Tale from the Dark Side

Tale from the Dark Side

Penumbrous forces wait to feed on your calamity

In this autumnal month of witchery, trickery, and general tom-ghoulery, there comes a Halloween-worthy tale disturbing enough to haunt the mind of any business owner or information technology professional. It’s a curdling tale of innocence, ignorance or naivete (you be the judge) damned by unseen yet palpable presences—veritable shadow figures lurking and preying like ghosts in the machine.

As is often the case with such tales, this one’s all the more harrowing because it’s true. Or so says Stu Sjouwerman, founder and CEO of KnowBe4, a firm that specializes in Internet security awareness training, especially for smallto medium-size enterprises.

According to Sjouwerman, the unfortunate series of events began on a day much like any other at a small company that provides a subscription service to a specialized database. The company’s network consisted of 20 workstations, an SQL server, an exchange server and a dedicated website server, all linked together by a broadband connection. Normal enough for a smallish business, right? Hold that thought. This is where the story gets weird.

The company did not have a trained IT team—rather, it had one person serving part-time in an administrative role handling IT issues. This unlucky soul was going about his day, taking care of business, when he noticed something that made his spine verily tingle: For no apparent reason, the company’s webserver suddenly started experiencing much higher levels of traffic from countries where it did not even conduct business.

His flesh creeping, the part-time administrator suspected cybercriminals had broken into the company’s network. And, unfortunately, he was right.

All Tricks, No Treats

Sjouwerman says that, upon investigating the situation, it was discovered that one of the workstations had become infected with Zeus malware after an employee clicked on a link in a phishing e-mail. All the company’s servers and a number of workstations were compromised, giving cybercriminals full access to the network. The company’s logs revealed that the webserver was being used to host an illegal music download service, and also that mischievous miscreants had installed hidden rootkits.

The disinfection of the company’s network required a frightful amount of time and expense. Sjouwerman says in a press release recounting the eerie episode that his company spent 110 billable hours correcting the problems associated with the network breach, including:

  • 10 hours to select, order, configure and install a quality firewall;
  • 20 hours to build a new webserver, upload digital backups and bring it “nearline”;
  • 25 hours to scan all servers and workstations with several anti-malware tools to locate rootkits;
  • 15 hours to wipe and rebuild Windows on all workstations to ensure removal of all rootkits;
  • 10 hours to install anti-malware software on all servers and workstations;
  • 10 hours to bring the new webserver online and debug the initial problems; and
  • 20 hours to repair things that broke during the rebuild, install drivers, bring printers back online, and so forth.

At the standard rate of $90 per hour, the total cost for the technical-service cleanup was $9,900, according to Sjouwerman. On top of that, the breached company incurred loss of both revenue and productivity during the repair and rebuild: its webserver was offline for an entire day, resulting in approximately $6,600 in lost revenue; and all of the company’s 20 employees lost at least one workday during the rebuild, at an average cost of $120 per person per day, resulting in a combined productivity loss of about $2,400. Between the outside consultant fees, lost revenue and lost productivity, this single network breach cost the company a total of $18,900. All for that one horrific click!

Grave Consequences

“Many small and medium enterprises think they’re adequately protected against security threats because they have antivirus software, but the reality is that cybercriminals can bypass that software by tricking an employee into clicking a link in a phishing e-mail,” Sjouwerman says. “Most business owners have no idea of the time and cost involved in disinfecting a workstation, let alone an entire network. [The breached company] paid nearly $20,000 to undo the damage caused by one employee’s unwitting click. Those costs would have been exponentially higher for a midsize company with a larger network. And just think how much a business stands to lose when cybercriminals use their network access to capture login information and passwords for bank accounts and other financial transactions. That’s when losses rapidly escalate into six figures.”

Sjouwerman points out that the moral to this haunted mouse tale is that such escalations need not occur.

“Our research has shown that training can reduce employees’ susceptibility to phishing attacks by 75 percent after the very first session,” he says, “and that subsequent testing and retraining can shrink the percentage to close to zero in a matter of weeks. . . . It pays to invest in cybercrime prevention training.”

Sjouwerman adds that, thanks to a free phishing security test on KnowBe4’s website, the initial part of such an investment costs nothing more than a bit of time. He encourages owners of small- and medium-size businesses to take advantage of the test (at www.knowbe4.com/phishing-securitytest/) to learn how many of their employees are Phish-prone™, or susceptible to phishing attacks. The module takes only a few minutes to complete and might well help avoid a nightmarish situation later.

This article originally appeared in the October 2011 issue of Security Today.

Featured

  • Data Driven, Proactive Response

    As cities face rising demands for smarter policing and faster emergency response, Real Time Crime Centers (RTCCs) are emerging as essential hubs for data-driven public safety. In this interview, two experts with deep field experience — Ross Bourgeois of New Orleans and Dean Cunningham of Axis Communications — draw on decades of operational, leadership and technology expertise to share how RTCCs are transforming public safety through innovation, interagency collaboration and a relentless focus on community impact. Read Now

  • Integration Imagination: The Future of Connected Operations

    Security teams that collaborate cross-functionally and apply imagination and creativity to envision and design their ideal integrated ecosystem will have the biggest upside to corporate security and operational benefits. Read Now

  • Smarter Access Starts with Flexibility

    Today’s workplaces are undergoing a rapid evolution, driven by hybrid work models, emerging smart technologies, and flexible work schedules. To keep pace with growing workplace demands, buildings are becoming more dynamic – capable of adapting to how people move, work, and interact in real-time. Read Now

  • Trends Keeping an Eye on Business Decisions

    Today, AI continues to transform the way data is used to make important business decisions. AI and the cloud together are redefining how video surveillance systems are being used to simulate human intelligence by combining data analysis, prediction, and process automation with minimal human intervention. Many organizations are upgrading their surveillance systems to reap the benefits of technologies like AI and cloud applications. Read Now

  • The Future is Happening Outside the Cloud

    For years, the cloud has captivated the physical security industry. And for good reason. Remote access, elastic scalability and simplified maintenance reshaped how we think about deploying and managing systems. But as the number of cameras grows and resolutions push from HD to 4K and beyond, the cloud’s limits are becoming unavoidable. Bandwidth bottlenecks. Latency lags. Rising storage costs. These are not abstract concerns. Read Now

New Products

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis.