​ ​​ ​​ ​​ ​

Getting​ ​Personal The impact of cybercrime on executive leadership. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Executive​ ​Risk​ ​Whitepaper Corporate leaders and directors are often the targets of cyber crime. Sometimes they​ ​are​ ​just​ ​collateral​ ​damage.​ ​​ ​In​ ​either​ ​case,​ ​it​ ​can​ ​be​ ​costly​ ​and​ ​career​ ​ending.

EXECUTIVE​ ​RISK​ ​WHITEPAPER

Contents

​ ​[2]​​ ​​ Executive​​ Summary

[3]​ ​​ Take​​​ ​it​ ​from the​ ​top

​ ​​ ​​ ​​ ​​ ​[6]​ ​​ A​​​ ​Broken​ ​Circle of​ ​Trust

[7]​​ ​​ ​​Accidents Happen

[8]​ ​​ Sent​​​ ​Packing

[9]​ ​​ Spare​​​ ​Me

[10]​ ​​ Conclusion​​

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EXECUTIVE​ ​RISK​ ​WHITEPAPER

Executive Summary

When it comes to cyber threats, the C-suite and board room have a lot to worry about. What would a breach do to our company’s reputation? What could happen to our stock price? What if our intellectual property is stolen? How could the cost of a breach affect our financials? Or our viability​ ​as​ ​a​ ​company?

These are all important questions, and smart companies consider how to answer them before an incident occurs. But there is one question that few executives think to ask​ ​until​ ​it’s​ ​too​ ​late:

What​ ​if​ ​I​ ​am​ ​the​ ​source​ ​of​ ​the​ ​breach?

When a CEO’s account is breached, it can trigger an earthquake for the entire enterprise. Aftershocks often include phishing scams, exfiltrated intellectual property, exposed stolen customer lists, and countless other incidents that cause severe​ ​financial​ ​and​ ​reputational​ ​damage.​

4iQ’s unique, outside-in approach can keep you and your company safe. We scour the full attack surface to uncover lost, leaked or​ ​stolen​ ​credentials​ ​and​ ​data.

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EXECUTIVE​ ​RISK​ ​WHITEPAPER

Take​ ​it​ ​from​ ​the​ ​Top

Increasingly, cyber criminals are targeting company leadership to gain access to networks, information, notoriety and money. Nobody is safe. Consider just a few of the executives and high-profile people who have been hacked​ ​recently:

Exposed​ ​Executives​ ​and​ ​Celebrities

Alf​ ​Goransson​,​ ​former​ ​CEO. Bo​ ​Shen,​ ​​founder​ ​of​ ​Fenbushi​ ​Capital. Identity​ ​Theft Social​ ​Engineering

Stolen identity was used for a false Bo, an early investor in digital currencies loan application in March 2017. No Ethereum and Augur, was considered a “whale.” legal action was taken until District Hackers stole and dumped his REP and ETH, Court​ ​declared​ ​him​ ​bankrupt​ ​in​ ​July. which​ ​then​ ​caused​ ​trading​ ​prices​ ​to​ ​plummet.

Amy​ ​Pascal,​​ ​Sony​ ​Pictures. CFO​ ​and​ ​Head​ ​of​ ​Investor​ ​Relations Email​ ​Hijack Insider​ ​Hacking

Hackers leaked Pascal’s embarrassing Former IT technician stole passwords of company emails that damaged her reputation, executives and remotely accessed electronic caused a PR disaster for the company devices and mined confidential information to and​ ​ultimately​ ​forced​ ​her​ ​to​ ​resign. make​ ​“highly​ ​profitable”​ ​stock​ ​trades.

Sundar​ ​Pichai​, Google CEO. Werner​ ​Vogels​, Amazon CTO. Account​ ​Takeover Account​ ​Takeover

OurMine Hackers took over his Twitter CTO of Amazon Web Services had his social account by going through his linked networking​ ​account​ ​hacked​ ​and​ ​taken​ ​over. Quora​ ​account.

