View On-Demand Webinar: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=&eventid=1139921&sessionid=1&key=993ECF370F9F3C594E6E3F44A0FA6BA2&regTag=13522&sourcepage=register 2015 was peppered with mega-breaches of highly sensitive data like personal health information and private bedroom behaviors. and companies of all sizes need to pay attention to security basics to stop the infiltration of attackers and protect their data. Cybercriminals’ targets are now bigger and their rewards greater as they fine-tune efforts to obtain and leverage higher value data than years’ past. New attack techniques like mobile overlay malware are gaining, while “classic” attacks like DDoS and POS malware continue to be effective due to lackluster practice in security fundamentals. Malware leaps across target countries are indicative of increasing sophistication and organization in cybercrime rings. In the 2016 edition of the IBM X-Force Threat Intelligence Report, IBM security research experts examine the macro trends that affected the industry, what to expect in 2016, and recommendations on how you can protect your digital assets.

1. © 2015 IBM Corporation
How Cybercrime is Breaking Down Barriers to your Data
Etay Maor
Sr. Fraud Prevention
Strategist
March 2016
Borderless Breaches and
Migrating Malware
Limor Kessem
Cybersecurity
Evangelist

2. 2© 2015 IBM Corporation
is the foundation for
advanced security and
threat research across
the IBM Security
Framework.

3. 3© 2015 IBM Corporation
IBM X-Force® Research
Vulnerability
Protection
IP
Reputation
Anti-Spam
Malware
Analysis
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Control
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Filtering
The IBM X-Force Mission
 Monitor and evaluate the rapidly changing threat landscape
 Research new attack techniques and develop protection for tomorrow’s security challenges
 Educate our customers and the general public
 Integrate and distribute Threat Protection and Intelligence to make IBM solutions smarter
Expert analysis and data sharing on the global threat landscape
Zero-day
Research

4. 4© 2015 IBM Corporation
Key Trends from 2015
4

5. 5© 2015 IBM Corporation
Attacks are focusing on higher value data targets
2013
800,000,000+ records
breached, with no signs of
decreasing in the future
2014
1,000,000,000 records
breached, while CISOs cite increasing
risks from external threats
2015
Healthcare mega-breaches
set the trend for high value targets of
sensitive information
Source: IBM X-Force Threat Intelligence Report - 2016

6. 6© 2015 IBM Corporation
The number of security incidents involving the leak of healthcare
records doubled from the previous year
Banking /
Financial,
22%
Citizen
Registry,
34%
Creden-
tials, 35%
Health,
10%
2014
Banking /
Financial,
14%
Citizen
Registry,
32%Creden-
tials, 33%
Health,
20%
2015
Source: IBM X-Force Interactive Security Incidents, count by incident based on type of records breached

7. 7© 2015 IBM Corporation
Attacks on retail companies now include refined POS malware and
niche payment systems
Source: IBM X-Force Threat Intelligence Report - 2016

8. 8© 2015 IBM Corporation
Classic attacks like DDoS and malware continued to be successful
because of a lack of practiced security fundamentals
Source: IBM X-Force Threat Intelligence Report - 2016

9. 9© 2015 IBM Corporation
Breaches of durable PII bring attention to the complex intersection
between digital and physical identities
• 100M healthcare records were exposed in five mega-breaches
• Durable PII is harder to replace
Healthcare
PII
• Breaches at adult dating websites exposed sexual preferences and infidelities
• Opens opportunities for extortion and increased social engineering intelligence
• The breaches were linked to a number of suicides of affected victims
Sensitive
Personal
Data
• Increasing amounts of bandwidth, with the highest reported attack >600Gbps.
• The attack can affect not only the targeted domain, but also other sites and
services managed by the ISP.
DDoS
• The success of ransomware laid the groundwork for other types of cyber-
extortion.
• Bitcoin ransom demands range from a few hundred to tens of thousands of US
dollars.
Cyber-
Extortion

10. 10© 2015 IBM Corporation
Source: IBM X-Force Threat Intelligence Report - 2016

11. 11© 2015 IBM Corporation
Our predictions on cybercrime for 2015 not only came true, but also
exceeded expectations
 Cybercriminals breaking borders
 Card-not-present (CNP) fraud rise and attacks on EMV
 Escalation of sophistication of mobile threats, including exploit packs and
device takeover
 Widespread use of anonymity networks and stronger encryption
 Burgeoning fraud methods for new payment schemes
 Biometrics as a target

12. 12© 2015 IBM Corporation
Cybercrime is no longer the domain of amateurs, but rather
organized gangs
Source: IBM X-Force Threat Intelligence Report - 2016

13. 13© 2015 IBM Corporation
Malware is migrating across borders…
Malware leaps across target countries are
indicative of increasing sophistication and
organization in crime rings because they
require more than simple changes to
configuration files.
Source: IBM X-Force Threat Intelligence Report - 2016

14. 14© 2015 IBM Corporation
… indicating growing sophistication needed to organize these new
geographic targets
Develop or buy social engineering emails for the target geography
Rent or pay for localized spam spreading
Study local banks’ authentication requirements
Develop web-injections to correspond with the transaction flow,
language, and look & feel for each target
Have local criminals and money mules ready to use

15. 15© 2015 IBM Corporation
Malware scaled up by shifting some targets to businesses rather
than consumers
New malware modules, like “pn32”
in Dyre, can harvest user credentials
for enterprise email servers.
BEC fraud initiates credible-looking
email to company accountant to
make large wire transfers.
Extortion and ransom demands are
targeted at company’s or client data.

16. 16© 2015 IBM Corporation
New malware techniques include overlay malware on the mobile
operating system
Mobile overlay malware offers a one-stop shop for blackhats
– Works with bank apps and other applications that use HTML/JS injections
– Enable credential collection

17. 17© 2015 IBM Corporation
Cybercrime predictions for 2016
• CNP will grow and increase in sophistication
• Skimming will die out, give way to ATM “shimmers”
• Novel EMV attacks will emerge, such as automated EMV replay attacks
Card Fraud
• Apps run in a compromised OS, creating uncontrollable security gaps
• New Windows 10 app platform enables one app to run on every Windows
device, including phones, tablets, laptops, and Xbox gaming platform
Mobile Malware
• Biometric repositories hacked
• Biometric ID used in fraud and sold or traded by cybercriminals
Biometrics

18. 18© 2015 IBM Corporation
Many of the incidents we’ve seen could be avoided with a focus on
security basics
Instrument your environment with effective detection.
Keep up with threat intelligence.
Maintain a current and accurate asset inventory.
Maintain identity governance to audit and enforce access rules & permissions.
Have a patching solution that covers your entire infrastructure.
Implement mitigating controls.
Create and practice a broad incident response plan.

19. 19© 2015 IBM Corporation
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