Beware: a new scam using key elements of phishing and shame hacking

Cybercriminals are using yet another new twist on the old email phishing attack: they email people claiming to have infected porn sites with malware that allowed them to take over the recipient’s webcam and record them sitting at their computer watching porn and if they don’t pay up, the video is going public. I discuss this new method of attack in the video above.

For people who know they have never watched porn on their computers, this probably isn’t too effective. For everyone else, this threat of public shaming can be a powerful motivation to comply with the extortion demand.

This is another example of what I have often described as shame hacking, the use, or threatened use, of purportedly hacked data for embarrassing or extorting people by threatening to expose such compromising data if they do not comply with the demands made of them.

Shame hacking is one more way that cyber criminals have learned to monetize the fruits of their criminal actions and represents an increasing trend for how hacked information can and will be used for many ways. I have blogged about other cases where hackers have relied on shame hacking for profit.

Dallas / Fort Worth CBS News station in Dallas / Fort Worth did a story about this latest attack and invited Shawn Tuma on to explain more about it. See story here

Why do you need a cyber attorney? Shawn Tuma explains in Ethical Boardroom

spring2018In my latest article in Ethical Boardroom article, I explain some of the not-so-obvious reasons why you need an experienced cyber attorney on your team: Why you need a cyber attorney (Spring 2018)

Here are other Ethical Boardroom (@EthicalBoard) articles that I have written or contributed to that are also available for free:

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Shawn Tuma (@shawnetuma) is a business lawyer with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Partner at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

Cyber Risk Management and Attorney-Client Privilege in Cybersecurity Discussed on Business Security Weekly

Business Security Weekly, Episode 81, featured Michael Santarcangelo (@catalyst) inviting Shawn Tuma to join as co-host and guest to discuss two topics that should be near and dear to everyone’s hearts:

  1. The legal case for why companies need cyber risk management programs and what experienced cybersecurity attorneys’ roles are in such programs; and
  2. The frequently cited but often misunderstood role of attorney-client privilege in cybersecurity.

Here are the show notes and here is the video:

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

Data is the hot potato!

During a presentation yesterday, I was trying to make a point about the liability that comes with data and, therefore, the need for us to never forget that in cybersecurity our ultimate goal is protecting systems and data. I used the little line at the end of this quote:

Data equals risk. It is toxic because of the potential liability that goes with it. Data is the hot potato.

Despite how corny it sounds, I had several people approach me later to tell me how much “data is the hot potato” stuck with them (and, it could be because I had them join me in chanting it!). So, why not share it with you? Now join me in chanting,

Data is the hot potato!

Data is the hot potato!

Data is the hot potato!

Data is the hot potato!

Data is the hot potato!

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

Can your company do business without its computer system? Let’s ask Atlanta!

Atlanta RansomwareIn the world of cybersecurity and data protection, we tend to think about most cyber incidents as being “data breaches” because that’s the term de jour that occupies news headlines. Because of this, far too many companies think that if they do not have valuable data that hackers would want to “breach,” so to speak, they do not need to be concerned about cybersecurity. While this is wrong on one level because all data has value to hackers, it is even more wrong on a much greater level.

There is a lot more to cybersecurity and data protection than just breaches of the confidentiality of data (i.e., “data breaches“). Hackers have shown a strong trend over the last couple of years of attacking the computer system itself and, as some call it, “bricking” company’s computers and/or data and demanding an extortion payment in exchange for their promise to honor their word and undo the damage (if they even can). This is the process underlying what is often called ransomware.

Do you see where I’m going with this? If not, let me see if I can simplify this process for you a bit with the question below: (1) If you still think your company does not have data that is valuable to hackers, and (2) You still think that means that your company does not need to focus on cybersecurity,

Can your company continue to do business if it is not able to use its computer system?

If you’ve seen the news today you see that the City of Atlanta has had many of its computer systems bricked by ransomware and those business operations that require the use of those systems are now shut down.

Now, let me ask you, “how many days can your company go without doing whatever it is that it does before it really begins to hurt?”

Still need more convincing? Ok, I addressed this issue in more detail in Chapter 5 of The #CyberAvengers Playbook (free to download) — go give it a read.

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

Do data breaches have consequences? Will Equifax CIO serve jail time for insider trading?

“Corporate insiders who learn inside information, including information about material cyber intrusions, cannot betray shareholders for their own financial benefit.” Richard R. Best, SEC – Atlanta Division

For years many in the cybersecurity/data breach space have been saying that somebody is going to have to go to jail before corporate decision-makers begin to take cybersecurity as seriously as they should. Many thought the Department of Justice’s focus on individual accountability through the “Yates Memo” may be the vehicle but that has not yet happened.

