Join us for State of Cybercrime, where experts discuss the latest trends and developments in the world of cybercrime and provide insights into how organizations can protect themselves from potential threats.
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Join us for State of Cybercrime, where experts discuss the latest trends and developments in the world of cybercrime and provide insights into how organizations can protect themselves from potential threats.
Sponsored by Varonis
If there’s something strange on your network, who should we call?
The security team!
Well, I like to think of them as Threatbusters. Why? They’re insatiable learners and they work extremely hard to keep security threats at bay.
In this episode, we talk about awesome new technologies(like computer chips that self-destruct and ghost towns that act like honeypots), how to get others within your organization to take security threats seriously, and awesome threatbusters that are doing applause-worthy work.
Join us Thursdays at 1:30ET for the Live show on Youtube, or use one of the links below to add us to your favorite podcasting app.
The post Threatbusters – IOSS 16 appeared first on Varonis Blog.
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When technology doesn’t work when it should, is it a tech fail? Or perhaps because humans are creating the technology, fails should be more accurately called a human fail? In this episode, we discuss various types of “fails”, including the latest popular Pokémon Go, why we can’t vote online and the biggest fail of all, a data breach. Pokémon Go full access, tech fail or win Is it possible to delete an entire company with one line of code? Why can’t we vote online? Should one person be blamed for a tech fail? Technologies that can predict your next security fail Parting Gifts Pokémon Go full access: tech fail or win? Cindy: This week, I’m calling our show #techfails. But in preparing for this show and thinking deeply about our fails, I just want to echo what Kilian has been voicing these past couple of episodes, that when our technology fails; like for an instance, if my Skype for business isn’t working, then my first thought is, “Oh, it’s a tech fail. I can’t believe it’s not working.” But we’re the one creating the technology. So, for me, it feels, at the end of the day, a human fail. Let’s discuss this and debate it for a bit. To set the context, there was an article in the Harvard Business Review, and eventually turned into a LinkedIn post too. It’s titled “ A New Way for Entrepreneurs to Think About IT.” It said that IT’s primarily known as a necessary evil, IT support or IT as a product. With many different types of technologies at our fingertips, we can really do a blend of both. For instance, APIs have really changed how firms interact and share information with each other. And we really take this for granted these days, because back then you’d have to get permission from legal to sign contracts before experimenting with partnerships. Now you can easily partner up with another service within API or use OAuth . It’s really increased our productivity, but it can also have some potential problems if we’re not careful. For instance, if you downloaded Pokémon Go earlier this week, you might have been given Google full access. That meant that the Pokémon people could read all your emails and send out emails for you. But since then they fixed it. I think, Kilian, they fixed it pretty quick. Kilian: Yeah, in about, I think, 24 hours, more or less, they had a patch out that it addressed it already. I think, as opposed to a technology fail, that might be a technology win, for a company really taking these concerns seriously and addressing it as soon as it’s kind of brought up. Mike: Before we get into that, I just want to know, what’s your guys’ level? How you been doing on Pokémon Go? Have you been getting out there, doing your Pokémon? Cindy: I’ve been…I actually downloaded it at the office. And I could have thrown something at somebody, but I didn’t. I’m like, “Well, I’m just doing this for work, so better not start running after people and throwing stuff at them.” Mike: You couldn’t convince the rest of the office that playing Pokémon Go was part of your job? Cindy: Actually, we had a mobile photography class earlier this week, and Michelle, our HR person, was walking around telling people that Pokémon’s gonna be there. She was doing that for me. Mike: Nice. How about you, Kilian, have you tried it? Kilian: No, I haven’t downloaded it. That would require going outside and interacting with things, maybe. Mike: The first couple ones show up right around you. And I think this is kind of where I was going with this, which is that a lot of this…in terms of tech fails, this is really about managing complexity. In terms of IT, trying to manage these external services, it’s about managing complexity on an organizational level instead of a personal one. Because when you think about what is involved for this stupid game of Pokémon Go, you’re talking about interacting with geosynchronous orbital satellites for GPS, the internet to get all these apps, these multiple different services. And to pull all that together requires this huge thing. The security issue came about because Google was asking for OAuth access, and that’s just when you use Google to log into it. You log in with your account and it has these things. And it’s so complex because even though it doesn’t look like it, it actually uses Google Maps data underneath. A trick you can do, is if you have Google Maps installed on your iPhone, you can enable offline map access. And in order to achieve the app to app communication on your sandbox apps on the iPhone, it needs all these extra permissions, and it’s just insane trying to make that work. It’s so easy when you’re building something to just like, just give me all the permissions, and we’ll slowly back it down until where it’s supposed to be. Cindy: Do you think this is kind of like, “okay, we’re gonna use external service, and then just not really look at the settings because we’re so focused on making Pokémon Go just a wonderful