R. Kinney Williams - Yennik, Inc.®
R. Kinney Williams
Yennik, Inc.

Internet Banking News
Brought to you by Yennik, Inc. the acknowledged leader in Internet auditing for financial institutions.

April 12, 2015

ewsletter Content FFIEC IT Security Web Site Audits
Web Site Compliance
NIST Handbook
Penetration Testing
Does Your Financial Institution need an affordable cybersecurity Internet security audit?  Yennik, Inc. has clients in 42 states that rely on our cybersecurity penetration testing audits to ensure proper Internet security settings and to meet the independent diagnostic test requirements of FDIC, OCC, FRB, and NCUA, which provides compliance with Gramm-Leach Bliley Act 501(b) The penetration audit and Internet security testing is an affordable-sophisticated process than goes far beyond the simple scanning of ports.  The audit focuses on a hacker's perspective, which will help you identify real-world weaknesses.  For more information, give R. Kinney Williams a call today at 806-798-7119 or visit http://www.internetbankingaudits.com/.

- GAO - FDIC Implemented Many Controls over Financial Systems, but Opportunities for Improvement Remain. http://www.gao.gov/products/GAO-15-426

FYI - CIOs Think Many IT Reform Reporting Requirements are Useless - Agency chief information officers say they’re spending millions of dollars each year to document their progress meeting the Obama administration’s IT reform efforts, according to a new Government Accountability Office report.

FYI - GAO - Areas for Improvement in the Federal Reserve Banks' Information Systems Controls. http://www.gao.gov/products/GAO-15-413R

FYI - Switch to new chip card stirs up e-payments industry - Starting in October, switch to new card regulations could usher in greater acceptance of Apple Pay and its competitors - A behind-the-scenes switch in the payments industry coming in October will change the way U.S. consumers shop and could bring wider acceptance for Apple Pay and its competitors. http://www.computerworld.com/article/2905715/switch-to-new-chip-card-stirs-up-e-payments-industry.html

FYI - China suspends rollout of controversial cyber rules - China will suspend the rollout of new rules restricting Chinese banks’ use of foreign information technology.  http://thehill.com/policy/cybersecurity/237380-china-suspends-portion-of-controversial-cyber-rules

FYI - Obama Declares Cyberattacks a 'National Emergency' - President Obama on Wednesday signed an executive order expanding his administration's ability to respond to malicious cyberattacks by allowing financial penalties to be inflicted on foreign actors who engage in such behavior. http://www.nextgov.com/cybersecurity/2015/04/obama-declares-cyberattacks-national-emergency/109003/

FYI - 36 percent in survey don't think its necessary to back up data - Globally, 36 percent of users don't think it's necessary to back up their data, a survey from Avast has revealed. http://www.scmagazine.com/global-survey-says-most-people-dont-back-up-devices/article/407344/

FYI - HITRUST to sponsor study on healthcare breaches - The Health Information Trust (HITRUST) Alliance will sponsor a study to analyze the effects of cyber attacks on healthcare organizations. http://www.scmagazine.com/hitrust-to-study-healthcare-cyber-attacks/article/407556/

FYI - Virginia passes digital identity law - Virginia has passed an electronic identity management law which will usher in standards for verifying individuals' identities during digital or online transactions. http://www.scmagazine.com/virginia-passes-digital-identity-law/article/407548/

FYI - Tech companies leery of sharing cyber threats with feds - U.S. tech companies still don't trust the federal government enough to share information about cyber threats, the top cybersecurity official at the Department of Homeland Security said Thursday. http://www.usatoday.com/story/news/politics/2015/04/02/phyllis-schneck-cybersecurity-technology-summit/70838226/

FYI - Head of Turkey's power grid quits after blackout errors -Minister - The head of Turkey's state-run power grid has resigned, taking responsibility for a huge blackout last week likely to have been caused by management errors, Energy Minister Taner Yildiz said on Monday. http://www.reuters.com/article/2015/04/06/turkey-power-outage-idUSL6N0X30GS20150406

