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ACI-NA Annual Conference

San Diego, CA









The perils of a connected world









Dom Nessi, CISSP, GSLC, PMP, CM

Deputy Executive Director/Chief Information Officer

Los Angeles World Airports

October 17, 2011

When U.S. Attorney Jenny

Durkan appeared at a

Seattle press conference

to talk about the rise in

ATM skimming, she was

very knowledgeable

about the topic.  It is the protection of personal or

A little too well- sensitive information, or any form of

prepared, in fact: Durkan

lost $1,000 from her digital asset stored in a computer or in

own bank account

recently after using an any digital memory device.

ATM kiosk whose door

lock was broken.



 It is also the protection of physical IT

assets from random attacks targeted to

destroy or disable computing power.

The Dutch company

DigiNotar, who is a

"certificate authority" got

hacked, breached and an

unknown number of

fraudulent certificates

were issued for domain Four Key Domains:

names that included the

Dutch government,  Confidentiality – preventing unauthorized

Google.com, Mozilla,

Skype, Yahoo, Facebook, access to information

Twitter, the CIA, Mossad

(Israeli intelligence

agency), UK’s MI6, as

 Integrity – preventing unauthorized

well as who's who on the

Internet, and so on.

modification or theft of information

This breach probably  Availability – preventing denial of service and

occurred in July 2011,

and was not discovered ensuring authorized access to information

 Non-Repudiation – preventing the denial of

until August 29, 2011.

This made ALL DigiNotar

certificates

untrustworthy. an action that took place or the claim of an

action that did not take place

DigiNotar has been

unable to recover from

the blow and filed for

bankruptcy in a

Netherland court. An

investigation sponsored

by the Dutch  Simple malicious codes called malware

government, conducted

by security firm Fox-IT and spyware, and serious viruses that

in the Netherlands,

revealed that DigiNotar can wipe out a system

Hackers that target a specific device or

lacked basic security

safeguards, such as 

organization for either malicious

strong passwords, anti-

virus protection, and up-



enjoyment or financial gain

to-date software

patches.



After DigiNotar went  Denial of Service attacks that cripple an

public with the breach,

all five of the major organization’s ability to operate

browser makers --

Apple, Google,

Microsoft, Mozilla and

Opera -- issued updates

that barred users from

reaching sites secured

with DigiNotar-issued

certificates.

Japan's Sony Corp. was a

victim of one of the

largest data breaches in

history. Sony's

PlayStation Network, its

Qriocity music streaming

service and Sony Online

 Attacks via USB

Entertainment were

among the services

 Large-scale, targeted Botnet Attacks

targeted by hackers

recently in cyber attacks  DDoS Attacks

and data breaches which

compromised more than  Attacks via Social Networks

100 million accounts.

 Click Jacking and Cross-Site Scripting Web

Sony chairman and

president Howard Attacks

Stringer apologized to

shareholders and  Phishing from “trusted” third parties

customers for the

massive online data  Online Fraud

theft, which helped drag

the company's share  Cloud Computing Concerns

price to a two-year low.

 Data Exfiltration and Insider Threats

 Mobile Devices and Wireless Network Attacks

 Targeted Hacking Attempts

A regional retailer

contracted with a third

party service provider. A

burglar stole two laptops

of the service provider

containing the data of

over 800,000 clients of

 Aviation continues to be the target of

the retailer.

terrorists- whether it be aircraft,

Under applicable

notification laws, the

airports or airlines

retailer – not the service

provider – was required  Aviation is highly dependent on and

to notify affected

individuals. driven by computer systems

Total expenses incurred Federal level

for notification and crisis

management to Airline level

customers was nearly $5

million. Airport level

Airport tenants

 eEnabled aircraft will present an

entirely new challenge

In 1993, the Clinton

administration began

producing the so-called

Clipper Chip, an NSA-

developed encryption

chip intended for use in

computers and

 Homeland Security Presidential

telephones and designed

with a “key recovery”

Directive 7 (HSPD-7) along with the

feature that would allow

the government to crack

National Infrastructure Protection

the encryption on

demand, with the proper

Plan (NIPP) identified and categorized

legal authority.

18 Critical Infrastructure and & Key

The chip was a dismal

failure in the

Resources Sectors

marketplace, and the

project was dead by  Transportation is one of the 18

1996.

In February 2000, a 15-

year-old Canadian boy

experimentally

programmed his botnet

to hose down the

highest-traffic websites

he could find.

Potential targets

CNN, Yahoo!, Amazon,

Malicious

eBay, Dell, and E-Trade  Network

all buckled down under

the deluge, leading to  Wireless network

national headlines and

an emergency meeting  Baggage systems (hand-held devices)

of security experts at the

White House.

