IBM 2015 Cyber Security Intelligence Index

IBM 2015 Cyber Security
Intelligence Index
Analysis of cyber attack and incident data from IBM’s worldwide
security services operations
IBM Security
Managed Security Services
Research Report

IBM 2015 Cyber Security Intelligence Index
Contents
The year the Internet fell apart
The numbers tell a new story
Over 62 percent of incidents target just three industries
Unauthorized access spurs nearly twice as many incidents in 2014
More than half of all attackers are “insiders”
Where is all this happening?
It’s not about “if” you’re going to be hacked; it’s about “when”
Put a halt to dangerous thinking
Why IBM Security?
For more information
Follow us
Authors
Glossary
Appendix
◀ Previous Next ▶

About this report
IBM Managed Security Services continuously monitors billions of
events per year, as reported by more than 8,000 client devices in over
100 countries. This report is based on data IBM collected between
1 January 2014 and 31 December 2014 in the course of monitoring
client security devices as well as data derived from responding to and
performing analysis on cyber attack incidents. Because our client
profiles can differ significantly across industries and company size,
we have normalized the data for this report to describe an average
client organization as having between 1,000 and 5,000 employees, with
approximately 500 security devices deployed within its network.
The Cyber Security Intelligence Index offers a high-level overview of
the major threats to businesses worldwide over the past year. Our
goal is to help you better understand the current threat landscape
by offering a detailed look at the volume of attacks, the industries
most affected, the most prevalent types of attacks and attackers, and
the key factors enabling them. We provide insights into where and
how successful attacks can impact today’s technology-dependent
organizations and discuss how the threat landscape is evolving
from year to year, as companies work to better detect and insulate
themselves from future attacks.
The year the Internet fell apart
By just about anyone’s standards, 2014 was a banner year for the
cyber security industry. Significant threats and massive breaches
made front-page news on a regular basis, leaving businesses and
consumers wondering whether their data could ever be considered
safe again.
Major vulnerabilities were found lurking in well-known applications,
many of which had been dormant for more than 10 years. Once
discovered—and subsequently exploited—they left virtually every
industry vulnerable to serious threats, including the possibility
of intruders gaining full remote access to critical systems. IT
departments often found themselves unprepared to patch and
mitigate these threats, leaving the window for exploitation wide
open and leading to a “perfect storm” of zero-day attacks, system
infiltration and subsequent data loss for many organizations.
Learn more:
Three system-crippling threats
3 IBM Security ◀ Previous Next ▶

Learn more:
Events, attacks and incidents defined
Many of the notable data breaches that occurred in 2014—some
of which devastated the victim organizations—were the result of
attacks that exposed healthcare records, credit card data and
volumes of personally identifiable information. What’s more, they
ended up compromising the safety of these organizations and
endangering the security of millions of individuals who are now
exposed to the very real possibility of identity theft.
The numbers tell a new story
In 2014, the average organization monitored by IBM Security
Services experienced approximately 81 million security events (see
Figure 1). Continual policy tuning allowed IBM security analysts
to filter out 11 percent of the security events, leading to greater
efficiency on all levels and making it possible for them to shift their
attention to those events meriting further analysis. But despite the
resulting reduction of “noise” at the event level, the average number
of incidents held fast to 2013 levels at 2.10 per week. In other words,
while IBM has become more proficient at weeding out ineffective
attacks, the incident-to-attack ratio rose from .65 percent to
.91 percent.
Get the picture: Annual security events,
attacks and incidents
Over 62 percent of incidents targeted just
three industries
The data for 2014 shows a marked departure from the trends
reported for both 2012 and 2013. While the finance and insurance
category remains in its top spot as the most targeted industry, the
information and communications category took over second place
from manufacturing. And although retail held onto fourth place in the
rankings, that industry experienced 3.2 percent more incidents in
2014 than it did in the previous year (see Figure 2). That represents
the largest percentage change among the four industries remaining
from the previous year’s top five. As noted earlier, 2014 saw the
compromise of a significant number of retail records. And as reported
4 IBM Security

