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Cyber Kill Chain

Intro

This is an important concept and I want to provide you with a quick overview of what are kill chains, what is threat modelling, why we do these things, and why we need them. This understanding is crucial in creating a stable and strong security posture.

One other thing to note is that all these frameworks are generally made to complement other frameworks. For example, the UKC – Unified Kill Chain – is made to be a complement to MITRE.

Cyber Kill Chain – what is it?

This term is a military term/concept that relates to an attack, in particular its structure. Lockheed Martin (security and aerospace company) is the one that established the Cyber Kill Chain in 2011, based on the aforementioned military concept. The idea of the framework is to define the steps adversaries are taking when attacking your organization. In theory, to be successful, the adversary would pass all the phases within the Kill Chain.

Our goal here is to understand what the Kill Chain means from an attacker’s perspective, so that we can put up our defences in place and either pre-emptively mitigate that, or disrupt their attacks.

Why do we need to understand the (Cyber) Kill Chain?

Understanding of the Cyber Kill Chain can help you protect against myriad of attacks, like ransomware, for example. It can also help you understand in what ways do APTs operate. Through this understanding, as a SOC Analyst, or Incident Responder, you can potentially understand the attacker’s goals and objectives by comparing it to the Kill Chain. It can also be used to find those gaps and remediate on missing controls.

The attack phases within the Cyber Kill Chain are:

  • Reconnaissance
  • Weaponization
  • Delivery
  • Exploitation
  • Installation
  • Command & Control
  • Actions on Objectives (Exfiltration)

Reconnaissance

As we all know, this means searching for and collecting the information about system(s). In this phase, our adversaries are doing their planning. This is also where OSINT comes in, and is usually the first step an adversary will take, before going further down the chain. They will try and collect any possible piece of info on our organization, employees, emails, phones, you name it.

This can be done, for example, through email harvesting – process of collecting email addresses from online (public, paid, or free) services. These can further be used for a phishing campaign, or anything else.

Within the recon step, they also might collect the socials of the org’s employees, especially if some employee in particular might seem of interest or is a bit more of an easier target. All this information goes into the mix and is nothing new. First step – Recon.

Weaponization

After the initial recon phase, our adversary goes on to create their weapons! Usually, this entails some sort of malware/exploit combination bundled into a payload of sorts. Some adversaries will straight up buy the malware on the Darkweb marketplaces, but some more sophisticated attackers, as well as the APTs, will usually write their own malware. This is advantageous as it might actually evade your detection systems.

They can go on about this in numerous ways, but some examples might include them creating a malicious MS Office document with bad macros or VBA scripts, they could also use Command & Control techniques so that your affected machine calls to the Command server for more of those malicious payloads. (Yikes!) Or, they could add a backdoor, some other type of malware, or anything really.

Delivery

This step entails the attacker choosing a way to deliver the payload/malware to their victim. There are many options here, but in general, the most used one is good old phishing email.

With a phishing email that’s sent after the successfully completed reconnaissance phase, the attacker can target a specific person (spearphishing), or a group of employees at your organization. Within the email would be the embedded payload.

Other ways to distribute the payload may include the attackers planting infected USBs in public places, like parking lots, the streets, etc. Or, they could use a so-called watering hole attack which basically aims at a specific group of people by sending them to an attacker controlled website, by redirecting them to that site off a site they generally use but is now compromised by the attacker.

The attacker exploits the website, and then somehow tries to get the unsuspecting users to browse to the site where the victim basically downloads the malware/payload unintentionally.

Exploitation

Before finally getting access to our systems, the attackers need to carry out an actual exploit. Suppose the previous steps worked and the user downloaded or somehow ran the malicious payload, the attacker is ready for the next steps… or whatever’s in between! They can try to move laterally, get to your server, escalate privileges, anything goes.

This step boils down to

  • Victim opening the malicious file, thus triggering the exploitation
  • The adversary exploits our systems through a server, or some other way
  • They use a 0 day exploit

Whatever the vector, it comes down to them exploiting our systems and gaining access.