With the Equifax breach and revelations that three executives had sold stock in the company before the breach was announced publicly, we saw an outcry against what was believed to be insider trading and calls for the executives to face jail time:

Thirty-six U.S. senators on Tuesday called on federal authorities to investigate the sale of nearly $2 million in shares of credit bureau Equifax Inc by company executives after a massive data breach, and one compared their actions to insider trading.

The lawmakers signed a letter asking the U.S. Department of Justice, the Securities and Exchange Commission and the Federal Trade Commission to look into about $1.8 million in stock sales by three executives between July 29 – the day Equifax said it learned that its systems were hacked in mid-May – and when they made it public last week.

“If that happened, somebody needs to go to jail,” Senator Heidi Heitkamp, a Democrat on the Senate Banking Committee, said at a credit union industry conference in Washington. “It’s a problem when people can act with impunity with no consequences. How is that not insider trading?”

gate-191675_1920As it turned out, however, the sale of stock by those Equifax executives was found to have been properly approved and they did not know of the data breach at the time of the sale, so it was not the problem that many had suspected.

Criminal Charges Filed Against Former CIO of Equifax Unit

For one former Equifax executive, however, his actions were not quite so innocent and may now give rise to the closest chance yet of someone actually getting jail time as a consequence of a data breach:

If these allegations are true, this certainly sounds like insider trading. As stated by Richard R. Best, Regional Director of the Atlanta Regional Office of the SEC, “Corporate insiders who learn inside information, including information about material cyber intrusions, cannot betray shareholders for their own financial benefit.”

Best’s sentiments were echoed by David J. LeValley, Special Agent in Charge of FBI Atlanta: “By prosecuting cases like this, the FBI and the U.S. Securities and Exchange Commission are sending a strong message to company insiders that they must follow the same rules that govern regular investors. Otherwise, they face the severe consequences for failing to do so.”

Severe consequences can mean many things. What everyone is really wanting to know is whether Ying actually serve any jail time. If he does, this case will be a game-changer that moves the needle of data breach consequences significantly upward. We will not know the answer to that question until he is convicted (or enters a plea agreement) and sentenced. Some articles state that Ying is facing up to 25 years in jail on the charges. Neither the SEC nor DOJ press releases state how long of a sentence is being sought.

As far as real-life insider trading cases where people have actually been sentenced to jail go, a Wall Street Journal post from 2014 discussing the longest insider trading sentences has the top 5 longest sentences ranging from 12 years down to 7 years. Comparing the amount of money involved in those cases to the $117,000 in losses that Ying avoided makes this cases relatively small. I doubt we will see anything approaching those sentences.

If the question, however, is not how much jail time will Ying get but whether he will get any jail time, I think both the SEC and DOJ have been looking for the right poster child to make an example out of and Ying may have drawn the short straw. Let’s see …

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

House panel to DHS, FBI: help small biz with cybersecurity – start with good cyber hygiene

The following testimony excerpts are very similar to what the #CyberAvengers have been preaching, and for good reason, it is the truth. Checkout the #CyberAvengers Tools for where to begin.

Richard Driggers, DHS deputy assistant secretary for the cybersecurity and communications, said that basic computer hygiene, such as regular software updates, could keep small businesses safer.

“It doesn’t take sophistication to exploit a vulnerability in a small business. And I think all small businesses need to assume that they have some type of vulnerability that exists within their networks or devices that they’re using,” Driggers said. “A lot of small businesses don’t have the resources to really put in place very sophisticated cyber defense mechanisms. But they do have the resources to do the low-cost things … and that should be the focus.”

* * *

“The best thing small businesses can do is elevate the need for cybersecurity within their organizations. Hire capable, competent people to help protect data, create a culture within the organization that promotes security. It’s gotta be something you do every day; it can’t be after the fact,” Marshall said.

Full article: https://fcw.com/articles/2018/02/01/small-biz-cybersecurity-williams.aspx?m=1

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

Happy Data Privacy Day!

WHAT ARE YOU DOING TO OBSERVE IT?

Data Privacy DayToday is Data Privacy Day! If you have been wondering “what is Data Privacy Day?” then this is your lucky day because not only is today Data Privacy Day, but here is the answer and an explanation for why it really matters to you and your company’s future success.

What is Data Privacy Day?

Data Privacy Day is observed every year on January 28 and is led by the National Cyber Security Alliance (NCSA), a nonprofit, public-private partnership dedicated cybersecurity education and awareness. According to the NCSA,

DATA PRIVACY DAY IS AN INTERNATIONAL EFFORT TO EMPOWER AND EDUCATE PEOPLE TO PROTECT THEIR PRIVACY AND CONTROL THEIR DIGITAL FOOTPRINT.

