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November 2018

Quarterly Incident Response Threat Report

Destructive Cyberattacks Increase Ahead of 2018 Midterm Elections

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According to the world’s top incident response (IR) professionals, politically motivated cyberattacks from nation-state actors have contributed to an ominous increase in destructive attacks: attacks that are tailored to specific targets, cause system outages, and destroy data in ways designed to paralyze an organization’s operations. Tom Kellerman, Carbon Black's Chief Cybersecurity Officer, put it this way: “These attackers aren't just committing simple burglary or even home invasion — they're arsonists.”

Despite the heightened threat, most organizations still lack the skilled security experts and don’t have the visibility they need to challenge these ever-evolving cyberattacks. And with November’s U.S. congressional elections fast approaching, at stake is not only significant financial loss, but also the trustworthiness of the country’s political institutions.

To stay abreast of the current attack landscape and to quantify the latest attack trends seen by leading IR firms, Carbon Black publishes a Quarterly Incident Response Threat Report (QIRTR). This is Carbon Black’s second quarterly report since introducing the QIRTR in July. This report aggregates qualitative and quantitative input from 37 Carbon Black IR partners. The report’s goal is to offer actionable intelligence for business and technology leaders, fueled by analysis of the newest threats, and expert insights on how to stop them.

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Our research found that today’s attackers are increasingly punitive, sophisticated and confident.

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SOME KEY FINDINGS...

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41% of investigations came out of China and Russia

These two countries made up 47 of 113 investigations done in the third quarter alone

50% of today’s attacks leverage “island hopping”

This is where attackers target organizations with the goal of accessing an affiliate’s network

38% of IR professionals saw attacks on enterprise IoT devices

This can be a point of entry to organizations’ primary networks, allowing island hopping

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Compounding the threat to elections are marketplaces on the dark web.

A network of internet content not publicly accessible, offering several election-related items for sale, including voter databases, social media influence campaigns and hackers willing to conduct espionage campaigns.

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Politically Motivated Cyberattacks Threaten Democracy

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Whether it’s for political manipulation or to gain an economic edge on their adversaries, nation state actors in today’s pressurized geopolitical landscape feel more emboldened and empowered than ever. It should come as no surprise that nearly half of all IR investigations conducted by IR firms stem from two countries: China and Russia. North Korea, Iran, and Brazil were also the origin of a significant number of investigations.

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The Top 5 Industries Most Often Targeted by Cyber Attacks

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78 %
Financial
59 %
Healthcare
43 %
Retail
41 %
Manufacturing
41 %
Professional Services
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The Dark Web and the 2018 Midterm Elections

Dark web markets and freelance websites offer a selection of resources for those wishing to conduct nefarious activities specifically relating to the 2018 midterm elections.

 

Voter Databases For Sale

Election-focused cyberattacks now pose real threats to Western political institutions. Sixty eight percent of survey respondents, among the top cybersecurity professionals in the world, believe the upcoming U.S. midterm elections will be influenced by cyberattacks. According to a Carbon Black survey gauging voter confidence, one in four voters said the fears of such attacks would make them reconsider voting. As a result, as many as 58.8 million people might simply stay home on Election Day because of cybersecurity fears.

For nation-state actors, it’s not just about directly targeting, say, voting machines — though that is certainly one viable option. Rather, attackers are looking to political propaganda operations, such as Russia’s 2016 hack of the Democratic National Committee. As one IR professional explains, “They’re doing hack and leak campaigns, targeting media providers, political parties, voter databases, they’re using social media…all to build narratives that disenfranchise potential voters and damage the reputations of democracy without having to do direct interactions, which can be riskier.”

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"No matter how many times employees are trained not to respond to these phishing attempts, a small percentage will persistently get through."

- IR Professional

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An Ominous Rise in Destructive Attacks

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As nation-state cyberattackers become more sophisticated and powerful, their attacks become increasingly destructive — our respondents said victims experienced such attacks 32% of the time. One IR professional recounts firsthand experience: “We’ve seen a lot of destructive actions from Iran and North Korea lately, where they’ve effectively wiped machines they suspect of being forensically analyzed.

The situation has been exacerbated by the fact that the cybersecurity community in the West is simply getting better at IR. “Attackers want to cover their tracks because they’re feeling the pressure from law enforcement,” one IR professional says. But there’s also a psychological element at play. The dark web respects force, and strength is demonstrated by taking destructive measures. And who’s to stop them?

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Counter Incident Response, Destruction of Logs, Lateral Movement & Secondary C2 on a Sleep Cycle

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As cyber attackers gain more access to complex tools and launch more sophisticated attacks, they find new network vulnerabilities and new ways to exploit network architectures.

Attackers’ growing sophistication is evident in the rising instances of counter-incident response, which occurred in over half (51%) of all incidents seen by respondents in the last 90 days. It’s fitting, given the destructive nature of contemporary attacks, that 72% of IR professionals saw counter IR in the form of destruction of logs.

One IR professional recounts: “We’ve seen a lot of destruction of log data, very meticulous clean-up of antivirus logs, security logs, and denying IR teams the access to data they need to investigate.” In other instances, the IR professional said attackers are also stealing network architecture diagrams to find routes in and out of an organization.

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The Top 4 Dual-Purpose Tools Facilitating Lateral Movement

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89 %
Powershell
65 %
WMI
38 %
Process Hollowing
35 %
Malicious Script Hosts
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A Growing Concern: Internet of Things (IoT)

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Today, there are more than 8.4 billion IoT devices, ranging from consumer devices like Fitbits and smart watches to enterprise devices such as security cameras, alarm systems, and thermostats. thermostats. Of late, those “things” — which often have no built-in ability to be patched remotely— have become the target of cyberattacks. In 2016, for instance, a Russian botnet called Mirai gained access to a veritable army of closed-circuit TV cameras, which led to a denial of service attack that left huge swaths of the internet inaccessible to many on the East Coast of the U.S.

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Customers
54% of IR firms said they saw attacks on consumer devices
Breach
38% of IR firms said they saw attacks on enterprise devices
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