Installation

This step comes after the exploitation and it usually pertains to the adversary trying to keep a connection of sorts to our system. This can be achieved in many ways, for example, they might try to install the backdoor on the compromised machine, or they could modify our services, they could also install a web shell on the webserver, or anything else that helps them achieve persistence. This is key for the Installation phase.

The persistent backdoor is what will let the attacker interact and access our systems that were already compromised.

In this phase, they also might try to cover their tracks from your blue team by trying to make the malware look as if it was a legitimate app/program.

Command & Control

The Command & Control, also known as C2, C2 beaconing, or C&C is the penultimate part, and this is where the adversary uses the previously installed malware on the victim’s device to control the device remotely. This is usually built into the malware itself, and it has some sort of logic through which it calls back home to its Control server.

As the infected device calls back to the C2 server, the adversary now has full control over the compromised device. Remotely!

The most used C2 channels these days are:

  • HTTP protocol 80, HTTPS port 443 – HTTPS is interesting as it can help hide within the encrypted stream and it can potentially help the malicious traffic evade firewalls
  • DNS – the infected host will make constant DNS queries calling to its C2 server

An interesting fact – In the past, adversaries used IRC to send C2 traffic (beaconing), but nowadays it’s became obsolete as this type of bad traffic is much more easily detectable by the modern/current security solutions.

Actions on Objectives (Exfiltration)

This is your exfiltration (or exfil) step, where the adversary tries to gather all the goodies they just stole, so, user credentials, messing with the backups and/or shadow copies, corrupt/delete/overwrite/exfiltrate data. They can also escalate to domain admin, for the keys to the kingdom, or move laterally through the organization. They could also try to find vulnerabilities of your software internally, and much more.

This step depends on their specific goals/objectives, and is where all the action will happen, thus actions on objectives.

Conclusion

I hope I’ve managed to give a brief overview of this incredibly important concept. I will cover it a bit more in the future, but for now, I felt like this was a good (traditional) start. I do hope to cover the Unified Kill Chain soon, though. So – stay tuned!

Ps: you’ll notice there are a couple of other frameworks/variations aside from the Cyber Kill Chain, and I will try to explain the distinctions. Just remember these are models/methodologies and there’s no silver bullet. They should be used in conjunction with other security controls.

Image source – https://www.lockheedmartin.com/en-us/capabilities/cyber/cyber-kill-chain.html

Cover image by Linus Sandvide

#kill-chain #cyber #C2 #threat-modelling

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About VRX
VRX is a consolidated vulnerability management platform that protects assets in real time. Its rich, integrated features efficiently pinpoint and remediate the largest risks to your cyber infrastructure. Resolve the most pressing threats with efficient automation features and precise contextual analysis.

Zero Trust Guidance Rewrites US Cyber Strategy

“Our adversaries our in our networks, exfiltrating our data, and exploiting the Department’s users.”

So reads the humbling introduction to zero trust guidance recently released by the Department of Defense (DoD). It acknowledges in the very first line that cybersecurity has failed on almost every front. Then it makes a complete commitment to zero trust as the solution.

Many were waiting on this guidance and wondering what, exactly, it would entail. It comes following an order from the Biden administration 18 months ago to strengthen America’s cybersecurity in a big way. Many changes and long-overdue improvements have come out of that order. But by far the most significant is a commitment on the part of all federal agencies to adopt a complete zero-trust posture by 2027.

We now have a road map for how the government plans to get there. I will cover that shortly. Before that, let me highlight a few reasons I think the latest guidance (and the strategy that prompted it) are worth paying attention to.

First, that strategy will form the backbone of U.S. cybersecurity, which in turn will play a critical role – or may even be the cornerstone – of continued national security. Cyber attacks will be the most accessible, most common, and most devastating kinds of attacks in the future, so how countries defend themselves against this massive risk really matters. I have been writing about national cyber defenses from a few lenses recently. What makes the US approach unique, from my perspective, is the insistence on not just applying a cyber strategy consistently across all agencies but focusing it so specifically on zero trust. Some will call it practical, even mandatory, to make zero trust the guiding principle of cybersecurity in a decentralized world. Others, however, might view it as putting too many eggs in one basket. Time will tell.

