Black Arrow Cyber Threat Briefing 13 January 2023

Welcome to this week’s Black Arrow Cyber Threat Briefing – a weekly digest, collated and curated by our cyber experts to provide senior and middle management with an easy to digest round up of the most notable threats, vulnerabilities, and cyber related news from the last week.

Top Cyber Stories of the Last Week

  • Quarter of UK SMBs Hit by Ransomware in 2022

Over one in four (26%) British SMBs have been targeted by ransomware over the past year, with half (47%) of those compromised paying their extorters, according to new data from anti-virus provider Avast. The security vendor polled 1000 IT decision makers from UK SMBs back in October, to better understand the risk landscape over the previous 12 months.

More than two-thirds (68%) of respondents said they are more concerned about being attacked since the start of the war in Ukraine, fuelling concerns that have led to half (50%) investing in cyber-insurance. They’re wise to do so, considering that 41% of those hit by ransomware lost data, while 34% lost access to devices, according to Avast.

Given that SMBs comprise over 99% of private sector businesses in the country, it’s reassuring that cyber is now being viewed as a major business risk. Nearly half (48%) ranked it as one of the biggest threats they currently face, versus 66% who cited financial risk stemming from surging operational cost. More respondents cited cyber as a top threat than did physical security (35%) and supply chain disruption (33%).

Avast argued that SMBs are among the groups most vulnerable to cyber-threats as they often have very limited budget and resources, and many don’t have somebody on staff managing security holistically. As a result, not only are SMB’s lacking in their defence, but they’re also slower and less able to react to incidents.

https://www.infosecurity-magazine.com/news/quarter-of-uk-smbs-hit-ransomware/

  • Global Cyber Attack Volume Surges 38% in 2022

The number of cyber attacks recorded last year was nearly two-fifths (38%) greater than the total volume observed in 2021, according to Check Point.

The security vendor claimed the increase was largely due to a surge in attacks on healthcare organisations, which saw the largest year-on-year (YoY) increase (74%), and the activities of smaller, more agile hacking groups.

Overall, attacks reached an all-time high in Q4 with an average of 1168 weekly attacks per organisation. The average weekly figures for the year were highest for education sector organisations (2314), government and military (1661) and healthcare (1463).

Threat actors appear to have capitalised on gaps in security created by the shift to remote working. The ransomware ecosystem is continuing to evolve and grow with smaller, more agile criminal groups that form to evade law enforcement. Hackers are also now increasingly widening their aim to target business collaboration tools such as Slack, Teams, OneDrive and Google Drive with phishing exploits. These make for a rich source of sensitive data given that most organisations’ employees continue to work remotely.

It is predicted that AI tools like ChatGPT would help to fuel a continued surge in attacks in 2023 by making it quicker and easier for bad actors to generate malicious code and emails.

Recorded cyber-attacks on US organisations grew 57% YoY in 2022, while the figure was even higher in the UK (77%). This chimes with data from UK ISP Beaming, which found that 2022 was the busiest year on record for attacks. It recorded 687,489 attempts to breach UK businesses in 2022 – the equivalent of one attack every 46 seconds.

https://www.infosecurity-magazine.com/news/global-cyberattack-volume-surges/

  • 1 in 3 Organisations Do Not Provide Any Cyber Security Training to Remote Workers Despite the Majority of Employees Having Access to Critical Data

New research from cyber security provider Hornetsecurity has found that 33% of companies are not providing any cyber security awareness training to users who work remotely.

The study also revealed nearly three-quarters (74%) of remote staff have access to critical data, which is creating more risk for companies in the new hybrid working world.

Despite the current lack of training and employees feeling ill-equipped, almost half (44%) of respondents said their organisation plans to increase the percentage of employees that work remotely. The popularity of hybrid work, and the associated risks, means that companies must prioritise training and education to make remote working safe.

Traditional methods of controlling and securing company data aren't as effective when employees are working in remote locations and greater responsibility falls on the individual. Companies must acknowledge the unique risks associated with remote work and activate relevant security management systems, as well as empower employees to deal with a certain level of risk.