Katy​ ​Perry,​ ​​celebrity. Anne​ ​Hathaway​, celebrity. Social​ ​Media​ ​Hijack Social​ ​Media​ ​Hijack

The most followed person in the world Intimate photos have surfaced and widely shared had her Twitter account hijacked. on​ ​Tumblr,​ ​Twitter​ ​and​ ​Reddit​. Hackers tweeted profanity and slurs targeting​ ​rival​ ​popstar​ ​Taylor​ ​Swift. Tiger​ ​Woods​,​ ​golfer,​ ​celebrity. Social​ ​Media​ ​Hijack

Dozens of nude photos of Tiger and other celebrities were hacked and released on an internet​ ​porn​ ​site.

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EXECUTIVE​ ​RISK​ ​WHITEPAPER

These examples are of sophisticated executives at the helm of cutting edge tech companies or people in the public eye with careers dependent on their reputation, yet their accounts and identity are often compromised largely​ ​using​ ​the​ ​same​ ​tactics​ ​that​ ​put​ ​us​ ​all​ ​at​ ​risk.​ ​​ ​Let’s​ ​start​ ​with​ ​this​ ​one.

1. CEO​ ​Phishing​ ​Scams

Cyber criminals use phishing to gain access to identities and networks for one good reason – it works. Every day, even the most tech savvy execs fall for spoofed emails. By clicking on a seemingly innocuous link or entering a password in a familiar looking site, they put untold personal and corporate information and reputations​ ​at​ ​risk.

Preventing phishing scams is particularly vexing for corporate IT departments because they often do not set off spam​ ​traps.​ ​​ ​They​ ​aren’t​ ​mass​ ​emails​ ​and​ ​they​ ​use​ ​familiar​ ​domains.

In 2015, Ubiquiti Networks, a San Jose based maker of networking technology, was taken for $46.7 million when a​ ​hacker​ ​“impersonated”​ ​executives​ ​and​ ​directed​ ​funds​ ​to​ ​be​ ​transferred​ ​to​ ​an​ ​overseas​ ​bank.

Tech Firm Ubiquiti Suffers $46M Cyberheist ​ ​ ​ ​ ​ ​​ ​ ​ ​ ​ ​

Networking firm ​Ubiquiti Networks Inc. disclosed this week that cyber thieves recently stole $46.7 million using an increasingly common scam in which crooks spoof communications from executives at the victim firm in a bid to initiate unauthorized international​ ​wire​ ​transfers.​ ​ ​​[1]

In April 2016, Brian Krebs reported that the U.S. Federal Bureau of Investigation (FBI) alerted the public of a global increase (270%) in identified victims and exposed losses from “CEO scams.” As Brian notes in his blog, spoofed​ ​emails​ ​rarely​ ​set​ ​off​ ​spam​ ​traps​ ​because​ ​they​ ​are​ ​carefully​ ​calculated​ ​and​ ​targeted,​ ​not​ ​mass​ ​emailed.

FBI:​ ​$2.3​ ​Billion​ ​Lost​ ​to​ ​CEO​ ​Email​ ​Scams

The ​U.S. Federal Bureau of Investigation (FBI) this week warned about a “dramatic” increase in so-called “CEO fraud,” e-mail scams in which the attacker spoofs a message from the boss and tricks someone at the organization into wiring funds to the fraudsters. The FBI estimates these scams have cost organizations more than​ ​$2.3​ ​billion​ ​in​ ​losses​ ​over​ ​the​ ​past​ ​three​ ​years.​​ ​[2]

[1]​ ​August​ ​8,​ ​2015.​ ​Brian​ ​Krebs.​​ T​​ ech​ ​Firm​ ​Ubiquiti​ ​Suffers​ ​$46M​ ​Cyberheist [2]​ ​April​ ​16,​ ​2016.​ ​Brian​ ​Krebs.​​ F​​ BI:​ ​23​ ​Billion​ ​Lost​ ​to​ ​CEO​ ​Email​ ​Scams

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2.​ ​Stolen​ ​credentials

If cyber crime is a fast moving wildfire across the global internet, stolen credentials are the oxygen. They are the source​ ​of​ ​80%​ ​of​ ​all​ ​data​ ​breaches.

