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Dealing With The Dark Side Managing The Malware Menace Jenifer Jarriel Vice President of Dealing With The Dark Side Managing The Malware Menace Jenifer Jarriel Vice President of Information Technology and Chief Information Officer Baylor College of Medicine Copyright Jenifer Jarriel, Baylor College of Medicine, 2004. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

Agenda Review of 2003 The Costs of Viruses and Spam Baylor Attacked! What It Agenda Review of 2003 The Costs of Viruses and Spam Baylor Attacked! What It Has Cost Baylor Case Studies How Did This Happen Defeating The Dark Side – Goals of the initiative What has been completed What is being developed – Approach of the initiative Funding The Force – Costs for implementation – Costs savings examples Summary Questions & Answers

Review of 2003 was the worst year in computer virus history Jan 2003, Slammer Review of 2003 was the worst year in computer virus history Jan 2003, Slammer worm contributed to the biggest Internet attack ever! – Scanned through all 4 billion public IP addresses in just 15 minutes! Bug. Bear. B, Welchi, & Sobig. F worms released between June and August – Sobig. F was the worst e-mail worm ever, sending over 300 million infected emails around the world In August 2003, BCM experienced major attack, losing connectivity to affiliates, affecting over 1/3 of Baylor community, and costing over 100 K in remediation efforts

Viruses Images courtesy of Virtual Virus Library This isn’t just a biologic problem……. . Viruses Images courtesy of Virtual Virus Library This isn’t just a biologic problem……. .

Viruses Recent Research • • • – Costs (Computer Economics, 2002) Year Code 2003 Viruses Recent Research • • • – Costs (Computer Economics, 2002) Year Code 2003 So. Big 2003 Blaster 2003 Slammer 2001 Nimda 2001 Code Red 2001 Sir. Cam 2000 Love Bug 1999 Melissa 1999 Explorer Worldwide Economic Impact $ 13 Billion $ 2. 5 Billion $ 635 Million $ 2. 62 Billion $ 1. 15 Billion $ 8. 75 Billion $ 1. 10 Billion $ 1. 02 Billion – So. Big Was/Is Faster Spreading Worm EVER! It infected 1 out of every 17 messages (Information. Week, August 2003) – Blaster worm infected 30, 000 PC’s an hour – August 2003 saw 75 new Internet viruses categorized at least as a minor threat (Computerworld, August 2003)

Viruses (continued) Recent Research Continued – Recent research suggests 113 virus encounters a month Viruses (continued) Recent Research Continued – Recent research suggests 113 virus encounters a month (Computerworld, March 2003) – On average 23 staff days were required for virus disaster recovery (Computerworld, March 2003) – Average cost to companies was $81, 000 (ICSA, 2003)

Spam It’s not just a curious food product…. . Spam It’s not just a curious food product…. .

Spam – In January 2003 approximately 42% of all email was spam, but by Spam – In January 2003 approximately 42% of all email was spam, but by December 2003 that number had risen to 58% (Internetnews. com, January 2004) – In 2004, spam is expected to comprise 65% of all email – From May-Dec 2003 Baylor IT found 42%- 46% of all email was spam Hoaxes – Jdbgmgr. exe was first reported in April 2002 (Symantec) – Users at Baylor are still receiving this email message and still responding to it despite multiple warnings – “Hoax viruses cost companies and people as much in terms of loss of productivity as the real virus. ”

Baylor Attacked! How often does this happen at Baylor – 4, 015 infected files Baylor Attacked! How often does this happen at Baylor – 4, 015 infected files caught by BCM IT between January and March 2003 What it cost in resources (Just during August 12 -22 alone) – Over 2100 PC’s were infected by the Blaster and So. Big worms and were fixed by IT. More were infected in departments with SA’s. – Estimates suggest over 1/3 of Baylor was infected – Over 2000 IT man hours spent fixing these viruses What it cost financially (Just during August 12 -22 alone) – Approximately $60, 000 (IT only) spent on virus remediation during August 12 -22 and this is still growing (approx 100 k+ now)! Estimated productivity loss of 2. 5 days for 2000 employees Estimated financial loss due to decrease of productivity =$2, 400, 000 Helpdesk volume went from 100 calls per day to over 750 calls

Case Study Worm Attack Began Case Study Worm Attack Began

Case Study (cont) As can be seen from the illustration on the previous slide, Case Study (cont) As can be seen from the illustration on the previous slide, the recent worms utilize ICMP (Internet Control Message Protocol) to actively scan the network looking for vulnerabilities. Since the events in August, activity has dramatically increased from just under 200 flows/sec to over 1000/flows sec. As a result, any system that connects to the network and is not appropriately patched, will likely become infected and will try and infect other vulnerable systems.