Which brings me to my second observation, which is that the US government is embarking on the biggest experiment in zero trust ever undertaken. Keep in mind that the phrase “zero trust” has barely existed for more than a decade, and few large-scale, trust-free environments are actually up and running. Despite widespread zero trust adoption across the private sector, the government is by far the biggest trailblazer on this front, and the road ahead will be illustrative for all. What will it take to eliminate trust from the whole of the federal government? And once 2027 arrives, how secure will the government really be? This test case could cement zero trust as the centerpiece of cybersecurity moving forward – or it could reveal zero trust to be just the latest flawed fad. I suspect the answer will land somewhere in the middle. But unpredictability is the dominant feature of cybersecurity, so who knows what will happen? It will be important no matter what.

The Next Five Years in Zero Trust

A 2027 deadline to standardize zero trust across all federal agencies creates a lot of work to finish in a short five years. To its credit, the DoD seems to be fully aware of that fact because the roadmap is systematic and comprehensive to an extreme degree. Since there are so many different agencies with so many levels of cyber maturity – along with existing zero trust deployments – the guidance aims (and largely succeeds) at being accessible and universal. Which is a bonus for the private sector because companies can then easily adopt the government’s zero trust strategy as their own.

The roadmap has four distinct goals:

  • Zero Trust Cultural Adoption – Everyone in the DoD understands and commits to zero trust principles (trust nothing, verify everything, encrypt automatically, segment risks etc).

  • DoD Information Systems Secured & Defended – All new and legacy systems follow the DoD zero trust framework and put prescribed capabilities in place. Further guidance on this is forthcoming.

  • Technology Acceleration – The DoD and its vendors get faster at scaling, innovating, or replacing new technologies as new threats and new tools emerge in the coming years.

  • Zero Trust Enablement – The zero trust framework has the resources and support it needs to remain a robust and consistent effort.


Each of the goals has multiple objectives considered imperative for achieving the desired outcome. Overall, the DoD identifies 45 capabilities and 152 total activities required for framework compliance. I would encourage anyone to peruse the framework – it’s heavy on jargon but also a valuable visualization of how the disparate components of zero trust fit together to form a cohesive security strategy. It’s not just MFA and encryption (though the framework calls for both of those things). Perhaps more important to realize, it’s not just about security or IT either – it’s a whole new way for information to move.


As such, what the DoD has set out to do (and the timeline they have committed to) is fairly remarkable. Whether it will succeed is debatable. Whether it’s interesting, important, and impactful for everyone in America isn’t. It will be a fascinating five years.




About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About VRX
VRX is a consolidated vulnerability management platform that protects assets in real time. Its rich, integrated features efficiently pinpoint and remediate the largest risks to your cyber infrastructure. Resolve the most pressing threats with efficient automation features and precise contextual analysis.

Why do you need both IDS and IPS, or maybe the NGFW too?

I would like to straighten the defense of the web application by talking about Intrusion Detection and Prevention Systems (IDS and IPS) as the third member of this security trio defense: WAF, RASP, and IDPS. In the previous articles, I talked about security defense technology Runtime Application Self-Protection (RASP) and Web Application Firewall (WAF).

What are IDS and IPS?

 

Intrusion Detection Systems and Intrusion Prevention Systems are used to detect intrusions and, if the intrusion is detected, to protect from it.

First, I will focus on explaining the differences between the WAF, RASP, and IDPS.

 

What is the difference between WAF, RASP, and IDPS?

 

I have already explained in previous articles the difference between WAF and RASP. Still, I will introduce IDPS and show you exactly why a combination of this trio is the best security choice.

