R. Kinney Williams - Yennik, Inc.
R. Kinney Williams
Yennik, Inc.

Internet Banking News
Brought to you by Yennik, Inc., the acknowledged leader in Internet auditing for financial institutions.

Remote offsite and onsite FFIEC IT Security Audits

September 22, 2024

Newsletter Content FFIEC IT Security FFIEC & ADA Web Site Audits
Web Site Compliance NIST Handbook Gold Standard Penetration Testing
Does Your Financial Institution need an affordable cybersecurity Internet security audit?  Yennik, Inc. has clients in 42 states that rely on our cybersecurity audits to ensure proper Internet security settings and to meet the independent diagnostic test requirements of FDIC, OCC, FRB, and NCUA, which provides compliance with Gramm-Leach Bliley Act 501(b) as well as the penetration test complies with the FFIEC Cybersecurity Assessment Tool regarding resilience testing The cybersecurity penetration audit and Internet security testing is an affordable-sophisticated process than goes far beyond the simple scanning of ports.  The audit focuses on a hacker's perspective, which will help you identify real-world cybersecurity weaknesses.  For more information, give R. Kinney Williams a call today at Office/Cell 806-535-8300 or visit http://www.internetbankingaudits.com/.
Bank regulatory FFIEC IT audits - I perform annual IT audits required by the regulatory agencies for banks and credit unions. I am a former bank examiner over 30 years of IT auditing experience. Please contact R. Kinney Williams at examiner@yennik.com from your bank's email and I will send you information and fees. All correspondence is confidential.


MISCELLANEOUS CYBERSECURITY NEWS:


What security teams need to know about HIPAA compliance in the cloud - The Health Insurance Portability and Accountability Act (HIPAA) has become one of the healthcare sector's most widely recognized compliance frameworks. https://www.scmagazine.com/perspective/what-security-teams-need-to-know-about-hipaa-compliance-in-the-cloud

Europe’s privacy watchdog probes Google over data used for AI training - Google is under investigation by Europe’s privacy watchdog over its processing of personal data in the development of one of its artificial intelligence models, as regulators ramp up their scrutiny of Big Tech’s AI ambitions. https://arstechnica.com/tech-policy/2024/09/europes-privacy-watchdog-probes-google-over-data-used-for-ai-training/

UK Labels Data Centers as Critical National Infrastructure - The U.K. government on Thursday designated data centers as part of its critical national infrastructure in a move intended to prevent the loss of sensitive user data during disruptive cyberattacks. https://www.govinfosecurity.com/uk-labels-data-centers-as-critical-national-infrastructure-a-26278

Cyber insurance keeps growing, as threats spur competition - Concerns remain about aggregation risk as highlighted by the July outage of Microsoft Windows devices, according to a report from Moody’s Ratings. https://www.cybersecuritydive.com/news/cyber-insurance-growing-threats-competition/726440/

Keeping data secure in the age of generative AI - Generative AI has rapidly cemented itself as a cornerstone of modern life. https://www.cybersecuritydive.com/spons/keeping-data-secure-in-the-age-of-generative-ai/726494/

98% of organizations worldwide connected to breached third-party vendors - A total of 98% of organizations worldwide have integrations with at least one third-party vendor that has been breached in the last two years. https://www.cybersecuritydive.com/news/connected-breached-third-party/641857/

CYBERSECURITY ATTACKS, INTRUSIONS, DATA THEFT & LOSS:

Electronic payment firm Slim CD notifies 1.7M customers of data breach - Slim CD, a company that provides processing services for electronic payments, has notified nearly 1.7 million credit card holders that their data may have been stolen in a June breach. https://www.scmagazine.com/news/electronic-payment-firm-slim-cd-notifies-17m-customers-of-data-breach

Fortinet admits miscreant got hold of customer data in the cloud - Fortinet has admitted that bad actors accessed cloud-hosted data about its customers, but insisted it was a "limited number" of files. The question is: how limited is "limited"? https://www.theregister.com/2024/09/13/fortinet_data_loss/

Transport for London confirms 5,000 users' bank data exposed, pulls large chunks of IT infra offline - Transport for London's ongoing cyber incident has taken a dark turn as the organization confirmed that some data, including bank details, might have been accessed, and 30,000 employees' passwords will need to be reset via in-person appointments. https://www.theregister.com/2024/09/12/transport_for_londons_cyber_attack/

Highline Public Schools closes schools following cyberattack - Highline Public Schools, a K-12 district in Washington state, has shut down all schools and canceled school activities after its technology systems were compromised in a cyberattack. https://www.bleepingcomputer.com/news/security/highline-public-schools-closes-schools-following-cyberattack/

MOVEit victims are still coming forward. This time it’s Wisconsin Medicare. - The delayed notifications underscore the difficulty organizations confront in discovering breaches and attributing compromises to a root cause or source. https://www.cybersecuritydive.com/news/moveit-wisconsin-medicare/726441/

Port of Seattle officials pin attack, data theft to Rhysida ransomware group - The port restored most of the systems impacted by the ransomware attack as officials warn their refusal to pay extortion demand could result in data leaks. https://www.cybersecuritydive.com/news/seattle-port-ransomware-attack/727098/

Ransomware Group Leaks Data Allegedly Stolen From Kawasaki Motors - The RansomHub ransomware group has released 487 gigabytes of data it allegedly stole from motorcycles manufacturer Kawasaki Motors Europe (KME). https://www.securityweek.com/ransomware-group-leaks-data-allegedly-stolen-from-kawasaki-motors/

Suffolk County ransomware attack linked to lack of planning, ignored warnings - A special report blames county officials for ignoring FBI warnings during the 2022 attack and an overall failure of IT and security leadership. https://www.cybersecuritydive.com/news/suffolk-county-ignored-threat-warnings/727352/

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WEB SITE COMPLIANCE - We continue the series regarding FDIC Supervisory Insights regarding 
Incident Response Programs.  (11 of 12)
 
 
Last week's best practices focused on the more common criteria that have been noted in actual IRPs, but some banks have developed other effective incident response practices. Examples of these additional practices are listed below. Organizations may want to review these practices and determine if any would add value to their IRPs given their operating environments.
 
