Financial Services Cybersecurity Weekly Briefing 10-13-2017

Weekly FS Cybersecurity Blast

Weekly FS Cybersecurity Blast

Your Secrets Are Wearing Emperor’s Clothes
Institutions which rely on customer identify-proofing and authentication need to shift their thinking on what constitutes identity – and you, as a consumer, need to hold your institutions accountable. If the companies providing you financial, health, or other private services don’t meet the bar for verifying your identity, you need to consider moving your business to other institutions.


U.S. Banking Regulator Hit by 54 Breaches in 2015, 2016
The U.S. Federal Deposit Insurance Corporation (FDIC) in the last two years may have suffered as many as 54 data breaches involving personally identifiable information (PII), revealed a report from the FDIC Office of Inspector General (OIG). […] The report, made public last week, focuses on the FDIC’s processes for responding to data breaches, and it’s based on an audit conducted in response to concerns raised by the chairman of the Senate Committee on Banking, Housing, and Urban Affairs.


SEC Cyber Police Force to Oversee FinTech, ICOs
In 1972, the SEC (the Securities and Exchange Commission) created its Enforcement Division to enforce federal securities laws. And now the SEC has to update its system to address cybercrime that has reached unprecedented proportions, especially to oversee Blockchain and protect retail investors. On Sept. 25th, 2017, the SEC issued a press release where it announced the launch of two new initiatives that, in complementing its ongoing law-enforcing efforts, will be dedicated to targeting DLT and ICO violations.


City of London ‘Cyber Court’ to Tackle Online Fraud in Financial Sector 
Ministers say the court will enhance Britain’s reputation as a country where banking and finance is underpinned by the rule of law, and help the authorities tackle the growing menace of computer crime. The City of London Corporation will on Monday announce plans for the court to be based in the Square Mile.


Report: Malware-Wielding Hackers Hit Taiwanese Bank
Almost $60 million was stolen from Far Eastern International Bank in Taiwan last week, with funds being routed to accounts in Cambodia, Sri Lanka and the United States, Taiwanese state-owned news agency Central News Agency reports. The bank reportedly detected the suspicious transactions Tuesday and has been able to recover much of the stolen funds with the help of its banking counterparts in other countries, with only $500,000 remaining outstanding.


New Malware Hits ATMs Running on Win7 and Win Vista
The IT security researchers at Kaspersky Lab have discovered a new malware strain called ATMii because it attacks ATMs that run on Windows 7 and Windows Vista. This means the malware is ineffective on a majority of ATMs since most of them nowadays use Windows XP. It also hints at the fact that the operator of ATMii is intentionally attacking the ATMs of a certain network and the malware strain has been designed to steal from those machines only.


Criminals Stole Millions from E. Europe Banks with ATM “Overdraft” Hack
The very limited use of actual malware and use of the banks’ own networks to access the card management systems made the attack difficult to detect, as did the use of Windows and PowerShell commands to move within the network. There was little if any data exfiltrated from the banks themselves, as the attackers “adopted the emerging tactic sometimes called ‘living off the land’,” the investigators reported.


And Now, in Recent New York Cybersecurity Action… 
If a consumer credit reporting agency violates any insurance, financial services or banking laws, DFS regulations (or those of other states), provides materially incorrect information or commits similar nefarious acts, the agency’s registration may be revoked or suspended. Finally, the proposed regulations deem consumer credit reporting agencies “Covered Entities” and expressly subject to the DFS cybersecurity regulations.


Banks, Cryptocurrency Exchanges and Critical Infrastructure are Forecast to be the Most Likely Targets for Hacking in the Near Future – According to Group-IB Hi-Tech Crime Trends Report
1. In the next year, the main point of losses for banks from cyber-attacks will be not theft of money, but destruction of their IT infrastructure during the final stages of a targeted hacking attack.
2. Hackers will now successfully attack more industrial facilities as they have learnt how to work with the “logic” of critical infrastructure.
3. Hackers are switching their focus from banks to the crypto industry (ICO, wallets, exchanges, funds), which have been accumulating increasingly large capitalisations and funds.


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