Summary: IDPS is used to detect intrusions and protect from them. WAF will detect and block attacks based on rules, patterns, algorithms, etc. RASP detects the application runtime behavior using algorithms.

 

Why is it best to use both IDS and IPS?

 

To better understand why it is important to use both systems, we need to know what each of them does and doesn’t do and how combining them gives more effective protection. Each of those systems has its own types, which will be explained below.

 

Location and Range

 

These two types of security systems operate in different locations and have different ranges.

Facts:

·   IDS works across the enterprise network in real-time by monitoring and analyzing network traffic.

·   IPS works in the same network location as a firewall by intercepting network traffic.

·   IPS can use IDS to expand the range of monitoring.

By knowing this and using both IDPS, you can cover more range.

 

Host-based IDS and IPS

 

There are a few types of IDS and IPS. I will mention them so you can know which one targets what, but there is plenty of online documentation for more information.

 

Host-based IDS (HIDS) is used for protecting individual devices. It is deployed at the endpoint level. It checks network traffic in and out of a device, and it can examine logs and running processes. HIDS protects only the host machine. It does not scan complete network data. Similar to this type, IPS has its own Host-based IPS (HIPS). HIPS is deployed on clients/servers, and it monitors the device level as well.

 

Network-based IDS and IPS

 

Network-based IDS (NIDS) works on monitoring the entire network. It looks out at every network device and analyzes all the traffic to and from those devices. On the other side, IPS has its own type, called Network-based IPS (NIPS), deployed within the network infrastructure. It monitors the complete network and, if needed, tries to protect it.

**NIDS and NIPS are very important to network forensics and incident response because they compare incoming traffic to malicious signatures and differentiate good traffic from suspicious traffic.

 

Wireless IPS

 

IPS also has Wireless IPS (WIPS) type that monitors radio waves (wireless LAN) for unauthorized access points, which you can use to automate wireless network scanning. Techtarget site provided ways of using WIPS in enterprise in this article. Check it out!

 

Protocol-based intrusion detection systems (PIDS) and Application protocol-based intrusion detection systems (APIDS)

 

Both protocol-based systems are the type of IDS. They both monitor traffic to and from devices. The only difference is that PIDS monitors one server and APIDS group of servers.

 

Network behavioral analysis (NBA)

 

Network behavioral analysis (NBA) is the type of IPS that looks for unexpected behavior within patterns of a network itself.

 

IDS and IPS modes

 

IDS is generally set to work in inline mode. As for IPS, it is set to work in the network behind the firewall. It can operate in both modes: as an end host or in inline mode.

 

Most used IDS/IPS tools in 2022

 

According to softwaretestinghelp.com, the list of most used IDS tools is this:

·   SolarWinds Security Event Manager

·   Bro

·   OSSEC

·   Snort

·   Suricata

·   Security Onion

·   Open WIPS-NG

·   Sagan

·   McAfee Network Security Platform

·   Palo Alto Networks

For more info regarding pricing, pros, cons and features of these tools checkout the softwaretestinghelp site.

Also, spiceworks.com provided the list of the most used IDPS tools:

·   AirMagnet Enterprise

·   Amazon Web Services (AWS) GuardDuty

·   Azure Firewall Premium IDPS

·   Blumira

·   Cisco Secure IPS (NGIPS)

·   Darktrace Enterprise Immune System

·   IBM Intrusion Detection and Prevention System (IDPS) Management

·   Meraki MX Advanced Security Edition

·   NSFocus Next-Generation Intrusion Prevention System

·   Snort

For more info regarding pricing, pros, cons and features of these tools check out the spiceworks site. This research will also help you choose the right IDPS solution based on these tools’ features.

 

What is Next-Generation Firewall (NGFW) or Unified Threat Management (UTM)?

 

There is a modern type of technology that combines IDS and IPS with firewalls called Next-Generation Firewall (NGFW) or Unified Threat Management (UTM).