experience?” Mike: Well, that’s the consumer side. The level we work at, people try to look at something like Amazon web services, which this article mentions. It is fantastically complex. It’s something like 60 different individual services that do individual things and also overlap with other ones where like, oh, there’s like six different ways to send an email with AWS. There’s 20 different ways to put a message in a queue to be picked up by something else. Just trying to wrap your head around like, what actually is it doing, is just insane. And it’s possible to do the stuff. I think it’s just a really hard equation of, “Do we bring this in-house and have a dedicated person for it? Is that more or less of a threat than having this outside?” Something I see a lot of is…coming more from the app side of things is, people swearing up and down that, “I’m gonna get on a virtual private server somewhere for ten bucks a month, put my own version of Ubuntu on it and keep it up to date.” And it’s really hard to imagine that that is as secure as having a dedicated security team at AWS or Heroku or one of the other Azure platforms as a service. It’s that same scenario, sort of, at the organizational level, that either it’s a tremendous amount of effort to maintain and secure all those things yourself, or you’re essentially paying for that in your service contract. Cindy: I think those are all really good questions to ask, and it requires a huge team. Is it possible to delete an entire company with one line of code? Cindy: I kind of want to transition into another fail that’s different than asking good questions and figuring out the architecture. The next fail is a fail on many different levels. It would be interesting for us to discuss. Back in April, there was an article published and shared over 65,000 times when a small hosting company with a little over 1,500 users said that he deleted their customer’s hosted data with a single command. Then later we found out that he was just trying to market his new Linux service for his company. And then people were outraged, “He didn’t do a better job backing up,” they were outraged that he lied to server fault, like a community that really helps one another figure stuff out. It’s security, and backing up, and just technology, it’s complicated. I was a little skeptical reading the article with the headline that said “One Person Accidentally Deletes His Entire Company With One Line of Bad Code.” As you’re responsible for hosting data, you should have multiple backups. One of my favorite comments is, how do you even accidentally type that you accidentally deleted stuff? What are your thoughts and reactions to this article? Mike: Kilian, you want to go? I have my own thoughts. Kilian: Sure. First off, that’s a terrible job of advertising. I don’t know what he’s advertising for. Like, “Host with us and I might break your stuff.” I think the point he was probably going for is that it’s easy to make mistakes, so get a dedicated person that knows better. But I don’t think that really came across. For the actual command itself, a lot of people are in such a hurry to automate and make things easier that it is easy to make mistakes, especially as Mike mentioned earlier, with these vastly complicated systems with dozens of ways to do the same thing. The more the complex the system gets, the easier it is to make a mistake. Maybe it could be that disastrous. But a lot of things really have to go wrong, and kind of poor decisions made throughout the chain. But it’s conceivable that someone could have done that. Mike: Specifically, to the question that’s asked on server fault, which is like a question and answer side for these issues. There’s a lot of utilities that can either take a single or multiple different directories as arguments. So you say, “Hey, copy these two things,” or “Copy this one thing.” And so, in this, the person, they put a space so they have like: /pathfolder /. And so, that last slash got interpreted as the root of the volume they were on. And so, hey, we just destroyed everything, and everything includes all your keys and stuff. Something we talk a lot about in here is layered security, but you need layered backups and recovery as well. That was really the answer to this, is that they were on a virtual private server. In addition to just backing up the local data, their database, the files on it, it takes system images of your entire VPS and keeps it somewhere else. I am incredibly paranoid with backups, especially backups of systems like this. So I always try to even just get it out of the system that…if it’s on…in this case, it was Hetzner, which is a European hosting system, that you get that out onto S3 or you get it out on to Rackspace cloud or something else, just to try to make that a better scenario. Kilian: That’s a great point, is having multiple different…you can’t have one single point of failure in a system like this. Otherwise, you could be very vulnerable. Even for myself when I, for example, backup pictures off of my camera, I have to go to my laptop, I have to go to a network share, and then I have a separate hard drive that I plug in just for that, and then unplug and put it away afterwards. So I have three different places for it. Not that they’re that valuable like a hosting system, but silly things happen sometimes. You know, if I lose power or power surge, I lose two of my systems for some reason, I still have that hard drive that’s sitting in a drawer. Mike: I have a lot of discussions with people where they have backups and this very elaborate system. They’re like, “All right, I have my local network attach storage here, then I got this ‘nother server, and then I rotate them and do all this stuff.” That’s awesome until their house catches on fire and they lose everything. And that’s the stuff you have to think about. It’s like these things come in in weird ways, especially everything is so interconnected and everything is so dependent upon each other that you can just have these weird cascading levels of failure. And from very crazy sources of stuff. Like, DNS goes like a DNS server gets a