last September, point-of-sale malware was responsible for one of the
largest retail security breaches ever reported. Clearly, point-of-sale
systems have become extremely attractive as network entry points
for criminals—a trend that’s expected to continue to grow in 2015.
In another change from 2013 to 2014, the electric and utilities
category took over fifth place in the rankings, edging out sixth
place health services by a small margin. Unauthorized access
and malicious code incidents made up nearly half of the incidents
targeting this year’s number five industry. And attacks against
the utility sector are a growing concern for governments globally.
The Industrial Control Systems Computer Emergency Response
Team’s (ICS-CERT) January–April 2014 Monitor report disclosed
the compromise of a public utility via unauthorized access to its
control system network.2
The administrative software was remotely
accessible and configured with a simple password mechanism,
making it susceptible to compromise via brute force.
Get the picture: Incident rates across
monitored industries
Taking one more look at the 2014 top industry list, it may be
interesting to note that all industries, with the exception of
manufacturing, saw an increase in their percentage of total
incidents over 2013. This might prompt further investigation into
what the manufacturing industry is or isn’t doing differently from
the other industries.
Learn more:
Three confidence-breaking breaches
Unauthorized access spurs nearly twice as many
incidents in 2014
In both 2012 and 2013, malicious code and sustained probes or
scans dominated our clients’ security incident landscape (see
Figure 3). But all that changed in 2014 when unauthorized access
incidents rocketed to the top, accounting for 37 percent of the
total—nearly doubling from 19 percent in 2013. Shellshock and
Heartbleed were the game changers here, as mentioned earlier.
These findings prove that anyone who thinks they know what to
expect when it comes to cyber threats had better think again.
Organizations that have developed a dynamic and flexible security
posture will almost always find themselves better equipped to
handle these kinds of dramatic shifts.
5 IBM Security

Get the picture: Categories of incidents
among top five industries
Looking at the other major types of incidents we saw in 2014,
malicious code dropped to second place, followed by sustained
probes or scans in third place. Although lower on the list than in
previous years, these threats are still significant; together they
account for 40 percent of all the incidents observed. With an ever-
expanding array of malware from which attackers may choose—
including viruses, worms, Trojans, bots, backdoors, spyware and
adware—it seems fairly certain that malicious code incidents
will continue to wreak havoc for the foreseeable future. What’s
more, point-of-sale malware, such BlackPOS and Backoff, and
ransomware such as Cryptowall and Cryptolocker, are gaining
in popularity as a result of their effectiveness in compromising
vulnerable targets. Attackers are typically interested in finding
the path of least resistance. And these methods are capable of
providing that.
Meanwhile, the number of denial of service attacks, which account
for only four percent of the total, actually doubled over the previous
year. Over 50 percent of these denial of service incidents were
targeted at the retail industry—which may point to the possibility
that an increased emphasis on thwarting more high-profile threats
(such as point-of-sale malware) left a window open for attackers to
exploit opportunities along a less-travelled path.
More than half of all attackers are “insiders”
There are plenty of reasons to assume that most attacks are the
work of far-off “bad guys” with a political axe to grind or in search of
fame and fortune. After all, we hear about them in news reports just
about every day. But in 2014, 55 percent of all attacks were carried
out by either malicious insiders or inadvertent actors (see Figure 4).
In other words, they were instigated by people you’d be likely to
trust. And they can pose a significant threat, resulting in substantial
financial and reputational losses.
Get the picture: Who are the
“bad guys”?
6 IBM Security

What is an insider? An insider, in this case, is anyone who has
physical or remote access to a company’s assets. Those are tangible
items—including hard copy documents, disks, electronic files and
laptops—as well as non-physical assets, such as information in
transit. Although the insider is often an employee of the company,
he or she could also be a third party. Think about business partners,
clients or maintenance contractors, for example. They’re individuals
you trust enough to allow them access to your systems.
Of course you might consider it awkward to refer to your employees
as a potential “threat.” But that’s just another reality of today’s
workplace. And even hundreds of years ago, there were spies
carrying out business-related espionage all over the world. The
truth is, individuals inside your organization may have an especially
keen understanding of the company’s weaknesses—or access
to “insider-only” areas. That gives them an obvious advantage,
since it’s unlikely they need to bypass protection systems to obtain
sensitive information. They already have access.
Still, it’s important to note that more often than not, breaches caused
by insiders are unintentional. In fact, over 95 percent of these
breaches are caused by human error. That can mean accidentally
posting information on the company’s public-facing website,
sending information to the wrong party via email, fax, or mail, or
improperly disposing of clients’ records.
But insiders who set out to take advantage of the company they
work for can be much more dangerous. It’s more difficult to thwart
these insiders’ malicious actions because they’re willing to take
extraordinary measures to circumvent access controls and are
typically unconcerned with corporate policies or the potential
consequences of their actions.
Case in point: Attackers use one attack as a
smokescreen to hide others
7 IBM Security