NGFW includes:

·   Standard firewall features (packet filtering, stateful inspection, and VPN awareness)

·   Integrated Intrusion Prevention (IPS)

·   Application awareness of threats

·   Detect and block risky apps

·   Threat intelligence

·   Upgrading security features (such as future information feeds)

·   New techniques that help to address new security threats

Researchers for nomios site have gathered information and made a list of the top 5 vendors for NGFW in 2022. Also, they gave suggestions on what you should look for when choosing the right NGFW tool. Check it out!

 

Conclusion

 

You should combine IDS and IPS because of three things: response, protection, and impact. If you decide to use IDS, the testing will stop at the detection phase but using IPS based on settings and policy testing will also include the prevention. Because IPS reacts immediately, it gives a certain layer of protection aside from detecting malicious activity. However, there are false positives possible using IPS that will end up shutting your network.

Organizations often set up Integration Detection Systems to handle the logs and notifications/alerts, routers, firewalls, and servers to fight threats.

A better solution would be using a combination of IDPS and setting it up when planning security. In the future, when the organization grows and needs better protection, it will be possible to use IDS/IPS solutions for additional networks, servers, or devices.

Also, depending on the organization’s security needs and cost restrictions, NGFW can be a good choice too!

 

Cover photo by krakenimages

#IPS #IDS #IDPS #NGFW

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About VRX
VRX is a consolidated vulnerability management platform that protects assets in real time. Its rich, integrated features efficiently pinpoint and remediate the largest risks to your cyber infrastructure. Resolve the most pressing threats with efficient automation features and precise contextual analysis.

Security, Privacy, Anonymity feat. Portable Apps

Intro

I want to talk about why you need virtualization/compartmentalization, but through the prism of portable apps. The reason behind this is twofold: I want to outline the potential uses and security benefits that portable apps bring, as well as to talk more about how one would go on about reducing that attack surface, and their respective risk, through compartmentalization and virtualization. These are great methods, and I dare say, it pays at least knowing a bit more about them.

Portable Apps

Portable apps. We all know what these do (probably) but we may not be familiar with the how. This talk is freeform and example-based. Let’s get to it.

For example, you might use compartmentalization with encryption by separating your stuff by its importance, like having an encrypted volume for each of those potential uses, by using different encryption keys for those volumes. You could also use a NAS where each volume is encrypted using a different encryption key. The more secure ones could be accessed on a need-to basis, only decrypting when you need the access to that specific volume, while you would continue using day to day volumes for other data that needn’t be that secure.

This is a very decent way to reduce the attack surface of your data. From the previous articles, you know how important this is, and you also know that the encryption key is not in the memory if the volume doesn’t get mounted. Also, if its not mounted it cant really be attacked. So, by using this type of virtual isolation in conjunction with encryption you’re actually doing quite a bit for your own security/privacy.

You can also make use of the hidden encrypted volumes… one other option for virtual isolation are portable apps, something we’ve all gathered here about. You can download the tools from portableapp.com or pendrives.com doesn’t really matter which one you choose (I’m sure there are others too), what matters is the fact that portable apps are self-contained, don’t require installation, and are not writing themselves inside your system. They are contained within the folder, and you could even copy/paste them to a desired destination and have another instance of the same app, that’s also self-contained, isolated, and more secure. You can even do this for the versions of the said app.

There are many great implications for your privacy/anonymity/security that stems from the portable apps. For example, let’s say you’re using a regular web-browser… all the data related to the browser’s history is contained within your portable app (which is all within its folder) which makes for a great way to quickly even eliminate that if needed, and also, maybe more importantly, not spewing and writing all that forensically important data all over your OS. Simple, and quite secure.

What is nice about this approach is the fact you can gauge it to your liking, having the more ‘paranoid’ setups, and also the more lax ones, all in accordance with your own security needs.

Furthermore, should you just use this portable setup, you can also place that folder with your self-contained app on a more secure device, like for example an encrypted USB drive; and, there you have it, a much more secure setup, that you can also take with you and plug into another device, without having to lose any sleep over it.

Taking all this further, you can even add that hidden partition to your USB drive.