The independent survey, which quizzed 925 IT professionals from a range of business types and sizes globally, highlighted the security management challenges and employee cyber security risk when working remotely. The research revealed two core problems causing risk: employees having access to critical data, and not enough training being provided on how to manage cyber security or how to reduce the risk of a cyber-attack or breach.

https://www.darkreading.com/vulnerabilities-threats/1-in-3-organizations-do-not-provide-any-cybersecurity-training-to-remote-workers-despite-a-majority-of-employees-having-access-to-critical-data

  • AI-Generated Phishing Attacks Are Becoming More Convincing

It's time for you and your colleagues to become more sceptical about what you read.

That's a takeaway from a series of experiments undertaken using GPT-3 AI text-generating interfaces to create malicious messages designed to spear-phish, scam, harass, and spread fake news.

Experts at WithSecure have described their investigations into just how easy it is to automate the creation of credible yet malicious content at incredible speed. Amongst the use cases explored by the research were the use of GPT-3 models to create:

  • Phishing content – emails or messages designed to trick a user into opening a malicious attachment or visiting a malicious link

  • Social opposition – social media messages designed to troll and harass individuals or to cause brand damage

  • Social validation – social media messages designed to advertise or sell, or to legitimise a scam

  • Fake news – research into how well GPT-3 can generate convincing fake news articles of events that weren’t part of its training set

All of these could, of course, be useful to cyber criminals hell-bent on scamming the unwary or spreading unrest.

https://www.tripwire.com/state-of-security/ai-generated-phishing-attacks-are-becoming-more-convincing

  • Customer and Employee Data the Top Prize for Hackers

The theft of customer and employee data accounts for almost half (45%) of all stolen data between July 2021 and June 2022, according to a new report from cyber security solution provider Imperva.

The data is part of a 12-month analysis by Imperva Threat Research on the trends and threats related to data security in its report “More Lessons Learned from Analysing 100 Data Breaches”.

Their analysis found that theft of credit card information and password details dropped by 64% compared to 2021. The decline in stolen credit card and password data pointing to the uptake of basic security tactics like multi-factor authentication (MFA). However, in the long term, PII data is the most valuable data to cyber-criminals. With enough stolen PII, they can engage in full-on identity theft which is hugely profitable and very difficult to prevent. Credit cards and passwords can be changed the second there is a breach, but when PII is stolen, it can be years before it is weaponised by hackers.

The research also revealed the root causes of data breaches, with social engineering (17%) and unsecured databases (15%) two of the biggest culprits. Misconfigured applications were only responsible for 2% of data breaches, but Imperva said that businesses should expect this figure to rise in the near future, particularly with cloud-managed infrastructure where configuring for security requires significant expertise.

It’s really concerning that a third (32%) of data breaches are down to unsecured databases and social engineering attacks, since they’re both straightforward to mitigate. A publicly open database dramatically increases the risk of a breach and, all too often, they are left like this not out of a failure of security practices but rather the total absence of any security posture at all.

https://www.infosecurity-magazine.com/news/customer-employee-data-hackers/

  • Royal Mail hit by Ransomware Attack, Causes ‘Severe Disruption’ to Services

Royal Mail experienced “severe service disruption” to its international export services following a ransomware attack, the company has announced. A statement said it was temporarily unable to despatch export items including letters and parcels to overseas destinations.

Royal Mail said: “We have asked customers temporarily to stop submitting any export items into the network while we work hard to resolve the issue” and advising that “Some customers may experience delay or disruption to items already shipped for export.”

The attack was later attributed to LockBit, a prolific ransomware gang with close ties to Russia. Both the NCSC and the NCA were involved in responding to the incident.

https://www.independent.co.uk/business/royal-mail-cyber-attack-exports-b2260308.html

  • The Guardian Confirms Personal Information Compromised in Ransomware Attack

British news organisation The Guardian has confirmed that personal information was compromised in a ransomware attack in December 2022.

The company fell victim to the attack just days before Christmas, when it instructed staff to work from home, announcing network disruptions that mostly impacted the print newspaper.

Right from the start, the Guardian said it suspected ransomware to have been involved in the incident, and this week the company confirmed that this was indeed the case. In an email to staff on Wednesday, The Guardian Media Group’s chief executive and the Guardian’s editor-in-chief said that the sophisticated cyber attack was likely the result of phishing.