 External airport/airline website

 Passenger wireless

Theft

 Sensitive data of employees and

contractors

 Credit card information

 Airline ticketing

 Concession POS

 Passengers’ wireless devices

In 2003, the Commerce

City Bank in Kansas City,

MO was the first to

uncover an international

scam when they

discovered that their

customer accounts were

Potential targets

being sacked for

$10,000 to $20,000 a Terrorism

day from cash machines

in Italy, as a result of a  Security systems – access control, CCTV,

phishing attack aimed perimeter intrusion

specifically at the

customers’ debit card  Credentialing

numbers and PINs.

 eEnabled aircraft systems

 Document management systems (CAD,

blueprints)

 Radar systems

 Ground radar





Destruction of airport data can cost

billions of dollars to replace, if it is

even possible

In 2004, the source code

for the unreleased first-

person shooter Half-Life

2, perhaps the most

anticipated game of all

time, had been stolen

from the computers of

 Smart phones aren’t so smart when it

Valve Software in

Bellevue, WA.

comes to malware

Based on the sales of the  Adoption rate is so quick, security

original game, Valve

valued the software at a can’t keep up

quarter billion dollars.

 Privacy and data security concerns in

new hardware and software

 Rapid roll out of new technologies too

quick for current security standards

 Breaches occurring with greater

regularity

 Cyber attacks due to always-on-and-

synchronized, comingling of personal

and business data

In the late 1990s, thieves

began buying swiped

credit card data called

“dumps” across the U.S.

from waiters, drive-thru

attendants, gas station

managers, retail workers

 Recently, 300 businesses reported

for typically $10 a swipe.

A “dump” contained two

losing 86,000 laptops, causing $2.1

lines of text on a credit

card’s three-inch-long

billion in damages

 Theft comes from hotel rooms and

magstripe. Much of it

was sent to Eastern



employees’ homes

Europe and sold over the

Internet ten, twenty, a

hundred, or even

thousands at a time. A  You can’t fight mobile device issues

dump was worth $20 for

a standard card, $50 for with technological safeguards alone –

a gold card, $80 to $100

for a high-limit you will need strong organizational

corporate card.

standards and policies

In July 2005, a record-

breaking 45.6 million

dumps were stolen from

the TJX-owned retail

chains T.J. Maxx,

Marshalls, and

HomeGoods.

In 2004, when stolen

magnetic stripe data

became a massive

cybercrime underground

commodity, losses to

counterfeit cards

followed the same

 Active/Registered users of Social

stratospheric climb.

networking services:

In the first quarter of  500 million on Facebook

2006, counterfeiting

cards topped at $125  175 million on Twitter

million in quarterly

losses to Visa’s member  100 million on MySpace

banks alone.

 80 million on LinkedIn

 Attacks and Unintended Information

Disclosure

 Download of Malware



 Professional and Personal Implications



 Endangering yourself and others

In 2000, cyberattacks by

a group from Russia or

Ukraine, breached

victim’s networks, stole

credit card numbers

then sent an email to the  Pre-production compromise (built-in back doors)

company demanding

payment to keep quiet  Substitution of parts (Trojans in software)

about the intrusion and

to fix the security holes  Code attacks (viruses)

the hackers exploited.

 Network attacks (worms)

The gang hit Sterling  System specific attacks (OS vulnerability)

Microsystems in

Anaheim, CA, E-Money  Authentication bypass (theft of credentials,

in New York, and even

Western Union, which

spoofing)

had lost nearly 16,000  Shutdown of support systems (power, AC, flight

customer credit card

numbers in an attack controls etc.)

that came with a

$50,000 extortion  Disgruntled employee (malicious or paid)

threat. When music-

seller CD Universe did

 Content exploitation (information made public,

not give in to a identity of crew/passengers, aircraft incidents or

$100,000 ransom

demand, thousands of

failures)

customers’ credit card  Inventory scan: Preliminary findings = 613 Control

numbers showed up in a

public website. Systems (211 ranked)

In 2009, a specialized

Trojan horse software

emerged, designed to

steal a target’s online

banking passwords and

initiate money transfers Headline: Fourteen airports in the US, Canada and Asia, are

from the victim’s

using open or poorly secured wireless networks

account right through

his own computer.