How Did This Happen Review of IT infrastructure – 39% of all Baylor PC’s How Did This Happen Review of IT infrastructure – 39% of all Baylor PC’s no longer have mainstream support from Microsoft as of December 31, 2003 These include Windows 3. x, 95, 98, ME, NT – Unknown (but significant) number of computing systems using desktop software that are either no longer supported, or will no longer have support by Microsoft as of December 31, 2003 These include Office 95, 97, & Office 98 for Macintosh – Every Wednesday Microsoft typically releases a new critical update for their OS’s

How Did This Happen (cont) Review of IT infrastructure (continued) – Automatic updates are How Did This Happen (cont) Review of IT infrastructure (continued) – Automatic updates are only available for Windows 2000 and XP. Typically this is disabled Review of policies – There is no formal policy mandating Norton Antivirus be installed – There is no standardization policy for desktops or servers (OS, Hardware, common Applications) – There is no patch management policy to update Baylor computing systems (desktops and servers)

Goals The goals of the IT Asset Management & Planning Initiative are the following: Goals The goals of the IT Asset Management & Planning Initiative are the following: – To support a diverse environment in an efficient and cost effective manner – To provide a safe, secure, and reliable network environment – To be proactive in the management of network intrusions, patch management, and asset inventory

What’s Completed Two commercial anti-spam products were evaluated (Iron. Mail, Spam. Assassin) A phased What’s Completed Two commercial anti-spam products were evaluated (Iron. Mail, Spam. Assassin) A phased implementation of commercial antispam products was initiated Increased collaboration with user community Gained approval for Wireless Network policy Gained approval for Virtual Domain policy Gained approval for Web Server Management policy

What’s Completed (cont) Upgrade Norton Antivirus – NAV for Mac OS X now available What’s Completed (cont) Upgrade Norton Antivirus – NAV for Mac OS X now available – Currently testing NAV 8. 1 for future rollout Increased Coordination with Affiliated Institutions Blocking of IP Addresses for Infected Systems Proof of Remediation for Infected Systems System Administrators Roundtable During Crises

What’s Being Developed BCM IT developing proposal to implement and receive funding for the What’s Being Developed BCM IT developing proposal to implement and receive funding for the following: – Hardware, software, OS standards – Disaster recovery/business continuity plans for critical systems and applications – Secure BCM network perimeters – Implement secure messaging – Automatic updates – Firewall clustering – Additional supporting policies and procedures

What’s Being Developed (cont) BCM IT is developing the following policies and procedures: – What’s Being Developed (cont) BCM IT is developing the following policies and procedures: – – – – Corporate Anti-virus Software Policy Network scanning Policy Use of non-BCM equipment Policy Lifecycle Program for Hardware, Software, and Common Applications Policy Asset Management Policy Patch Management Policy Enterprise Directory Services Policy

Antivirus Requirement Recommendations – Require all IT systems capable of participating (UNIX and Linux Antivirus Requirement Recommendations – Require all IT systems capable of participating (UNIX and Linux do not at this time) in the College IT managed Norton Anti-Virus (NAV) system do so – Replacement of current non-IT managed anti-virus software with the Norton Anti-Virus – Assurance the most current version of NAV running and that users cannot disable – Ability to schedule a mandatory scan of all desktops/servers if required

Network Scanning Recommendations – IT authorized to conduct scans of computing systems attached to Network Scanning Recommendations – IT authorized to conduct scans of computing systems attached to the IT network as necessary and appropriate – Continue to collaborate with departments to assure non-disruption of computing systems

Non-BCM Equipment Recommendations – Modify Acceptable Use Policy to prohibit use of non-BCM computers Non-BCM Equipment Recommendations – Modify Acceptable Use Policy to prohibit use of non-BCM computers – Exceptions authorized by IT based on justified business need – If authorized, non-BCM computer’s require IT managed anti-virus installed Conform to set IT security requirements

Lifecycle Management Recommendations – Baylor College of Medicine requires that BCM computing assets, with Lifecycle Management Recommendations – Baylor College of Medicine requires that BCM computing assets, with the exception of servers, be replaced on a four year cycle. – Servers are to be replaced on a four year cycle with initiation/planning beginning in year three. – Operating systems and applications must be upgraded or replaced to the latest version supported by the manufacturer. – Replaced or upgraded computing assets, operating systems and applications must be procured through BCM Purchasing. – BCM computing assets lifecycle will be tracked by the Information Technology Assets Inventory Management System.