FYI - FCC fines AT&T $25M for call center breaches - The Federal Communications Commission asserted its information privacy authority Wednesday by reaching a settlement with AT&T - over data breaches at a trio of call centers - that includes a $25 million fine. http://www.scmagazine.com/att-fined-by-fcc-for-breaches-in-three-call-centers/article/408114/


FYI - Locker combinations accessed in Maryland middle school breach - An investigation is ongoing by IT professionals into how Westland Middle School students in Maryland were able to access and make copies of a list containing information on 1,400 lockers in the school, including names, locker numbers and locker combinations. http://www.scmagazine.com/locker-combinations-accessed-in-maryland-middle-school-breach/article/407323/

FYI - Fake Pirate Bay site pushes Nuclear Exploit Kit, distributes trojans - Visitors to compromised WordPress site were redirected to a fake Pirate Bay website which is distributing malware as part of a drive-by download attack. http://www.scmagazine.com/attackers-target-wordpress-to-distribute-malware/article/407122/

FYI - Massachusetts police department pays $500 following ransomware infection - In Massachusetts, the town of Tewksbury paid a $500 Bitcoin ransom after the police department's network was infected with a newer variant of CryptoLocker ransomware, according to a Saturday report by the Tewksbury Town Crier. http://www.scmagazine.com/massachusetts-police-department-pays-500-following-ransomware-infection/article/407584/

FYI - Data possibly exposed for more than 364K Auburn University students - Auburn University is notifying more than 364,000 current, former and prospective students – as well as applicants who never enrolled in or attended the university – that their personal information was inadvertently accessible via the internet. http://www.scmagazine.com/data-possibly-exposed-for-more-than-364k-auburn-university-students/article/407553/

FYI - FAA Computer Systems Hit by Cyberattack Earlier this Year - Hackers earlier this year attacked a Federal Aviation Administration network with malicious software, agency officials said Monday.

FYI - Russian hackers eyed in attack on White House, State Dept. - Russian hackers that breached a non-classified email system at the State Department, then dallied around in the agency's network for months, used that vantage point to gain entry into some areas of the White House computer system, CNN reported Tuesday.

FYI - Change.org bug exposes user email addresses - A vulnerability on the Change.org website exposed the email addresses "a small subset” of the online petition organization's users, according to a statement by the organization's vice president of engineering. http://www.scmagazine.com/changeorg-bug-exposes-user-email-addresses/article/407643/

FYI - NY sheriff records reveal persistent stingray use without court orders - A New York court recently ruled that the Erie County Sheriff's Office should hand over records on stingray use to a privacy rights group – and documents reveal that, on numerous occasions in recent years, the surveillance devices were used without obtaining a court order. http://www.scmagazine.com/ny-sheriff-records-reveal-persistent-stingray-use-without-court-orders/article/408034/

FYI - UC Riverside computer stolen, contained data on about 8,000 students - The University of California, Riverside (UC Riverside) is notifying about 8,000 current and former graduate students, graduate applicants and other related individuals that their personal information was on a desktop computer that was stolen during a break-in. http://www.scmagazine.com/uc-riverside-computer-stolen-contained-data-on-about-8000-students/article/408010/

FYI - White Lodging announces 10 hotels affected in POS breach - Hotel management company White Lodging said Wednesday that 10 of its properties have been affected by a data breach that stretched from July 2014 to February 2015, according to a release. http://www.scmagazine.com/white-lodging-pos-date-breach-affects-10-properties/article/408298/

FYI - At least 750 ambulance patients at risk after Philadelphia FD breach - Billing information from at least 750 ambulance patients may be at risk after a breach, the Philadelphia Fire Department said. http://www.scmagazine.com/philadelphia-fd-data-stolen-potentially-exposing-750-ambulance-patients/article/408031/

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We continue the series regarding FDIC Supervisory Insights regarding
Incident Response Programs.  (11 of 12)

Last week's best practices focused on the more common criteria that have been noted in actual IRPs, but some banks have developed other effective incident response practices. Examples of these additional practices are listed below. Organizations may want to review these practices and determine if any would add value to their IRPs given their operating environments.

