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[ Table of Contents ]
 2        Introduction

 3        The Mobile Threat Vector

 6        Botnets

 8        Controlling Information Online

10        Advanced Persistent Threats




     E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2   1
INTRODUCTION




Collaborative research, education and awareness
are required to battle advanced and large-scale botnet
attacks, mobile application exploits, and manipulation of
online information.
In the past year, we have witnessed cyber attacks of          improving human life on a global scale. As a leader
unprecedented sophistication and reach. These attacks         in cyber security research, Georgia Tech continues to
demonstrate that malicious actors have the ability to com-    develop novel, impactful solutions to important problems.
promise and control millions of computers that belong to      Atlanta is a major hub for cyber security, and many secu-
governments, private enterprises and ordinary citizens. If    rity companies rely on innovation, expertise and talent
we are going to prevent motivated adversaries from attack-    from Georgia Tech.
ing our systems, stealing our data and harming our critical
infrastructure, the broader community of security research-   Our desire for broader engagement, cooperation and
ers—including academia, the private sector and govern-        interaction with key stakeholders is necessary for combat-
ment—must work together to understand emerging threats        ing the large-scale threats we face today and keeping
and to develop proactive security solutions to safeguard      pace with constantly evolving malware. In addition, per-
the Internet and physical infrastructure that relies on it.   vasive mobile application adoption and increasing attacks
                                                              on our ability to access online information require objec-
Georgia Tech’s annual Cyber Security Summit on Oct. 11,       tive, truth-driven research to ensure integrity and trustwor-
2011 provides an opportunity for security experts from        thiness of information and interactions on the Internet.
industry, academia and government to come together
and explore the challenges we face in securing cyber and      Research projects in all these areas are currently under-
cyber-connected physical systems. By seeking to engage a      way at Georgia Tech. Further leveraging in-house
broader audience, Georgia Tech remains at the center of       research and expertise, Georgia Tech compiled the fol-
efforts to develop new technologies and strategies that are   lowing Emerging Cyber Threats Report, which includes
effective against sophisticated cyber attacks.                insight and analysis from a variety of experts from the IT
                                                              security industry, government and academia. The Report
The Georgia Institute of Technology is one of the nation’s    and the Summit provide an open forum for discussion
leading public research universities. Groundbreaking          of emerging threats, their potential impact and counter-
research is underway in dozens of labs across cam-            measures for containing them. After the summit, we invite
pus and the Georgia Tech Research Institute (GTRI).           you to learn more about our work in cyber security and
These efforts are focused on producing technology and         engage with our experts to understand and address the
innovation that will help drive economic growth, while        challenges we face in securing cyber space.


                                                              — Mustaque Ahamad, director, GTISC

                                                              — Bo Rotoloni, director, Cyber Technology and
                                                                Information Security Laboratory at GTRI




2                                     GEORGIA TECH CYBER SECURITY SUMMIT 2011
The Mobile Threat Vector—managing tensions between
usability, security and scale

Highlights:
                                                                                             on to confirm the safety of their online location. If a user does click
n Mobile applications rely increasingly on the browser,                                      a malicious link on a mobile device, it becomes easier to obfuscate
  presenting unique challenges to security in terms of usability                             the attack since the Web address bar is not visible.
  and scale.
                                                                                             The varied existence of SSL icons on mobile browsers can also
n Expect compound threats targeting mobile devices to use
                                                                                             contribute to successful exploitation. “If you’re a security expert
  SMS, e-mail and the mobile Web browser to launch an
                                                                                             and you want to see the SSL certificates for a site from your mobile
  attack, then silently record and steal data.
                                                                                             phone browser, it is extremely difficult to find that information—if
n While USB flash drives have long been recognized for their                                 it’s there at all,” said Traynor. “And if a security expert can’t verify
  ability to spread malware, mobile phones are becoming a                                    a connection and a certificate, how do we expect the average user
  new vector that could introduce attacks on otherwise-pro-                                  to avoid compromise?”
  tected systems
                                                                                             Understandably, display security on mobile browsers is not as
n Encapsulation and encryption for sensitive portions of a
                                                                                             advanced as the desktop either. The way elements are laid out
  mobile device can strengthen security.
                                                                                             on a page and the actions that take place when a user touches
                                                                                             something are all opportunities to embed an attack. According to
                                                                                             Traynor, mobile browsers are more susceptible to attacks launched
                                                                                             just by touching the display. For example, attackers will lure users
Mobile browsers present a unique challenge.
                                                                                             with attractive display content, hiding their malicious link under-
When it comes to securing mobile phones from emerging threats,                               neath a perfectly legitimate image. Once a user clicks on that
scale, usability and device constraints present some interesting                             image, it gives the attackers the ability to spy on the user and
challenges. The mobile phenomenon is still gaining momentum,                                 redirect them to a malicious payload.
with four billion mobile phones in use around the world and mobile
Internet expected to outpace desktop Internet usage by 2014.1
Today, even less expensive mobile phones come with some form
                                                                                             Mobile devices do not commonly receive
of Web browser, representing a major vulnerability that can be
                                                                                             patches and updates.
exploited by existing and emerging threats.
                                                                                             Dan Kuykendall, co-CEO and Chief Technology Officer for NT
“Mobile applications are increasingly reliant on the browser,” said                          OBJECTives also worries about threats targeting mobile applica-
Patrick Traynor, GTISC researcher and assistant professor at the                             tions and mobile browsers. “One of the biggest problems with
Georgia Tech School of Computer Science. “As a result, we expect                             mobile browsers is that they never get updated,” he said. “For most
more Web-based attacks against mobile devices to be launched in                              users, their operating system (OS) and mobile browser is the same
the coming year.”                                                                            as it was on the phone’s manufacture date. That gives the attackers
                                                                                             a big advantage.”
Tension between usability and security, along with device con-
straints make it difficult to solve mobile Web browser security flaws.                       While computers can be manually configured not to trust compro-
“The mobile vector requires special consideration when it comes to                           mised certificates or can receive a software patch in a matter of days,
security,” said Traynor. “We still need to explore the significant dif-                      it can take months to remediate the same threat on mobile devices—
ferences between mobile browsers and traditional desktop brows-                              leaving mobile users vulnerable in the meantime. The software indus-
ers to fully understand the potential of emerging threats.”                                  try needs to modify the current patch and update model to integrate
                                                                                             mobile devices for more complete coverage.
Traynor cites small screen size as just one of many device-related
challenges to mobile security. Small screens can make vulnerabili-                           Kuykendall thinks emerging threats to mobile devices will expand
ties more serious and present attackers with an opportunity. For                             and develop rapidly, similar to the explosion in Web application
example, users on a mobile browser will not see the Web address                              vulnerabilities and threats witnessed several years ago. “To keep
bar for very long. To enhance usability, the address bar disap-                              pace with market demand, the applications are being developed
pears above the screen so that more of the page content can be                               too quickly. Therefore, developers and QA teams are not validat-
displayed. But this also removes many of the visual cues users rely                          ing the data as aggressively as they should,” said Kuykendall.
                                                                                                                                              CONTINUED ON NEXT PAGE




1
    Source: http://www.digitalbuzzblog.com/2011-mobile-statistics-stats-facts-marketing-infographic/


                                                          E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2                                                   3
The Mobile Threat Vector



“They aren’t expecting attacks to come from other phones, which is        “Mobile phones are already equipped with cameras that could be
already happening, and they don’t fully recognize the vulnerabili-        used for facial recognition or iris detection, and microphones for
ties present in the back end of all the mobile applications.”             voice detection,” Schutzer said. “These technologies can strengthen
                                                                          user and device authentication and augment security practices.”
Kuykendall cites data theft as the primary goal of emerging mobile
threats and lists several scenarios already happening and expected
to continue, including:
                                                                          Implementing a strong mobile security
n Exploiting a mobile browser vulnerability to get a remote shell         program focused on encapsulation.
  that enables the attacker to remotely run commands on the
                                                                          As smartphones and tablet devices continue to blur the lines
  phone OS.
                                                                          between the professional and the personal, global corporations
n Compound threats that use SMS, e-mail and the mobile Web                such as Equifax (NYSE: EFX), one of the largest and most diverse
  browser to launch an attack, then silently record and steal data.       sources of consumer and commercial data, are implementing stron-
                                                                          ger security policies around mobile devices.

