McAfee Annual Security Report: Three Major Global Challenges Emerged

First, cybercrime isn’t yet enough of a priority for governments around the world to allow the fight against it to make real headway worldwide. Added to that, the physical threat of terrorism and economic collapse is diverting political attention elsewhere.

In contrast, cybercriminals are sharpening their focus. Recession is fertile ground for criminal activity as fraudsters clamour to capitalize on rising use of the Internet and the climate of fear and anxiety. Are we in danger of irrevocably damaging consumer trust and, in effect, limiting the chances of economic recovery?

Second, cross border law enforcement remains a long-standing hurdle to fighting cybercrime. Local issues mean laws are difficult to enforce transnationally.

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Cisco: Worldwide cyber security threats set to rise as economy slows down

Cisco report warns of more sophisticated, targeted internet attacks, says spam accounts for nearly 200 billion messages each day, approximately 90 per cent of worldwide e-mail.

Cisco has warned that internet-based attacks are becoming increasingly sophisticated and specialised as profit-driven criminals continue to hone their approach to stealing data from businesses, employees and consumers. In the 2008 edition of the Cisco Annual Security Report, the company identifies the year’s top security threats and offers recommendations for protecting networks against attacks that are propagating more rapidly, becoming increasingly difficult to detect, and exploiting technological and human vulnerabilities.

“Every year we see threats evolve as criminals discover new ways to exploit people, networks and the internet. This year’s trends underscore how important it is to look at all basic elements of security policies and technologies,” said Patrick Peterson, Cisco fellow and chief security researcher.

According to the report:

• The overall number of disclosed vulnerabilities grew by 11.5 per cent over 2007;
• Vulnerabilities in virtualisation technology nearly tripled from 35 to 103 year over year;
• Attacks are becoming increasingly blended, cross-vector and targeted;
• Cisco researchers saw a 90 per cent rise in threats originating from legitimate domains, nearly double what was seen in 2007;
• The volume of malware successfully propagated via e-mail attachments is declining. Over the past two years (2007-2008), the number of attachment-based attacks decreased by 50 per cent from the previous two years (2005-2006).
• According to Cisco, spam accounts for nearly 200 billion messages each day, approximately 90 per cent of worldwide e-mail. The US is the biggest source at 17.2 per cent. Other countries who contribute spam include Turkey (9.2 per cent), Russia (eight per cent), Canada (4.7 per cent), Brazil (4.1 per cent), India (3.5 per cent), Poland (3.4 per cent), South Korea (3.3 per cent), Germany and the UK (2.9 per cent each).

• Phishing. While targeted spear-phishing represents about one per cent of all phishing attacks, it is expected to become more prevalent as criminals personalise spam and make messages appear more credible.
• Botnets. Botnets have become a nexus of criminal activity on the internet. This year, numerous legitimate Web sites were infected with IFrames, malicious code injected by botnets that redirect visitors to malware-downloading sites.
• Social engineering. The use of social engineering to entice victims to open a file or click links continues to grow. Cisco expects that in 2009, social engineering techniques will increase in number, vectors and sophistication.
• Reputation hijacking. More online criminals are using real e-mail accounts with large, legitimate Web mail providers to send spam. Reputation hijacking offers increased deliverability because it makes spam harder to detect and block. Cisco estimates that in 2008 spam resulting from e-mail reputation hijacking of the top three Web mail providers accounted for less than 1 per cent of all spam worldwide but constituted 7.6 per cent of the providers’ mail traffic.

Findings for the report came in part from Cisco Security Intelligence Operations, an aggregation of tightly integrated data and security services derived from multiple Cisco divisions and devices to continuously assess and correlate Internet threats and vulnerabilities. In 2009, researchers from Cisco security teams say they will be watching the following trends closely:

• Insider threats. Negligent or disgruntled employees can threaten corporate security. The global economic downturn may prompt more security incidents involving employees, making it crucial for IT, HR, and other lines of business to collaborate on mitigating threats;
• Data loss. Whether through carelessness, breaches by hackers, or from insiders, data loss is a growing problem that can lead to grave financial consequences. Technology, education and clear, well-enforced data security policies can make compliance easier and reduce incidents;
• Mobility, remote working, and new tools as risk factors. The trend toward remote working and the related use of Web-based tools, mobile devices, virtualisation, ‘cloud computing’ and similar technologies to enhance productivity will continue in 2009. It will be a challenge for security personnel. The edge of the network is expanding rapidly, and the increasing number of devices and applications in use can make the expanding network more susceptible to new threats.

Symantec Annual Underground Economic Report 2008

Symantec Annual Underground Economic report reveals booming underground economy

SYMANTEC Corporation recently released its Report on the Underground Economy. The report details an online underground economy that has matured into an efficient, global marketplace in which stolen goods and fraud-related services are regularly bought and sold, and where the estimated value of goods offered by individual traders is measured in millions of dollars. The report is derived from data gathered by Symantec’s Security Technology and Response (STAR) organisation, from underground economy servers between July 1, 2007 and June 30, 2008.

The potential value of total advertised goods observed by Symantec was more than $276 million for the reporting period. This value was determined using the advertised prices of the goods and services and measured how much advertisers would make if they liquidated their inventory.

Credit card information is the most advertised category of goods and services on the underground economy, accounting for 31 percent of the total. While stolen credit card numbers sell for as little as $0.10 to $25 per card, the average advertised stolen credit card limit observed by Symantec was more than $4,000. Symantec has calculated that the potential worth of all credit cards advertised during the reporting period was $5.3 billion.

The popularity of credit card information is likely due to the many ways this information can be obtained and used for fraud; credit cards are easy to use for online shopping and it’s often difficult for merchants or credit providers to identify and address fraudulent transactions before fraudsters complete these transactions and receive their goods. Also, credit card information is often sold to fraudsters in bulk, with discounts or free numbers provided with larger purchases.

The second most common category of goods and services advertised was financial accounts at 20 percent of the total. While stolen bank account information sells for between $10 and $1,000, the average advertised stolen bank account balance is nearly $40,000. Calculating the average advertised balance of a bank account together with the average price for stolen bank account numbers, the worth of the bank accounts advertised during this reporting period was $1.7 billion. The popularity of financial account information is likely due to its potential for high payouts and the speed at which payouts can be made. In one case, financial accounts were cashed out online to untraceable locations in less than 15 minutes.

During the reporting period, Symantec observed 69,130 distinct active advertisers and 44,321,095 total messages posted to underground forums. The potential value of the total advertised goods for the top 10 most active advertisers was $16.3 million for credit cards and $2 million for bank accounts. Furthermore, the potential worth of the goods advertised by the single most active advertiser identified by Symantec during the study period was $6.4 million.

The underground economy is geographically diverse and generates revenue for cybercriminals who range from loose collections of individuals to organised and sophisticated groups. During this reporting period, North America hosted the largest number of such servers, with 45 percent of the total; Europe/Middle East/Africa hosted 38 percent; followed by Asia/Pacific with 12 percent and Latin America with 5 percent. The geographical locations of underground economy servers are constantly changing to evade detection.

Symantec is a global leader in providing security, storage and systems management solutions to help consumers and organizations secure and manage their information-driven world. Our software and services protect against more risks at more points, more completely and efficiently, enabling confidence wherever information is used or stored.