They also announced that the personal information of UK staff members was compromised in the attack, but said that reader data and the information of US and Australia staff was not impacted. “We have seen no evidence that any data has been exposed online thus far and we continue to monitor this very closely,” the Guardian representatives said. While the attack forced the Guardian staff to work from home, online publishing has been unaffected, and production of daily newspapers has continued as well.

“We believe this was a criminal ransomware attack, and not the specific targeting of the Guardian as a media organisation,” the Guardian said.

The company continues to work on recovery and estimates that critical systems would be restored in the next two weeks. Staff, however, will continue to work from home until at least early February. “These attacks have become more frequent and sophisticated in the past three years, against organisations of all sizes, and kinds, in all countries,” the Guardian said.

https://www.securityweek.com/guardian-confirms-personal-information-compromised-ransomware-attack

  • Ransomware Gang Releases Info Stolen from 14 UK Schools, Including Passport Scans

Another month, another release of personal information stolen from a school system. This time, it's a group of 14 schools in the United Kingdom.

Once again, the perpetrator appears to be Vice Society, which is well known for targeting educational systems in the US. As the Cybersecurity and Infrastructure Security Agency (CISA) pointed out in a bulletin from Sept. 6, "K-12 institutions may be seen as particularly lucrative targets due to the amount of sensitive student data accessible through school systems or their managed service providers."

The UK hack may have turned up even more confidential information than the Los Angeles school system breach last year. As the BBC reported on Jan. 6, "One folder marked 'passports' contains passport scans for pupils and parents on school trips going back to 2011, whereas another marked 'contract' contains contractual offers made to staff alongside teaching documents on muscle contractions."

Some prominent school cyber attacks in the US include public school districts in Chicago, Baltimore, and Los Angeles. A new study from digital learning platform Clever claims that one in four schools experienced a cyber-incident over the past year, and according to a new report from security software vendor Emsisoft, at least 45 school districts and 44 higher learning institutions suffered ransomware attacks in 2022.

Schools are an attractive target as they are typically data-rich and resource-poor. Without proper resources in terms of dedicated staffing and the necessary tools and training to protect against cyber-attacks, schools can be a soft target. Many of the 14 schools hit by this latest leak are colleges and universities, but primary and secondary schools were also hit, according to the BBC's list.

https://www.darkreading.com/attacks-breaches/vice-society-releases-info-stolen-uk-schools-passport-scans

  • The Dark Web’s Criminal Minds See Internet of Things as Next Big Hacking Prize

Cyber security experts say 2022 may have marked an inflection point due to the rapid proliferation of IoT (Internet of Things) devices.

Criminal groups buy and sell services, and one hot idea — a business model for a crime — can take off quickly when they realise that it works to do damage or to get people to pay. Attacks are evolving from those that shut down computers or stole data, to include those that could more directly wreak havoc on everyday life. IoT devices can be the entry points for attacks on parts of countries’ critical infrastructure, like electrical grids or pipelines, or they can be the specific targets of criminals, as in the case of cars or medical devices that contain software.

For the past decade, manufacturers, software companies and consumers have been rushing to the promise of Internet of Things devices. Now there are an estimated 17 billion in the world, from printers to garage door openers, each one packed with software (some of it open-source software) that can be easily hacked.

What many experts are anticipating is the day enterprising criminals or hackers affiliated with a nation-state figure out an easy-to-replicate scheme using IoT devices at scale. A group of criminals, perhaps connected to a foreign government, could figure out how to take control of many things at once – like cars, or medical devices. There have already been large-scale attacks using IoT, in the form of IoT botnets. In that case, actors leveraging unpatched vulnerabilities in IoT devices used control of those devices to carry out denial of service attacks against many targets. Those vulnerabilities are found regularly in ubiquitous products that are rarely updated.

