Blackbaud Facing Lawsuit After Ransomware Attack

Blackbaud Facing Lawsuit After Ransomware Attack

In July, we wrote about a ransomware attack suffered by the cloud computing provider Blackbaud that led to the potential exposure of  personal information entrusted to Blackbaud by hundreds of non-profits, health care organizations, and educational institutions. At the time the ransomware attack was announced, security experts questioned Blackbaud’s response to the breach. Now, the Blackbaud ransomware attack isn’t just raising eyebrows, with the company facing a class action lawsuit for their handling of the attack.

Blackbaud was initially attacked on February 7th of this year. However, according to the company, they did not discover the issue until mid-May. While the time it took the company to detect the intrusion was long, it is increasingly common for threats to go undetected for long periods of time. What really gave security experts pause is how Blackbaud responded to the incident after detecting it.

The company was able to block the hacker’s access to their networks, but attempts to regain control continued until June 3rd. The problem, however, was that the hackers had already stolen data sets from Blackbaud and demanded a bitcoin payment before destroying the information. Blackbaud remained in communication with the the attackers until at least June 18th, when the company payed the ransom. Of course, many experts questioned Blackbaud’s decision to pay given that there is no way to guarantee the attackers kept their word. And, to make matters worse, the company did not public announce the incident to the hundreds of non-profits that use their service until July 16th  — nearly two months after initially discovering the incident.

Each aspect of Blackbaud’s response to the ransomware attack is now a part of a class action lawsuit filed against the company by a U.S. resident on August 12th. The main argument of the lawsuit claims that Blackbaud did not have sufficient safeguards in place to protect the private information that the company “managed, maintained, and secured,” and that Blackbaud should cover the costs of credit and identity theft monitoring for those affected. The lawsuit also alleges that Blackbaud failed to provide “timely and adequate notice” of the incident. Finally, regarding Blackbaud’s payment of the ransomware demand, the lawsuit argues that the company “cannot reasonably rely on the word of data thieves or ‘certificate of destruction’ issued by those same thieves, that the copied subset of any Private Information was destroyed.”

Despite the agreement among privacy experts that Blackbaud’s response to the attack was anything but perfect, lawsuits pertaining to  data breaches have historically had a low success rate in the U.S.. According to an attorney involved in the case, showing harm requires proving a financial loss rather than relying on the more abstract harm caused by a breach of privacy: “The fact that we don’t assign a dollar value to privacy [means] we don’t value privacy.”

Whatever the result of the lawsuit, questions still persist on whether Blackbaud’s response violates the E.U.’s General Data Protection Regulation. The GDPR requires organizations to submit notification of a breach within 72 of discovery. Because many of Blackbaud’s clients are UK-based and the company took months to notify those affected, it is possible Blackbaud could recevie hefty fines for their response to the attack. A spokesperson for the UK’s Information Commissioner’s Office told the BBC that the office is making enquiries into the incident.

As for the non-profits, healthcare organizations, and educational institutes that were affected by the breach? They have had to scramble to submit notifications to their donors and stakeholders that their data may have been compromised. Non-profits in particular rely on their reputations to keep donations coming in. While these organizations were not directly responsible  for the breach, this incident highlights the need to carefully review third-party vendors’ security policy and to create a written security agreement with all vendors before using those services.

Cybersecurity Training for IT Staff

Cybersecurity Training for IT Staff

When it comes to cybersecurity training, it’s easy to focus your energy on employees who may not have an advanced understanding of your network and technological systems. And, of course, it is vitally important these employees understand the basics of cybersecurity and adopt behaviors that help protect your systems from compromise. However, implicit in this way of thinking is that your IT staff, who are incredibly knowledgable about your systems, don’t need to be trained in cybersecurity. This couldn’t be further from the truth.

