Contenu connexe Similaire à Preventing Fraud from Top to Bottom - Vanderburg, Gaddamanugu - Information Security Summit 2014 (20) Plus de Eric Vanderburg (16) Preventing Fraud from Top to Bottom - Vanderburg, Gaddamanugu - Information Security Summit 20141. Preventing Fraud from Top to Bottom
Information Security Summit
October 31, 2014
Session 8: 2:20–3:20 PM
Dr. Eric A. Vanderburg
Director, Cyber Security
JURINNOV Ltd.
Ramana Gaddamanugu, CFE
Senior Manager, Risk and Compliance
JURINNOV Ltd.
2. Who are we?
Dr. Eric A. Vanderburg
Director, Cyber Security
JURINNOV Ltd.
Ramana Gaddamanugu, CFE
Senior Manager, Risk and Compliance
JURINNOV Ltd.
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Overview
• Fraud Risks
• Fraud Controls
• Anti-Fraud Culture
• Awareness
• Fraud Incident Response
4. Fraud Risks
• Facts and Figures
• Fraud factors
• Laws
• Case studies
• Addressing fraud risk
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5. Facts and figures
• 65% of fraud cases were
discovered by tips or by an
employee accidentally stumbling
upon them during the course of
their job duties.
Average organizational cost $5.5 million per incident
-Ponemon Institute Study, March 2012
Financial impact of cybercrime expected to grow 10%
per year through 2016
-Gartner top predictions for 2012
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6. Fraud factors
Pressures / Incentives:
• A situation that is so
challenging the person
cannot see any other way
out
• Personal financial pressure
• Family pressures
• Greed
• Pressure to meet goals
Rationalization:
• A way to justify in the person’s
consciousness that the act of
fraud is not so bad
• Common beliefs:
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• Person is owed this
money
• Just borrowing until they
are able to pay it back
• Everyone else is doing it
Opportunity:
• The set of circumstances
that make it possible to
commit fraud
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Laws
• The Ribicoff Bill
• The Computer Fraud and Abuse Act of 1986
• The Electronic Communications Privacy Act of 1986
• The Communications Decency Act of 1996
• The Sarbanes-Oxley Act of 2002 (Sox)
• The Gramm-Leach-Bliley Act (GLBA)
• The California Database Security Breach Act (2003)
• Identity Theft Enforcement and Restitution Act of 2008
8. Case studies
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• Example 1
– Pressure
– Opportunity
– Rationalization
9. Case studies
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• Example 2
– Pressure
– Opportunity
– Rationalization
10. Case studies
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• Example 3
– Pressure
– Opportunity
– Rationalization
11. Addressing fraud risk
• Performing a fraud risk assessment
• Options for dealing with risk
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– Accept
– Mitigate
– Transfer
– Avoid
12. Addressing risk
TRANSFER
Impact
(Probability * Loss)
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Cost
ACCEPT
MITIGATE
AVOID
13. Fraud Controls
• Access controls
• Auditing
• Business continuity
• Application security
• Cryptography
• Security management
• Governance
• Segregation of Duties
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14. Ways controls are executed
• Manual (performed by people)
– Examples: Authorizations, Management reviews
• Automatic (embedded in application code)
– Examples: Exception reports, Interface controls,
System access
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16. Access controls
• Least privilege
• Types of authentication
– What you have
– What you are
– What you know
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Auditing
• Server audit logs are turned on and retained
• Proper review of logs and other data
• Personnel held accountable
18. Business continuity
• Key systems have
uninterruptable power
supplies
• Backups tested
regularly
• Disaster recovery plans in place
• Business continuity testing for key systems
• System maintenance as scheduled
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19. Application security
• Security patches up to date
• Equipment firmware is up to date
• No unauthorized programs installed
• Corporate applications have up to date security
reviews
• Antivirus software installed
• Virus definitions up to date
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20. Cryptography
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• Data at rest
– Workstations
– Servers
– Backups
– Laptops
– Phones
• Data in motion (in
transit)
– VPN
– Web site access
– File transfer
– Network
communication
22. Security management
• Configuration changes
approved prior to
implementation
• Incidents handled by
incident response plans
• Media sanitized before
being reused or disposed
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23. Governance
• Security policies and
procedures in place
• Systems have
documented security
controls
• Documented roles and
responsibilities