Asset Management Recommendations – All BCM Computing Assets must be registered with the Information Asset Management Recommendations – All BCM Computing Assets must be registered with the Information Technology Enterprise Asset Inventory Management System before they can be connected to the BCM Network. – Computing systems on the Baylor network must be able to report to the asset management system the following information: Responsible organizational entity for the system. Purpose of the system. Name of the hardware supplier. Warranty and maintenance information Operating system installed Applications installed. Hardware configuration and peripherals installed. Security sensitive information such as presence of confidential data.

Patch Management Recommendations – Before connecting a new or rebuilt system to the BCM Patch Management Recommendations – Before connecting a new or rebuilt system to the BCM network, any initial critical patches must be installed on the system. A CD of the current initial critical patches can be obtained from the departmental system administrator or by contacting the Information Technology Help. Desk at 713 -798 -8737 or [email protected] tmc. edu. – All desktop and laptop computing assets (home and network) must enable automatic installation of critical patches on their operating systems. – Any non-BCM computing asset must have installed all critical patches to their operating system before connecting to the BCM network. – All servers should begin testing critical patches for either the operating system or any applications on that server within 24 hours after being released, and installed within 72 hours. – The departmental system administrator or Baylor College of Medicine’s Information Technology program may require that certain non-critical patches should be applied. If the notification applies to a system, the patches will need to be applied.

Enterprise Directory Services Recommendations – All organizational units of Baylor College of Medicine that Enterprise Directory Services Recommendations – All organizational units of Baylor College of Medicine that maintain Microsoft servers or desktops will be required to be a part of Active Directory.

Approach Phased implementation Implement tools to accurately define project scope and pilot patch management Approach Phased implementation Implement tools to accurately define project scope and pilot patch management Requires upgrades on hardware and software Initiates life cycle management Requires funding commitments on an annual basis

Phased Approach Implementation Guidelines A Three-Phased approach is recommended: – Phase 1 Implement Asset Phased Approach Implementation Guidelines A Three-Phased approach is recommended: – Phase 1 Implement Asset & Patch Management Solutions – Phase 2 Central Departments Finance, HR, Office of Development, Legal, IT, Investment, Public Affairs, Facilities, Administration, Office of the President, Office of the COO – Phase 3 Clinical, Research, and Education Departments

Phased Approach Implementation 1. 2. Phase 1 Recommendations – FY 2004 & 2005 Implement Phased Approach Implementation 1. 2. Phase 1 Recommendations – FY 2004 & 2005 Implement patch management solution on enterprise servers. Implement enterprise asset management solution on enterprise servers. Phase 1 estimated costs are $769, 000 **At the same time as Phase 1, also develop and implement new recommended policies

Phased Approach Implementation Phase 2 Recommendations – FY 2005 & 2006 1. 2. 3. Phased Approach Implementation Phase 2 Recommendations – FY 2005 & 2006 1. 2. 3. 4. 5. Upgrade hardware and software for all Central Department computers to Windows XP for PC’s and OS X for Macintosh’s. Upgrade all Central Department computers with Microsoft Office XP or 2003 for PC’s and Microsoft Office for Mac OS X for Mac’s. Patch all Windows 2000 and XP systems in Central Departments. Visit all Central Department PC and Mac systems and ensure Norton Antivirus Corporate Edition is installed, or install if needed. Migrate all Central Department computers to Active Directory. Phase 2 estimated costs cannot be calculated until Phase 1, asset inventory is complete

Phased Approach Implementation Phase 3 Recommendations – FY 2006 & 2007 The third phase Phased Approach Implementation Phase 3 Recommendations – FY 2006 & 2007 The third phase of the project will concentrate on the clinical, research, and education (CRE) departments at the College. The following are the recommendations for phase 2 of this project. 1. Upgrade all CRE computers to Windows XP for PC’s and OS X for Macintosh’s. 2. Upgrade all CRE computers with Microsoft Office XP or 2003 for PC’s and Microsoft Office for Mac OS X for Mac’s. 3. Patch all Windows 2000 and XP systems in CRE. 4. Visit all CRE desktop PC and Mac systems and ensure Norton Antivirus Corporate Edition is installed, or install if needed. 5. Migrate all CRE computers to Active Directory. Phase 3 estimated costs cannot be calculated until Phase 1, asset inventory is complete