While your IT team is likely more aware of existing cyber threats, they also likely have administrative access across your entire network, making their account far more costly if compromised. What’s more, IBM’s 2020 Cost of a Data Breach Report found that 19% of all malicious attacks are initially caused by cloud misconfigurations, which is generally the responsibility of IT staff.

It is therefore vitally important to ensure your IT team is receiving role-specific cybersecurity training alongside the rest of your staff. This training should still cover a lot of the basics that every employee needs to know, but it should also include more specific and in-depth training in topics such as cloud configurations, access management and monitoring, network segmentation, and vulnerability scans. Your entire IT staff doesn’t need to be security experts, but everyone should have a good understanding of the current threat landscape and know how to spot any suspicious activity within your systems.

And, like all cybersecurity training, it’s important to use a program that focuses on helping your team build better, more secure habits, rather than simply throwing information at them. An important aspect of this is to simply make it easier for your IT team to do the job they need to do and do it securely. Because IT departments have highly specialized knowledge, it can be easy for business leadership to simply leave them to do what they think makes sense. However, executives should be actively involved in giving immediate feedback and listening to what IT staff need to make sure they can do their jobs efficiently and safely.

 

Auto-Forward Hell

Auto-Forward Hell

We understand the risks of having our email credentials compromised. If it happens, we know to change our login information as quickly as possible to ensure whoever got in can’t continue to access our emails. The problem, however, is that there is a very simple way for hackers to continue to access the content of your inbox even after you change your password: auto-forwarding. If someone gains access to your email, they can quickly change your configurations to have every single email sent to your inbox forwarded to the hacker’s personal account as well.

The most immediate concern with unauthorized auto-forwarding is the ability for a hacker to view and steal any sensitive or proprietary information sent to your inbox. However the risks associated with this form of attack have far greater ramifications. By setting up auto-forwarding, phishers can carry out reconnaissance efforts in order to carry out more sophisticated social engineering scams in the long-term.

For example, auto-forwarding can help hackers carry out spear phishing attacks — a form of phishing where the scammer tailors phishing emails to target specific individuals. By learning how the target communicates with others and what type of email they are most likely to respond to, hackers can create far more convincing phish and increase the chance that their attack will be a success.

Bad actors can also utilize auto-forwarding to craft highly-sophisticated business email compromise (BEC) attacks. BEC is a form of social engineering in which a scammer impersonates vendors or bosses in order to trick employees into transfering funds to the wrong place. If the scammer is using auto-forward, they may be able to see specific details about projects or services being carried out and gain a better sense of the formatting, tone, and style of invoices or transfer requests This can then be used to create fake invoices for actual services that require payment.

How to protect yourself from unauthorized auto-forwarding

There are, however, a number of steps you and your organizations can take to prevent hackers from setting up auto-forwarding. The most obvious is to prevent access to your email account in the first place. Multi-factor authentication, for example, places an extra line of defense between the hacker and your inbox. However, every organization should also disable or limit users’ ability to set up auto-forwarding. Some email providers allow organizations to block auto-forward by default. Your IT or security team can then manually enable auto-forwarding for specific employee’s when requested for legitimate reasons and for a defined time period.

When it comes to the risks with auto-fowarding, the point is that the more the hackers can learn about your organizations and your employees, the more convincing their future phishing and BEC attacks will be. By putting safeguards in place that help prevent access to email accounts and block auto-forwarding, you can lower the risk that a bad actor will gain information about your organization and carry out sophisticated social engineering attacks.

Compromised Credential Attacks are Frequent and Costly

Compromised Credential Attacks are Frequent and Costly

Earlier this week we wrote about the cost of human-factored, malicious cyber attacks. However, there are also other threats that can lead to a malicious attack and data breach. According to this year’s Cost of a Data Breach Report, the stolen or compromised credentials tied for the most frequent cause of malicious data breaches, and took the lead as the most costly form of malicious breach.