Where is all this happening?
While it’s important to understand who’s behind today’s cyber
attacks, it’s also useful to see where the majority of those attacks
are coming from—and where they’re landing. It is equally important
to consider the size of each country involved and the availability of
bandwidth within it. That goes a long way toward explaining why
more than half of the attacks we saw in 2014 originated in the United
States. And for many of the same reasons, the United States was
also the most attacked country in 2014 (see Figure 5).
Get the picture: Where are these
attacks coming from? And where
are they taking place?
It’s not about “if” you’re going to be hacked; it’s
about “when”
When The Wall Street Journal held the annual meeting of its CIO
Network earlier this year, it was clear from the outset that just about
all the CIOs present were of similar thinking: that being hacked is
inevitable. As the paper reported in February 2015: “Conversation
during breaks gravitated to the remarkable destruction of Sony
Pictures Entertainment’s network and files that hackers caused in
November [2014].
“This hack wasn’t about stealing intellectual property and slinking
away, or pranking a former employer. These hackers broke in and
fired up the wrecking ball.
“The global chief information officers who gathered at the third
annual CIO Network in San Diego … are a chastened crew. When
asked who hasn’t been hacked, just one hand went up in the
audience, and that CIO got a lot of skeptical looks.”3
Over the past few years it’s become increasingly clear that the
conversation has changed from talking about “if you will be
hacked” to “when you will be hacked.” And more importantly, the
conversation then turns to what you should do about it.
Learn more:
A wolf in sheep’s clothing
8 IBM Security

Put a halt to dangerous thinking
If you’re asking, “Why would anyone want to come after us?” there’s
a good chance that you’re already in trouble. It’s tempting to think
that if your organization isn’t that large or well known, or if you’re
not in one of the most frequently attacked industries, you may not
have much to worry about. Unfortunately, that’s dangerous thinking.
Companies of all sizes are at risk, as are those in all industries. As we
noted earlier, the average organization monitored by IBM Managed
Security Services experienced approximately 81 million security
events in 2014, which yielded two actual incidents each week. And
yes, those two incidents could have happened to your company.
When it comes to cyber security, there are four key questions that
every company should be asking its security team right now:
• How strong is my company’s current security program—and
how does it compare with other companies in my industry?
• What can we do to stop advanced threats from infiltrating
our systems?
• Are we doing everything we can to protect our most
valuable data?
• How can we adopt new technologies—such as mobile and
cloud—without compromising our security?
The answers will help you understand where to turn next.
Why IBM Security?
Traditional security defenses are no match for today’s unrelenting,
well-funded attackers, while disruptive technologies introduce new
vulnerabilities to exploit. Organizations must accelerate their ability
to limit new risk and apply intelligence to stop attackers—regardless
of how advanced or persistent they are. New analytics, innovation,
and a systematic approach to security are necessary. And there are
very few companies able to meet those requirements on their own.
That’s why Forrester Research has noted: “In order to be a true
partner, managed security services providers need to demonstrate
they can create business value as well as technical value for their
clients. (They) are assuming more and more of an active role in
defending their clients, which requires forward thinking, excellent
execution, and an understanding of the client’s security business
drivers. These qualities will determine the ability of the managed
security services provider to meet current and future demands that
clients will ask of these service providers.”4
Case in point: Stress testing can take some
of the stress out of an attack
9 IBM Security