In other words, the possibility already exists. It’s only a question of when a criminal or a nation decides to act in a way that targets the physical world at a large scale. There are a handful of companies, new regulatory approaches, a growing focus on cars as a particularly important area, and a new movement within the software engineering world to do a better job of incorporating cyber security from the beginning.

https://www.cnbc.com/2023/01/09/the-dark-webs-criminal-minds-see-iot-as-the-next-big-hacking-prize.html

  • Corrupted File to Blame for Computer Glitch which Grounded Every US Flight

A corrupted file has been blamed for a glitch on the Federal Aviation Administration's computer system which saw every flight grounded across the US.

All outbound flights were grounded until around 9am Eastern Time (2pm GMT) on Wednesday as the FAA worked to restore its Notice to Air Missions (NOTAM) system, which alerts pilots of potential hazards along a flight route.

On Wednesday 4,948 flights within, into or out of the US had been delayed, according to flight tracker FlightAware.com, while 868 had been cancelled. Most delays were concentrated along the East Coast. Normal air traffic operations resumed gradually across the US following the outage to the NOTAM system that provides safety information to flight crews.

A corrupted file affected both the primary and the backup systems, a senior government official told NBC News on Wednesday night, adding that officials continue to investigate. Whilst Government officials said there was no evidence of a cyber attack, it shows the real world impacts that an outage or corrupted file can cause.

https://news.sky.com/story/all-flights-across-us-grounded-due-to-faa-computer-system-glitch-us-media-12784252


Threats

Ransomware, Extortion and Destructive Attacks

Phishing & Email Based Attacks

Malware

Mobile

Denial of Service/DoS/DDOS

Internet of Things – IoT

Data Breaches/Leaks

Organised Crime & Criminal Actors

Cryptocurrency/Cryptomining/Cryptojacking/NFTs/Blockchain

Fraud, Scams & Financial Crime

Insurance

Dark Web

Software Supply Chain

Cloud/SaaS

Attack Surface Management

Identity and Access Management

Encryption

Passwords, Credential Stuffing & Brute Force Attacks

Social Media

Training, Education and Awareness

Regulations, Fines and Legislation

Governance, Risk and Compliance

Careers, Working in Cyber and Information Security

Law Enforcement Action and Take Downs

Privacy, Surveillance and Mass Monitoring

Artificial Intelligence

Spyware, Cyber Espionage & Cyber Warfare, including Russian Invasion of Ukraine


Nation State Actors

Nation State Actors – Russia

Nation State Actors – China

Nation State Actors – Iran

Nation State Actors – Misc


Vulnerability Management

Applications Five Years or Older Likely to have Security Flaws - Infosecurity Magazine (infosecurity-magazine.com)

Patch Where it Hurts: Effective Vulnerability Management in 2023 (thehackernews.com)

70% of apps contain at least one security flaw after 5 years in production - Help Net Security

Rackspace Ransomware Incident Highlights Risks of Relying on Mitigation Alone (darkreading.com)

Does a hybrid model for vulnerability management make sense? • Graham Cluley

Vulnerabilities




Sector Specific

Industry specific threat intelligence reports are available.

Contact us to receive tailored reports specific to the industry/sector and geographies you operate in.

·       Automotive

·       Construction

·       Critical National Infrastructure (CNI)

·       Defence & Space

·       Education & Academia

·       Energy & Utilities

·       Estate Agencies

·       Financial Services

·       FinTech

·       Food & Agriculture

·       Gaming & Gambling

·       Government & Public Sector (including Law Enforcement)

·       Health/Medical/Pharma

·       Hotels & Hospitality

·       Insurance

·       Legal

·       Manufacturing

·       Maritime

·       Oil, Gas & Mining

·       OT, ICS, IIoT, SCADA & Cyber-Physical Systems

·       Retail & eCommerce

·       Small and Medium Sized Businesses (SMBs)

·       Startups

·       Telecoms

·       Third Sector & Charities

·       Transport & Aviation

·       Web3


As usual, contact us to help assess where your risks lie and to ensure you are doing all you can do to keep you and your business secure.

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Links to articles are for interest and awareness and linking to or reposting external content does not endorse any service or product, likewise we are not responsible for the security of external links.

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What We Expect to See in 2023

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Black Arrow Cyber Advisory 11/01/2023 – Microsoft, Adobe and Zoom release security updates