DDoS attack. And then that actually ends up taking down like a third of the internet just because everything is so connected. Why can’t we vote online? Cindy: Our next fail…I want to know if you guys think that our inability to vote online is a human fail or a tech fail. What do you guys think? Or any opinion, really. Mike: It’s all in the execution, like all this stuff. That if there was a verifiable, cryptographically secure way of knowing that you could vote, that would be a very positive thing, potentially. It’s a really interesting mix of software and technological concerns, and people, and sociological and political concerns. What I just said about having almost a voting receipt that says, “Great, you used your key to sign, and you have definitely voted for this person and done this thing.” One of the reasons that’s never been done, even on most paper stuff, is that that was a huge source of fraud that in like the olden days, when they had voting receipts, you would go and turn them into your councilman and they would be like, “Great, here’s your five bucks for voting for me in this election.” So that’s just something that’s not done. That’s not a technical issue. It’s certainly possible to do those things, but it leads to all these other unforeseen, I don’t know if you’ve heard of the cobra effect kind of things, these horrible unintended consequences. Cindy: I think this article on why we still can’t vote online was just very thoughtfully written. It talked about how it can potentially destabilize a country’s government and leadership if they don’t get voting online right. It was really just like, wow, I can’t believe a researcher at The Lawrence Livermore National Lab said, “We do not know how to build an internet voting system that has all the security, and privacy, and transparency and verifiable properties that a national security application like voting has to have.” And they’re worried about malware, they’re worried about ransomware, they’re worried about being able to go in and track, do a complete security audit. They said something interesting too about how, in the finance system, sure, you have sensitive data, and you can go back and track where the money went more or less, if you have these systems in place. But you might not necessarily be able to do that with voting, and someone can say, “I voted for so and so,” and then change it to somebody else, and they can’t go back and verify that. There are so many elements that you need to consider. It’s not just Pokémon, or you’re not trying to create a wonderful gaming experience, or you’re not trying to back things up. They’re a multitude of things you need to take in to consider. Kilian: The one big thing, and I think the heart of it, was the need for anonymity in the voting process. That’s kind of the way it was set up to avoid coercion and some other problems with it, is you need to be anonymous when you cast that vote. By putting it online, the real down side is… Like, if you think about online banking, it’s important to know and verify that you are who you say you are, and have a transaction of that entire process so you can ensure…it’s kind of both parties know that the money transfer from X to Y or so on and so forth. And you have the track of the steps. But when you try and introduce anonymity into that equation, it completely falls apart. Because if you have that tracking data going back to somebody casting a vote, then they could be a target of coercion or something like that. Or if the opposition party finds out, they could go after them for not voting for whoever. Cindy: Yeah, they did that with Nelson Mandela. Kilian: Yep. And then the other thing too is, as a person casting a vote, if you think about it, you’re kind of trusting the system. It’s completely blackboxed you at that point. So when you click the button and say, “I vote for candidate XYZ,” you have no idea, because, again, you want to be anonymous. You don’t have that verification of the system that says, “Hey, my vote wasn’t changed to candidate ABC in the process.” You kind of have to go along with it. Even if you look back at some of the physical problems with the George W. Bush election with the ballots not lining up right with the little punches. It was punching for… I forget what the other candidate’s name was. Cindy: Al Gore? Kilian: No, no, no. It was like Paton Cannon or somebody. Whoever the third party candidate was. But they were saying, “No, no, I voted for Al Gore…” whoever, but it registered somebody else. They had to go back and manually look at that, and look at the physical paper to see that to validate that. But if you think in a digital system, if you click the button, you have no way to audit that really. Because if the system says, “No, you’ve voted for this guy,” you have no proof, you have no additional evidence to back that up, and that’s the big probl…
Full show notes at the publisherLayered security refers to the practice of combining various security defenses to protect the entire system against threats. The idea is that if one layer fails, there are other functioning security components that are still in place to thwart threats. In this episode of the Inside Out Security Show, we discuss the various security layers. Human Physical Endpoint Network Application Data Cindy: Hi and welcome to another edition of The Inside Out Security Show. I’m Cindy Ng, a writer for Varonis’ Inside Out Security Blog, and as always, I’m joined by security experts, Mike Buckbee and Kilian Englert. Hi, Kilian. Kilian. Hi, Cindy. Cindy: Hey, Mike. Mike: Hey, Cindy. You call us security experts. I’m actually, where I don’t know if you can see it, “I have a fake internet job”…because I still haven’t been able to explain my job to my mom and dad. “He does something.” Human Cindy: We’ll see who’s most fake at the end, okay? So recently, Rob wrote a layered security guide and I thought it would be interesting for us to go through each of the layers and share stories that we’ve read or heard as it relates to each of the layers. The idea with layered security is that you want to make sure that you have many different