Massive​ ​711​ ​Million​ ​Emails​ ​and​ ​Passwords​ ​Dumped​ ​and​ ​you​ ​are Probably​ ​on​ ​the​ ​List...I​ ​Was A malware researcher going by the Twitter handle, ​Benkow moʞuƎq,​ uncovered a huge stash of emails and passwords stored on an open server in The Netherlands. The stolen credentials were apparently harvested by a spambot known as, Onliner. This spambot has been used to deliver banking malware which has compromised over 100,000​ ​accounts.​​ ​[3]

Like the rest of us, executives frequently use the same username and password combinations to log in to multiple​ ​accounts.​ ​​ ​On​ ​average,​ ​most​ ​people​ ​use​ ​2​ ​-​ ​5​ ​passwords​ ​to​ ​access​ ​25​ ​accounts.

This means that once a hacker gains the credentials that At​ ​4iQ,​ ​we​ ​estimate​ ​an​ ​80%​ ​chance​ ​a unlock one site, with a little time and the right software, he or she can gain access to the executive’s other online hacker​ ​can​ ​find​ ​a​ ​password​ ​belonging accounts, including the enterprise network. This is an to​ ​the​ ​victim​ ​if​ ​​ ​3​ ​different​ ​accounts all-too-common way intellectual property, money and are​ ​able​ ​to​ ​be​ ​tested. identities​ ​are​ ​stolen,​ ​and​ ​networks​ ​are​ ​held​ ​for​ ​ransom.

After the credentials are used, accounts drained and networks ransacked, criminals usually sell (or dump) the information on the dark web for others to use. At this point, it is a “free for all” and the stolen credentials are available​ ​for​ ​anyone.​ ​​ ​It’s​ ​akin​ ​to​ ​leaving​ ​your​ ​keys​ ​in​ ​the​ ​ignition​ ​with​ ​the​ ​engine​ ​running​ ​and​ ​the​ ​doors​ ​unlocked.

Mark Zuckerberg used the same password (“dadada”, seriously) to login to his Facebook, Adobe and LinkedIn accounts. Needless to say, they were breached multiple 92%​ ​of​ ​Executives​ ​have times. The last time, he learned of it by a tweet sent by credentials​ ​Exposed hackers​ ​from​ ​his​ ​very​ ​own​ ​Twitter​ ​account.

PASSWORD DECRYPTED EMAILS BREACH/SITE ALGORITHM PASSWORD [email protected] Linkedin SHA1 dadada [email protected] MySpace SHA1 *****fee [email protected] Last.fm MD5 *****v3a [email protected] Adobe 3DES dadada [email protected] Tumblr SHA1 *****nis [email protected] Dropbox SHA1 *****325 [email protected] Fling None *****980 [email protected] VK None *****123

[email protected] Adobe 3DES dadada

[3]​ ​August​ ​30,​ ​2017.​ ​SecureYourWorkplace.net.​ ​ M​​ assive​ ​711​ ​Million​ ​Emails​ ​and​ ​Passwords​ ​Dumped​ ​and​ ​You​ ​Are​ ​Probably​ ​on​ ​the​ ​List...I​ ​was

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EXECUTIVE​ ​RISK​ ​WHITEPAPER

A​ ​Broken​ ​Circle​ ​of​ ​Trust Password​ ​Security​ ​Checklist

By analyzing hundreds of breaches and deconstructing ● Use a ​unique password for every site, or how criminals stole identities, 4iQ determined that try using a password manager like sophisticated cyber crooks monitor people close to the 1Password​ ​or​ ​LastPass. executive for clues about his or her vulnerabilities and ● Keep contact and recovery information possible​ ​attack​ ​vectors. updated.