When you engage with IBM for managed security services, you
gain access to a full suite of capabilities that can help you extend
protection from the back office to the front office. And we help
ensure that it’s all integrated and coordinated across your enterprise.
The IBM Managed Security Services Threat Research Group is
staffed by an elite team of our most experienced and skilled threat
analysts. Dedicated to delivering industry-leading cyber threat
intelligence, the group provides up-to-date research on threats that
could negatively impact IBM customers.
Case in point: A disgruntled
employee installs a backdoor to steal
company data
At IBM, our IT security services can cover every corner of your
network, from infrastructure to applications to devices. We monitor,
in near real time, some of the most complex corporate networks in
the world. We develop some of the most sophisticated testing tools
in the industry, many of which are used by our competitors. And our
team of highly skilled security professionals is constantly identifying
and analyzing new threats, often before they are even known by the
world at large. In fact, we maintain the largest single database of
known cyber security threats in the world.
For more information
To learn more about how IBM can help you protect your
organization from cyber threats and strengthen your IT security,
contact your IBM representative or IBM Business Partner, or visit this
website:
ibm.com/services/security
Follow us
10 IBM Security
Authors
Nicholas Bradley, Practice Lead, Threat Research Group,
IBM Managed Security Services
Michelle Alvarez, Researcher/Editor, Threat Research Group,
IBM Managed Security Services
John Kuhn, Senior Threat Researcher, IBM Managed
Security Services
David McMillen, Senior Threat Researcher, IBM Managed
Security Services

Glossary
Term Definition
Access or
credentials abuse
Activity detected that violates the known use policy of that
network or falls outside of what is considered typical usage.
Attacks Security events that have been identified by correlation and
analytics tools as malicious activity attempting to collect,
disrupt, deny, degrade, or destroy information system resources
or the information itself. Security events such as SQL Injection,
URL tampering, denial of service, and spear phishing fall into
this category.
Breach or
compromise
An incident that has successfully defeated security measures
and accomplished its designated task.
Denial of service Attempts to flood a server or network with such a large amount
of traffic or malicious traffic that it renders the device unable to
perform its designed functions.
Droppers Malicious software designed to install other malicious software
on a target.
Event An event is an observable occurrence in a system or network.
Inadvertent actor Any attack or suspicious activity sourcing from an IP address
inside a customer network that is allegedly being executed
without the knowledge of the user.
Incidents Attacks and/or security events that have been reviewed by
human security analysts and have been deemed a security
incident worthy of deeper investigation.
Keyloggers Software designed to record the keystrokes typed on a
keyboard. This malicious software is primarily used to
steal passwords.
Malicious code A term used to describe software created for malicious use.
It is usually designed to disrupt systems, gain unauthorized
access, or gather information about the system or user being
attacked. Third party software, Trojan software, keyloggers,
and droppers can fall into this category.
Outsiders Any attacks that sourced from an IP address external to a
customer’s network.
11 IBM Security
Phishing A term used to describe when a user is tricked into browsing a
malicious URL designed to pose as a website they trust, thus
tricking them into providing information that can then be used to
compromise their system, accounts, and/or steal their identity.
Security event An event on a system or network detected by a security device
or application.
Security device Any device or software designed specifically to detect and/
or protect a host or network from malicious activity. Such
network-based devices are often referred to as intrusion
detection and/or prevention systems (IDS, IPS or IDPS), while
the host-based versions are often referred to as host-based
intrusion detection and/or prevention systems (HIDS or HIPS).
Spear phishing Phishing attempts with specific targets. These targets are
usually chosen strategically in order to gain access to very
specific devices or victims.
SQL injection An attack used that attempts to pass SQL commands through
a website in order to elicit a desired response. One that the
website is not designed to provide.
Suspicious
activity
These are lower priority attacks or suspicious traffic that could
not be classified into one single type of category. These are
usually detected over time by analyzing extended periods of
data.
Sustained probe/
scan
Reconnaissance activity usually designed to gather information
about the targeted systems such as operating systems, open
ports, and running services.
Trojan software Malicious software hidden inside another software package
that appears safe.
Unauthorized
access
This usually denotes suspicious activity on a system or failed
attempts to access a system by a user or users who does not
have access.
Wiper Malicious software designed to erase data and destroy the
capability to restore it.
Zero-Day An unknown vulnerability in an application or a computer
operating system.