                                                                          “When it comes to mobile security, our approach is based on
Threats targeting Android and iOS are on
                                                                          encapsulation. It enables us to establish well-defined boundar-
the rise.
                                                                          ies and balance user productivity with security needs,” said Tony
Gunter Ollmann, vice president of research for Damballa notes             Spinelli, senior vice president and Chief Security Officer of Equifax.
that malware targeting mobile devices is constantly evolving. “The        “After dedicating significant time and resources to select a mobile
Zeus-in-the-Mobile (ZitMo) and several other examples of Android          phone management platform, we launched a pilot program to
malware are acting more like traditional bots by communicating            ensure complete encapsulation of mobile devices for more than
with a command-and-control (C2) architecture,” says Ollmann.              6,500 employees across the U.S. and 15 other countries.”
“This marks an evolution beyond premium rate fraud and other
tactics that do not rely on C2, and makes mobile devices as suscep-       Using this approach, Equifax encapsulates and encrypts the cor-
tible to criminal breach activity as desktops.”                           porate portion of an employee’s smartphone, and can quickly and
                                                                          remotely address a device that is compromised in any way. “We
The ZitMo attack targeted Android users in an attempt to defeat           take a layered, holistic approach to security that includes multiple
banking two-factor authentication, steal credentials, and ultimately      levels of defense,” said Spinelli. “Despite their rapid consumeriza-
money, from users’ bank accounts. Comprised of blended tech-              tion, mobile devices are no exception.”
niques, this Trojan-based attack involves phishing, social engi-
neering, intercepting SMS messages and sending authentication             Spinelli concluded, “As mobile devices become an increasingly
credentials to a remote server.                                           attractive target in the integrated economy, it is critical for orga-
                                                                          nizations to adopt a multi-faceted strategy that leverages the right
Dmitri Alperovitch, independent security expert and former vice           combination of security best practices with business technology
president of Threat Research at McAfee is also watching the mobile        requirements.”
space closely. “We’re already seeing an explosion of threats
targeting Android and the iOS platform,” he said. “These devices
will become major targets in the months ahead and are providing              Academic research serves
another avenue for data theft.”
                                                                             a marketplace need
Alperovitch continued, “Mobile phones represent a physical part              Founded in research efforts at Georgia Tech, Pindrop
of your identity. They know and can share your location, can take            Security is a telecommunication start-up that is restoring
photos and record videos. Just think of the potential for data theft if      security for aspects of telephony. Long viewed as a trusted
an attacker could remotely control these devices. With remote con-           medium, telephony is used by companies and individuals to
trol of a CEO’s mobile phone, an advanced persistent adversary               conduct important transactions. But Caller-ID and Automatic
could activate the microphone to record private negotiations.”               Number Identification can be easily manipulated leaving
                                                                             telephony transactions vulnerable to attack. Pindrop Security
On the bright side, the same mobile device features could be used to         offers a unique Caller-ID technology that authenticates callers
enhance security. Dan Schutzer, CTO of BITS, the technology policy           through the “fingerprint” of the phone call, making financial
division of The Financial Services Roundtable, believes that mobile          and other transactions over the phone more secure.
devices are more naturally suited to biometric security measures.




4                                             GEORGIA TECH CYBER SECURITY SUMMIT 2011
Mobile devices—a new vector for attacking
the network and critical systems.
One source in private industry that requested anonymity worries
that mobile phones will be a new on-ramp to planting malware on
more secure devices. “Let’s say you’ve secured a process control
system within a nuclear facility and there’s no direct connection
between that system and the corporate network,” he said. “Even
with such security measures in place, someone who just needs to
charge his phone can introduce malware as soon as it’s plugged
into a computer within that location.”

While USB flash drives have long been recognized for their ability
to spread malware, mobile phones are becoming a new vector that
could introduce attacks on otherwise-protected systems. “A phone
is also a storage device,” notes the industry insider. “I can see a
sophisticated attacker writing code to exploit wireless connectivity
technology that subsequently plants malware on a mobile phone.
Now that phone is programmed to install a dangerous payload as
soon as it connects to a targeted system.”



   Mobile browser security research efforts
   at Georgia Tech
   Georgia Tech researchers are working closely with nine
   mobile browser manufacturers to understand the differences
   between mobile and desktop browsers and the resulting
   security implications. Research efforts also include security
   reviews of nine mobile browsers to identify and remediate
   vulnerabilities that could lead to successful compromise.




                                             E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2   5
Botnets—the evolving nature of adversaries, tactics,
techniques and procedures
                                                                         their stolen data” said Ollmann. “There’s serious money involved
Highlights:
                                                                         and a highly competitive underground marketplace. You can find
n Botnet controllers build massive information profiles on their         hundreds of do-it-yourself botnet kits online, along with YouTube
  compromised users and sell the data to the highest bidder.             instructional videos, competitive reviews of the botnet tools, ads
                                                                         sponsored by DIY constructors, tutorials and more. It has all the
n Advanced persistent adversaries query botnet operators in
                                                                         trappings of a legitimate sector of the software space.”
  search of already compromised machines belonging to their
  attack targets.

n Bad guys will borrow techniques from Black Hat SEO
                                                                         Advanced persistent adversaries leverage
  to deceive current botnet defenses like dynamic
                                                                         botnets to find entry points.
  reputation systems.
                                                                         Researchers expect large-scale botnets and targeted, persistent
                                                                         attacks to share more common ground in the future as well.
                                                                         According to Georgia Tech Professor Wenke Lee, “Targeted attacks
While botnets have plagued the Internet for some time, their usage       against a specific organization used to be perceived as isolated.
in advanced persistent threats is evolving, as are the tactics,          But now we have evidence that some of these targeted attacks have
techniques and procedures for command and control. Today,                roots in common botnets.”
attacks are much more federated and the malware agents infecting
devices are tuned for a particular operating system. That means          When an operator creates a large-scale botnet, they have vari-
the command and control infrastructure for the entire botnet can         ous options for monetizing the investment. In the past, the highest
remain the same and still communicate with bots across different         bidders needed the computational power to send vast amounts of
operating systems.                                                       spam or conduct a denial of service attack. But now, advanced
                                                                         persistent adversaries query botnet operators to identify compro-
                                                                         mised machines belonging to the company or organization in
                                                                         their crosshairs. The adversary may ask the botnet operator if he
Botnet controllers build massive information
                                                                         can run some queries against the machines to determine the OS,
profiles which may become part of legitimate
                                                                         applications running, type of function they perform, etc. to gather
lead generation efforts.
                                                                         information for creating a targeted, stealthy attack with the end
“Three or more years ago, botnet operators focused on stealing           goal of data theft. In many cases, adversaries will pay top dollar
email and password credentials, which were useful to spammers,”          for the information, providing a new and extremely lucrative source
said Gunter Ollmann, vice president of research for Damballa.            of revenue for botnet operators.
“Now botnet controllers are building massive profiles on their
users, including name, address, age, sex, financial worth, relation-     Infrastructure and information sharing will also occur more regularly
ships, where they visit online, etc. They sell this information, where   between botnet operators and other malicious actors. For example,
it ultimately finds its way into legitimate lead generation channels.”   a bot master can lend or sell his malware/bot program to another
                                                                         attacker that wants to compromise the same machine for a different
Sites will buy the information stolen via botnets in bulk. The infor-    purpose. Often this requires just a small variation or extension of the
mation may exchange hands for money several times. And eventu-           original bot program, and may use part of the same command and
ally, a legitimate business may pay for the information for lead         control infrastructure. The same theory works in reverse as a mali-
generation purposes, not realizing that it has been stolen. In some      cious actor can sell a successful targeted exploit to a bot operator.
cases, a company might pay $20 -$30 for a qualified lead. Botnets
can also play a role in auto-filling forms online that are used to
compile lists for marketing purposes. The botnets already have all
                                                                         Botnet command and control architecture
the personal information necessary to fill out the forms, and botnet
                                                                         is becoming decentralized.
operators can devise an automated process resulting in a sophisti-
cated fraud scam that is difficult to detect and prosecute.              While botnets are still responsible for some of the largest DDoS
                                                                         attacks to date (generating > 100 Gbps of traffic), security experts
“The botnet scams are still big business, and operators are com-         will focus on evolution of botnet command and control architecture
ing up with more elaborate fraud systems to increase the value of        in the year ahead.




6                                             GEORGIA TECH CYBER SECURITY SUMMIT 2011
“I think the evolution of botnets has more to do with the Command               to a pay-per-install company in the criminal ecosystem to infect as
and Control (C2) architecture than the size of the attacks being                many machines as possible. To increase its own profits, the pay-
launched,” said Barry Hensley, director of the Counter Threat Unit/             per-install company will attempt to install more than one piece of
Research Group at Dell SecureWorks. “We are starting to see a                   malware. As a result, Damballa found that more than 40 percent of
decentralized C2 architecture, namely Peer-to-Peer. Since IRC and               compromised devices have two or more external entities control-
HTTP C2 infrastructure still work well for bot operators, P2P is not            ling them. “This makes remediation difficult as users may receive
yet widely implemented. Once the security space starts making an                varying advice for cleaning up their machines based on the type of
impact and decreasing the effectiveness of those two protocols,                 malware,” said Ollmann.
we’ll start to see botnet operators shift toward P2P and DNS. Until
then, they’ll just use what works.”



