusual without malicious intent. A SIEM would attempt to correlate that network behavior with other indicators of threat activity; such as an anti-malware tool discovering software attempting to access privileged information, or an IAM system recognizing multiple attempts at privilege elevation (a user or process attempting to gain administrator access to something). Taken individually, these actions may not be malicious or even suspicious – the escalation could be a misconfigured application, and the malware could be a one-off download of something that isn’t recurring or able to impact the organization. But, when correlated together, they indicate that something is going on which is indeed suspicious at the very least.  

SIEM platforms also tie into ticketing and email systems to alert IT and cybersecurity staff when correlated events indicate threat activity is going on. These staffers can then block access, undo changes, prepare incident reports, etc. Many SIEM solutions can also work with Security Orchestration, Automation, and Response (SOAR) platforms to take direct action, but these platforms currently have limitations whenever there is more than one valid action to take, making human staffers a necessary part of the process for many types of incidents. 

Overall, SIEM solutions are an invaluable resource. Through de-duplication of data, correlation of potential or actual threat activity, and the ability to alert staff and SOAR platforms in real time, SIEM solutions act as a massive force-multiplier for organizations. They allow for accurate and timely detection and response to security incidents that would not be possible via manual operations, and keep organizations safer and more resilient without creating massive amounts of staff burnout along the way. 

An Open Letter of Thanks to the Social Media Community

Recently, the company I was working for underwent a re-organization and I found myself laid off. While I hold zero ill-will toward them – and in fact will continue workingHands showing thanks with them in a different way – the experience was a shock to say the least. Of course, my experience was hardly unique; with thousands of layoffs happening across the technology world these days. Still, as anyone who has been through this can tell you, it sets you completely off-balance and off-kilter.

After taking a couple of days to get my brain back in order, the first thing I did was reach out to the communities I’m part of on various social media sites. Places like ThePlatform Formerly Known as Twitter and LinkedIn. The response was staggeringly overwhelming, with contacts from all over the world reaching out to both check in on me and to offer assistance. Thousands of people replied, forwarded, upvoted, and otherwise amplified my post about being laid off, and dozens of companies ended up reaching out to talk to me about a position. Even for someone who has always viewed communities online as a huge strength for any organization or individual, the sheer number of things that got mobilized within hours of my post was beyond anything I could have dreamed of.

So, I wanted to say thanks. To everyone who brought me to their HR/Hiring teams. To everyone who suggested a company to reach out to or a job posting I should see. To everyone who re-tweeted/re-posted my post so that it could reach more people who could potentially help. I cannot thank you enough, and consider myself in your debt. This experience has been humbling and inspiring at the same time, and its all because of you – each and every one of you.

The really great news is that – in no small part to everything the community has done – I am indeed employed once more. Can’t say who it is just yet, but keep your eyes on my social media streams for an announcement in the coming days. This couldn’t have happened without the reach and exposure my community gave to me, and for that I am forever grateful.

Cybersecurity in Plain English: What is the SEC doing in Cyber?

I’ve written a blog series like this for many companies I’ve worked for, now I’m doing it on my own blog for everyone to read. Please drop me questions you’d like answered to me via Twitter/X/whatever it’s called this week @miketalonnyc – I’d love to get you answers explained without the jargon! 

Because of recent regulations going into effect in the last couple of weeks, many contacts have asked me “What is the new SEC regulation, and what is the SEC doing in cybersecurity anyway?” The answers might surprise you, as this is a major step forward in regulatory control around cybersecurity, so let’s dive in.

First things first, the obligatory disclaimer. I am not a lawyer or regulatory expert – you should definitely be speaking to one or both of those to figure out how, exactly, your organization needs to get into compliance. I’m just a cybersecurity nerd who read up on things. 

Many regulatory bodies have moved into the realm of cybersecurity over the last several years. In the European Union we saw the General Data Protection Regulations (GDPR), and in the United States we saw the implementation of regulations like the Healthcare Insurance Portability and Accountability Act (HIPAA). Several regional governments across multiple countries have also put forward and even enacted their own regulations. All of these center around privacy – the ability of a user of a service to control how their data is stored, protected, and shared. The new SEC regulations (which went into effect late in 2023 and into 2024) focus more on disclosure of cybersecurity incidents and are not focused on privacy concerns, which makes them significantly different to the regulations we’ve seen before this point. Similar measures are being drafted, voted on, and even ratified across the world, so this is likely to not be the last measure we will see put into effect in the near future. 

But, what do these regulations do, and how do they impact organizations? Well, first let’s define two key terms: SEC Registrant and Material Impact. An SEC Registrant is any company which is required to file disclosures, reports, and other filings with the US Securities and Exchange Commission. This includes US publicly traded companies, and also any companies which are preparing to become publicly traded, though there are exceptions in rare cases – such as some foreign organizations having to file reports even though they are not officially traded in the United States.  