Funding The Force Summary of Costs Implement Asset Inventory Solution – $125, 000 - Funding The Force Summary of Costs Implement Asset Inventory Solution – $125, 000 - $200, 000 Implement Patch Management Solution – $569, 000 Upgrade Hardware & OS – $2, 988, 600 - $4, 072, 451 Upgrade Microsoft Office – $176, 167 Install/Ensure All Computers Have NAV Corp – $143, 000 Total Minimum Estimated Costs = $4, 001, 767 - $5, 160, 618

Cost Savings With Implementation Continued – Reduced Downtime – The College can expect to Cost Savings With Implementation Continued – Reduced Downtime – The College can expect to save additional money by implementation of standards as less time will be spent recovering systems that experience failure. In addition, by the consolidation of hardware vendors, it will become easier to monitor systems that may be prone to failure. – Quicker Resolution Times – With standardization in place as well as the other recommendations, problem resolution times will be decreased because less time will be spent learning about new systems and software. – Quicker Setup Times – With the standardization of computer software and hardware, desktop images can be created which can be quickly installed for systems that experience failure, as opposed to rebuilding a system from the beginning. This alone could save from 20 -60 minutes per event. – Reduced Costs During Virus/Worm Outbreaks – By implementing the patch management solution, the College can expect to have significantly reduced costs related to, lost productivity, data loss, and connectivity to affiliates.

Costs Savings Examples Based on example of 39% of systems needing replacement: 2457 PC Costs Savings Examples Based on example of 39% of systems needing replacement: 2457 PC setup with standardized configuration – – 2 hours to create image 30 minutes to transfer image to 2456 PC’s (1228 hrs total) 1230 hours total time to setup 2457 PC’s Avg hourly rate of $20. 50 = $25, 215. 00 2457 PC setup with non-standardized configuration – – – 2 hours per PC 4914 hours total time to setup 2457 PC’s Avg hourly rate of $20. 50 = $100, 737. 00 Represents a savings of over 75% using standardized configuration vs. nonstandardized configuration!

Cost Savings Examples 5000 PC’s need security patch – With patch management solution installed Cost Savings Examples 5000 PC’s need security patch – With patch management solution installed no resources need to be utilized as it will be automated after hours – Without patch management solution, 5000 PC’s x 20 minutes = 1667 hours x $20. 50 = $34, 173. 50 This example is only for 1 patch. Microsoft released a total of 76 critical patches for Windows 2000 and 70 critical patches for Windows XP just in 2003 In the current environment many machines remain un-patched creating significant vulnerability to Baylor network. In addition, because of extensive outdated operating systems on the network, not all machines could be patched even with automated solution

Summary of Costs IT has annual budget of approx $15 million Requesting funding of Summary of Costs IT has annual budget of approx $15 million Requesting funding of less than 1% of total IT budget With prevention of just 1 major virus outbreak, costs of asset management and patch management solutions will have 100% payback.

Summary Baylor College of Medicine currently has a well diversified computing environment, but this Summary Baylor College of Medicine currently has a well diversified computing environment, but this diversity also increases the College’s vulnerability to attacks from viruses and worms. In addition, because of the lack of a lifecycle management policy, over 39% of PC’s and 35% of Macintosh’s will no longer have support beyond 2003. This creates substantial vulnerability because vendors will no longer release new security patches for many of the systems currently deployed throughout the College. If a malicious virus or worm is released, and these systems are unable to be patched, the loss of data and productivity to the College would be catastrophic. Additionally, if the College maintains the current IT infrastructure, then if the types of attacks occur once again, the IT program would still not be able to prevent this from occurring in the future, it would just be able to restore the network to its previous state. While the one time costs may be high, they will be spread over a period of months, AND the real potential loss to the College would be much greater.

Questions & Answers May The Force Be With You, Always Questions & Answers May The Force Be With You, Always

Contact Information Jenifer Jarriel Vice President of Information Technology and Chief Information Officer Phone: Contact Information Jenifer Jarriel Vice President of Information Technology and Chief Information Officer Phone: 713 -798 -1103 Email: [email protected] tmc. edu