Cyber Threats Mike Cote Chairman and CEO The

How many hits does a search for the term 'Hacker' in Google reply with? 183, 000

2600 – The Hacker Quarterly Conferences - • Black Hat • Welcome to DEFCON®, the Largest Underground Hacking Convention in. . . Information about the largest annual hacker convention in the US, including past speeches, video, archives, and updates on the next upcoming show as well as. . . www. defcon. org/ - The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 3

Hackers - First Generation – Lone Wolf Kevin Mitnick January 21, 1995 Compromised, DEC, IBM, HP, Motorola, Pac. Bell, NEC, …. Chen Ing-Hau, 24, Taiwan Arrested September 15, 2000 CIH (Chernobyl) Virus Jeffrey Lee Parson, 18, USA Arrested August 29, 2003 Blaster Worm ('B' variants only), DDo. S Sven Jaschan, 18, Germany Arrested May 7, 2004 Net. Sky (Sasser) Worm The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 4

Cyber Criminals - “Proof of Concept” for making $ Farid Essebar, 18, Morocco Arrested August 25, 2005 Mytob and Zotob (Bozori) Worms Atilla Ekici, 21, Turkey Arrested August 25, 2005 Operating Mytob and Zotob botnets Jeanson James Ancheta, 24, USA Arrested November 3, 2005 Rxbot zombie networks for hire (spam and DDo. S) The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 5

Cyber Gangs – Online Extortion • DDo. S attacks bookmakers in October 2003 • Extortion ($3 million gross) • Nine arrested on July 20 and 21, 2004 • In October 2006, three were sent to prison • The two gang leaders and masterminds are still at large • On the Wanted List of the Federal Security Service (FSB) of the Russian Federation Maria Zarubina and Timur Arutchev The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 6

Cyber Crime Goes Big Time • London branch of Japan's Sumitomo Mitsui Bank • Worked with insiders through Aharon Abu-Hamra, a 35 -year-old Tel Aviv resident • Injected a Trojan to gather credentials to a transfer system • Attempted to transfer £ 220 million into accounts he controlled around the world • £ 13. 9 million to his own business account Yaron Bolondi, 32, Israel Arrested March 16, 2005 The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 7

Albert Gonzalez – Segvec, Soupnazi, J 4 guar • Indicted on Aug 17, 2009 • Stole 130, 000 credit card numbers • Worked out of Miami – his one flaw • Worked as an international organized cybercrime group – 3 in the Ukraine • Including Maksik who earned of $11 m between 2004 -2006 – 2 in China – 1 from Belarus – 1 from Estonia – 1 from unknown location that goes by “Delperiao” The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 8 Page 8

Identity Theft Market Rates Item US-Based Credit Card (with CVV) Full identity (ssn, dob, bank account, credit card, …) Online banking account with $9, 900 balance Price $1 - $6 $14 - $18 $300 Compromised computer Phishing Web site hosting – per site Verified Paypal account with balance Skype Account World of Warcraft Account $6 - $20 $3 - $5 $50 - $500 $12 $10 The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 9

Cyber Crime Trends $1, 200, 000 Lone Ranger Friends Criminal Gangs Criminal Organizations $1, 000 $12, 000 $10, 000 $800, 000 $8, 000 $600, 000 $6, 000 $400, 000 $4, 000 $200, 000 Criminal Gains Victim Loss $0 Before 2000 - 2003 - 2005 $2, 000 $0 2005 to Present The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 10

Number of attacks monitored by Secure. Works The Information Security Experts Copyright © 2009

C 2 C: Malware/Phishing Kit – “Arms Suppliers” • Criminal to Criminal – C 2 C • Selling malware for "research only“ • Manuals, translation • Support / User forums • Language-specific • Bargains on mutation engines and packers • Referrals to hosting companies • Generally not illegal • Operate in countries that shield them from civil actions • Makes it easy to enter the cybercrime market The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 12

C 2 C – Distribution & Delivery – “Force Suppliers” The Information Security Experts

C 2 C – Exploit – “Intelligence Dealers” The Information Security Experts Copyright ©

C 2 C: Bot Management– “Turn Key Weapons Systems” • 76 service, Nuklus Team • Botnet Dashboards The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 15

Driving Factors Behind Cyber Crime • • • Profitable Low risk New services to exploit Easy (technically) Easy (morally – you never meet the victim) Picture provided by “energizer” hacking group 90 day project take $300, 000 - $500, 000 The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 16

Cyberwarfare “Cyberspace is a warfighting domain. ” - Lt. General Robert Elder, Commander 8 th Air Force The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 17