Increased botnet take-downs and 64-bit
computing can help.
On the positive front, botnet take-downs appear to be more com-
mon. “These efforts represent an evolution in the security commu-
nity,” said Paul Royal, research scientist at Georgia Tech. “As highly
motivated security professionals come together for a common cause,
we expect to see more take-downs in the year ahead.”

Royal also cites the identification and arrest of malware authors as a
positive step in combatting the problem. “Taking away the criminal
underground’s human capital can be very effective,” said Royal.
“However, the security community is facing new ethical concerns
related to take-downs that may threaten collaboration.”

Royal referred to the trust required to share information about com-
promised machines when part of concerted take-down operations.
“Unfortunately, some organizations will take defensive information
gathered as part of take-down efforts and turn it into offensive infor-
mation about compromised machines, which can be sold or shared
with interested parties. This practice may discourage some individu-
als from participating in take-down efforts moving forward.”

Royal does see some promising security advantages for combatting
botnets inherent in the transition from 32-bit to 64-bit computing. “Data
Execution Prevention (DEP) and Address Space Layout Randomization
(ASLR) are both good for battling exploits, and both are better utilized
with 64-bit computing,” he said. “DEP stops what should be data from
executing as code. And even if malicious code is downloaded, ASLR
makes it harder for threats to reach the final stage.”

But the security community is still up against a serious threat when it
comes to botnets. “Present defenses involve blacklisting IP addresses,
Web filtering techniques and dynamic reputation systems,” said
Ollmann. “A new battle front is opening up, and the bad guys will
borrow techniques from Black Hat SEO to deceive dynamic repu-
tation systems, similar to how they are subverting page ranking
techniques used by search engines.”

Pay-per-install malware will also continue to plague users. In this sce-
nario, bot agent malware is developed. Then the creator subscribes




                                                E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2                                            7
Controlling Information Online—a new frontier
in information security
                                                                         Malicious actors try to influence search
Highlights:                                                              engine algorithms for their own benefit.
n Security researchers are currently debating whether person-            According to Greg Conti, associate professor of computer science
  alization online could become a form of censorship.                    at West Point, in the digital age, propaganda and censorship have
                                                                         become automated processes. He suggests applying critical ques-
n Attackers are performing search engine optimization to
                                                                         tions to information online, including:
  help their malicious sites rank highly in search results.

n The trend in compromised certificate authorities exposes               n   Who controls the flow?
  numerous weaknesses in the overall trust model for                     n   Who can alter the flow?
  the Internet.                                                          n   Who restricts consumption?
                                                                         n   Is there surveillance?
                                                                         n   Is there the perception of surveillance?

The control of information delivered to online users continues to        “The original idea of browsing the Web from site to site without a
be a complex security challenge. “In addition to trust and privacy,      global search capability didn’t scale,” said Conti. “Now we have
the lack of transparency concerning how governments and Internet         search engines like Google with tremendous control over the flow
Service Providers (ISPs) prioritize traffic is a serious threat,” said   of information. Actors are trying to influence the largely neutral
Nick Feamster, associate professor in the College of Computing at        search engine algorithms for their own benefit using search engine
Georgia Tech. Feamster studies Internet-based control of information     optimization and search poisoning techniques.”
along a spectrum, ranging from overt blocking of content, to mali-
cious manipulation, to selective censorship and filtering, to attempts   While search poisoning has been around for years, it is still an
to manipulate Internet performance at the ISP level.                     effective technique for launching malware. In a recent 2011 cam-
                                                                         paign, increasing numbers of Google image search results were
“When performance is degraded, a service is unavailable, or infor-       poisoned, redirecting users either to an exploit kit or rogue AV
mation is inaccessible, it is difficult for users to determine whether   sites. Attackers compromised large numbers of legitimate sites and
the root cause is an unintentional performance issue or overt censor-    users had only to click on thumbnail images to launch the exploit.
ship,” said Feamster. “Even examples that seem fairly innocuous
can have serious impacts when it comes to opinion shaping and            “The online world obfuscates where information comes from and
spreading misinformation.”                                               provides ample opportunity to manipulate information before
                                                                         a user receives it,” said Wenke Lee, professor in the College of
                                                                         Computing at Georgia Tech. “Search poisoning and index poison-
                                                                         ing are just two examples of attackers taking advantage of this
Does personalization online present a risk?
                                                                         situation to launch malware.”
Security researchers are currently debating whether personaliza-
tion online could become a form of censorship. Websites, news            In a typical search poisoning scenario, a user searches a term then
media sites, social networking sites and advertisers are all sharing     clicks a particular link from among the search results. They are
personal data about individuals with the goal of more effectively        redirected multiple times and eventually land on a page with no rel-
targeting information for those individuals. For example, a news         evance to the original search, which is used as a vector to deliver
media website might highlight several articles under the heading         malware. Attackers are doing their own search engine optimization
“Recommended for You” based on age, ethnicity, location, profes-         to try to get their malicious sites to rank highly in search results.
sion and items searched previously. If a user only received news         Malicious sites are also getting better at hiding their bad payloads
under this heading, it could be limiting. The same principle holds       from the search engine crawlers. If they detect a crawler, they will
for search engines that filter results according to algorithms that      present a clean Web page to remain undetected.
factor a user’s personal information.

“You may have the impression that search engines are neutral con-
duits, but the results you receive could present a restricted world-
view,” said Feamster. “In the case of search filtering, most users are
completely unaware and have no method to widen search results
beyond what the engine supplies.”




8                                            GEORGIA TECH CYBER SECURITY SUMMIT 2011
Combination attacks affecting DNS service
                                                                                        In addition to new sophisticated Domain Name System (DNS) and
providers and certificate authorities are
                                                                                        certificate authority-based threats, Hensley noted several recent
especially dangerous.
                                                                                        examples of Distributed Denial of Service (DDoS) attacks and
With the goal of controlling and monitoring information (as well as                     nation-state sponsored actions that prevented access to information
stealing data), hackers will develop combination attacks that affect                    online, including:
DNS service providers and compromise certificate authorities.
                                                                                        n Large-scale protests coordinated via social media in Libya, Iran,
These sophisticated, effective threats will be increasingly difficult
                                                                                          Bahrain, Algeria, Jordan, Yemen and Egypt, causing nation-states
to detect and will obviate the need for attackers to place a “man
                                                                                          to disrupt Internet service or drop from the Internet entirely.1
in the middle.” Even security-conscious users will not be able to
tell if they are on a malicious site if DNS provisioning systems are                    n DDoS attacks against various South Korean government and
compromised. And if stolen certificate authorities are employed,                          business sites.2
attackers can create fake banking applications and more to control
                                                                                        n DDoS attacks against various Burmese government opposition
access to information, steal personal data and money.
                                                                                          sites mark third anniversary of Saffron Revolution.3
Barry Hensley, director of the Counter Threat Unit at Dell
SecureWorks, cites the 2011 DigiNotar Certificate Authority (CA)                        While the techniques used to mount these attacks are not new,
breach as a manipulation of security controls with the intent of                        security researchers expect the Internet and control of informa-
controlling and monitoring private citizens’ information. In the case                   tion online to be a pawn in future conflicts. According to Hensley,
of DigiNotar, a hacker going by the handle of “COMODOHacker”                            “Over the past year, hacktivism has been center stage. SQL
seized control of CA servers, created fraudulent certificates and used                  injection and DDoS attacks continue to be the tools of choice for
them to execute “man-in-the-middle” attacks against hundreds of thou-                   these groups, many of whom are masters at disinformation and the
sands of victims. The scheme enabled the hacker to access Iranian                       creation of alternative profiles and groups.”
Gmail users’ messages and monitor much of their Internet traffic.
                                                                                        Recent Internet-driven protests in Libya and Egypt also suggest that
“The recent DigiNotar breach associated with a compromised cer-                         disinformation could play a bigger role in future political conflicts.
tificate authority had the ultimate goal of controlling and monitoring
information,” said Hensley. “The trend in compromised certificate
authorities exposes numerous weaknesses in the overall trust model
for the Internet, especially considering the only remediation to the
DigiNotar breach was to revoke all compromised certificates.”



     Attempts to understand the effects of search engine filtering and personalization
     Researchers at Georgia Tech are currently studying the effects of personalization online search filtering. As part of this research,
     security experts are attempting to build an infrastructure that will provide a normalized, aggregated view of search results with all
     personalization for the user stripped out.