To prevent this, 4iQ’s executive identity protection ● Turn on ​two-factor authentication.​ Be services also monitor the identities in a leader’s circle of wary, adding your cell phone number can trust, including spouses, children, close friends, make is less secure is someone knows or assistants and others. In addition to more traditional can​ ​access​ ​your​ ​phone​ ​number. methods, this protective bubble may be the best way ● If a service only supports two-factor available today to prevent a high value target from being authentication via text message, then breached. contact your phone company to put a password or PIN on your account that's For companies though, there isn’t any tactic or set of not​ ​your​ ​social​ ​security​ ​number. tactics they can adopt to thwart cyber criminals. It takes ● Check the list of apps and delete ones you a fundamentally different way of looking at cyber crime. do​ ​not​ ​need. It is a business risk, and building in safeguards and advanced monitoring into everyday operations is a necessity.​ ​​ ​Or​ ​cyber​ ​crime​ ​will​ ​be​ ​an​ ​inevitability.

Protect​ ​the​ ​Full​ ​Attack​ ​Surface

Protection​ ​from​ ​all​ ​the​ ​pieces​ ​of​ ​information​ ​from​ ​the​ ​closer​ ​Circle​ ​of​ ​Trust​ ​of​ ​the​ ​Executive

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EXECUTIVE​ ​RISK​ ​WHITEPAPER

Accidents​ ​Happen

Notwithstanding all of the attention lately on careful information security practices, hundreds of millions of files are​ ​exposed​ ​annually​ ​just​ ​by​ ​accident.

Perhaps the best (or worst) example of this occurred when a contractor for the Republican National Committee left detailed information on 200 million voters open -- by mistake -- to anyone who entered the Amazon subdomain​ ​“d​ ra-dw.​ ”​ ​The​ ​repository​ ​of​ ​1.1​ ​TB​ ​of​ ​data​ ​was​ ​not​ ​password​ ​protected​ ​and​ ​left​ ​open​ ​to​ ​download.

Personal Details of Nearly 200 Million US ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Citizens Exposed ​ ​ Sensitive personal details relating to almost 200 Million US citizens have been accidentally exposed by a marketing firm contracted by the Republican National Committee. The 1.1 terabytes of data includes birth dates, home​ ​addresses,​ ​telephone​ ​numbers​ ​and​ ​political​ ​views​ ​of​ ​nearly​ ​62%​ ​of​ ​the​ ​entire​ ​US​ ​population.​ [​​ 4]

You can bet that voter data is in the hands of hackers. 2017 also won’t forget the infamous Equifax breach where a web application flaw exposed over 143 million customer records, including names, Social Security numbers, birthdays, addresses and other personal information. While there are product security flaws and accidental exposures,​ ​there’s​ ​outright​ ​gross​ ​negligence​ ​in​ ​how​ ​sensitive​ ​information​ ​is​ ​handled​ ​at​ ​the​ ​cost​ ​of​ ​customers.

Veraz, a company in Argentina that manages Equifax consumer credit report disputes, left their online portal open with the username password combination ​“admin/admin.” In addition, the employee credentials were easily​ ​guessable,​ ​giving​ ​access​ ​to​ ​customer​ ​credit​ ​disputes.

​Ayuda!​ ​(Help!)​ ​Equifax​ ​Has​ ​My​ ​Data! All one needed to do in order to view said password was to right-click on the employee’s profile page and select “view source,” a function that displays the raw HTML code which makes up the Web site. Buried in that HTML code was​ ​the​ ​employee’s​ ​password​ ​in​ ​plain​ ​text.

A review of those accounts shows all employee passwords were the same as each user’s username. Worse still, each employee’s username appears to be nothing more than their last name, or a combination of their first initial and last name. In other words, if you knew an Equifax Argentina employee’s last name, you also could work out their​ ​password​ ​for​ ​this​ ​credit​ ​dispute​ ​portal​ ​quite​ ​easily.​ ​[5]

To make matters worse, a listing of 715 pages worth of complaints and disputes resided on the main page of the Equifax.com.ar employee portal, along with each person’s DNI records (Argentinian equivalent of the Social Security​ ​number)​ ​in​ ​plain​ ​text,​ ​exposed​ ​in​ ​over​ ​14,000​ ​records.

