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.

May 24, 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/.

- Our cybersecurity testing meets the independent pen-test requirements outlined in the FFIEC Information Security booklet.  Independent pen-testing is part of any financial institution's cybersecurity defense.  To receive due diligence information, agreement and, cost saving fees, please complete the information form at https://yennik.com/forms-vista-info/external_vista_info_form.htm.  All communication is kept strictly confidential.

FYI - DDoS botnet makes slaves of your home and office routers - Researchers have discovered a botnet which comprises of tens of thousands of hijacked home routers. A massive DDoS botnet made up of a slave network of hijacked home and office routers has been revealed.

FYI - Russian hacking group was set to hit U.S. banks - A Russian hacking group was poised to launch a cyber assault on U.S. banks, but may have withdrawn those plans after being discovered. http://thehill.com/policy/cybersecurity/241965-russian-hacking-group-was-set-to-hit-us-banks

FYI - Hack of airplane systems described in FBI docs raises security questions - Claims and accusations continue to fly about security researcher Chris Roberts's alleged tampering with airplane flight control systems, with unsealed FBI warrants suggesting that Roberts commandeered a plane briefly and experts questioning the veracity of those assertions.

FYI - Data breaches ‘increasing substantially’ - The rate of major data breaches in the United States is rapidly increasing, as hackers around the world become more sophisticated, a top FBI cyber official said Thursday. http://thehill.com/policy/cybersecurity/242110-fbi-official-data-breaches-increasing-substantially

FYI - Employees acknowledge risky security behavior, continue to engage in it - While most people acknowledge the security risks of opening an email from an unknown sender or downloading an app from an unauthorized app store, many continue to engage in this risky behavior. http://www.scmagazine.com/blue-coat-system-conducts-security-survey/article/415611/

FYI - Federal prosecutors charge Chinese nationals with trade secret theft - Over the weekend, federal agents arrested a Chinese professor who had just entered the United States via a flight to Los Angeles – one of six Chinese nationals charged with economic espionage and theft of trade secrets from U.S. tech firms. http://www.scmagazine.com/professor-other-chinese-nationals-indicted-on-32-counts/article/415887/

FYI - How fear and self-preservation are driving a cyber arms race - Silicon Valley is pouring more money into Internet security companies than ever before. hen a man was fired from his job in Minneapolis, Minn., last May, he inadvertently touched off a boom in Silicon Valley. http://www.cnet.com/news/how-fear-and-self-preservation-are-driving-a-cyber-arms-race/

FYI - FTC gives thumbs up to companies that cooperate during breach probes - The Federal Trade Commission (FTC) views a company “more favorably” if it cooperates during the course of a data breach investigation than one that doesn't, the commission said in a Wednesday blog post. http://www.scmagazine.com/ftc-gives-thumbs-up-to-companies-that-cooperate-during-breach-probes/article/416165/


FYI - Starbucks app targeted by hackers to drain bank accounts - Hackers are believed to have been stealing money from people’s bank accounts in the US using coffee giant Starbucks’ mobile app. http://www.siliconrepublic.com/enterprise/item/42033-starbucks-app-targeted-by/

FYI - SEA hacks Washington Post mobile site - On Thursday, The Washington Post's mobile website was hacked by the Syrian Electronic Army (SEA), the same hacker collective that targeted the Post in an August 2013 incident impacting several news sites. http://www.scmagazine.com/sea-hacks-washington-post-mobile-site/article/415044/

FYI - Penn State breached by two threat actors, earliest attack in 2012 - Penn State University is notifying roughly 18,500 individuals and public and private research partners that their personal information may have been compromised by two threat actors that were identified on the College of Engineering network, one of who appears to be based in China. http://www.scmagazine.com/penn-state-breached-by-two-threat-actors-earliest-attack-in-2012/article/415037/

FYI - Three MetroHealth computers infected with malware, patients notified - Ohio-based MetroHealth is notifying nearly 1,000 patients that three computers in its Cardiac Cath Lab were infected with malware, and the affected computers contained their personal information. http://www.scmagazine.com/three-metrohealth-computers-infected-with-malware-patients-notified/article/415322/

FYI - Cyber extortionists targeting hedge funds - The government is working with "several" hedge funds that have been victims of cyber extortionists, said John Carlin, head of the Justice Department's National Security Division. http://www.usatoday.com/story/money/business/2015/05/08/hedge-funds-conference-cyber-espionage/26983845/

FYI - CareFirst BlueCross BlueShield breached, more than one million individuals notified - CareFirst BlueCross BlueShield is notifying more than one million individuals that their personal information could have been accessed by attackers who gained limited, unauthorized access to a single CareFirst database in June 2014. http://www.scmagazine.com/carefirst-tells-members-attackers-may-have-accessed-their-info/article/415879/

FYI - Cyberattack on Penn State exposes passwords of 18K people - The university's president apologizes for a "sophisticated" security breach that it says involved an attack launched from China. Pennsylvania State University's College of Engineering revealed Friday that it has been the target of two "highly sophisticated" cyberattacks over the last two years. http://www.cnet.com/news/penn-state-cyberattack-exposes-passwords-from-18k-people/

FYI - UC Browser found leaking personal data - UC Browser, the most popular mobile web browser in China and India, contains multiple security and privacy issues in both the English and Chinese versions of its Android app. http://www.scmagazine.com/researchers-investigate-uc-browsers-privacy-and-security/article/416129/