1
    Source: http://www.nytimes.com/2010/02/11/world/middleeast/11tehran.html; http://www.zdnet.com/blog/igeneration/egypt-shuts-down-internet-amid-further-protests-
    facebook-web-traffic-drops/7915; http://www.telegraph.co.uk/news/worldnews/africaandindianocean/algeria/8320772/Algeria-tried-to-block-internet-and-Facebook-as-
    protest-mounted.html
2
    Source: http://www.infosecurity-us.com/view/16387/south-korean-government-agencies-hit-by-ddos-attacks/
3
    Source: http://www.movements.org/blog/entry/cyber-attacks-cripple-independent-burmese-media-sites/


                                                        E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2                                                     9
Advanced Persistent Threats and the Intersection
 of Cyber Threats with Physical and Critical Infrastructure
                                                                            “Operation Aurora, Night Dragon and Shady Rat are all examples
 Highlights:
                                                                            of critical industries being victimized by targeted, persistent cyber
 n Advanced persistent threats will adapt to security measures              attacks,” said Dmitri Alperovitch, independent security expert. “The
   until malicious objectives are achieved.                                 adversaries behind these attacks were able to exfiltrate design sche-
                                                                            matics and sensitive field negotiations for new oil and gas explora-
 n Human error, lack of user education and weak passwords
                                                                            tion. These represent a company’s crown jewels and their exposure
   are still major vulnerabilities.
                                                                            has strongly impacted CEO and CIO perspectives on security.”
 n Cloud computing and computer hardware may present new
   avenues of attack, with all malware moving down the stack.               Alperovitch described what’s involved in creating sophisticated
                                                                            threats like Stuxnet, “These threats are strategic in nature,” he
 n Large, flat networks with perimeter defenses at the Internet
                                                                            said. “They require a high level of sophistication far beyond the
   ingress/egress point break down quickly in the face of
                                                                            rudimentary skills of hacktivists. Since the goal is to remain covert,
   advanced persistent threats.
                                                                            they must involve a lot of testing resources to obfuscate the source
                                                                            of the attack.”

 Last year’s Stuxnet worm is the most publicized example of an
 advanced persistent cyber threat adversely impacting a physical
                                                                            A single APT exploitation can plague an
 system. But security researchers agree that cyber industrial warfare
                                                                            organization for months or even years.
 is the wave of the future—driven by advanced persistent adversar-
 ies and well-funded nation states.                                         But attack sophistication largely depends on the security of the
                                                                            selected target. If an attack on critical infrastructure or corporate
                                                                            data theft can be accomplished via traditional phishing and com-
                                                                            mon exploit kits, adversaries will not use advanced techniques. The
 The advanced persistent threat—not a what,
                                                                            term, “advanced persistent threat” is also misused or confused with
 but a who?
                                                                            Hacktivists attempting to change industry or government behavior
 “The Advanced Persistent Threat (APT) buzzword has become the              via organized cyber activity—typically denial-of-service campaigns
 most overused and misunderstood acronym in the IT security com-            or the posting of compromised sensitive data designed to publicly
 munity” said Barry Hensley, Director of the Counter Threat Unit/           embarrass an organization or cripple operations.
 Research Group for Dell SecureWorks. “An APT is not characterized
 by the sophistication of an adversary’s malware. Rather, it pertains       “The tools, procedures and other controls used to defend commod-
 to the threat actor’s determination and the resources he is willing to     ity security threats are often ineffective against targeted APTs,” said
 expend to achieve his objectives. It’s not a what, but a who?”             Hensley. “When actors are focused on a specific target, they custom-
                                                                            ize and adapt their tactics, techniques and procedures to predict and
 “When a person or group has the required cognitive abilities and           circumvent security controls and standard incident responses.”
 resources at their disposal, and applies them with the singular aim
 of obtaining intellectual property, intelligence or personally identifi-   According to Hensley, an organization can be plagued by a single
 able information, it changes the game,” said Hensley. “It means the        APT exploitation for months or years—even after it is aware of the
 threat can and will adapt to your security posture until its objectives    effort. The incident response drags on as threat actors continually
 are achieved or the cost of the operation outweighs the perceived          respond to defensive measures and look for new security weak-
 value of the target.”                                                      nesses. “Advanced persistent actors have clear objectives with cen-
                                                                            tralized planning and often decentralized execution,” said Hensley.
 While governments are important targets for espionage and intelli-         “These adversaries are highly resourced, methodical, adaptive,
 gence gathering, computer systems, corporations and critical infra-        resilient, advanced enough and clearly patient.”
 structure are also attractive, high-value targets. Some nation-state
 sponsored attacks are targeting corporations specifically for their
 intellectual property, sensitive business negotiations and national
 security designs and technology.




10                                             GEORGIA TECH CYBER SECURITY SUMMIT 2011
Users continue to be a common and
                                                                                the supply chain from beginning to end,” said Andrew Howard,
hard-to-remediate weak point in security.
                                                                                research scientist at GTRI. “20 years ago when power stations
With such high stakes, critical infrastructure must remain highly               weren’t IP-enabled, that may have been less of a concern. But now
alert with multiple layers of defense and constant user education.              that we’re phasing out legacy hardware for newer equipment that
“In the military, you’re taught that in a defensive position, you               is connected to the Internet, it could open up a vulnerability to
have a three-to-one advantage over an attacker,” said Greg Conti,               something like Stuxnet.”
associate professor of computer science at West Point. “But in
security, it’s the opposite. The attacker has nearly a thousand-to-one          While critical infrastructure threats most often conjure images of an
advantage. We have to assume that a determined adversary can                    attack on the power grid, GTRI and other security experts note that
overcome the defender, it is just a matter of how long it will take.”           the financial infrastructure is also an attractive target, particularly
                                                                                for advanced persistent adversaries. As society continues to move
Unfortunately, end users tend to be the most common and hard-to-                away from cash, an attack on the credit card exchange system
remediate weak point, and even security researchers struggle to                 could cause a panic and erode trust in the financial system.
address the problem. “You can’t patch users,” said Conti. “And
there’s always a human being somewhere behind the security
technology.”
                                                                                Experts believe the cyber vector is a new
                                                                                force multiplier in nation-state conflicts.
One source working in critical infrastructure agrees, “People are
always the most vulnerable part of the IT infrastructure,” he said.             Experts agree that a cyber conflict with physical ramifications out-
“We have so many security layers and defenses, from separating                  side of a traditional kinetic conflict is unlikely. But they also believe
physical control systems from the standard business network, to                 the cyber vector is a new force multiplier in nation-state conflicts.
DMZs, to limiting network protocols that communicate with physical              Whether APTs are targeting infrastructure, corporations or govern-
systems, and securing all the primary UIs to the Internet. At the end           ments, there is a strong need for public/private collaboration to
of the day, there’s a person on the end of all that security that can           improve security.
make decisions that will have an impact.”                                                                                           CONTINUED ON NEXT PAGE




The cloud complicates traditional                                                   GTRI leads implementation of the
security defenses.                                                                  Homeland Open Security Technology
                                                                                    (HOST) program
Some of the other concerns surrounding emerging threats to critical
infrastructure and business in general include the move to cloud com-               The U.S. Department of Homeland Security (DHS) Science
puting, the transition from IPv4 to IPv6, computing monocultures and                and Technology (S&T) Directorate named the Georgia Tech
hardware supply chains. Cloud computing is still relatively ill-defined             Research Institute (GTRI) to lead implementation efforts for the
yet highly complex, presenting a giant target for adversaries.                      five-year, $10 million Homeland Open Security Technology
                                                                                    (HOST) program. The HOST program investigates open
“The cloud complicates today’s traditional defensive techniques,”                   source and open cyber security methods, models and tech-
said Hensley. “A threat actor could build infrastructure in the                     nologies to identify viable and sustainable approaches that
cloud using highly available on-line developer tools, then use it to                support national cyber security objectives.
command-and-control exploited computers by hiding in what we
thought was benign traffic.”                                                        “The collaborative nature of open source and open technolo-
                                                                                    gies provide unique technical and economic value, and
Computer hardware may be another frontier for emerging threats.                     opportunities for government users,” said Joshua Davis,
“We’re seeing a current trend with all malware moving down the                      associate division head at GTRI’s Cyber Technology and
stack,” said Alperovitch. “Threats are becoming embedded in                         Information Security Laboratory and principal investigator for
hardware. There are threats that modify the basic input/output                      the HOST program.
system (BIOS), embed themselves in firmware and persist outside
the operating system. We will need new hardware and software                        GTRI is leading HOST efforts in conjunction with the Open
approaches to combat this problem.”                                                 Technology Research Consortium (OTRC), a collaborative
                                                                                    network of leading academic research institutions, industry
Researchers with the Georgia Tech Research Institute (GTRI) agree                   partners and open source community organizations that work
that the hardware supply chain presents a risk. “No one controls                    to promote the advancement of open source software adop-
                                                                                    tion within government agencies.