In 2007, the FBI reported that there were 108 countries with dedicated cyber-attack organizations seeking industrial secrets. http: //csis. org/files/media/csis/pubs/081028_threats_working_group. pdf The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 18 Page 18

Leveling the playing field • Adversaries that cannot match U. S. conventional military strength have an incentive to employ asymmetric strategies to exploit our vulnerabilities – Institute for Security Technology Studies at Dartmouth College • The Chinese want to dominate this information space. So, they want to develop the capability of attacking our "information advantage" while denying us this capability – Mike Mc. Connell – Director of National Intelligence The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 19

China • Most skilled vulnerability researchers in the world • Very capable at command & control networks • Objective is to steal intellectual property • Information warfare – as a tool of war, – as a way to achieve victory without war – as a means to enhance stability. • Strategy – “ 100 Grains of Sand” – infiltrate as many networked systems as possible and lie in wait for sensitive data and/or command control access. The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 20 Page 20

Whitehouse email compromised – Nov, 2008 The Information Security Experts Copyright © 2009 Secure.

The federal government reported 18, 050 cybersecurity breaches in fiscal year 2008 Source: Department of Homeland Security The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 22 Page 22

Joint Strike Fighter • Compromise reported April 2009, started as early as 2007 • $300 Billion project – costliest in US DOD history • Several Terabytes of data stolen about electronic systems – Most sensitive secrets not compromised “United States is under cyber-attack virtually all the time, every day” - Robert Gates Secretary of Defense • Source of attacks appear to be China The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 23 Page 23

Russia • Russian has been relatively silent on its Strategy for Cyberwar • Cyber-Activism – Estonia – Lithuania – Ukraine • Cyber-War – Chechen Rebels during Nord. Ost Hostage Crisis – Georgia Conflict – Krgyzstan The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 24 Page 24

Cyber-Activism – Proof of Concept • Estonia knocked offline for moving a Soviet Era WWII war memorial • 300 Lithuanian Web sites defaced with Soviet Symbols by Russians after Lithuanian law banned use of Soviet symbols • Ukrainian President’s website hacked after expressing interest in joining NATO The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 25 Page 25

Cyber. Warfare – Russian Georgia Conflict - IWar • Physical and cyber warfare operations coincided with the final "All Clear" for Russian Air Force between 0600 and 0700 on August 9, 2008 • Physical and cyber warfare shared targets, media outlets and local government communication systems in the city of Gori • Further cyber warfare operations against new targets in Gori coincided with traditional physical warfare target The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 26

Russia's Cyber Militia – Distribution of “Bots” The Information Security Experts Copyright © 2009

Stop. Georgia. ru Hosted by Softlayer in Plano Texas. The Information Security Experts Copyright

Fourth of July DDo. S attacks • July 4 – July 9, 2009 DDOS Attacks www. dhs. gov • • • finance. yahoo. com www. dot. gov travel. state. gov www. faa. gov www. amazon. com Approximately 20, 000 attacking hosts (at $0 cost to the attacker) www. ftc. gov www. usbank. com www. nasdaq. com www. yahoo. gov www. nsa. gov www. marketwatch. com Most attacking hosts were in www. nyse. com www. washingtonpost. com South Korea www. state. gov www. usauctionslive. gov www. usps. gov www. umarketwatch. com Popular Peer to Peer filesharing network in South Korea hacked to www. ustreas. gov www. voa. gov spread malware and enlist www. whitehouse. gov machines to attack www. defenselink. mil • Many government critical infrastructure sites down for several days The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com Page 29

Project Aurora • Destruction of a $1 M power generator by compromising the control network for the generator • DHS Project Aurora • http: //www. youtube. com/watch? v=f. Jy. Wng. Dco 3 g The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 30 Page 30

State of Cyber Attacks and the problems • There are no international boundaries on the Internet • There are safe havens for criminals where they may operate without consequence. Some havens provided in return for services or technology • Governments enlisting the services of traditional cybercrime criminals to advance their information warfare capabilities. • Governments funding training programs for information warfare • Cost of Cyber. Attacks is decreasing, effectiveness is increasing. • Cyberspace is part of the battlefield of the 21 st Century The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 31 Page 31

Balance of Military Might? Release of Dams Disruption of air traffic flow Destruction of power substations Disruption of First Responders and Emergency services during a terrorist attack • Integrity in the financial system leading to lack of consumer confidence • Disruption of law enforcement and tainting of evidence • Corruption, tainting of food supply • • The Information Security Experts Copyright © 2009 Secure. Works, Inc. All rights reserved. www. secureworks. com 32 Page 32