FYI - Telstra discloses Pacnet security breach - Shortly after completing its acquisition last month, Australia-based Telstra learned that an unauthorized third party gained access to the corporate IT network of data center operator Pacnet, according to post by Mike Burgess, CISO of Telstra. http://www.scmagazine.com/telstra-discloses-pacnet-security-breach/article/416109/

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OCC - Threats from Fraudulent Bank Web Sites - Risk Mitigation and Response Guidance for Web Site Spoofing Incidents (Part 5 of 5)  Next week we will begin our series on the Guidance on Safeguarding Customers Against E-Mail and Internet-Related Fraudulent Schemes
PROCEDURES TO ADDRESS SPOOFING - Contact the OCC and Law Enforcement Authorities
 If a bank is the target of a spoofing incident, it should promptly notify its OCC supervisory office and report the incident to the FBI and appropriate state and local law enforcement authorities.  Banks can also file complaints with the Internet Fraud Complaint Center (see http://www.ic3.gov), a partnership of the FBI and the National White Collar Crime Center.
 In order for law enforcement authorities to respond effectively to spoofing attacks, they must be provided with information necessary to identify and shut down the fraudulent Web site and to investigate and apprehend the persons responsible for the attack.  The data discussed under the "Information Gathering" section should meet this need.
 In addition to reporting to the bank's supervisory office and law enforcement authorities, there are other less formal mechanisms that a bank can use to report these incidents and help combat fraudulent activities.  For example, banks can use "Digital Phishnet" (http://www.digitalphishnet.com/), which is a joint initiative of industry and law enforcement designed to support apprehension of perpetrators of phishing-related crimes, including spoofing.  Members of Digital Phishnet include ISPs, online auction services, financial institutions, and financial service providers.  The members work closely with the FBI, Secret Service, U.S. Postal Inspection Service, Federal Trade Commission (FTC), and several electronic crimes task forces around the country to assist in identifying persons involved in phishing-type crimes.

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We continue our coverage of the FDIC's "Guidance on Managing Risks Associated With Wireless Networks and Wireless Customer Access."
 Part II. Risks Associated with Wireless Internet Devices
As wireless Internet devices become more prevalent in the marketplace, financial institutions are adopting wireless application technologies as a channel for reaching their customers. Wireless Internet services are becoming available in major cities across the United States. Through wireless banking applications, a financial institution customer could access account information and perform routine non-cash transactions without having to visit a branch or ATM.
 The wireless Internet devices available today present attractive methods for offering and using financial services. Customers have access to financial information from anywhere they can receive wireless Internet access. Many of the wireless devices have built-in encryption through industry-standard encryption methods. This encryption has its limits based on the processing capabilities of the device and the underlying network architecture.
 A popular standard for offering wireless applications is through the use of the Wireless Application Protocol (WAP). WAP is designed to bring Internet application capabilities to some of the simplest user interfaces. Unlike the Web browser that is available on most personal computer workstations, the browser in a wireless device (such as a cell phone) has a limited display that in many cases can provide little, if any, graphical capabilities. The interface is also limited in the amount of information that can be displayed easily on the screen. Further, the user is limited by the keying capabilities of the device and often must resort to many key presses for simple words.
 The limited processing capabilities of these devices restrict the robustness of the encryption network transmissions. Effective encryption is, by nature, processing-intensive and often requires complex calculations. The time required to complete the encryption calculations on a device with limited processing capabilities may result in unreasonable delays for the device's user. Therefore, simpler encryption algorithms and smaller keys may be used to speed the process of obtaining access.
 WAP is an evolving protocol. The most recent specification of WAP (WAP 2.0 - July 2001) offers the capability of encrypting network conversations all the way from the WAP server (at the financial institution) to the WAP client (the financial institution customer). Unfortunately, WAP 2.0 has not yet been fully adopted by vendors that provide the building blocks for WAP applications. Previous versions of WAP provide encryption between the WAP client and a WAP gateway (owned by the Wireless Provider). The WAP gateway then must re-encrypt the information before it is sent across the Internet to the financial institution. Therefore, sensitive information is available at the wireless provider in an unencrypted form. This limits the financial institution's ability to provide appropriate security over customer information.

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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 -

20.4.1 General Use and Administration of HGA's Computer System

HGA's Computer Operations Group (COG) is responsible for controlling, administering, and maintaining the computer resources owned and operated by HGA. These functions are depicted in Figure below enclosed in the large, dashed rectangle. Only individuals holding the job title System Administrator are authorized to establish log-in ID's and passwords on multiuser HGA systems (e.g., the LAN server). Only HGA's employees and contract personnel may use the system, and only after receiving written authorization from the department supervisor (or, in the case of contractors, the contracting officer) to whom these individuals report.

COG issues copies of all relevant security policies and procedures to new users. Before activating a system account for new users, COG requires that they (1) attend a security awareness and training course or complete an interactive computer-aided-instruction training session and (2) sign an acknowledgment form indicating that they understand their security responsibilities.

Authorized users are assigned a secret log-in ID and password, which they must not share with anyone else. They are expected to comply with all of HGA's password selection and security procedures (e.g., periodically changing passwords). Users who fail to do so are subject to a range of penalties.

Users creating data that are sensitive with respect to disclosure or modification are expected to make effective use of the automated access control mechanisms available on HGA computers to reduce the risk of exposure to unauthorized individuals. (Appropriate training and education are in place to help users do this.) In general, access to disclosure-sensitive information is to be granted only to individuals whose jobs require it.

Figure 20.1


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