                                                E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2                                                   11
Advanced Persistent Threats



 “Enhanced situational awareness based on reliable threat intelli-         “A compartmentalized approach to network architecture is better
 gence is critical to forming effective defense strategies against these   for defending and detecting APTs. Important assets and externally
 advanced threat actors. Without a thorough understanding of the           facing user populations should be placed in separate enclaves with
 threat, defensive strategies and spending will be inefficient at best     additional security controls,” said Hensley.
 and ineffective at worst,” said Hensley.
                                                                           “Cybercrime is growing and evolving rapidly across all spectrums,
 Hensley advocates a layered security process and controls, continu-       including APTs, fake antivirus, phishing, identity theft, mobile
 ously applied and updated based on ongoing visibility of evolving         threats and fraud,” said Hensley. “At the same time, we still see
 threats. Security processes and controls should include vulnerability     successful attacks which exploit weak or default passwords, such
 lifecycle management, endpoint protection, intrusion detection/pre-       as Morto, Stuxnet and Conflicker. We need a national awareness
 vention systems, firewalls, logging visibility, network visibility and    campaign to highlight how critical the situation really is. Even home
 security training.                                                        users are today’s citizen soldiers as their complacency may contrib-
                                                                           ute to a greater national vulnerability.”
 “Network architecture does matter,” said Hensley. “While large,
 flat networks with perimeter defenses at the Internet ingress/egress
 point are common, this model breaks down quickly in the face of
 an APT. Once an APT gets a foothold, the interior of the network is
 highly vulnerable to additional attack stages.”




 [ Georgia Tech Emerging Cyber Threats Report 2012 Contributors ]
     Dr. Mustaque Ahamad                                                    Dan Kuykendall
     Director of the Georgia Tech Information Security Center (GTISC)       Co-CEO and Chief Technology Officer for NT OBJECTives

     Dmitri Alperovitch                                                     Dr. Wenke Lee
     Independent Security Expert                                            Professor, Georgia Tech College of Computing

     Dr. Gregory Conti                                                      Gunter Ollmann
     Associate Professor, Department of Electrical Engineering and          Vice President of Research at Damballa
     Computer Science, United States Military Academy
                                                                            Bo Rotoloni
     Joshua Davis                                                           Director, Cyber Technology and Information Security Laboratory
     Associate Division Head, Cyber Technology and Information              (CTISL) at GTRI
     Security Laboratory (CTISL) at GTRI
                                                                            Paul Royal
     Dr. Richard DeMillo                                                    Research Scientist, Georgia Tech Information Security Center
     Director of the Center for 21st Century Universities (C21U)            (GTISC)
     and Professor of Computer Science, Georgia Tech College
     of Computing                                                           Dan Schutzer
                                                                            CTO of BITS, the technology policy division of The Financial
     Dr. Nick Feamster                                                      Services Roundtable
     Assistant Professor, Georgia Tech College of Computing
                                                                            Christopher Smoak
                                                                                                                                                   Repor t Des igned B y Ed ward Th arp De sign er




     Dr. Barry Hensley                                                      Research Scientist, Cyber Technology and Information Security
     Director of the Counter Threat Unit/Research Group for Dell            Laboratory (CTISL)
     SecureWorks
                                                                            Tony Spinelli
     Andrew Howard                                                          Senior Vice President and Chief Security Officer for Equifax, Inc.
     Research Scientist, Associate Division Head, Cyber Technology and
     Information Security Laboratory (CTISL) at GTRI                        Dr. Patrick Traynor
                                                                            Assistant Professor, Georgia Tech College of Computing



12                                             GEORGIA TECH CYBER SECURITY SUMMIT 2011
Emerging cyber threats_report2012
Emerging cyber threats_report2012

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Emerging cyber threats_report2012