This is even better, as you well know, because the encrypted partition can’t be accessed at all before being decrypted. This little setup including a hidden volume, a self-contained app (stealthy too!) is already ahead of the curve – maybe even when compared to companies, but, the kicker for me here is that you can have 2, 3, or as many as instances of that specific application as you’d like, that are all self-contained, just by doing some copying and pasting. This is vital, because it basically enables you to create different security domains, profiles, aliases, anything you might need really, and it’s all nicely isolated/contained. The options here are many!

For our example with the browser, I’d like to add this also works for profiles so you can set up your browser’s profiles in any way you’d like, and still retain the ability to pop your USB into any machine and basically have your hardened browser available to you. This also works nicely in conjunction with the regular browser – if we’re talking private use – as you can have one that’s for your everyday stuff, and the other that’s ready to go but is living in a hidden place, securely configured, hardened, available for you to do some private browsing, should that matter. This is a great thing, because it might even keep you forensically ‘clean’ should you end up being scrutinized, since you’re not actually doing anything that’s of importance to anyone, right?

Another thing I want to mention that you can do all of this through the cloud-offered services, by storing your ready to go app in a cloud of your choice.This is a great way to have your app available anywhere, on any device, remotely… This would give you an extra layer of physical isolation. Since the app itself would not exist locally in this case, you could, potentially, escape the sphere of influence of your adversary, and that’s nothing to scoff at.

Lastly, you could also try some sandbox solutions, which are generally good from the security perspective, but are not that great for your privacy and anonymity. This is because of the infrastructure you’re using, but you’re not the owner of. However, you would again be able to enjoy both virtual and physical isolation which reduces your potential risk greatly.

As you can see, there are some caveats with all these options, but all of these should provide you with excellent protection against many types of attacks out there. With your going through other systems and isolating yourself in such a way, even if something were to get compromised, it still ends up contained within that instance you’ve set up, be it a VM, a VPC/server, anything. This is also a great way to browse the web.

When it comes to attacks, browser-based ones are definitely relevant, since we’re all using them. So, with that in mind, this whole story above might even seem much more important, I hope!

 

Conclusion

 

It would be great if this conclusion could permeate all of my articles so that I needn’t repeat myself, but the main point I want to emphasize here is the fact that when I’m talking about adversaries, geographic sphere of influence, and similar terms that are within the field, I am not trying to write guides for evading 3-letter agencies, nor am I trying to condone anything illegal.

Think of all that as necessary! Yes, necessary, because as we all know, the same tactics are used by real threat actors, but also by activists, whistle-blowers, journalists, etc. I want us to explore those options together, so we can all learn how to protect ourselves better, and smarter, while online. That’s why we all need to be in the know. The bottom-line remains the same, and that is all about the choice, rather, what you choose to do with all that knowledge and technology.

This is key for me and is the main reason behind the topics I’m choosing to write about.

I hope this article spurred some imagination! Till next time!

Stay tuned.

Cover image by hmm 001

#portable #apps

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About VRX
VRX is a consolidated vulnerability management platform that protects assets in real time. Its rich, integrated features efficiently pinpoint and remediate the largest risks to your cyber infrastructure. Resolve the most pressing threats with efficient automation features and precise contextual analysis.

Online Casino Heist Shreds Confidence in Cybersecurity

Nature abhors a vacuum, and so do cybercriminals. Whenever a new corner of the digital economy emerges, hackers are swift to infiltrate and exploit it to the fullest extent possible. It’s a law of digital life by now. To see it validated once again, just look at what happened to DraftKings last week.

Users of the popular sport-betting app found themselves locked out of their accounts. Upon getting back in, some found that funds had been drained away, totaling $300,000 across all those affected.

This is hardly the biggest hack of late, nor is it the first time that an online sportsbook has been a target. It won’t be the last time, either. In fact, FanDuel, a competing sportsbook, has also reported increased malicious activity though no confirmed attacks. More likely this is an early instance of what will be a long, sustained wave of attacks on online gambling.