[4]​ ​BBC​ ​News.​ ​June​ ​19,​ ​2017.​ ​​Personal​ ​details​ ​of​ ​nearly​ ​200​ ​million​ ​US​ ​citizens​ ​exposed. [5]​ ​Brian​ ​Krebs.​ ​September​ ​17,​ ​2017.​ ​Krebs​ ​on​ ​Security.​ A​​ yuda!​ ​(Help!)​ ​Equifax​ ​Has​ ​My​ ​Data!​

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Identity breaches and leakages create significant brand cost and result in the biggest fines for regulations such as US Breach Laws, EU General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability​ ​Act​ ​of​ ​1996​ ​(HIPAA),​ ​etc.

Anthem to pay record $115 million to settle ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. lawsuits over data breach ​ ​ ​ ​ ​ ​ ​ ​ Anthem Inc, the largest U.S. health insurance company, has agreed to settle litigation over hacking in 2015 that compromised about 79 million people’s personal information for $115 million, which lawyers said would be the largest​ ​settlement​ ​ever​ ​for​ ​a​ ​data​ ​breach.​ ​​[6]

We see mistakes and oversights like these happen every day. When they do, the privacy, finances, property and, in many cases, the safety of millions can be jeopardized. Once common thread: they were the result of carelessness​ ​of​ ​contractors.​ ​​ ​Choose​ ​and​ ​monitor​ ​yours​ ​carefully.

Sent​ ​Packing

CEOs are learning that cyber risk goes well beyond their personal brand or bank account. It can impact their very “The FBI estimates that organizations livelihood. The list of CEOs and other senior executives who victimized by CEO fraud attacks lose on have been fired in part or entirely due to a cyber breach is average​ ​between​ ​$25,000​ ​and​ ​$75,000. long and growing. C-suite officials at Target, Home Depot and But some CEO fraud incidents over the Sony were all sacked, for example. Ashley Madison’s CEO past year have cost victim companies was​ ​also​ ​forced​ ​out,​ ​albeit​ ​after​ ​the​ ​site’s​ ​third​ ​leak. millions — if not tens of millions — of The harsh consequences stem from the fact that CEOs have dollars.” a fiduciary responsibility to take every reasonable step to ​ B​​ rian​ ​Krebs​, protect a company’s data, intellectual property, reputation, cybersecurity​ ​exper​t. customer lists and other assets. Shareholders, regulators and consumers​ ​demand​ ​accountability.

Under what is known as the Caremark Standard, board members may be held personally liable if they fail to ensure​ ​reasonable​ ​internal​ ​controls​ ​are​ ​in​ ​place​ ​and​ ​adequately​ ​oversee​ ​risk.

Government officials face the same consequences. Senior administration officials from Utah, Texas, Arizona and​ ​other​ ​states​ ​all​ ​lost​ ​their​ ​jobs​ ​as​ ​a​ ​result​ ​of​ ​cyber​ ​breaches.

[6]​ ​Brendan​ ​Pierson.​ ​June​ ​23,​ ​2017.​ ​Reuters.​ A​​ nthem​ ​to​ ​pay​ ​record​ ​$115​ ​million​ ​to​ ​settle​ ​U.S.​ ​lawsuits​ ​over​ ​data​ ​breach

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EXECUTIVE​ ​RISK​ ​WHITEPAPER

Spare​ ​Me

So how can a corporate leader, celebrity, sports star or other high profile person reduce the likelihood of having their​ ​identity​ ​compromised?​ ​​ ​How​ ​can​ ​they​ ​avoid​ ​inadvertently​ ​allowing​ ​the​ ​organization​ ​they​ ​lead​ ​to​ ​be​ ​hacked? It’s frightening but true: There are no guarantees. But there are steps you can take to reduce the likelihood of being a victim or unwitting accomplice to a cyber crime.For example, update software on all devices; install anti virus, personal firewall software; use complex passwords, change them often and don’t reuse them across sensitive​ ​accounts. Employers should train employees on how to avoid phishing scams and conduct random tests. The FBI recommends 81%​ ​of​ ​hacking​ ​related​ ​breaches businesses use two factor authentication wherever possible, leveraged​ ​either​ ​stolen​ ​and/or and verify significant transactions with an old fashioned phone weak​ ​passwords. call. Updated software, good password hygiene, two factor authentication – these are the usual best practices that we - 2017​ ​Verizon​​ ​Data​ ​Breach should​ ​all​ ​take​ ​advantage​ ​of. Investigations​ ​Repor​t