layers of defense that will protect you. If there are any holes, just in case something gets in, you might have a security layer that serves as a backup that will catch it. So the first layer to start is the human layer. So that layer is all about educating people to spot scams and be cautious about the passwords that they give out, their social security numbers that they give out, their credit card information. This layer, Kilian, you talk about this a lot. I feel like, increasingly, criminals are using and exploiting services that we rely on and turning it into like an attack vector, like there is an article recently about people texting you pretending to be Google and saying, “Hey, there was this suspicious attempt to get it in.” And we talked about passwords and alternatives and using two factor and it’s kind of like, “Oh man, I have to check my text messages and make sure I’m not scammed again,” like another thing to worry about. Kilian: Oh, yeah. People, by nature, want to be trusting of other people. We kind of have been trained since day one to feel kind of bad about being suspicious … The bad guys out there know this and they exploit it. It’s so much easier to go after a person and just kind of play off of emotions because they’re far more malleable than a system, and people often are not trained or educated around security practices. And even if they are, they’re kind of trained into a certain mindset. So if they see something that looks semi-legitimate like, “Hey, a text from Google. Oh, they’re protecting me. They have my login name or my IP address or something, NIC address,” because most people are not going to investigate that closely, it’s going to look fairly legitimate like, “Oh, hey, Google’s looking out for me. This is great.” It’s very easy to, just with a little bit of a legitimacy, to get people to kind of go along with it and it’s…the con of that sort is as old as time basically and it’s only getting easier any more, too. Mike: I’ll go with something that you said Kilian, which is that it’s really about our mindset. And I think from a security practitioners’ standpoint, we’re typically very focused on exploited time and this and do this things and so we forget a lot about on the human layer which is education and like how to educate your users and to help make them part of your line of defense. I think a fun activity for that is actually to do phishing, and there is a couple of companies that do this, that do like fake phishing attacks, and then basically, so I go, “You clicked on this so we are reporting you to IT.” And it’s kind of almost like in hospitals where they like shame the doctors into making sure they wash their hands all the time. You’re kind of like trying to enforce this IT hygiene aspects on all of your users, and either hire a company or you have some free time, you can just try to phish your users individually to mess with them. Kilian: Sure. Physical Cindy: Our next layer is the physical layer , and you know, I would be like the worst security person to hire because I wanted to skip talking about this layer. There are so many layers and Mike’s like, “Why aren’t we talking about it? It’s the most important one.” And Kilian is like, “It’s often overlooked.” And I said, “It’s just the physical layer, like everybody gets that.” Tell us a little bit more about the physical layer. Kilian: I guess I’ll jump in. It is so often overlooked. We worry about firewalling the data off to protect from external attacks and stuffs that come in over the wire. But how many times in businesses do people check badges? You can walk into a corporation. If the guy sitting at the desk is distracted for a minute, and then you’re inside and nobody looks twice at you. If the doors aren’t locked in the server room, you walk in, plug in a USB device. Basically, once you have physical access to something, it’s game over. There’s no other layer of security that they probably can’t get around at that point. And we rely so much on just kind of observing people and we put a lot of faith in locks, too, like physical key locks. They’re such a terrible false layer of security. Most front door locks or bike locks or anything else are easily defeated within seconds. The physical layer is often overlooked but it’s such a false layer of security, too, that we know we have somebody watching the door. Because again, we are relying on people and people want to be trusting. Mike: What I was going to mention with respect of the physical layer was I think a lot of things are changing. So businesses are much more just personnel, lots more different, just physical branches, places, people working from all sorts of different remote situations, as well as it used to be everything was hard wired, and now, most every place has WiFi. And so you have this very different situation of like everyone in the office walking in with the WiFi radio that’s connected to the internet. But we don’t think about that. We just like, oh, we are on our cellphones, but if there’s malware on there that potentially perform an attack or some form of disruption. There are some real interesting exploit tools that basically do things like DHCP exhaustion on a network and so you have to do things like MAC filtering. I worked on a high security environment on the military. They have things like if you unplug a computer from the wall from the CAT5 and plug it back in, it won’t let it back on the network as it lost the MAC connection. You can’t just bring a laptop in and plug it into the Ethernet port in the waiting room. Things like that, like very good sensible suggestions. Cindy: I just had a paranoid thought that when I go home, I want to like install 10 locks, put on a password, and I need somehow to after-authenticate myself to get in. So in terms of a business security, like can you go overboard in terms of putting like a trillion locks on something? And then what’s kind of a good balance for an extreme paranoia or paranoid person like me? Kilian: I’ll get dogs with bees in their mouth so when they bark, they shoot bees at you. Mike: From a business standpoint, I think the biggest thing is