DATA PRIVACY DAY BEGAN IN THE UNITED STATES AND CANADA IN JANUARY 2008 AS AN EXTENSION OF THE DATA PROTECTION DAY CELEBRATION IN EUROPE. DATA PROTECTION DAY COMMEMORATES THE JANUARY 28, 1981, SIGNING OF CONVENTION 108, THE FIRST LEGALLY BINDING INTERNATIONAL TREATY DEALING WITH PRIVACY AND DATA PROTECTION. DATA PRIVACY DAY IS NOW A CELEBRATION FOR EVERYONE, OBSERVED ANNUALLY ON JANUARY 28.

DATA FLOWS FREELY IN TODAY’S ONLINE WORLD. EVERYONE – FROM HOME COMPUTER USERS TO MULTINATIONAL CORPORATIONS – NEEDS TO BE AWARE OF THE PERSONAL DATA OTHERS HAVE ENTRUSTED TO THEM AND REMAIN VIGILANT AND PROACTIVE ABOUT PROTECTING IT. BEING A GOOD ONLINE CITIZEN MEANS PRACTICING CONSCIENTIOUS DATA STEWARDSHIP. DATA PRIVACY DAY IS AN EFFORT TO EMPOWER AND EDUCATE PEOPLE TO PROTECT THEIR PRIVACY, CONTROL THEIR DIGITAL FOOTPRINT, AND MAKE THE PROTECTION OF PRIVACY AND DATA A GREAT PRIORITY IN THEIR LIVES.

14 Tips For Keeping Your Company’s Data Secure

In honor of Data Privacy Day, the International Association of Privacy Professionals (iapp) has posted an article with 14 tips you need to consider when evaluating how to keep your company’s data secure:

  1. Know Thy Data. Determine what data you collect and share. Classify it according to its level of criticality and sensitivity. What could be considered PII? Define whether data is “in use,” “in motion” or “at rest.” Know where the data is physically stored.
  2. Terms and Conditions May Apply. Make sure your privacy policy reflects current data practices (see Tip #1). This includes the use of third-party advertisers, analytics, and service providers. Periodically review and confirm these third parties comply with your written policies.
  3. You Don’t Know What You’ve Got Till It’s Gone. Conduct annual audits to review whether your data should be retained, aggregated or discarded. Data that’s no longer used needs to be securely decommissioned. Create a data retention policy dictating how long you keep information once it’s fulfilled its original purpose. And, of course, continually ask whether that purpose is still valid and relevant.
  4. Practice or You’ll Breach. Forged e-mail, malvertising, phishing, social engineering exploits and data snooping via unencrypted transmissions are on the rise. From simple controls to sophisticated gears, make sure you’ve implemented leading security “best practices.”
  5. AYO Technology! Data Loss Prevention (DLP) technologies identify vulnerabilities of potential exposures. These work in conjunction with existing security and antivirus tools. From early warnings of irregular data flows to unauthorized employee access, DLP solutions help minimize and remediate threats.
  6. BYOD Is Like a BYOB House Party. The lack of a coherent bring-your-own-device (BYOD) program can put an organization at risk. User devices can easily pass malware and viruses onto company platforms. Develop a formal mobile device management program that includes an inventory of all personal devices used in the workplace, an installation of remote wiping tools and procedures for employee loss notification.
  7. Insist on a List. To mitigate the grave impact on your organization, inventory key systems, access credentials and contacts. This includes bank accounts, registrars, cloud service providers, server hosting providers and payroll providers. Keep this list in a secure yet accessible location.
  8. Forensics – Don’t Do This at Home. The forensics investigation is essential in determining the source and magnitude of a breach. This is best left to the experts as it’s easy to accidentally modify or disrupt the chain of custody.
  9. Where the Logs At? Logs are fundamental components in forensics analysis, helping investigators understand what data was compromised. Types of logs include transaction, server access, firewall and client operating system. Examine all logs in advance to ensure correct configuration and time-zone synchronization. Routinely back them up; keep copies, and make sure they’re protected.
  10. Incident Response Team to the Rescue! Breaches are interdisciplinary events requiring coordinated strategies and responses. The team should represent every functional group within the organization, with an appointed executive who has defined responsibilities and authority. Establish “first responders” available 24/7 (hackers don’t work a 9 to 5 schedule).
  11. Get Friendly With the “Fuzz.” Reach out to law enforcement and regulators prior to an incident. Know who to contact so you won’t have to introduce yourself in the “heat of the battle.” When you have bad news to report, make sure they hear directly from you (a courtesy call goes a long way). Don’t inflame the situation by becoming defensive; focus on what you’re doing to help affected parties.
  12. Rules, Rules, Rules. Become intimately familiar with the international, domestic and local regulations that specifically relate to your organization. The failure to notify the appropriate governmental body can result in further inquiries and fines.
  13. What Did You Say? A well-executed communications plan not only minimizes harm and potential legal consequences, it also mitigates harm to a company’s reputation. Address critical audiences and review applicable laws before notifying. Tailor your message by geographic region and demographics. Knowing what to say is just as important as knowing what NOT to say.
  14. Help Me Help You. Customers want organizations to take responsibility and protect them from the potential consequences of a breach. The DIP should include easy-to-access remedies that offset the harm to affected parties.