  • 1.
  • 2.
  • 3. [ Table of Contents ] 2 Introduction 3 The Mobile Threat Vector 6 Botnets 8 Controlling Information Online 10 Advanced Persistent Threats E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2 1
  • 4. INTRODUCTION Collaborative research, education and awareness are required to battle advanced and large-scale botnet attacks, mobile application exploits, and manipulation of online information. In the past year, we have witnessed cyber attacks of improving human life on a global scale. As a leader unprecedented sophistication and reach. These attacks in cyber security research, Georgia Tech continues to demonstrate that malicious actors have the ability to com- develop novel, impactful solutions to important problems. promise and control millions of computers that belong to Atlanta is a major hub for cyber security, and many secu- governments, private enterprises and ordinary citizens. If rity companies rely on innovation, expertise and talent we are going to prevent motivated adversaries from attack- from Georgia Tech. ing our systems, stealing our data and harming our critical infrastructure, the broader community of security research- Our desire for broader engagement, cooperation and ers—including academia, the private sector and govern- interaction with key stakeholders is necessary for combat- ment—must work together to understand emerging threats ing the large-scale threats we face today and keeping and to develop proactive security solutions to safeguard pace with constantly evolving malware. In addition, per- the Internet and physical infrastructure that relies on it. vasive mobile application adoption and increasing attacks on our ability to access online information require objec- Georgia Tech’s annual Cyber Security Summit on Oct. 11, tive, truth-driven research to ensure integrity and trustwor- 2011 provides an opportunity for security experts from thiness of information and interactions on the Internet. industry, academia and government to come together and explore the challenges we face in securing cyber and Research projects in all these areas are currently under- cyber-connected physical systems. By seeking to engage a way at Georgia Tech. Further leveraging in-house broader audience, Georgia Tech remains at the center of research and expertise, Georgia Tech compiled the fol- efforts to develop new technologies and strategies that are lowing Emerging Cyber Threats Report, which includes effective against sophisticated cyber attacks. insight and analysis from a variety of experts from the IT security industry, government and academia. The Report The Georgia Institute of Technology is one of the nation’s and the Summit provide an open forum for discussion leading public research universities. Groundbreaking of emerging threats, their potential impact and counter- research is underway in dozens of labs across cam- measures for containing them. After the summit, we invite pus and the Georgia Tech Research Institute (GTRI). you to learn more about our work in cyber security and These efforts are focused on producing technology and engage with our experts to understand and address the innovation that will help drive economic growth, while challenges we face in securing cyber space. — Mustaque Ahamad, director, GTISC — Bo Rotoloni, director, Cyber Technology and Information Security Laboratory at GTRI 2 GEORGIA TECH CYBER SECURITY SUMMIT 2011
  • 5. The Mobile Threat Vector—managing tensions between usability, security and scale Highlights: on to confirm the safety of their online location. If a user does click n Mobile applications rely increasingly on the browser, a malicious link on a mobile device, it becomes easier to obfuscate presenting unique challenges to security in terms of usability the attack since the Web address bar is not visible. and scale. The varied existence of SSL icons on mobile browsers can also n Expect compound threats targeting mobile devices to use contribute to successful exploitation. “If you’re a security expert SMS, e-mail and the mobile Web browser to launch an and you want to see the SSL certificates for a site from your mobile attack, then silently record and steal data. phone browser, it is extremely difficult to find that information—if n While USB flash drives have long been recognized for their it’s there at all,” said Traynor. “And if a security expert can’t verify ability to spread malware, mobile phones are becoming a a connection and a certificate, how do we expect the average user new vector that could introduce attacks on otherwise-pro- to avoid compromise?” tected systems Understandably, display security on mobile browsers is not as n Encapsulation and encryption for sensitive portions of a advanced as the desktop either. The way elements are laid out mobile device can strengthen security. on a page and the actions that take place when a user touches something are all opportunities to embed an attack. According to Traynor, mobile browsers are more susceptible to attacks launched just by touching the display. For example, attackers will lure users Mobile browsers present a unique challenge. with attractive display content, hiding their malicious link under- When it comes to securing mobile phones from emerging threats, neath a perfectly legitimate image. Once a user clicks on that scale, usability and device constraints present some interesting image, it gives the attackers the ability to spy on the user and challenges. The mobile phenomenon is still gaining momentum, redirect them to a malicious payload. with four billion mobile phones in use around the world and mobile Internet expected to outpace desktop Internet usage by 2014.1 Today, even less expensive mobile phones come with some form Mobile devices do not commonly receive of Web browser, representing a major vulnerability that can be patches and updates. exploited by existing and emerging threats. Dan Kuykendall, co-CEO and Chief Technology Officer for NT “Mobile applications are increasingly reliant on the browser,” said OBJECTives also worries about threats targeting mobile applica- Patrick Traynor, GTISC researcher and assistant professor at the tions and mobile browsers. “One of the biggest problems with Georgia Tech School of Computer Science. “As a result, we expect mobile browsers is that they never get updated,” he said. “For most more Web-based attacks against mobile devices to be launched in users, their operating system (OS) and mobile browser is the same the coming year.” as it was on the phone’s manufacture date. That gives the attackers a big advantage.” Tension between usability and security, along with device con- straints make it difficult to solve mobile Web browser security flaws. While computers can be manually configured not to trust compro- “The mobile vector requires special consideration when it comes to mised certificates or can receive a software patch in a matter of days, security,” said Traynor. “We still need to explore the significant dif- it can take months to remediate the same threat on mobile devices— ferences between mobile browsers and traditional desktop brows- leaving mobile users vulnerable in the meantime. The software indus- ers to fully understand the potential of emerging threats.” try needs to modify the current patch and update model to integrate mobile devices for more complete coverage. Traynor cites small screen size as just one of many device-related challenges to mobile security. Small screens can make vulnerabili- Kuykendall thinks emerging threats to mobile devices will expand ties more serious and present attackers with an opportunity. For and develop rapidly, similar to the explosion in Web application example, users on a mobile browser will not see the Web address vulnerabilities and threats witnessed several years ago. “To keep bar for very long. To enhance usability, the address bar disap- pace with market demand, the applications are being developed pears above the screen so that more of the page content can be too quickly. Therefore, developers and QA teams are not validat- displayed. But this also removes many of the visual cues users rely ing the data as aggressively as they should,” said Kuykendall. CONTINUED ON NEXT PAGE 1 Source: http://www.digitalbuzzblog.com/2011-mobile-statistics-stats-facts-marketing-infographic/ E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2 3
  • 6. The Mobile Threat Vector “They aren’t expecting attacks to come from other phones, which is “Mobile phones are already equipped with cameras that could be already happening, and they don’t fully recognize the vulnerabili- used for facial recognition or iris detection, and microphones for ties present in the back end of all the mobile applications.” voice detection,” Schutzer said. “These technologies can strengthen user and device authentication and augment security practices.” Kuykendall cites data theft as the primary goal of emerging mobile threats and lists several scenarios already happening and expected to continue, including: Implementing a strong mobile security n Exploiting a mobile browser vulnerability to get a remote shell program focused on encapsulation. that enables the attacker to remotely run commands on the As smartphones and tablet devices continue to blur the lines phone OS. between the professional and the personal, global corporations n Compound threats that use SMS, e-mail and the mobile Web such as Equifax (NYSE: EFX), one of the largest and most diverse browser to launch an attack, then silently record and steal data. sources of consumer and commercial data, are implementing stron- ger security policies around mobile devices. “When it comes to mobile security, our approach is based on Threats targeting Android and iOS are on encapsulation. It enables us to establish well-defined boundar- the rise. ies and balance user productivity with security needs,” said Tony Gunter Ollmann, vice president of research for Damballa notes Spinelli, senior vice president and Chief Security Officer of Equifax. that malware targeting mobile devices is constantly evolving. “The “After dedicating significant time and resources to select a mobile Zeus-in-the-Mobile (ZitMo) and several other examples of Android phone management platform, we launched a pilot program to malware are acting more like traditional bots by communicating ensure complete encapsulation of mobile devices for more than with a command-and-control (C2) architecture,” says Ollmann. 6,500 employees across the U.S. and 15 other countries.” “This marks an evolution beyond premium rate fraud and other tactics that do not rely on C2, and makes mobile devices as suscep- Using this approach, Equifax encapsulates and encrypts the cor- tible to criminal breach activity as desktops.” porate portion of an employee’s smartphone, and can quickly and remotely address a device that is compromised in any way. “We The ZitMo attack targeted Android users in an attempt to defeat take a layered, holistic approach to security that includes multiple banking two-factor authentication, steal credentials, and ultimately levels of defense,” said Spinelli. “Despite their rapid consumeriza- money, from users’ bank accounts. Comprised of blended tech- tion, mobile devices are no exception.” niques, this Trojan-based attack involves phishing, social engi- neering, intercepting SMS messages and sending authentication Spinelli concluded, “As mobile devices become an increasingly credentials to a remote server. attractive target in the integrated economy, it is critical for orga- nizations to adopt a multi-faceted strategy that leverages the right Dmitri Alperovitch, independent security expert and former vice combination of security best practices with business technology president of Threat Research at McAfee is also watching the mobile requirements.” space closely. “We’re already seeing an explosion of threats targeting Android and the iOS platform,” he said. “These devices will become major targets in the months ahead and are providing Academic research serves another avenue for data theft.” a marketplace need Alperovitch continued, “Mobile phones represent a physical part Founded in research efforts at Georgia Tech, Pindrop of your identity. They know and can share your location, can take Security is a telecommunication start-up that is restoring photos and record videos. Just think of the potential for data theft if security for aspects of telephony. Long viewed as a trusted an attacker could remotely control these devices. With remote con- medium, telephony is used by companies and individuals to trol of a CEO’s mobile phone, an advanced persistent adversary conduct important transactions. But Caller-ID and Automatic could activate the microphone to record private negotiations.” Number Identification can be easily manipulated leaving telephony transactions vulnerable to attack. Pindrop Security On the bright side, the same mobile device features could be used to offers a unique Caller-ID technology that authenticates callers enhance security. Dan Schutzer, CTO of BITS, the technology policy through the “fingerprint” of the phone call, making financial division of The Financial Services Roundtable, believes that mobile and other transactions over the phone more secure. devices are more naturally suited to biometric security measures. 4 GEORGIA TECH CYBER SECURITY SUMMIT 2011