Three system-crippling threats
ShellShock: A more than
20-year-old vulnerability in
the GNU Bash shell (widely
used on Linux, Solaris and
Mac OS systems) sparked
the mobilization of attacks known as
ShellShock beginning in late September
2014. This first vulnerability quickly gave
way to the disclosure of several additional
vulnerabilities affecting the UNIX shell.
IBM Managed Security Services (MSS)
observed a significant increase in focused
attacks targeting these vulnerabilities within
24 hours of their disclosure. The attacks
came in waves, from different source IPs
and originating countries. In the two weeks
following the disclosure, the US was on the
receiving end of more recorded attacks
than any other country. This threat is a
good example of a growing trend on the
attacker front called “malware-less” attacks.
Attackers are looking to exploit existing
functionality in applications rather than
risking malware detection that would thwart
their success.
Heartbleed: The Heartbleed
vulnerability is a security
bug in OpenSSL, a popular
open source protocol used
extensively on the Internet. It
allows attackers to access and read the
memory of systems thought to be protected.
Vulnerable versions of OpenSSL allow the
compromise of secret keys, user names,
passwords and even actual content. It is
believed that this vulnerability has been in
existence for at least two years and has
quite possibly been exploited for just as long.
Many companies have issued statements
claiming that they have now remedied the
vulnerability in their environment, but there
is truly no way of knowing how much data
has fallen into the wrong hands through
the exploitation of this bug. While the
Heartbleed bug itself was introduced on the
last day of 2011, it didn’t make its first public
appearance until April 2014, when it showed
up as an OpenSSL advisory. By the end of
that month, IBM MSS had tracked over 1.8
million attacks against customers. The three
hardest hit countries were China, Russia
and the United States.
Unicorn: Every release of
Microsoft Internet Explorer
(beginning with version 3.0)
that’s run on any Windows
operating system (beginning
with Windows 95) allows remote code
execution via a data-only attack. In this type
of attack, the attacker changes key data
structures used by the program’s logic,
forcing the control flow into existing parts
of the program that would be otherwise
unreachable. Discovered in November
2014 by an IBM X-Force®
researcher,
this is a complex and rare vulnerability.
Attackers can use it in “drive-by attacks”
to run programs remotely and take over a
user’s machine—even sidestepping the
Enhanced Protected Mode (EPM) sandbox
in Internet Explorer 11 and the Enhanced
Mitigation Experience Toolkit (EMET), a
free Microsoft anti-exploitation tool.1
The
flaw is known to be at least 19 years old.
Similar to ShellShock, it’s yet another
serious vulnerability going unnoticed for an
extremely long time despite all the efforts of
the security community.
Return to text
1 Appendix

2 Appendix
According to the IBM Computer Security Incident Response Team, of all the security
incidents they work through and analyze, only three percent actually reach a level of
severity high enough to consider them “noteworthy”—with the most common
impact being data disclosure or theft.
Security
A security eve
been identiﬁe
and analytics
malicious act
attempting to
deny, degrade
information sy
or the informa
www
Security attack
A security event that has been identiﬁed
by correlation and analytics tools as
malicious activity that is attempting to
collect, disrupt, deny, degrade or destroy
information system resources or the
information itself.
Security event
An event on a system or
network detected by a
security device or application.
Security incident
An attack or security event
that has been reviewed by
IBM security analysts and
deemed worthy of
deeper investigation.
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3 Appendix
Annual security events, attacks and incidents
Incidents
109
Events
91,765,453
Attacks
18,856
Incidents
109
Events
81,342,747
Attacks
12,017
2013
2014
Figure 1Figure 1
Figure 1. Security events appear in many guises and, in many cases, extremely high volume. IBM Managed
Security Services’ highly skilled intelligence and operations teams work to translate those ever-increasing event
counts into actionable data and keep our clients from becoming overwhelmed.
Return to text

4 Appendix
Figure 2
Figure 2. While the finance industry retained its spot at the top of the list from 2013 to 2014, the information
and communication category switched places with manufacturing. Meanwhile, the energy and utilities category
narrowly edged out the health and social service category for fifth place. Of this group, only manufacturing
experienced fewer incidents in 2014 than in the previous year.
9.37%
5.08%
Incident rates across monitored industries
Finance and
insurance
23.80%
Manufacturing
21.70%
Information and
communication
18.60%
Health and
social services
5.80%
Retail and
wholesale
6.20%
2013
Energy and
utilities
5.08%
Retail and
wholesale
9.37%
2014
Finance and
insurance
25.33%
Information and
communication
19.08%
Manufacturing
17.79%
Return to text