Material impact is somewhat more ambiguous, but Harvard Business School defines materiality as:

“… an accounting principle which states that all items that are reasonably likely to impact investors’ decision-making must be recorded or reported in detail in a business’s financial statements using GAAP standards.”

– https://online.hbs.edu/blog/post/what-is-materiality 

This means that any event which may cause an investor or potential investor to make a specific decision (such as investing or not investing) is considered “material” in nature. The new SEC regulations make it mandatory to disclose any cybersecurity incident with has material impact, meaning any cybersecurity incident which – if it becomes known – would cause an investor or potential investor to alter their decisions regarding the organization itself.  

At their heart, the new regulations create two new reporting requirements for any SEC Registrant. First, all Registrants must file annual reports with the SEC already. These reports are not the “Annual Report” documents that are sent to shareholders and prospects, but rather an official federal filing (Form 10-K) done to keep the SEC and the US Government apprised of what the organization is doing, its overall health, etc. From 2024 onwards, this filing must include details about the cybersecurity resilience of the organization including, but not limited to, which member of the board is responsible for cybersecurity, what issues and incidents have occurred, what measures are being taken to avoid incidents, etc. Most notably, the 10-K filings will have to specifically note who on the board is responsible for cybersecurity resilience, making cybersecurity become a board-level discussion. As most boards are comprised of brilliant business people who don’t generally have deep technical backgrounds (though there are exceptions, of course), this is a massive shift in board responsibility that we haven’t seen in the past. 

Second, the regulations require that, after any cybersecurity incident that has material impact, the company must file a disclosure with the SEC. This is done as an amendment to the existing form used to disclose anything that has a material impact – Form 8-K. Such filings are routinely done any time the organization makes a change or institutes a new operational policy that might impact investor opinion and decisions, but this is the first time that the 8-K will have to be filed in the event of a cybersecurity incident. The new regulations also put a specific time restraint on what the filing must occur. Registrants must file their amended 8-K within four business days of the incident being discovered unless law enforcement and/or the US Government explicitly blocks the filing for matters of national security or the integrity of a federal investigation.

Any SEC filing must be signed by stakeholders (usually high-ranking board members) who attest that the information is complete and correct to the best of their knowledge (and being purposefully ignorant of a situation is not accepted as an excuse for not having the knowledge in question if the signatory would have had access to said knowledge). Essentially, purposefully not filing properly and/or knowingly filing a report with false information is a literal federal offense. This would mean that signatories are liable if they fail to disclose an incident, or if they report incorrect information on the state of their cybersecurity resilience. Penalties can include fines, being barred from an industry or from holding a position at a public company, or even federal charges being filed that could result in jail time in extreme incidents. In other words, there is iron in the glove when it comes to enforcement of these regulations – which business leadership have been very well aware of in other areas of SEC reporting for decades now. 

The impact of these two regulations going into effect has been sweeping and even surprising overall. First and foremost, the specifics of several incidents became public knowledge due to the filing requirements – such as the gaming/casino attacks that occurred late in 2023. While organizations might otherwise downplay the impact of these incidents, or even attempt to completely hide the incident entirely, now the details are becoming public knowledge and impacting things like share prices and customer trust. Other incidents may come to light with the new annual report regulations, showing which companies are properly defending their organizations and which are not. Most surprisingly, advanced persistent threat (APT) groups – organized criminal groups who create and run coordinated attacks against high-value targets – have actually embraced the new regulations. In one now-famous incident, ALPV/BlackCat filed a complaint with the SEC; detailing MeridanLink’s failure to comply with the reporting requirements when that organization did not file an amended Form 8-K in a timely fashion ( https://www.scmagazine.com/news/hacker-group-files-sec-complaint-against-its-own-victim ). It should be noted that this reporting was for an incident that occurred before the go-live date of the regulations, and as such did not actually trigger an SEC investigation; but it shows that threat actors will indeed weaponize this system to force organizations to pay their ransom fees in order to minimize or control what information becomes public about an incident they suffer. 

The new SEC regulations have been challenged, however. The Congress of the United States of America has claimed that the SEC over-reached with the regulations, as such measures are in the purview of Congress and not the SEC. We’ll have to keep an eye on the ongoing debate to see if the regulations are allowed to stand, or if Congress strikes them and renders them invalid. Even if the SEC regulations do get struck down, it would be likely that Congress would pass their own, similar measures to replace them, so this story is going to be sticking around for a while either way.

The SEC has taken a decisive step toward mandatory reporting for cybersecurity incidents that may impact investor decisions. It is likely we will see more governments move in the same direction due to the financial impact of the massive number of cybersecurity incidents seen in the last few years; and the sheer impact that those incidents have had on national and global economic factors. Organizations should definitely prepare for how they will meet these new regulatory requirements to remain in compliance.