  • 7. Mobile devices—a new vector for attacking the network and critical systems. One source in private industry that requested anonymity worries that mobile phones will be a new on-ramp to planting malware on more secure devices. “Let’s say you’ve secured a process control system within a nuclear facility and there’s no direct connection between that system and the corporate network,” he said. “Even with such security measures in place, someone who just needs to charge his phone can introduce malware as soon as it’s plugged into a computer within that location.” While USB flash drives have long been recognized for their ability to spread malware, mobile phones are becoming a new vector that could introduce attacks on otherwise-protected systems. “A phone is also a storage device,” notes the industry insider. “I can see a sophisticated attacker writing code to exploit wireless connectivity technology that subsequently plants malware on a mobile phone. Now that phone is programmed to install a dangerous payload as soon as it connects to a targeted system.” Mobile browser security research efforts at Georgia Tech Georgia Tech researchers are working closely with nine mobile browser manufacturers to understand the differences between mobile and desktop browsers and the resulting security implications. Research efforts also include security reviews of nine mobile browsers to identify and remediate vulnerabilities that could lead to successful compromise. E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2 5
  • 8. Botnets—the evolving nature of adversaries, tactics, techniques and procedures their stolen data” said Ollmann. “There’s serious money involved Highlights: and a highly competitive underground marketplace. You can find n Botnet controllers build massive information profiles on their hundreds of do-it-yourself botnet kits online, along with YouTube compromised users and sell the data to the highest bidder. instructional videos, competitive reviews of the botnet tools, ads sponsored by DIY constructors, tutorials and more. It has all the n Advanced persistent adversaries query botnet operators in trappings of a legitimate sector of the software space.” search of already compromised machines belonging to their attack targets. n Bad guys will borrow techniques from Black Hat SEO Advanced persistent adversaries leverage to deceive current botnet defenses like dynamic botnets to find entry points. reputation systems. Researchers expect large-scale botnets and targeted, persistent attacks to share more common ground in the future as well. According to Georgia Tech Professor Wenke Lee, “Targeted attacks While botnets have plagued the Internet for some time, their usage against a specific organization used to be perceived as isolated. in advanced persistent threats is evolving, as are the tactics, But now we have evidence that some of these targeted attacks have techniques and procedures for command and control. Today, roots in common botnets.” attacks are much more federated and the malware agents infecting devices are tuned for a particular operating system. That means When an operator creates a large-scale botnet, they have vari- the command and control infrastructure for the entire botnet can ous options for monetizing the investment. In the past, the highest remain the same and still communicate with bots across different bidders needed the computational power to send vast amounts of operating systems. spam or conduct a denial of service attack. But now, advanced persistent adversaries query botnet operators to identify compro- mised machines belonging to the company or organization in their crosshairs. The adversary may ask the botnet operator if he Botnet controllers build massive information can run some queries against the machines to determine the OS, profiles which may become part of legitimate applications running, type of function they perform, etc. to gather lead generation efforts. information for creating a targeted, stealthy attack with the end “Three or more years ago, botnet operators focused on stealing goal of data theft. In many cases, adversaries will pay top dollar email and password credentials, which were useful to spammers,” for the information, providing a new and extremely lucrative source said Gunter Ollmann, vice president of research for Damballa. of revenue for botnet operators. “Now botnet controllers are building massive profiles on their users, including name, address, age, sex, financial worth, relation- Infrastructure and information sharing will also occur more regularly ships, where they visit online, etc. They sell this information, where between botnet operators and other malicious actors. For example, it ultimately finds its way into legitimate lead generation channels.” a bot master can lend or sell his malware/bot program to another attacker that wants to compromise the same machine for a different Sites will buy the information stolen via botnets in bulk. The infor- purpose. Often this requires just a small variation or extension of the mation may exchange hands for money several times. And eventu- original bot program, and may use part of the same command and ally, a legitimate business may pay for the information for lead control infrastructure. The same theory works in reverse as a mali- generation purposes, not realizing that it has been stolen. In some cious actor can sell a successful targeted exploit to a bot operator. cases, a company might pay $20 -$30 for a qualified lead. Botnets can also play a role in auto-filling forms online that are used to compile lists for marketing purposes. The botnets already have all Botnet command and control architecture the personal information necessary to fill out the forms, and botnet is becoming decentralized. operators can devise an automated process resulting in a sophisti- cated fraud scam that is difficult to detect and prosecute. While botnets are still responsible for some of the largest DDoS attacks to date (generating > 100 Gbps of traffic), security experts “The botnet scams are still big business, and operators are com- will focus on evolution of botnet command and control architecture ing up with more elaborate fraud systems to increase the value of in the year ahead. 6 GEORGIA TECH CYBER SECURITY SUMMIT 2011
  • 9. “I think the evolution of botnets has more to do with the Command to a pay-per-install company in the criminal ecosystem to infect as and Control (C2) architecture than the size of the attacks being many machines as possible. To increase its own profits, the pay- launched,” said Barry Hensley, director of the Counter Threat Unit/ per-install company will attempt to install more than one piece of Research Group at Dell SecureWorks. “We are starting to see a malware. As a result, Damballa found that more than 40 percent of decentralized C2 architecture, namely Peer-to-Peer. Since IRC and compromised devices have two or more external entities control- HTTP C2 infrastructure still work well for bot operators, P2P is not ling them. “This makes remediation difficult as users may receive yet widely implemented. Once the security space starts making an varying advice for cleaning up their machines based on the type of impact and decreasing the effectiveness of those two protocols, malware,” said Ollmann. we’ll start to see botnet operators shift toward P2P and DNS. Until then, they’ll just use what works.” Increased botnet take-downs and 64-bit computing can help. On the positive front, botnet take-downs appear to be more com- mon. “These efforts represent an evolution in the security commu- nity,” said Paul Royal, research scientist at Georgia Tech. “As highly motivated security professionals come together for a common cause, we expect to see more take-downs in the year ahead.” Royal also cites the identification and arrest of malware authors as a positive step in combatting the problem. “Taking away the criminal underground’s human capital can be very effective,” said Royal. “However, the security community is facing new ethical concerns related to take-downs that may threaten collaboration.” Royal referred to the trust required to share information about com- promised machines when part of concerted take-down operations. “Unfortunately, some organizations will take defensive information gathered as part of take-down efforts and turn it into offensive infor- mation about compromised machines, which can be sold or shared with interested parties. This practice may discourage some individu- als from participating in take-down efforts moving forward.” Royal does see some promising security advantages for combatting botnets inherent in the transition from 32-bit to 64-bit computing. “Data Execution Prevention (DEP) and Address Space Layout Randomization (ASLR) are both good for battling exploits, and both are better utilized with 64-bit computing,” he said. “DEP stops what should be data from executing as code. And even if malicious code is downloaded, ASLR makes it harder for threats to reach the final stage.” But the security community is still up against a serious threat when it comes to botnets. “Present defenses involve blacklisting IP addresses, Web filtering techniques and dynamic reputation systems,” said Ollmann. “A new battle front is opening up, and the bad guys will borrow techniques from Black Hat SEO to deceive dynamic repu- tation systems, similar to how they are subverting page ranking techniques used by search engines.” Pay-per-install malware will also continue to plague users. In this sce- nario, bot agent malware is developed. Then the creator subscribes E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2 7
  • 10. Controlling Information Online—a new frontier in information security Malicious actors try to influence search Highlights: engine algorithms for their own benefit. n Security researchers are currently debating whether person- According to Greg Conti, associate professor of computer science alization online could become a form of censorship. at West Point, in the digital age, propaganda and censorship have become automated processes. He suggests applying critical ques- n Attackers are performing search engine optimization to tions to information online, including: help their malicious sites rank highly in search results. n The trend in compromised certificate authorities exposes n Who controls the flow? numerous weaknesses in the overall trust model for n Who can alter the flow? the Internet. n Who restricts consumption? n Is there surveillance? n Is there the perception of surveillance? The control of information delivered to online users continues to “The original idea of browsing the Web from site to site without a be a complex security challenge. “In addition to trust and privacy, global search capability didn’t scale,” said Conti. “Now we have the lack of transparency concerning how governments and Internet search engines like Google with tremendous control over the flow Service Providers (ISPs) prioritize traffic is a serious threat,” said of information. Actors are trying to influence the largely neutral Nick Feamster, associate professor in the College of Computing at search engine algorithms for their own benefit using search engine Georgia Tech. Feamster studies Internet-based control of information optimization and search poisoning techniques.” along a spectrum, ranging from overt blocking of content, to mali- cious manipulation, to selective censorship and filtering, to attempts While search poisoning has been around for years, it is still an to manipulate Internet performance at the ISP level. effective technique for launching malware. In a recent 2011 cam- paign, increasing numbers of Google image search results were “When performance is degraded, a service is unavailable, or infor- poisoned, redirecting users either to an exploit kit or rogue AV mation is inaccessible, it is difficult for users to determine whether sites. Attackers compromised large numbers of legitimate sites and the root cause is an unintentional performance issue or overt censor- users had only to click on thumbnail images to launch the exploit. ship,” said Feamster. “Even examples that seem fairly innocuous can have serious impacts when it comes to opinion shaping and “The online world obfuscates where information comes from and spreading misinformation.” provides ample opportunity to manipulate information before a user receives it,” said Wenke Lee, professor in the College of Computing at Georgia Tech. “Search poisoning and index poison- ing are just two examples of attackers taking advantage of this Does personalization online present a risk? situation to launch malware.” Security researchers are currently debating whether personaliza- tion online could become a form of censorship. Websites, news In a typical search poisoning scenario, a user searches a term then media sites, social networking sites and advertisers are all sharing clicks a particular link from among the search results. They are personal data about individuals with the goal of more effectively redirected multiple times and eventually land on a page with no rel- targeting information for those individuals. For example, a news evance to the original search, which is used as a vector to deliver media website might highlight several articles under the heading malware. Attackers are doing their own search engine optimization “Recommended for You” based on age, ethnicity, location, profes- to try to get their malicious sites to rank highly in search results. sion and items searched previously. If a user only received news Malicious sites are also getting better at hiding their bad payloads under this heading, it could be limiting. The same principle holds from the search engine crawlers. If they detect a crawler, they will for search engines that filter results according to algorithms that present a clean Web page to remain undetected. factor a user’s personal information. “You may have the impression that search engines are neutral con- duits, but the results you receive could present a restricted world- view,” said Feamster. “In the case of search filtering, most users are completely unaware and have no method to widen search results beyond what the engine supplies.” 8 GEORGIA TECH CYBER SECURITY SUMMIT 2011