Three confidence-breaking breaches
It was early 2014 when one
of the largest arts and
crafts retailers in the US
told customers of possible
fraudulent activity on some US
payment cards that had been used at the
chain’s stores. The company later confirmed
that a malware-related attack had resulted
in a breach sometime between mid-2013
and February 2014, affecting certain
systems that process payment cards, and
may have affected more than 2.5 million
cards. It also reported that an additional
400,000 cards may have been impacted at
a subsidiary.
In one of the largest recorded
retail breaches to date, a
major US retailer of home
improvement goods fell
victim to a point-of-sale attack
that affected more than 2,000 stores.
Confirmed by the company in the fall of
2014, the breach exposed over 55 million
records of payment card data—a large
quantity of which appeared to go up for sale
immediately on underground cybercrime
sites. The incident also resulted in the theft
of more than 50 million email addresses.
BlackPOS—a specific type of point-of-sale
malware—was blamed for the breach.
A leading operator of
general acute care hospitals
in the US disclosed in the
summer of 2014 that it had
been the victim of one of the
largest reported healthcare data breaches
that year. The attack was credited to an
Advanced Persistent Threat group based in
East Asia. Sophisticated malware resulted
in the compromise of Social Security
numbers, names and addresses for some
4.5 million patients.
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5 Appendix

6 Appendix
Figure 3
Figure 3. In 2014, unauthorized access topped the list of incident categories affecting the top five industries
named in this report, replacing malicious code, which was the top category in 2013.
20% Sustained probe/scan
37% Unauthorized access
2% Denial of service
12% Suspicious activity
Categories of incidents among the top five industries
%
38% Malicious code
25.33%
19.08%
17.79%
2013 2014
20% Sustained probe/scan
19% Unauthorized access
9% Access or credentials abuse
4% Denial of service
11% Suspicious activity
20% Malicious code
8% Access or credentials abuse
Return to text

7 Appendix
Figure 4
Figure 4. While outsiders were found to be responsible for 45 percent of the attacks recorded in 2014, 55
percent of attacks were carried out by those who had insider access to organizations’ systems.
Who are the “bad guys”?
45%
Outsiders
31.5%
Malicious
insiders 23.5%
Inadvertent
actor
Return to text

8 Appendix
CASE
POINTin
Attackers use one attack as a smokescreen
to hide others
Industry: Finance
Approach: Attackers launched an attack to create
additional traffic as a diversion to keep attention away
from other targeted attacks.
How it happened: Attackers took advantage of a “low
and slow” distributed denial-of-service attack tool to
saturate the company’s web server resources. Because
the traffic appeared legitimate, it passed undetected
and failed to set off any warnings that there might be a
problem. But by the time the company discovered the
problem, the attackers had already begun to capitalize
on malware previously installed on vulnerable systems.
They proceeded to perform fraudulent wire transfers
while all the company’s IT resources were completely
focused on the initial incident.
Damage done: The company suffered financial
damage on two levels. First, while the website
was down, customers were unable to perform
transactions, resulting in financial loss for the
company. And second, the fraudulent wire transfers
resulted in millions of dollars stolen from accounts.
Brand reputation was severely damaged and
hundreds of customers moved their financial accounts
elsewhere, having lost trust in the company and
fearing future compromise.
Lessons learned: Traditional defenses such as
firewalls and intrusion-prevention systems are no
longer enough to protect against distributed denial-
of-service attacks. A managed web defense service
can help prevent these attacks by routing traffic
away from an organization’s infrastructure during an
attack, keeping websites running without disrupting
operations. What’s more, by implementing an
advanced malware solution, an organization should be
able to prevent mass-distributed malware infections
and detect legacy threats.
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9 Appendix
Figure 5
Figure 5. The largest number of attacks both originated (50 percent) and took place (59 percent) in the United
States in 2014. Next in line were China, where 16 percent of all attacks originated, and Japan, which was the
target of 24 percent of the year’s attacks.
Where are these attacks coming from?
And where are they taking place?
United States
50% originated here
59% took place here China
16% originated here
Japan
15% originated here
24% took place here
Canada
7% took place here
Germany
10% originated here
France
9% originated here
4% took place here
Australia
6% took place here
Return to text