actually more procedures, procedures around access to servers, access to changes, that kind of thing. And then from there, the procedures are implemented that helps with the recognition of what’s a threat and what isn’t. On a personal level, something that I’ve been seeing a lot more in terms of physical stuff is skimmers on ATMs. That’s probably like we were talking like a personal sort of physical attack. That’s probably the big one, that every ATM you go to, you sort of want to tap at the card holder to see if it falls off because it’s so easy to put a skimmer on. Kilian: That kind of distilled… it’s situational awareness, kind of being observant of the people and things around you, what you’re interacting with. Endpoint Cindy: Another thing we need to be alert and aware of are endpoints – protecting devices, PCs, laptops, mobile devices, from malicious softwares. People really like using endpoint protections to guard against a ransomware, and people’s found out it’s not really effective. But if it’s not ransomware, malware can really sit on your system for like six months before it’s even identified. But people also really want to protect their endpoints. What are your response and thoughts on this? Mike: I’ll go. I guess my first thought is we’re talking about layered security, and so no solution is going to be a homerun 100% of the time. And so what we are really trying to work on is percentages, reducing the surface area we can be attacked on, reducing the opportunities for an exploit. An endpoint security can certainly be part of that but it’s not a complete solution. But by limiting the types of apps that can be run, the type of traffic that can come in, it’s a way of helping to manage that risk. And that’s what we’re talking about with all layers, is how can we manage risk at all this different layers? And hopefully by doing that simultaneously at all the layers, we really improve our security much more than if we thought, “Okay, it’s just endpoint security or it’s just doing training of the users.” Kilian: The way I would think about it, too, is if you ever see the machines for like looking for gold or sifting rocks, like you have the different size of screens. Endpoint protection antivirus, I would think, is like the biggest size of screen. It’s gonna get like the bigger rocks out, so the kind of most obvious, most basic vulnerabilities. And kind of, as you go through and sift out the different pieces, that’s exactly what it is. You can just, multiple layers, sift out different things that one might not catch until you get it. And then just good patch management, too, on endpoints and servers, things like that. If you leave vulnerabilities that have been patched for 10 years on your system, that’s kind of inviting trouble in a lot of ways. But then people often overlook it. Mike: Those are the big holes in your screens as your trying to through all the data and everything is falling through these unpatched systems. Cindy: But there are a whole bunch of alerts. People get thousands of them, like daily and weekly. That’s another annoyance. You can’t actually check thousands of alerts every day. Mike: And for all this sort of systems that monitor the things, all the vendors, us included, are trying to…people talk about alert fatigue. If you get an alert every 10 minutes, like, “Oh, something’s happening, something’s happening,” like you just cease to care about. It’s not something that actually needs responded to or thought about. So there’s a lot of work with like machine learning, better filtering, and better tracking on how to handle that to reduce that amount of alert fatigue. But you’re absolutely right, Cindy. Cindy: And also make alerts that are really worth alerting on so that you’re not like, “Oh my God, my blood pressure is increasing,” and then you end up in the hospital or something. Mike: What kinds of alerts are you getting? Network Cindy: No, listen, it’s not me. I’m just hearing all these stories when I go to conferences and I go, “If I had that many alerts, I will just be like…ahhhhh! Watch out for the crazy woman.” So another layer we should talk about is network security. I’m thinking firewalls, intrusion prevention, detection system, VPNs. And I was kind of tricked to read an article that says “Utility board hears about network security.” And I was like, “Oh, they’re really serious about network security.” Like, “What about the other stuff?” So I went through and I read it. I clicked on it and I read it and they take security seriously. Like in the article, the IT director talked about network security. He made references to all those different layers that we’re talking about so far. And he made the analogy of a Swiss cheese as security and you put layers upon layers of them and said, “That even then with all the layers of cheese, a small hole, so a small hole in your security can be catastrophic.” And I thought it was just really great that they’re talking about it. And further on in that article, it mentioned that a board member requested that presentation because he had heard about a utility at a utilities conference that there was a hacking of an electrical system in Colorado. So we hear a lot about things that go wrong in companies and they’re not doing anything about it. But I really liked that they’re saying, “Hey, I’m protecting our utilities network.” And it’s a great way to get more of like security funding, too, because security systems are expensive, like whether it’s network. Even if it’s like a $200 thing, you still have to be like, why do you need this, and explain. So back to network security, the talk that they had, presentation they had, it’s a great way to just get money like, say, there is an article in Rob’s layered security guide about “ What’s the difference between a $1000 one and a $200 one?” Mike: For a firewall, you’re talking about? Cindy: For a fire…yeah. I went on a tangent. I think someone… Kilian: I mean, you brought up an interesting point. That article, I thought, was really kind of fascinating because the one thing that kind of really, if I can pick one thing a security thing that scare me on a