The thieves recruited  77 percent appeared to be airport networks

ordinary consumers as

unwitting money

launderers through  80 percent were unsecured or using legacy WEP (wired

bogus work-at-home equivalent privacy) encryption

opportunities. “Work”

consisted of accepting

money transfers and

 10 percent of the laptops detected were infected with a

payroll deposits, then

sending the bulk of the viral (ad-hoc) Wi-Fi Network, making the users vulnerable

cash to Eastern Europe to data leakage and identity theft

by Western Union. The

scheme’s first year of

widespread operation,  Only three percent of all mobile users were using virtual

banks and their

customers lost an private networks (VPNs)

estimated $120 million

to the attack, with small

businesses as the most  Airports reviewed: Ottawa, Canada; San Jose, San Francisco,

common target. Chicago, and other US cities; Seoul, Malaysia and Singapore

In 2006, a California

identity thief stole at

least $200,000 by e-

filing bogus tax returns

through H&R Block, then

collecting the refunds  The review concluded that if hackers can bring down the

himself.

power grid in several cities, “how easy it would be for them

The victims’ Social to create havoc with an unsecured baggage system.”

Security numbers were

mined from online

databases, including  “Imagine the ripple effect at a large hub airport if

California’s Death Index someone could work their way into the baggage transition

of recently departed

Golden State residents. system and reroute luggage all over the world. It could

bring the system to a grinding halt with both economic

and security consequences.”



 The findings concluded that retailers, airlines and

providers of critical systems at airports are still not taking

a long hard look at cyber security or understanding the

additional risks that wireless introduces.

In October 2003, T-

Mobile failed to patch a

critical security hole in a

commercial server

application.

U.S. Customs and Border Protection officials chose to hold off

Its customer database installing Microsoft's critical security patch on US-VISIT

was accessed and the workstations until they could test to ensure the update

files of Hollywood stars wouldn't interfere with the tangle of peripherals attached to

were raided, circulating the computers. The Zotob virus changed their minds.

grainy candid photos of

Paris Hilton, Demi

Moore, Ashton Kutcher,  The$400 million US-VISIT program aims at securing the

and Nicole Richie, stolen border from terrorists by gathering biometric information

from their SideKick from visiting foreign nationals and comparing it against

PDAs. government watch lists.

The SideKick of a Secret

Service agent was also

 US-VISIT consists of older mainframe databases, fronted by

hacked. Windows 2000 workstations at nearly 300 airports,

seaports and border crossings



 On Aug. 9, Microsoft announced a vulnerability in the

software's plug-and-play feature that allowed attackers to

take complete control of a computer over a network. It took

only four days for a virus writer to launch an internet worm,

called Zotob, that spread through the security hole.



 An Aug. 18, 2005 computer failure led to long lines at

international airports in Los Angeles, New York, San

Francisco, and elsewhere, while U.S. Customs and Border

Protection (CBP) officials processed foreign visitors by hand

Google search is used by

millions of people every

day. Now, it is also used

with increasing

frequency by hackers

seeking sensitive data  Two CBP reports show that the virulent Zotob worm

like Social Security infiltrated CBP PCs the day of the outage, prompting a

numbers.

hurried effort to patch hundreds of Windows-based US-

A recent data breach at VISIT workstations installed at 300 airports, seaports and

Yale University marks the land border crossings around the country

latest example of a

security flaw exposed by

"Google hacking.“ For 10

months, names and  CBP officials postponed pushing the fix to CBP's Windows

Social Security numbers 2000 computers because of the array of peripherals

belonging to 43,000 hanging off of the US-VISIT workstations -- fingerprint

people affiliated with

Yale were visible through readers, digital cameras and passport scanners – fearing

Google search. that the patch itself might cause a disruption.

Yale officials said - the

breach occurred because  White House cyber security adviser Howard Schmidt says

they were unaware that

Google had changed its

the incident is typical of a large agency struggling with

search engine last fall to complex networks and evolving threats. "We've got

find and index such catching up to do in all areas, particularly areas having to

servers.

do with national security and public safety," says Schmidt.

"I hope you and I, 10 years from now, look back and say,

'Wow, I'm glad we survived that.'"

Criminals recruit

“cashers” to use

counterfeit credit cards.

The low-limit classic

cards were for small

purchases, $500 or so. Fake Boarding Passes Land Student in Heap of Trouble

The high-limit gold or

platinum cards were  24-year-old Indiana University student creates a web site

used for purchases from that enables anyone to make a fake boarding pass

$1,000 to $10,000.

 Home raided and all computers confiscated

“Cashers” are typically

attractive college-aged

 FBI and the TSA conducting an investigation

women who could walk  Boarding pass would not have allowed unauthorized

into Nordstrom and

access to an aircraft

snatch up a couple of

$500 Coach bags  Student claims that he created the website to expose a

without raising loophole in national security

eyebrows, then cross to

the other side of the mall Trams Derailed with Modified TV Remote

and do the same thing at

Bloomingdale’s.  14-year-old boy derails four Polish light rail trains (trams)

 Tool used: Converted television IR remote

The purchased items

were then sold on eBay.  Vulnerability: Locks disabling track changes when vehicle

are present not installed

In September 2005, a

deadly new Internet

Explorer bug emerged.