However, to provide an additional layer of protection, 4iQ offers executive identity protection services which notify high risk targets immediately when their credentials or personal information appear on the dark web. This unique, outside-in approach helps you stay ahead of cyber criminals and safeguard your identity and information. 4iQ scour the surface, social, deep and dark Web detecting exposed credentials and stolen data. Subject matter experts and automated crawlers monitor, analyze, authenticate and attribute breached data from the Darknet and​ ​underground​ ​communities.​ ​Real-time​ ​alerts​ ​are​ ​generated​ ​when​ ​breached​ ​data​ ​is​ ​discovered. This approach provides executives the opportunity to change their username and password combinations, update accounts, freeze credit or contact necessary firms in order to contain or prevent theft and mitigate risk from​ ​the​ ​exposed​ ​information.

20​ ​+​ ​Subject​ ​Matter​ ​Experts​ ​(SMEs)​ ​and​ ​Automatic​ ​Processing​​ ​​ [​​ Fig.​ ​1]

[Fig.1]​ ​4iQ​ ​curation​ ​and​ ​verification​ ​process

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EXECUTIVE​ ​RISK​ ​WHITEPAPER

Conclusion

Faced with personal, professional and corporate risk, what is a CEO to do? The palace wall approach -- building defenses, such as firewalls, with the hope that nobody breaks in -- is no longer enough. If your credentials are not​ ​already​ ​exposed,​ ​it’s​ ​just​ ​a​ ​matter​ ​of​ ​time​ ​before​ ​they​ ​are.

1​ ​Billion​ ​personal​ ​records​ ​and​ ​credentials​ ​​were​ ​stored​ ​online​ ​last​ ​year, giving​ ​hackers​ ​plenty​ ​of​ ​targets​ ​to​ ​choose​ ​from. - 2017​ ​Verizon​ ​Breach​ ​Report

Aside from the obvious, sensitive accounts you need to monitor and safeguard such as your banking, insurance, healthcare,​ ​credit​ ​unions,​ ​shopping,​ ​a​ ​breach​ ​to​ ​your​ ​email​ ​will​ ​give​ ​access​ ​to​ ​more​ ​than​ ​you​ ​are​ ​probably​ ​aware.

Email accounts are a single source of personal information that you can’t afford to let out. Cyber criminals can use your life events against you learned by reading your email; having a baby, getting married or divorced, accepting a new job offer, opening a new credit card, filing your taxes, etc. Not to mention, your email provides access​ ​to​ ​many​ ​of​ ​your​ ​accounts​ ​with​ ​even​ ​more​ ​rich​ ​data​ ​about​ ​you. Value​ ​of​ ​a​ ​Hacked​ ​Email​ ​Account

[Fig.2]​ ​Graphic​ ​inspired​ ​by​ ​Brian​ ​Krebs,​ ​cyber​ ​security​ ​expert

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Today, companies and executives themselves need to be more proactive. This involves active monitoring on the dark web, alerting executives as soon as their credentials have been stolen, and preventing network access when​ ​credentials​ ​have​ ​been​ ​compromised​ ​in​ ​other​ ​breaches.

“The​ ​FBI​ ​estimates​ ​that​ ​organizations​ ​victimized​ ​by​ ​CEO​ ​fraud attacks​ ​lose​ ​on​ ​average​ ​between​ ​$25,000​ ​and​ ​$75,000.​ ​But​ ​some CEO​ ​fraud​ ​incidents​ ​over​ ​the​ ​past​ ​year​ ​have​ ​cost​ ​victim​ ​companies millions​ ​—​ ​if​ ​not​ ​tens​ ​of​ ​millions​ ​—​ ​of​ ​dollars.”

- ​ Brian​​​ ​Krebs​,​ ​cybersecurity​ ​expert

Make sure your organization follows password guidelines as outlined National Institute of Standards and Technology (NIST) Special Publication 800-63B, including checks for exposed passwords in the deep and dark web.

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