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.

June 9, 2019

wsletter Content FFIEC IT Security FFIEC & ADA 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 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) as well as the penetration test complies with the FFIEC Cybersecurity Assessment Tool regarding resilience testing The cybersecurity 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 cybersecurity weaknesses.  For more information, give R. Kinney Williams a call today at Office/Cell 806-535-8300 or visit http://www.internetbankingaudits.com/.

FFIEC information technology audits - As a former bank examiner with over 40 years IT audit experience, I will bring an examiner's perspective to the FFIEC information technology audit for bankers in Texas, New Mexico, Colorado, and Oklahoma.  For more information go to On-site FFIEC IT Audits.

- Is your organization meeting the cybersecurity “Standard of Care”? - /CEOs and board members are increasingly under the microscope when it comes to managing cyber risk. The financial, legal, and regulatory impact that cyber incidents can have upon organizations have transformed what was once an “IT problem” into a whole of company challenge. https://www.scmagazine.com/home/opinion/executive-insight/is-your-organization-meeting-the-cybersecurity-standard-of-care/

We ain't afraid of no 'ghost user': Infosec world tells GCHQ to GTFO over privacy-busting proposals - Brit spies' idea would backdoor WhatsApp et al without breaking the crypto - Bruce Schneier, Richard Stallman and a host of western tech companies including Microsoft and WhatsApp are pushing back hard against GCHQ proposals that to add a "ghost user" to encrypted messaging services. https://www.theregister.co.uk/2019/05/30/tech_hits_back_at_gchq_ghost_user_privacy_buster/

CEO who sold encrypted phones to criminal gangs gets nine years in prison - Phantom Secure customers included the Sinaloa carter and the Hells Angels biker gang. https://www.zdnet.com/article/ceo-who-sold-encrypted-phones-to-criminal-gangs-gets-nine-years-in-prison/

The Marines' Top General Talks About A Changing Corps - Why did Bob Neller join the Marines? "I needed a job," the top Marine officer says nonchalantly. He went to Officer Candidate School the summer before his senior year at the University of Virginia with the intention of then going to law school. https://www.npr.org/2019/06/04/729300525/the-marines-top-general-talks-about-a-changing-corps

Huawei ban revoked by science publisher IEEE - The Institute of Electrical and Electronics Engineers on Sunday reversed restrictions it had slapped on Huawei last week, letting the Chinese company's scientists review its papers once again. https://www.cnet.com/news/huawei-ban-revoked-by-science-publisher-ieee/

Organizations still struggle to manage vulnerability patches, report - Nearly 27 percent of organizations worldwide have been breached as a result of an unpatched vulnerability, according to Vulnerability Management Survey. https://www.scmagazine.com/home/security-news/vulnerabilities/organizations-still-struggle-to-manage-vulnerability-patches-report/

Premera Blue Cross reaches proposed $72M settlement with 2014 breach victims - Health insurance company Premera Blue Cross has agreed to a $72 million proposed settlement that would resolve a contentious class-action lawsuit stemming from a 2014 data breach affecting roughly 10.6 million people. https://www.scmagazine.com/home/security-news/legal-security-news/premera-blue-cross-reaches-proposed-72m-settlement-with-2014-breach-victims/


FYI - Nonprofit People Inc. info exposed after two employee email accounts breached - Nonprofit People Inc. has notified nearly 1,000 of its current and former clients that personal information was exposed after email accounts of two employees had been breached. https://www.scmagazine.com/home/security-news/data-breach/nonprofit-people-inc-info-exposed-after-two-employee-email-accounts-breached/

POS malware swipes payment info from Checkers and Rally’s restaurants - Just over 100 Checkers and Rally’s fast food joints and their customers were victimized by a long-running point-of-sale malware campaign that stole payment card information from purchases taking place as far back as December 2015, Checkers Drive-In Restaurants announced in an online breach notification yesterday. https://www.scmagazine.com/home/security-news/cybercrime/pos-malware-swipes-payment-info-from-checkers-and-rallys-restaurants/

Theta360 leak exposes 11 million photos, user data - An open database exposed at least 11 million photographs after the Theta360 photo sharing system run by Ricoh was breached. https://www.scmagazine.com/home/security-news/privacy-compliance/theta360-leak-exposes-11-million-photos-user-data/

Nonprofit People Inc. info exposed after two employee email accounts breached - Nonprofit People Inc. has notified nearly 1,000 of its current and former clients that personal information was exposed after email accounts of two employees had been breached. https://www.scmagazine.com/home/security-news/data-breach/nonprofit-people-inc-info-exposed-after-two-employee-email-accounts-breached/

Breach of bill collection agency may affect 11.9 million Quest Diagnostics patients - Quest Diagnostics today disclosed that roughly 11.9 million patients who sought medical testing through its clinical labs may be affected by the breach of a third-party bill collection agency. https://www.scmagazine.com/home/security-news/breach-of-bill-collection-agency-may-affect-11-9-million-quest-diagnostics-patients/

ANU data breach exposes 19 years of staff and student data - Australian National University revealed news of a data breach today that took place in late 2018 compromising the PII of more than 200,000 employees and students who were associated with the school for the last 19 years. https://www.scmagazine.com/home/security-news/data-breach/anu-data-breach-exposes-19-years-of-staff-and-student-data/

UChicago Medicine secures database after publicly exposing info on donors and patients - The University of Chicago Medicine scrambled to secure a database containing information on patients as well as existing and potential financial donors, after a researcher discovered that a misconfiguration left nearly 1.68 million records exposed to the public. https://www.scmagazine.com/home/security-news/data-breach/uchicago-medicine-secures-database-after-publicly-exposing-info-on-donors-and-patients/

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We continue covering some of the issues discussed in the "Risk Management Principles for Electronic Banking" published by the Basel Committee on Bank Supervision.