The security hole was a

monster. There was no

patch, making every  Malware in the new baggage system located in a

Internet Explorer user

vulnerable. private network

The hacker’s target list:  A Botnet in the Airport Coordination Center and in

CitiMortgage, GMAC,

Experian’s the Airport Security private network did call backs

Lowermybills.com, Bank to the Attackers’ Command & Control (C&C) Server

of America, Western

Union Money-Gram,

Lending Tree, and

 Successfully prevented 6,408 separate hacking

Capital One Financial, attempts into a new file transfer server two days

one of the largest credit

card issuers in the

after its deployment

country. The hacker

fired up a spamming  Blocked 58,884 Internet misuse and abuse within

software that opened a two days

back door, which

allowed him to slip in

and scour the victims’  Blocked 2.9 million hacking attempts into the

hard drives for sensitive Internet infrastructure within two days

data, and steal

passwords.

“I love the Internet… It’s

a place where we can

entertain ourselves; we

can get information; we

can watch videos… we

can buy things.

Four components are vulnerable and

eBay is a great place, you

can bid on things. If you each require a different approach to

think about it, you can

buy it on eBay. But… security

 The Network

there’s a side of the

Internet that we don’t

like to think about.

 The Device

There’s kind of a dark

underbelly to the

Internet, one where not

 The Application



 The Back-End System

trinkets or bobbles are

bought, sold, and

traded. There’s a part of

the Internet where

people’s lives are

bought, sold, and

traded…”



-Federal prosecutor’s

opening statement at the first

federal trial of the carding

underground.

In 2004, nearly half

America’s banks, S&Ls,

and credit unions were

not verifying the CVV on

ATM and debit

transactions, which was  Get configuration management under control

why America’s inboxes

were flooded with  Patches and updates need to be handled as soon as possible,

phishing emails especially those which address a security hole

targeting debit card  Once a machine’s settings are finalized, a baseline of those

numbers and PIN codes settings need to be recorded

for “cashable” banks.

 Eliminate unused programs – close unused ports

Citibank, the nation’s

largest consumer bank

 Install anti-virus software and keep it updated

by holdings, was the  Launch a "social engineering awareness" campaign

most high-profile victim.

 Social media is your IT systems worst nightmare

In May 2005, a Gartner  Password policies

analyst organized a

 Cyber security training

survey of 5,000 online

consumers and,  Instant messaging files

extrapolating the results,

estimated that it had

 Test your own systems

cost U.S. financial  Internet-facing web sites

institutions $2.75 billion  Penetration testing

in one year.

 External audits from DHS and others

In the 1997 Carlos

Salgado Jr. case – the

first large-scale online

credit card heist – the

government persuaded

the sentencing judge to

permanently seal the

 Make better use of white lists and black lists

court transcripts for fear  Control the zombies

the targeted company

would suffer “loss of  Lock down the servers

business due to the

perception by others that  Use egress filtering

computer systems may

be vulnerable.”  Thin clients are your friend

Consequently, the  Improve pattern recognition for network

80,000 victims were

never notified that their traffic

names, addresses, and

credit card numbers had  Create a cyber security team in your

been offered for sale on

Internet Relay Chat (IRC),

organization

a website devoted to  Insist your IT staff acquire the CISSP or some

hackers, counterfeiters

and others seeking to other IT security related certification

illegally exploit

consumers.

In 2007, the majority of

compromised cards were

stolen from brick-and-

mortar retailers and

restaurants.



The large retail

intrusions were

compromising millions

of cards at a time, but

breaches at smaller

merchants were far more

common – Visa’s

analysis found 83

percent of credit card

breaches were at

merchants processing

one million Visa

transactions or less

annually, with the

majority of thefts taking

place at restaurants.

Sony recently revealed

intruders staged a

massive attempt to

access user accounts on

its PlayStation Network

and other online

entertainment services in

 Give cyber-security an international focus

the second major attack through conferences, meetings, etc.

on its flagship gaming

site this year.  Create a permanent cyber-security sub-

The announcement committee which embraces airports and

follows an embarrassing airline concerns

data breach in April,

which compromised  Create an airport cyber-security advisory on

personal data from more

than 100 million online zero-day vulnerabilities and other security

gaming and

entertainment accounts

threats

and forced PlayStation

Network to be shut for a

 Initiate dialogue at all levels of airport

month. management – not just IT

Sony was subsequently

criticized for lax security

and acting too slowly to

inform customers as it

grappled with one of the

largest-ever security

thefts.

“If you spend more

on coffee than on IT

security, you will be

hacked. What's more,

you deserve to be

hacked. “



-- former White House

Cyber security Advisor,

Richard Clarke









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