A wolf in sheep’s clothing
In April of this year, IBM announced it had uncovered a
sophisticated—and unusually successful—campaign that had
already stolen upwards of $1 million from large and medium-size
companies in the US. Launched by a gang of Eastern European
cyber criminals using a combination of phishing, malware
and phone calls, the scheme has been named “Dyre
Wolf” by IBM researchers, making reference to the
now-popular Dyre or Dyreza malware used in the
attacks. And although other attacks may have made
a bigger impact or gained wider notoriety, few have
demonstrated the kind of sophistication that Dyre
Wolf has displayed.
The attackers target individuals working in specific
companies by sending spam email with unsafe
attachments. That’s how they get a variant of the Dyre
malware into the companies’ computers. Once installed,
the malware then lies in wait until it becomes obvious that the
user is trying to log onto a bank website. At that point, it immediately
creates a fake screen telling the user that the bank’s site is
temporarily unavailable and offers instructions to call a specific
phone number.
That’s when social engineering techniques take over. A live, English-
speaking “operator” answers the call with the name of the bank that
the user expects. Unaware that they’re participating in a fraud, users
typically share their banking details, setting off a large wire transfer
to withdraw funds from the relevant account.
After the transfer has been completed, the attackers
quickly move the money from one bank to another
to avoid detection. The attackers have even been
known to initiate denial of service sprees against their
victims, paralyzing their web capabilities and making
it virtually impossible to discover the theft until many
hours later.
The group behind this project has developed a
complex campaign that’s incredibly effective at stealing
large sums of money. Its infrastructure, manpower and
the knowledge of banking systems and their websites clearly
demonstrate that the group is well-funded, experienced and
intelligent. And that’s what makes Dyre Wolf a significant threat.
Return to text
10 Appendix

11 Appendix
CASE
POINTin
Stress testing can take some of the stress
out of an attack
Industries: All
Approach: Hackers targeted a specific company
with a tool known as “SQLninja,” which is designed to
allow an attacker to inject an SQL database and gain
full administrator access.
How it happened: Once they gained control of the
system, the attackers found the path to an unsecured
data table containing privileged employee information,
including Social Security numbers, dates of birth,
residential addresses and email addresses. They
were able to retrieve the entire table and then delete
the master on the server. With the full list in their
possession, they posted a snippet of the data to an
online pastebin, (a web application used to store plain
text). Thus proving that their efforts were successful,
they followed up with an email to the company’s CEO
demanding a monetary ransom for the return of the
data. Then, as a final act of defiance, the attackers also
found the path to the root web server and defaced it
by posting an image of their cybercrime logo.

Damage done: The data contained in the table was
detailed enough to allow cyber criminals to pose as
the company’s employees and attempt to gain credit
in their names. In addition, the stolen data tables with
the employee information were lost forever because
the company hadn’t developed or implemented data
recovery or disaster plans. As a result, the website had
to be completely rebuilt—at great expense—to bring
the company back online and put it back in business.
Lessons learned: It’s vital that organizations perform
security stress tests and proper data validation on
homegrown web-based applications that have access
to back-end SQL databases. Creating redundant
backups of all data in-house and keeping them offline
can lead to quick recovery, while subscribing to or
creating a robust disaster recovery plan can limit the
financial loss that comes with having to start over and
rebuild lost assets.
Return to text

12 Appendix
CASE
POINTin
A disgruntled employee installs a backdoor
to steal company data
Industries: All
Approach: A disgruntled network administrator
installed a backdoor (or intentional flaw) on the server
in order to bypass security mechanisms and continue
to have unauthorized access after being dismissed.
How it happened: Unhappy with management and
the lack of pay increase following his annual review,
a network administrator installed a backdoor on the
company’s server. He gave the process a common
system file name to disguise the malware and make
it appear to be a widely used administration tool. The
employee was eventually dismissed but retained
unauthorized access to sensitive customer information
and confidential documents for weeks afterward.
Damage done: Thousands of customer records
were compromised and hundreds of thousands of
dollars were spent on notification and response, legal,
investigative and administrative expenses, reputation
management and credit monitoring subscriptions.
Lessons learned: Monitoring employee activity—and
using applications designed for anomaly detection—is
critical to identifying misuse and suspicious activities.
Every user’s access should be managed throughout
his or her entire employment, and not just when they
leave the company. It’s also important to ensure that
hosts used by former employees are taken offline
immediately, that a backup is made on an external
storage device and that it’s completely rebuilt from
trusted media before being reconnected to the
network and passed on to another employee.
Return to text

1
IBM X-Force Researcher Finds Significant Vulnerability in Microsoft
Windows
2
ICS-CERT Monitor, January – April 2014, page 1.
3
“Cybersecurity in the wake of Sony,” The Wall Street Journal,
February 10, 2015.
4
The Forrester Wave™
: Managed Security Services: North
America, Q1 2014.
© Copyright IBM Corporation 2015
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May 2015
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