The root cause of compromised credentials varies. In some cases, stolen credentials are also related to human-factored social engineering scams such as phishing or business email compromise attacks. In other cases, your login information may have been stolen in a previous breach of online services you may use. Hackers will often sell that data on the dark web, where bad actors can then use the data to carry out new attacks.

Whatever the cause, the threat is real and costly. According to the report, compromised credentials accounted for 1 out of every 5 — or 19% of — reported malicious data breaches. That makes this form of attack tied with cloud misconfiguration as the most frequent cause of a malicious breach. However, stolen credentials tend to cost far more than any other cause of malicious breach. According to the report, the average cost of a breach caused by compromised credentials is $4.77 million — costing businesses nearly $1 million more than other forms of attack.

Given the frequency of data breaches caused by compromised credentials, individuals and businesses alike need to be paying closer attention to how they store, share, and use their login information. Luckily, there are a number of pretty simple steps anyone can take to protect their credentials. Here are just a few:

Password Managers

There are now a variety of password managers that can vastly improve your password strength and will help stop you from using the same or similar passwords for every account. In my cases, they can be installed as a browser extension and phone app and will automatically save your credentials when creating an account. Not only are password managers an extremely useful security tool, they are an incredible convenient tool for a time when we all have hundreds of different accounts.

Multi-Factor Authentication

Another important and easy to use tool is multi-factor authentication (MFA), in which you are sent a code after logging in to verify your account. So, even if someone stole your login credentials, they still won’t be able to access your account without a code. While best practice would be to use MFA for any account offers the feature, everyone should at the very least use it for accounts that contain personal or sensitive, such as online bank accounts, social media accounts, and email.

Check Past Compromises

In order to ensure your information is protected, it’s important to know if your credentials have ever been exposed in previous data breaches. Luckily, there is a site that can tell you exactly that. Have I Been Pwned is a free service created and run by cybersecurity expert Troy Hunt, who keeps a database of information compromised during breaches. User’s can go on and search the data to see if their email address or previously used passwords have ever been involved in those breaches. You can also sign up to receive notifications if your email is ever involved in a breach in the future.

Cyber Awareness Training

Lastly, in order to keep your credentials secure, it’s important that you don’t get tricked into give them away. Social engineering, phishing, and businesses email compromise schemes are all highly frequent — and often successful — ways bad actors will try to gain access to your information. Scammers will send emails or messages pretending to be from a company or official source, then direct you to a fake website where you are asked to fill out information or login to your account. Preventing these scams from working largely depends on your ability to accurately spot them. And, given the increased sophistication of these scams, using a training program specifically designed to teach you how to spot the fakes is very important.

Human Factored Cyber Attacks Will Cost You

Human Factored Cyber Attacks Will Cost You

Last week, IBM and The Ponemon Institute released their annual Cost of a Data Breach Report. For the past 15 years, the report has highlighted recurring and emerging factors that contribute to the cost of data data breaches, as well as the root causes of those breaches. One of the key findings in this year’s report is the fact that human factored cyber attacks not only make up a large percentage of the all malicious attacks, but also are incredibly costly to businesses that suffered breaches. This only confirms the importance of cyber awareness training for employees to limit the risk of a human factored attack.

There are many different causes of a data breach, some of which are merely accidental. However, according to this year’s report, malicious attacks now make up 52% of all breaches. This didn’t used to be the case. In fact, malicious attacks have seen a 24% growth rate in just six years.  Malicious attacks are also the most expensive, costing businesses an average of $4.27 million. That’s nearly $1 million more than all other causes of a breach.

Given the frequency and cost of malicious attacks, it’s important to look closer at the different threats that account for the rise in malicious attacks — and the data is surprising. While expected threats such as system vulnerabilities and malicious insiders are certainly present, human factored cyber attacks take up a large chunk of all malicious attacks. Threats ranging from phishing attacks, to business email compromise, to social engineering and cloud misconfigurations are all rooted in human rather than technical vulnerability, and account for 41% of all malicious attacks leading to data breaches.  Indeed this report correlates with what was presented in the Verizion 2020 Data Breach Investigations Report.