daily basis, it’s a lot of this, like command and control type, or not command and control but the SCADA systems or the industrial control systems that run a lot of our infrastructure. And back to the unpatched systems, these things are from the whatever, ’80s, ’90s, that they said, “Oh, well, hey, we can monitor whatever, our damn controls online, stick it on a network with an IP address,” and then it controls kind of a vital piece of infrastructure, like something in the physical world that can cause a lot of damage. Or the controls at the electrical system, you can wipe out power and that will cause a lot of problems in the physical world. Network security is, again, one of the critical layers. Again, if you have to connect it to a network, at least run it through something. You still need the defense and depth across the whole board, but that’s kind of the first line of defense for a kind of network connected systems. Mike: The only other thing I was going to mention is that I think a lot of times, people think of network, especially with from a lot of employees, it’s like, “We need VPNs for very everyone. We have VPNs for everyone. We’ll be protected.” But you have to remember that also, it’s sort of like punching a hole in your firewall because VPN, it’s like making a home computer as if it was on your network, and all the ensuing issues that that can cause. Kilian: And then we can tie it right back to physical security then. On your VPN at Starbucks, you walk away for a few minutes, someone walks up, plugs something in, or you don’t lock your laptop, then the internal network’s compromised. Mike: I know for sure there has been multiple reports on people getting ransomware on their networks from, like someone at home and they get like an infection, they bring it to the IT group. Like, “Oh, Bill in IT, he’ll help me out. He’s always such a nice guy.” They bring it in. Like, “You look at this real quick? It’s real weird.” “All right, let’s plug it in the network.” And, boom, the network is now infected with ransomware. Good intentions gone awry. Application Cindy: Oh my God, I’m so scared that whenever you guys just share stories and I get like extra, extra scared. Okay, the next two on application security , that, there’s a lot to talk about in that one. I wrote a blog post about it, that our IT people won’t let me install anything on my computer. When we talk about applicatio…
Full show notes at the publisherWe’ve been writing about the GDPR for the past few months now and with the GDPR recently passed into law, we thought it was worth bringing together a panel to discuss its implications. In this episode of the Inside Out Security Show, we discuss how the GDPR will impact businesses, Brexit, first steps you should take in order to protect EU consumer data and much more. Go from beginning to end, or feel free to bounce around. What is the EU General Data Protection Regulation? Who will be tasked to implement GDPR? What’s the first step you need to take to take when implementing GDPR? Data Breach Notification Brexit and GDPR Territorial Scope Tension between Innovation and Security Tips on Protecting Customer Data Final Thoughts Upcoming Webinars: July 21st English, July 28th German and French Cindy: Hi and welcome to another edition of the Inside Out Security show. I’m Cindy Ng, a writer for Varonis’s Inside Out Security blog. And as always, I’m joined by security experts Mike Buckbee, Rob Sobers, and Kilian Englert. Hey, Kilian. Kilian: Hi Cindy. Cindy: Hey Rob. Rob: Hey Cindy, how is it going? Cindy: Good. And hey, Mike. Mike: Hey Cindy, you made me go last this week. That’s all right. Cindy: This week, we also have two special guests, also security experts. Andy Green, who is based in New York, and Dietrich Benjies who is based in the UK. And they’re here to join us to share their insights on the latest General Data Protection Regulation that was just passed with an aim to protect consumer data that will impact not only businesses in the EU, Britain and the US and the rest of the world. So Hi Andy. Andy: Hey Cindy. Cindy : Hey Dietrich. Dietrich: Hi Cindy. What is the EU General Data Protection Regulation? Cindy: So, let’s start with the facts. First, what is GDPR and what are its goals? Andy: In one sentence? Can I get two? Cindy: You get two and a half. Andy: Okay, two and a half. So it stands for General Data Protection Regulation. It’s a successor to the EU’s current data security directive which is called the Data Protection Directive, DPD. And it really…I mean if you are under the rules now, the GDPR will not be a major change but it does add a few key major additions. And one of those is…well there is a stronger rules on, let’s say right to access your data. You really have … almost like a bill of rights. One of them is that you can see your data, which is maybe not something in the US we are experienced with. Also, another new thing is you have a right of portability, which is something that Facebook probably hates. In other words, you can download the [personal] data. If I were, I assume this would happen in the UK or the EU, that if you are a Facebook customer you will be able to download everything that Facebook has and have it in some sort of portable format. And I guess that [if you have another] social media service, you can then upload that data to that social media service and say goodbye to Facebook, which is kind of not something they’re very happy about. … You have almost like a consumer data rights under the new rule. I don’t know if anyone has any comments on some of these things but I think that’s…that, I think, is like a big deal. Dietrich: I’m sorry Mike. Were you going to go next? I chimed in so I suppose I’ll carry on- Cindy: Go ahead, Dietrich. Dietrich: So I think in terms of your attendance, it’s the European Union recognizing that data is…the European citizens recognize their data as important and historically, recently and historically, there has been many cases where it hasn’t been demonstrated to be appropriately controlled. And as it’s a commodity, the information on them is a commodity traded on the open market