 Additional IRP Best Practices

 
 1) Test the incident response plan (via walkthrough or tabletop exercises) to assess thoroughness.
 2) Implement notices on login screens for customer information systems to establish a basis for disciplinary or legal action.
 3) Develop an incident grading system that quantifies the severity of the incident, helps determine if the incident response plan needs to be activated, and specifies the extent of notification escalation.
 4) Provide periodic staff awareness training on recognizing potential indicators of unauthorized activity and reporting the incident through proper channels. Some institutions have established phone numbers and e-mail distribution lists for reporting possible incidents.
 5) Inform users about the status of any compromised system they may be using.
 6) Establish a list of possible consultants, in case the bank does not have the expertise to handle or investigate the specific incident (especially regarding technical compromises).
 7) Establish evidence-gathering and handling procedures aimed at preserving evidence of the incident and aiding in prosecution activities.


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FFIEC IT SECURITY - We continue our series on the FFIEC interagency Information Security Booklet.  
  
  
SECURITY CONTROLS - IMPLEMENTATION - NETWORK ACCESS

  
  Firewall Policy (Part 3 of 3)
  
  Financial institutions can reduce their vulnerability to these attacks somewhat through network configuration and design, sound implementation of its firewall architecture that includes multiple filter points, active firewall monitoring and management, and integrated intrusion detection. In most cases, additional access controls within the operating system or application will provide an additional means of defense.
  
  Given the importance of firewalls as a means of access control, good practices include:
  
  ! Hardening the firewall by removing all unnecessary services and appropriately patching, enhancing, and maintaining all software on the firewall unit;
  ! Restricting network mapping capabilities through the firewall, primarily by blocking inbound ICMP traffic;
  ! Using a ruleset that disallows all traffic that is not specifically allowed;
  ! Using NAT and split DNS (domain name service) to hide internal system names and addresses from external networks (split DNS uses two domain name servers, one to communicate outside the network, and the other to offer services inside the network);
  ! Using proxy connections for outbound HTTP connections;
  ! Filtering malicious code;
  ! Backing up firewalls to internal media, and not backing up the firewall to servers on protected networks;
  ! Logging activity, with daily administrator review;
  ! Using intrusion detection devices to monitor actions on the firewall and to monitor communications allowed through the firewall;
  ! Administering the firewall using encrypted communications and strong authentication, only accessing the firewall from secure devices, and monitoring all administrative access;
  ! Limiting administrative access to few individuals; and
  ! Making changes only through well - administered change control procedures.


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NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY - We continue the series on the National Institute of Standards and Technology (NIST) Handbook.
 
 Section III. Operational Controls - Chapter 10

 

 10.3 Contractor Access Considerations
 

 Many federal agencies as well as private organizations use contractors and consultants to assist with computer processing. Contractors are often used for shorter periods of time than regular employees. This factor may change the cost-effectiveness of conducting screening. The often higher turnover among contractor personnel generates additional costs for security programs in terms of user administration.
 
 10.4 Public Access Considerations
 
 Many federal agencies have begun to design, develop, and implement public access systems for electronic dissemination of information to the public. Some systems provide electronic interaction by allowing the public to send information to the government (e.g., electronic tax filing) as well as to receive it. When systems are made available for access by the public (or a large or significant subset thereof), additional security issues arise due to: (1) increased threats against public access systems and (2) the difficulty of security administration.
 
 While many computer systems have been victims of hacker attacks, public access systems are well known and have published phone numbers and network access IDs. In addition, a successful attack could result in a lot of publicity. For these reasons, public access systems are subject to a greater threat from hacker attacks on the confidentiality, availability, and integrity of information processed by a system. In general, it is safe to say that when a system is made available for public access, the risk to the system increases -- and often the constraints on its use are tightened.
 
 Besides increased risk of hackers, public access systems can be subject to insider malice. For example, an unscrupulous user, such as a disgruntled employee, may try to introduce errors into data files intended for distribution in order to embarrass or discredit the organization. Attacks on public access systems could have a substantial impact on the organization's reputation and the level of public confidence due to the high visibility of public access systems. Other security problems may arise from unintentional actions by untrained users.
 
 In systems without public access, there are procedures for enrolling users that often involve some user training and frequently require the signing of forms acknowledging user responsibilities. In addition, user profiles can be created and sophisticated audit mechanisms can be developed to detect unusual activity by a user. In public access systems, users are often anonymous. This can complicate system security administration.
 
 In most systems without public access, users are typically a mix of known employees or contractors. In this case, imperfectly implemented access control schemes may be tolerated. However, when opening up a system to public access, additional precautions may be necessary because of the increased threats.


PLEASE NOTE:
 
Some of the above links may have expired, especially those from news organizations.  We may have a copy of the article, so please e-mail us at examiner@yennik.com if we can be of assistance.