Human factored cyber attacks aren’t something you can protect yourself against strictly through technically safeguards. Instead protecting against these vulnerability requires working with employees, establish proper quality control protocols, ensuring your have the right expertise on your team and using cyber awareness training to help build safer online habits.

As a Fortune 100 CISO once told me, “at the end of the day, every cyber incident starts with someone making a decision.”

6 Critical Cybersecurity Practices for Every Business

6 Critical Cybersecurity Practices for Every Business

When it comes to cybersecurity practices, there is an overwhelming amount of options available today, which can make it hard for businesses to figure out what they need. It’s easy to think you need newest and most expensive cybersecurity technology with all the bells and whistles to be protected. But the truth is that every business will have different needs and will need to develop cybersecurity practices that suit their specific business goals and strategies. If you don’t align your cybersecurity with your business objectives, chances are all your fancy security practices will end up hindering your business. There are, however, a number of critical cybersecurity practices that every business should consider. Each of these practices are all easy to implement and will leave your business a lot more secure:

1. Patching

One of the most critical cybersecurity practices is also the simplest: updating your applications and operating systems. Software updates aren’t just about adding new features, but in most cases also includes security improvements and patches to any known vulnerabilities. And while it can be tempting to put off updating your applications for another day, it is very important to install these updates as soon as you can. Hackers are constantly looking through popular applications for potential vulnerabilities, so keeping your systems up to date will help ensure the bad guys can’t exploit any weaknesses in the outdated version.

2. Access Control

Another vital component to any cybersecurity policy is controlling access to your networks, systems and data. This includes limiting employee access to areas of your system that aren’t relevant to their work. You also need to ensure that your employees are using  passwords that meet certain length and complexity requirements, as well as using multi-factor authentication for all remote logins. This is especially important now that many employees are working from home.

3. Lockdown Mobile and Remote Devices

Whether employees are using company-issued or personal devices, it is important to ensure certain security settings are in place if those devices are used to access your network remotely. This includes ensuring that all devices are using a virtual private network (VPN)  to keep internet data anonymous, and malware scanners to detect infected devices. Another big risk with mobile and remote devices is that potential for them to be lost or stolen. It’s therefore important to make sure your devices are encrypted and that you have a system in place that allows you to delete the data from any remote device if it goes missing. This will keep the anyone who finds the device from access any sensitive data it might contain.

4. Back up and Recovery Tests

It is also critical to keep regular backups are your most important networks and most sensitive data. This is especially important to protect yourself against ransomware attacks, where hackers lock you out of your own system. Having a backup may prevent you from having to pay to get your data back. However, it’s not enough to just keep backups, but to regularly test your recovery process. Backups will sometimes be corrupted and If you make a mistake or your backup settings are misconfigured, it’s possible you won’t be able to fully recover your data. Testing your backups regularly will ensure you can get your data back if sometime bad happens.

5. Firewall Configuration

Firewalls are essential for monitoring incoming and outgoing network traffic, and blocking any traffic that doesn’t meet your security standards. It’s often considered your first line of defense, so should be set up with care. The specific configurations you need depends on a number of factors, but overall you should make sure you don’t have any unnecessary open ports and ensure that traffic coming and going from the most critical and sensitive areas of your network have stricter traffic limitations. It’s also very important to change any default account and passwords that come with the firewall. Hackers can cause a lot of damage if they gain administrative access to your firewall, so you want to keep access to it as secure as possible.

6. Security Awareness Training

Last but definitely not least, it is critical that your employees receive security awareness training. Phishing and other social engineering attacks are now the number one cause of data breaches, meaning your employees are your frontline defense against cyber attacks. If your employees don’t know how to spot phish or business email compromise attempts, you leave your system dangerously vulnerable to attack. Simply put, by giving your employees the tools to develop safe online habits, you dramatically increase the security of your organizations.