Here is a link to the full post: How to Lose Your Data in 10 Days

The 14 tips are a great place to start when thinking about securing your company’s data. As shown by the recent data breaches that have hit Target, Neiman Marcus, Michaels, and Barnes & Noble, the question is no longer one of if your company will have a data breach, but when.

When Your Company is Breached, Your Preparation Will Be Vital to the Company Surviving the Crisis

A data breach is a crisis situation for any company–especially given the amount of attention data breaches are getting these days. From a very big picture perspective, there are two goals to strive for when a company responds to a data breach: (1) avoid, or at least mitigate, any legal and regulatory trouble; and, (2) more importantly, minimize the impact of the breach on the company’s overall business. (see related data breach discussions) The only way your company can achieve these goals is to be proactive by getting prepared before the inevitable occurs–the breach.

If your company is prepared, it is in a much better position to minimize the loss of data, be better able to respond to the breach, and demonstrate to the legal and regulatory authorities that it acted reasonably in protecting its data, which can be very helpful in minimizing the legal and regulatory repercussions, which is the first step. By being prepared and better able to address the first step, the company is then able to focus more of its efforts on polishing its response to be more palatable for its customers and better addressing their feelings and concerns. In other words, if the company is prepared, it is not panicking and scrambling just to get out a response–any response–but instead can take the time to analyze the situation through its customers’ eyes and provide a much better response that takes their feelings and concerns into consideration. This is the vital step because this is what helps preserve the company’s customer relationships.

The best way to be prepared for this is for your company to have a thorough and custom data breach incident response plan. The data breach incident response plan should be tailored to fit your company in many ways, including the following ways just to name a few:

  • the nature of your company’s culture, both internally and externally
  • the nature of your company’s customers
  • the nature of your company’s products or services
  • the nature of your company’s operations and management structure
  • the type, volume, and sensitivity of the data your company collects and retains
  • the security measures your company has in place
  • the resources your company has to devote to data security issues
  • the security standards of your company’s particular industry

Could you figure these things out on your own, with enough time and effort? Probably so — but would that really be efficient? More importantly, and I can not over-emphasize this point enough: You need an attorney to assist you with many of these things because, when done under the guidance of an attorney and if the proper formalities are observed, much of the process can be protected by the attorney-client privilege, but not if you don’t have an attorney assisting with the process.

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Shawn Tuma (@shawnetuma) is a business lawyer with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Partner at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

Helpful FTC Guidance on Cybersecurity for Small and Midsize Companies

FTCIt is important for all companies — especially small and midsize companies — to have a basic understanding of what the FTC considers to be reasonable cybersecurity. The FTC is known for being one of the more aggressive regulators that are investigating and enforcing (what it views as) inadequate cybersecurity by companies doing business in the United States. In the watershed case solidifying the FTC’s authority to regulate companies’ cybersecurity under the FTC Act, F.T.C. v. Wyndham Worldwide Corp.,  the U.S. Third Circuit Court of Appeals looked to resources published on the FTC’s website and found that Wyndham’s cybersecurity was very rudimentary and contravened recommendations in the FTC’s 2007 guidebook, Protecting Personal Information: A Guide for Businesses.

The FTC recently published a couple of helpful resources on its website and companies of all sizes would be well-served to spend some time reviewing the recommendations in these resources:

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

Allscripts EHR Ransomware Attack is Huge–How Will it Impact Healthcare Practices?

OCR LogoSee recommendations below

On January 19, 2018, cybercriminals were successful in a ransomware attack on Allscripts, an electronic healthcare record (EHR) provider for healthcare providers across the United States. The attack encrypted some of Allscripts systems and prevented those healthcare providers who use those systems for their EHRs from being able to access their patient records. Not only is there the obvious impact this has had on those healthcare providers’ ability to treat their patients, but also, under HIPAA, the Office of Civil Rights presumes that all cyber-related security incidents where protected health information was accessed, acquired, used, or disclosed are reportable breaches unless certain criteria are satisfied. (See checklist in this post and this post for further explanation).

TMLT LogoThe Texas Medical Liability Trust (TMLT)’s blog post, Allscripts EHRS Falls Victim to Ransomware Attacks, goes into much greater detail in describing the facts of this event and what has taken place since the initial attack. The blog also provides an excellent analysis of the Business Associates considerations in a situation such as this and the post features several important recommendations for what practices need to do now from my friend and excellent cybersecurity and data privacy attorney Adrian Senyszyn (LinkedIn) and myself. So, what are you waiting for, go read the TMLT post … and hope and pray that you planned ahead and have cyber insurance!

See Also:

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.