to a degree that there has just been an increasing demand to have greater safeguards on their data. And those greater safeguards on European citizen data gives them greater confidence in the market, in the electronic market that the world economic market has become. So that the two pillars, which we’ll get to, or the two tenants are Privacy by Design and accountability by design … we’ll get to a lot of things but that’s synopsis on it. Mike: I was curious about to what extent this was targeting enterprises or is it targeting, say like you brought up Facebook, which I consider an application, like a web application service. Was there an intent behind this, that it’s targeting more one or the other? Andy: Yeah. It’s definitely, I would say consumers. I mean it’s really very consumer-oriented. Dietrich: Mike do you mean in terms of it’s targeting the consumers? Yes, it’s consumer data. It’s related to but do you mean in terms of the types of businesses where it’s most applicable? Is that what you mean Mike? Mike: Well, you know, there is a decision-making framework that, so now with GDPR as the Data protection Directive to need to make decisions, that I’m building an application, I’m going to need to have new privacy features. We talked about Privacy by Design which has its own sort of tenets. Or I’m building out the policies for my company which has satellite offices all over the world and some of them happen to be in the EU. Just trying to look at the impact and look at how this should change my decision making on the business. Dietrich: Well, it’d be cynical. I’d say if you want to avoid it totally and entirely, just don’t sell to an EU citizen. Rob: Yeah, I think, to answer your question, Mike, the Facebooks of the world and these global web services are going to have to worry about it if they are collecting data. And we all know Facebook not only collects the data that you give them but it also ascertains data through your actions. And I think that’s what Andy was talking about is that it’s not just the ability to click a button and say give me my profile data back now so I can take it with me. It’s like I put that data in but I think what the GDPR is aiming to do is give you back the data that they’ve gathered on you from other sources. So tell me everything you know about me because I want to know what you know about me. And that’s, I think, a very important thing. And I really hope that the US goes in that direction. But outside of those web services, think about like any bank that serves an EU customer. So any bank, any healthcare organization, so other businesses outside of these big global web services certainly do have to worry about it, especially if you look in your customer database or any kind of…if you are a retailer, your transaction database, and you have information that belongs to EU citizens then this is something that you should at least be thinking through. Who will be tasked to implement GDPR? Cindy: So who needs to really pay close attention to the law so that you are executing all the requirements properly? Dietrich: Who needs to pay attention to it in terms of those organizations and scope? It’s pretty well spelled out that the organizations who deal with, who transfer, who process big things on processing and doing this information associated to European citizens. So if I backtrack a bit, it was where we are starting with the portability of the data, the information that we have, that organizations have on individuals and those subject access request, right to erasure, kind of the first and foremost is the protection element. Making sure that the data is protected, that we are not…organizations aren’t putting us at risk by the fact that they are holding our data and making that overexposed. Kilian: To kind of address the question more technically speaking, I think … everybody involved in the process needs to pay attention to it. From the people designing the app, Mike, if you want to launch your business, you need to realize that there are…boundaries are kind of made up anymore with technology. So right from the beginning, we’ll talk about Privacy by Design. But that needs to be the first step, all the way up to the CEO of the company or the board realizing that this is a global marketplace. So they want to get the most amount of customers, so they have to take it seriously. Andy: Yeah, I was going to say that they do have a heart at the EU … and they do make an exception … there is some language for making exceptions for smaller businesses or businesses that are not sort of collecting data on, what they say, like on a really large scale–whatever that means! What you are saying is all true but I think they do say that they will sort of scale some of the interpretations for smaller businesses so the enforcement is not as rough. And there may even be an exclusion, I forget, for under 250 employee companies. But I think you are right. This is really meant for the, especially with the fines, it’s really meant to get to C-Level and higher executive’s attention. What’s the first step you need to take to take when implementing GDPR? Cindy: So if you are a higher up or someone responsible for implementing GDPR, what’s the first step you need to look for and so you don’t miss any deadlines, so that you are planning ahead? Andy: I think we had to talk about this the other day. I’ve actually talked about it with Dietrich. Some of this is really, I’d say, like common IT sense and that if you are following any kind of IT best practices and there are a bunch of them or some standards, you are probably like 60 or 70% there, I think. I mean if you are, let’s say you are handling credit card transactions and you are trying to deal with PCI DSS or you are following some of the– forget what they call — the SANS Top 20 … So maybe I’ll say it’s sort of like putting laws around some common sense ideas. But I realize the executives don’t see it that way. Kilian: Yeah. I think the first thing you have to do is figure out if you have that data, to begin with, or where it’s at. I mean the common knowledge is you probably do. If you do some type of commerce