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24. Segregation of Duties
• Process
• Systems
• Roles and Authority
• Oversight
• Audit
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25. Test types
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• Inquiry
– Interview staff to validate knowledge of a policy or requirement
– Inquiry alone is not a sufficient test
• Inspection
– Review sample of source documents for evidence of control execution
– Review exception reports and related documentation to identify preventive
control failures and validate for risk occurrence
– Reconcile process/system documentation to actual operation
• Observation
– Monitor personnel to validate execution of manual controls
– Observe occurrence of automated controls (e.g. popup warnings)
• Re-performing
– Enter an illegal transaction to test control operation
– Enter a valid transaction to test control operation
26. Anti-Fraud Culture
• Role of leadership
• Reinforcing the culture day to day
• Business integration
• Making it happen
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27. Role of leadership
• Incenting the behavior
• Assignments and accountabilities
• Personal contribution reports
• Performance reviews
• Daily interactions with team members
• New system and process deployment
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28. Role of leadership
• Take a quick pulse
• Demonstrate that security is critical
• Challenge assumptions of security
• Ask about the risks
• Monitor, measure, report
• Hold everyone accountable
• Reward behaviors
• Debrief projects including security focus
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29. Reinforcing the culture:
Day to Day
• Monitoring, measuring and reporting
• Integrating with business metrics
• Weekly management meetings
• Monthly dashboard review with employees
• Quarterly goals met
• Team rewards
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30. Business integration
Anti-fraud
Strategy
• Priorities
• Roles and
responsibilities
• Targeted capabilities
• Specific goals
(timeframe)
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Business
Strategy
• Core values
• Purpose
• Capabilities
• Client promise
• Business targets
• Specific goals
• Initiatives
• Action items
• Assignments and
accountabilities
31. Making it happen
• Ask where are we today?
– High level survey – taking the pulse
– Assessment
• Define and communicate expectations
– Company policies
– Employee training
– Third party contract requirements
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32. Making it happen
• Implement changes
– Workflow (make it easy)
– Technology
– Physical
• Ask how are we doing?
– Checkpoints
– Audits
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33. Awareness
• Types of fraud
• Everyone’s responsibility
• Recognizing fraud
• Who to notify
• Whistleblowing policy
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34. Fraud Incident Response
• Preparation
• Identification
• Containment
• Investigation
• Eradication
• Recovery
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35. Preparation
– Document procedures for likely incidents
– Document steps for a non-specific incident
– Prepare resources
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• Human
• Technical
– Is geographic diversity needed?
– Determine notification procedure
– Roles and responsibilities
– Simulation
– Review and maintenance
36. Identification
• Use of dormant accounts
• Log alteration
• Notification by partner or
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peer
• Violation of policy
• Violation of law
• Loss of availability
• Unusual consumption of
computing resources
• Unusual network activity
• Corrupt files
• Data breach
• Reported attacks
• Activity at unexpected
times
• Unusual email traffic
• Presence of unfamiliar
files
• Execution of unknown
programs
37. Containment
– Assembly
– Restrict Access
– Preservation
– Notification
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38. Investigation
– Interviewing
– Documentation
• IP address of compromised system
• Time frame
• Malicious ports
• Flow records
• Host file
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– Analysis
• Event Logs
– Escalation
39. Eradication
• Resolution- all that data should have given you
action items. If not, look again
– List action items
– Rank in terms of risk level and time required
– Prioritize
– Coordinate and track remediation to completion
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• Validation
– Confirm measures successfully remediated the
incident
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Recovery
• Remediate vulnerabilities
• Restore services
• Restore data
• Restore confidence
42. For assistance or additional information
• Phone: 216-664-1100
• Web: www.jurinnov.com
JurInnov Ltd.
The Idea Center
1375 Euclid Avenue, Suite 400
Cleveland, Ohio 44115
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