Why? For the simple reason that huge (and fast-growing) sums of money slosh around in online gambling accounts – sports books recorded $3 billion in revenue through the first half of 2022, shattering previous records. Highly lucrative, these accounts are also highly vulnerable because people have yet to appreciate the risks of these accounts and take even basic cybersecurity measures. Hackers saw a vacuum waiting to be filled, and it just happened to have a pile of gold sitting inside.

Attacks like the one on DraftKings should surprise no one. Regardless, that particular attack has lessons – for both gamblers and casinos – that could keep this problem from getting much worse.

Online Gambling – Doubling Down on Risk

Criminals go where the money is located. So it’s predictable that casinos, race tracks, and betting parlors have been frequent targets for criminal activity since their inception. Not only do these locations have piles of cash on hand, but it also moves around faster and more freely than it does somewhere like a bank. Also unlike financial institutions, security standards and regulatory requirements are less strict around gambling (especially at underground operations). For all these reasons, anywhere that gamblers congregate looks like a prime candidate for theft.

Online operations are no different; they are a low-risk, high-value target. Except in the case of companies like DraftKings, both those factors are taken to the extreme. Gambling in online spaces lets more people and money collect in one place than any building could ever accommodate. The potential payout of a successful attack is much larger. At the same time, the number of ways to steal online gambling proceeds far exceeds the ways to steal real money. One takes an off-the-shelf cyber attack – the other takes Ocean’s Eleven.

The DraftKings attack is unfortunately a perfect example of the unique cyber risks accompanying online gambling. The perpetrators managed to access people’s accounts using credential stuffing: they used known user names and password combinations – either purchased from the dark web or stolen during a separate attack – to see which ones granted access to DraftKings accounts. Once inside, it was simple to change the bank account information and drain the funds. This means some online gamblers are using the same username/password they use for Amazon or Netflix. Most gamblers are protective of their stakes. That same caution has migrated online yet, and neither have the robust cybersecurity standards we are used to with other kinds of online transactions – DraftKings does not require MFA, for example, which would have prevented this attack.

Some of these problems will be resolved as online gambling matures. But during that same period, cyber attacks will mature as well, and hackers won’t quickly retreat from such a lucrative target. As the money flowing into sites like DraftKings keeps skyrocketing, expect the scale and audacity of attacks to do the same.

Seeing the Bigger Problem

The problems facing online gambling are similar to those facing another industry: crypto. Attacks on crypto exchanges and wallets have repeatedly made headlines, led to billions in losses, and shown all indications of getting worse. The reason why, like online gambling, is lots of money collected in one place – or flying around anonymously – without strong (or even basic) security protections in place.

This strikes me as indicative of a larger problem affecting most aspects of our expanding digital lives, which is a failure to realistically anticipate risks and plan for cyber attacks. With the DraftKings hack and so many of the crypto examples, the level of caution and preparation – on the part of both users and developers – was severely out of step with the risk. To put it differently, we wandered obliviously into the jaws of a tiger. Worst of all, we already knew the tiger was there.

I don’t blame users for recycling their passwords or even blame DraftKings for making MFA optional. The real culprit is a culture that’s still lax on cybersecurity and content to fix problems after the fact. Anyone could have predicted that online gambling accounts or wallets full of digital currency would attract an immediate and aggressive onslaught from hackers. But could anyone explain why security around those targets started off (and still remains) so over-matched?

The answer is complicated, no doubt. And I don’t claim to have the whole thing. What I do know is that if hackers are waltzing into obviously sensitive accounts and making off with huge sums, cybersecurity has some serious ground to make up.

#cybersecurity #DraftKings #gambling #credentialstuffing #crypto

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About VRX
VRX is a consolidated vulnerability management platform that protects assets in real time. Its rich, integrated features efficiently pinpoint and remediate the largest risks to your cyber infrastructure. Resolve the most pressing threats with efficient automation features and precise contextual analysis.

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