or interact with anybody really, you are going to store some information. But kind of nailing it down where it’s at or where it might be is I think the key first step. Dietrich: And in terms of deadlines, I suppose to answer your question very directly, the deadline is May 25th, 2018, is when it comes into full force. That is the, I wouldn’t say it’s fast approaching. We still have 23 months. … Dietrich: I’ve got a clock on my laptop right there. Deadline to GDPR. Data Breach Notification Cindy: So there is also a data breach notification. What does that process entail? Like how do you get fined and how do you know that personal data has been lost or breached? What’s defined as personal data? Because there is a difference between leaking like company ID, company IP versus leaking personal data. Andy: Actually I happen to have the definition right in front of me. So it’s any information related to a person. And in particular, it can be…so it says an “identifiable person is one who can be identified directly or indirectly in particular by reference to an identifier such as a name, an identification number, location data, or an online identifier”. So it’s really, I guess what we would call in the US, PII [personally identifiable information], but it’s broad. It’s not just a strict list of social security number or specific account numbers. Those are examples of the types of identifiers. So it’s very broad but it has to relate back to a person and they do consider the online identifiers as “relatable to a person”. Brexit and GDPR Cindy: And kind of I can’t help but ask Dietrich, will Brexiters be exempt from GDPR? Dietrich: No. Not at all. So, first off, yes. A week ago today, we cast our votes. And then a week ago tomorrow it was found out that yes, in fact, we are leaving the European Union. So the reality of that is we haven’t invoked article 50. So article 50 is that yes, we are definitely doing it. We are doing it and then we have 24 months for them to get the heck out of the European Union. The starting of that clock isn’t likely to happen for some time. For one David Cameron, who is currently our prime minister is stepping down…has stepped down. We have to wait. He said, “I’m not going to invoke. I’m going to let somebody else handle not only that process of invoking article 50 but in addition to that, negotiating the trade policies and all the things associated with the exit.” In addition to all the things associated with the exit is the adoption or exclusion of a lot of the European directives, GDPR being one. So we could just sit there and not only, so if you take that time scale that will come into play if article 50, and there is some questions on the legality of the referendum, which I won’t go into in detail but there is a lot of debate going on in the moment that we voted leave if it’s actually something that will happen. If it happens, and let’s say it will, the time scale of that activity is likely to be well after GDPR is in effect. And if GDPR does come…sorry, and even if we leave and the likelihood as in democratic country in which we live, we have cast a vote that we will leave, we could still take on GDPR as our own. We have our own Data Protection Act here in the UK. We could just bump it up with GDPR at a stroke of a pen. And that’s quite likely considering we are debating in negotiation. We will negotiate for, hopefully, as freer trade as we can do within the European Union and I’m sure that will be…it would make sense that that would be a dependent clause. Andy: And I was going to say, it looks like if you’re…since the UK has to trade with the EU, the EU countries are going to put in higher standards for e-commerce transactions. Dietrich: Yeah. They are out biggest trading partner. I believe and don’t quote me on this but I could be wrong. I think it’s 54, 54% of our exports go to the EU. And likewise, we are one of the biggest trading partners for France, for Germany, etc. Territorial Scope Cindy: So, the US, we trade with the EU and the… Dietrich: Do you? (sarcasm) Cindy: I’m really talking about territorial scope. And I’m curious if I start a business or Mike starts a business, we talked about this earlier, how will I…what’s the law in terms of me needing to protect an EU consumer’s personal data? That’s a little controversial. Go ahead Dietrich. Dietrich: Can I give you some examples on this? In the last 48 hours, I have purchased a flight from Southwest Airlines, United Airlines, I’m a European citizen. I have purchased a backpack from some random site that’s being shipped to my father. Look, I hope I’m not debt dipping myself in tax loss but anyway, you know what I mean. As a European citizen, I’m going to be in the States for three weeks as of next week. So I’m a European citizen who is going to be transacting, who is going to be purchasing stuff over there. So, considering the freedom of movement that exists, the small world in which we live where European citizens regularly travel to the US, regularly buy from sites online, I can’t see how the border is going to make any difference. Most, if not, I’d say the vast majority of organizations in the US will deal with European citizens and therefore at least for that subset of data related to European citizens, they will be…they’ll have to put in controls if they want to carry on trading with European citizens. Cindy: Go ahead, Mike. Mike: Well, I was trying to think of parallels to this. And there is one that I think a lot of people are aware of which is like the Cookie Law which is, there were some European directives around like you should have, like if you land on a website, sometimes you see those banners at the bottom that says this website uses cookies and then click to, which came out of a similar thing. That’s really only been European websites that are doing that, but that sort of a half step into this. I just wonder if that shows a model for how this is going to be adopted so that it’s only the very strictly EU sites. Andy: Yeah. I think that was, that came out of, I forget, it may have been the Data Protection D…
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