ID Theft and Data Breach Mitigation Jeremy Gilbert, GCFE, GASF, EnCE, CPA

Agenda Consumer ID theft issues Data breach trends Laws and regulations Assessing and mitigating your risk

Consumer Identity Theft Issues

Consumer ID Theft Statistics ID theft up 16% in 2016 1 In 2014, IRS paid $5.8 billion in fraudulent refunds 2 Virginia: 56,000 PHI records stolen since 2016 3 1 Federal Trade Commission 2 Government Accountability Office 3 US Department of Health and Human Services Office for Civil Rights

How to Respond to ID Theft File a police report File a complaint with the FTC File form 14039 with the IRS Place fraud alert on your credit report Consider a credit freeze Dispute fraudulent accounts Contact your creditors

Personal carelessness External hackers Data breaches How Your ID is Stolen Personal carelessness External hackers Data breaches Your information is for sale Social engineering Targeting either you or someone you do business with Social engineering example

Fusion: Real Future, episode 8

The Price of Your Identity Common prices for ID information: US “Fullz” - $30 Health Insurance Credentials - $20 Bank account with $75,000 - less than $300 Date of birth - $11 Credit card account - $4 to $13 Source: Dell SecureWorks

Protecting Yourself Never re-use passwords Guard personal information Use multi-factor authentication Set account access PINs at phone and utility providers Never re-use passwords, seriously

Data Breach Trends

2015 Data Breaches Xoom: Victim of $31 million Business Email Compromise (BEC)

Anthem and Premara breaches US Office of Personnel Management Recent Data Breaches Anthem and Premara breaches 80 million and 11 million PHI records US Office of Personnel Management 21 million victims Ashley Madison Equifax 143 million “customers”

Phishing and Spear Phishing attacks Breach Methods Phishing and Spear Phishing attacks 13% of users will click on links in Phishing e-mails1 Stolen, weak, or default credentials Used in 63% of breaches 1 Verizon 2016 Data Breach Investigations Report

Point of sale intrusions/card skimmers Breach Methods Web app attacks Attacks against existing pages Hacking servers to host malicious pages Point of sale intrusions/card skimmers Used to scrape credit card data Target, Home Depot, Hilton Worldwide Insider attacks

Deliberate cyber attack Breach Methods Mistakes Accidental misdelivery Physical theft Malware Malvertising Deliberate cyber attack Industrial espionage

Cost of a Breach Average breach cost:1 Notable exceptions: Small businesses: $86,500 Large businesses: $861,000 Notable exceptions: Anthem Healthcare: $5.55 million fine Cost of Target breach: $252 million Equifax 2017 breach: estimated $300 million to $4 billion 1 Kaspersky Labs survey

Laws and Regulations

Careful With the Word “Breach” Breach has legal meaning Suggests you may have legal liability Security teams should use “Security Incident” until it’s determined a breach has occurred

Federal Laws and National Regulations HIPPA-HITECH Healthcare data (PHI) FTC Red Flags Rule Applies to financial institutions PCI-DSS Payment cards FISMA Applies to federal contractors

All vary in timing, method, and extent of notice required Virginia State Laws 48 different state laws All vary in timing, method, and extent of notice required Virginia If breach of PII is identified Must notify Virginia Attorney General and all affected Virginia residents

Assessing and Mitigating Your Risk

77% of business have suffered some form of data loss1 Assessing Your Risk 77% of business have suffered some form of data loss1 Matter of when, not if Higher risk if you handle Financial information Healthcare data 1 Kaspersky Labs survey

Information Security Lifestyle

Security Process Identify Assess Your IT Environment and understand nature of your data Understand industry and regulatory compliance requirements Perform Information Security Risk Assessment

Protect the Environment Implement Controls Based Upon Security Risk Assessment Physical Technical Administrative Assign Roles & Responsibilities for Maintaining Controls

Detect Incidents Monitoring & Event Logging Functions Automated Solutions Where Possible, But….. Tailor Alerting to Limit False Positives! We love our automated alerting systems, don’t we? Useless unless they are customized to the environment and normal system behavior.

Respond to Incidents Execution of Incident Response Plan Strong Response Capabilities Can Limit Impact Understand Specific Reporting Requirements and Key Contacts Response procedures: Target Example

Recover Recover Plans and Activities to Restore Business Services Recovery Planning Key to Organizational Resilience Work with Contracting Officers and Authorities

Additional Resources FTC Guide for Assisting Identity Theft Victims https://www.consumer.ftc.gov/articles/pdf-0119-guide-assisting-id-theft-victims.pdf FTC Consumer ID Theft Guide https://www.consumer.ftc.gov/articles/pdf-0009-taking-charge.pdf IdentityTheft.gov Experian Credit Freeze Procedures https://www.experian.com/freeze/center.html Equifax Credit Freeze Procedures https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp TransUnion Credit Freeze Procedures https://www.transunion.com/credit-freeze/place-credit-freeze TwoFactorAuth.org website https://twofactorauth.org/

ID Theft and Data Breach Mitigation Jeremy Gilbert, GCFE, GASF, EnCE, CPA Manager, DHG IT Advisory 843-727-3251