 Board and Management Oversight - Principle 8: Banks should ensure that appropriate measures are in place to protect the data integrity of e-banking transactions, records and information.
   Data integrity refers to the assurance that information that is in-transit or in storage is not altered without authorization. Failure to maintain the data integrity of transactions, records and information can expose banks to financial losses as well as to substantial legal and reputational risk.
   The inherent nature of straight-through processes for e-banking may make programming errors or fraudulent activities more difficult to detect at an early stage. Therefore, it is important that banks implement straight-through processing in a manner that ensures safety and soundness and data integrity.
   As e-banking is transacted over public networks, transactions are exposed to the added threat of data corruption, fraud and the tampering of records. Accordingly, banks should ensure that appropriate measures are in place to ascertain the accuracy, completeness and reliability of e-banking transactions, records and information that is either transmitted over Internet, resident on internal bank databases, or transmitted/stored by third-party service providers on behalf of the bank. Common practices used to maintain data integrity within an e-banking environment include the following:
   1)  E-banking transactions should be conducted in a manner that makes them highly resistant to tampering throughout the entire process.
   2)  E-banking records should be stored, accessed and modified in a manner that makes them highly resistant to tampering.
   3)  E-banking transaction and record-keeping processes should be designed in a manner as to make it virtually impossible to circumvent detection of unauthorized changes.
   4)  Adequate change control policies, including monitoring and testing procedures, should be in place to protect against any e-banking system changes that may erroneously or unintentionally compromise controls or data reliability.
   5)  Any tampering with e-banking transactions or records should be detected by transaction processing, monitoring and record keeping functions.

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

  Firewall Policy (Part 3 of 3)
  Financial institutions can reduce their vulnerability to these attacks somewhat through network configuration and design, sound implementation of its firewall architecture that includes multiple filter points, active firewall monitoring and management, and integrated intrusion detection. In most cases, additional access controls within the operating system or application will provide an additional means of defense.
  Given the importance of firewalls as a means of access control, good practices include:
  ! Hardening the firewall by removing all unnecessary services and appropriately patching, enhancing, and maintaining all software on the firewall unit;
  ! Restricting network mapping capabilities through the firewall, primarily by blocking inbound ICMP traffic;
  ! Using a ruleset that disallows all traffic that is not specifically allowed;
  ! Using NAT and split DNS (domain name service) to hide internal system names and addresses from external networks (split DNS uses two domain name servers, one to communicate outside the network, and the other to offer services inside the network);
  ! Using proxy connections for outbound HTTP connections;
  ! Filtering malicious code;
  ! Backing up firewalls to internal media, and not backing up the firewall to servers on protected networks;
  ! Logging activity, with daily administrator review;
  ! Using intrusion detection devices to monitor actions on the firewall and to monitor communications allowed through the firewall;
  ! Administering the firewall using encrypted communications and strong authentication, only accessing the firewall from secure devices, and monitoring all administrative access;
  ! Limiting administrative access to few individuals; and
  ! Making changes only through well - administered change control procedures.

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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 -

20.3.5 Network-Related Threats

Most of the human threats of concern to HGA originate from insiders. Nevertheless, HGA also recognizes the need to protect its assets from outsiders. Such attacks may serve many different purposes and pose a broad spectrum of risks, including unauthorized disclosure or modification of information, unauthorized use of services and assets, or unauthorized denial of services.

As shown in the figure below, HGA's systems are connected to the three external networks: (1) the Internet, (2) the Interagency WAN, and (3) the public-switched (telephone) network. Although these networks are a source of security risks, connectivity with them is essential to HGA's mission and to the productivity of its employees; connectivity cannot be terminated simply because of security risks.

In each of the past few years before establishing its current set of network safeguards, HGA had detected several attempts by outsiders to penetrate its systems. Most, but not all of these, have come from the Internet, and those that succeeded did so by learning or guessing user account passwords. In two cases, the attacker deleted or corrupted significant amounts of data, most of which were later restored from backup files. In most cases, HGA could detect no ill effects of the attack, but concluded that the attacker may have browsed through some files. HGA also conceded that its systems did not have audit logging capabilities sufficient to track an attacker's activities. Hence, for most of these attacks, HGA could not accurately gauge the extent of penetration.

In one case, an attacker made use of a bug in an e-mail utility and succeeded in acquiring System Administrator privileges on the server--a significant breach. HGA found no evidence that the attacker attempted to exploit these privileges before being discovered two days later. When the attack was detected, COG immediately contacted the HGA's Incident Handling Team, and was told that a bug fix had been distributed by the server vendor several months earlier. To its embarrassment, COG discovered that it had already received the fix, which it then promptly installed. It now believes that no subsequent attacks of the same nature have succeeded.

Although HGA has no evidence that it has been significantly harmed to date by attacks via external networks, it believes that these attacks have great potential to inflict damage. HGA's management considers itself lucky that such attacks have not harmed HGA's reputation and the confidence of the citizens its serves. It also believes the likelihood of such attacks via external networks will increase in the future.

Figure 20.1

Some of the above links may have expired, especially those from news organizations.  We may have a copy of the article, so please e-mail us at examiner@yennik.com if we can be of assistance.