Additional IRP Best Practices

1) Test the incident response plan (via walkthrough or tabletop exercises) to assess thoroughness.
2) Implement notices on login screens for customer information systems to establish a basis for disciplinary or legal action.
3) Develop an incident grading system that quantifies the severity of the incident, helps determine if the incident response plan needs to be activated, and specifies the extent of notification escalation.
4) Provide periodic staff awareness training on recognizing potential indicators of unauthorized activity and reporting the incident through proper channels. Some institutions have established phone numbers and e-mail distribution lists for reporting possible incidents.
5) Inform users about the status of any compromised system they may be using.
6) Establish a list of possible consultants, in case the bank does not have the expertise to handle or investigate the specific incident (especially regarding technical compromises).
7) Establish evidence-gathering and handling procedures aimed at preserving evidence of the incident and aiding in prosecution activities.

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We continue our series on the FFIEC interagency Information Security Booklet.


Effective monitoring of threats includes both non - technical and technical sources. Nontechnical sources include organizational changes, business process changes, new business locations, increased sensitivity of information, or new products and services. Technical sources include new systems, new service providers, and increased access. Security personnel and financial institution management must remain alert to emerging threats and vulnerabilities. This effort could include the following security activities:

! Senior management support for strong security policy awareness and compliance. Management and employees must remain alert to operational changes that could affect security and actively communicate issues with security personnel. Business line managers must have responsibility and accountability for maintaining the security of their personnel, systems, facilities, and information.

! Security personnel should monitor the information technology environment and review performance reports to identify trends, new threats, or control deficiencies. Specific activities could include reviewing security and activity logs, investigating operational anomalies, and routinely reviewing system and application access levels.

! Security personnel and system owners should monitor external sources for new technical and nontechnical vulnerabilities and develop appropriate mitigation solutions to address them. Examples include many controls discussed elsewhere in this booklet including:

 -  Establishing an effective configuration management process that monitors for vulnerabilities in hardware and software and establishes a process to install and test security patches,

 -  Maintaining up - to - date anti - virus definitions and intrusion detection attack definitions, and

 -  Providing effective oversight of service providers and vendors to identify and react to new security issues.

! Senior management should require periodic security self-assessments and audits to provide an ongoing assessment of policy compliance and ensure prompt corrective action of significant deficiencies.

! Security personnel should have access to automated tools appropriate for the complexity of the financial institution systems. Automated security policy and security log analysis tools can significantly increase the effectiveness and productivity of security personnel.

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NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY - We continue the series on the National Institute of Standards and Technology (NIST) Handbook.

Chapter 20 -

20.2.2 System Operational Authority/Ownership

The system components contained within the large dashed rectangle shown in the figure below are managed and operated by an organization within HGA known as the Computer Operations Group (COG). This group includes the PCs, LAN, server, console, printers, modem pool, and router. The WAN is owned and operated by a large commercial telecommunications company that provides WAN services under a government contract. The mainframe is owned and operated by a federal agency that acts as a service provider for HGA and other agencies connected to the WAN.

20.2.3 System Applications

PCs on HGA's LAN are used for word processing, data manipulation, and other common applications, including spreadsheet and project management tools. Many of these tasks are concerned with data that are sensitive with respect to confidentiality or integrity. Some of these documents and data also need to be available in a timely manner.

The mainframe also provides storage and retrieval services for other databases belonging to individual agencies. For example, several agencies, including HGA, store their personnel databases on the mainframe; these databases contain dates of service, leave balances, salary and W-2 information, and so forth.

In addition to their time and attendance application, HGA's PCs and the LAN server are used to manipulate other kinds of information that may be sensitive with respect to confidentiality or integrity, including personnel-related correspondence and draft contracting documents.

20.3 Threats to HGA's Assets

Different assets of HGA are subject to different kinds of threats. Some threats are considered less likely than others, and the potential impact of different threats may vary greatly. The likelihood of threats is generally difficult to estimate accurately. Both HGA and the risk assessment's authors have attempted to the extent possible to base these estimates on historical data, but have also tried to anticipate new trends stimulated by emerging technologies (e.g., external networks).

Figure 20.1


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