  • 11. Combination attacks affecting DNS service In addition to new sophisticated Domain Name System (DNS) and providers and certificate authorities are certificate authority-based threats, Hensley noted several recent especially dangerous. examples of Distributed Denial of Service (DDoS) attacks and With the goal of controlling and monitoring information (as well as nation-state sponsored actions that prevented access to information stealing data), hackers will develop combination attacks that affect online, including: DNS service providers and compromise certificate authorities. n Large-scale protests coordinated via social media in Libya, Iran, These sophisticated, effective threats will be increasingly difficult Bahrain, Algeria, Jordan, Yemen and Egypt, causing nation-states to detect and will obviate the need for attackers to place a “man to disrupt Internet service or drop from the Internet entirely.1 in the middle.” Even security-conscious users will not be able to tell if they are on a malicious site if DNS provisioning systems are n DDoS attacks against various South Korean government and compromised. And if stolen certificate authorities are employed, business sites.2 attackers can create fake banking applications and more to control n DDoS attacks against various Burmese government opposition access to information, steal personal data and money. sites mark third anniversary of Saffron Revolution.3 Barry Hensley, director of the Counter Threat Unit at Dell SecureWorks, cites the 2011 DigiNotar Certificate Authority (CA) While the techniques used to mount these attacks are not new, breach as a manipulation of security controls with the intent of security researchers expect the Internet and control of informa- controlling and monitoring private citizens’ information. In the case tion online to be a pawn in future conflicts. According to Hensley, of DigiNotar, a hacker going by the handle of “COMODOHacker” “Over the past year, hacktivism has been center stage. SQL seized control of CA servers, created fraudulent certificates and used injection and DDoS attacks continue to be the tools of choice for them to execute “man-in-the-middle” attacks against hundreds of thou- these groups, many of whom are masters at disinformation and the sands of victims. The scheme enabled the hacker to access Iranian creation of alternative profiles and groups.” Gmail users’ messages and monitor much of their Internet traffic. Recent Internet-driven protests in Libya and Egypt also suggest that “The recent DigiNotar breach associated with a compromised cer- disinformation could play a bigger role in future political conflicts. tificate authority had the ultimate goal of controlling and monitoring information,” said Hensley. “The trend in compromised certificate authorities exposes numerous weaknesses in the overall trust model for the Internet, especially considering the only remediation to the DigiNotar breach was to revoke all compromised certificates.” Attempts to understand the effects of search engine filtering and personalization Researchers at Georgia Tech are currently studying the effects of personalization online search filtering. As part of this research, security experts are attempting to build an infrastructure that will provide a normalized, aggregated view of search results with all personalization for the user stripped out. 1 Source: http://www.nytimes.com/2010/02/11/world/middleeast/11tehran.html; http://www.zdnet.com/blog/igeneration/egypt-shuts-down-internet-amid-further-protests- facebook-web-traffic-drops/7915; http://www.telegraph.co.uk/news/worldnews/africaandindianocean/algeria/8320772/Algeria-tried-to-block-internet-and-Facebook-as- protest-mounted.html 2 Source: http://www.infosecurity-us.com/view/16387/south-korean-government-agencies-hit-by-ddos-attacks/ 3 Source: http://www.movements.org/blog/entry/cyber-attacks-cripple-independent-burmese-media-sites/ E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2 9
  • 12. Advanced Persistent Threats and the Intersection of Cyber Threats with Physical and Critical Infrastructure “Operation Aurora, Night Dragon and Shady Rat are all examples Highlights: of critical industries being victimized by targeted, persistent cyber n Advanced persistent threats will adapt to security measures attacks,” said Dmitri Alperovitch, independent security expert. “The until malicious objectives are achieved. adversaries behind these attacks were able to exfiltrate design sche- matics and sensitive field negotiations for new oil and gas explora- n Human error, lack of user education and weak passwords tion. These represent a company’s crown jewels and their exposure are still major vulnerabilities. has strongly impacted CEO and CIO perspectives on security.” n Cloud computing and computer hardware may present new avenues of attack, with all malware moving down the stack. Alperovitch described what’s involved in creating sophisticated threats like Stuxnet, “These threats are strategic in nature,” he n Large, flat networks with perimeter defenses at the Internet said. “They require a high level of sophistication far beyond the ingress/egress point break down quickly in the face of rudimentary skills of hacktivists. Since the goal is to remain covert, advanced persistent threats. they must involve a lot of testing resources to obfuscate the source of the attack.” Last year’s Stuxnet worm is the most publicized example of an advanced persistent cyber threat adversely impacting a physical A single APT exploitation can plague an system. But security researchers agree that cyber industrial warfare organization for months or even years. is the wave of the future—driven by advanced persistent adversar- ies and well-funded nation states. But attack sophistication largely depends on the security of the selected target. If an attack on critical infrastructure or corporate data theft can be accomplished via traditional phishing and com- mon exploit kits, adversaries will not use advanced techniques. The The advanced persistent threat—not a what, term, “advanced persistent threat” is also misused or confused with but a who? Hacktivists attempting to change industry or government behavior “The Advanced Persistent Threat (APT) buzzword has become the via organized cyber activity—typically denial-of-service campaigns most overused and misunderstood acronym in the IT security com- or the posting of compromised sensitive data designed to publicly munity” said Barry Hensley, Director of the Counter Threat Unit/ embarrass an organization or cripple operations. Research Group for Dell SecureWorks. “An APT is not characterized by the sophistication of an adversary’s malware. Rather, it pertains “The tools, procedures and other controls used to defend commod- to the threat actor’s determination and the resources he is willing to ity security threats are often ineffective against targeted APTs,” said expend to achieve his objectives. It’s not a what, but a who?” Hensley. “When actors are focused on a specific target, they custom- ize and adapt their tactics, techniques and procedures to predict and “When a person or group has the required cognitive abilities and circumvent security controls and standard incident responses.” resources at their disposal, and applies them with the singular aim of obtaining intellectual property, intelligence or personally identifi- According to Hensley, an organization can be plagued by a single able information, it changes the game,” said Hensley. “It means the APT exploitation for months or years—even after it is aware of the threat can and will adapt to your security posture until its objectives effort. The incident response drags on as threat actors continually are achieved or the cost of the operation outweighs the perceived respond to defensive measures and look for new security weak- value of the target.” nesses. “Advanced persistent actors have clear objectives with cen- tralized planning and often decentralized execution,” said Hensley. While governments are important targets for espionage and intelli- “These adversaries are highly resourced, methodical, adaptive, gence gathering, computer systems, corporations and critical infra- resilient, advanced enough and clearly patient.” structure are also attractive, high-value targets. Some nation-state sponsored attacks are targeting corporations specifically for their intellectual property, sensitive business negotiations and national security designs and technology. 10 GEORGIA TECH CYBER SECURITY SUMMIT 2011
  • 13. Users continue to be a common and the supply chain from beginning to end,” said Andrew Howard, hard-to-remediate weak point in security. research scientist at GTRI. “20 years ago when power stations With such high stakes, critical infrastructure must remain highly weren’t IP-enabled, that may have been less of a concern. But now alert with multiple layers of defense and constant user education. that we’re phasing out legacy hardware for newer equipment that “In the military, you’re taught that in a defensive position, you is connected to the Internet, it could open up a vulnerability to have a three-to-one advantage over an attacker,” said Greg Conti, something like Stuxnet.” associate professor of computer science at West Point. “But in security, it’s the opposite. The attacker has nearly a thousand-to-one While critical infrastructure threats most often conjure images of an advantage. We have to assume that a determined adversary can attack on the power grid, GTRI and other security experts note that overcome the defender, it is just a matter of how long it will take.” the financial infrastructure is also an attractive target, particularly for advanced persistent adversaries. As society continues to move Unfortunately, end users tend to be the most common and hard-to- away from cash, an attack on the credit card exchange system remediate weak point, and even security researchers struggle to could cause a panic and erode trust in the financial system. address the problem. “You can’t patch users,” said Conti. “And there’s always a human being somewhere behind the security technology.” Experts believe the cyber vector is a new force multiplier in nation-state conflicts. One source working in critical infrastructure agrees, “People are always the most vulnerable part of the IT infrastructure,” he said. Experts agree that a cyber conflict with physical ramifications out- “We have so many security layers and defenses, from separating side of a traditional kinetic conflict is unlikely. But they also believe physical control systems from the standard business network, to the cyber vector is a new force multiplier in nation-state conflicts. DMZs, to limiting network protocols that communicate with physical Whether APTs are targeting infrastructure, corporations or govern- systems, and securing all the primary UIs to the Internet. At the end ments, there is a strong need for public/private collaboration to of the day, there’s a person on the end of all that security that can improve security. make decisions that will have an impact.” CONTINUED ON NEXT PAGE The cloud complicates traditional GTRI leads implementation of the security defenses. Homeland Open Security Technology (HOST) program Some of the other concerns surrounding emerging threats to critical infrastructure and business in general include the move to cloud com- The U.S. Department of Homeland Security (DHS) Science puting, the transition from IPv4 to IPv6, computing monocultures and and Technology (S&T) Directorate named the Georgia Tech hardware supply chains. Cloud computing is still relatively ill-defined Research Institute (GTRI) to lead implementation efforts for the yet highly complex, presenting a giant target for adversaries. five-year, $10 million Homeland Open Security Technology (HOST) program. The HOST program investigates open “The cloud complicates today’s traditional defensive techniques,” source and open cyber security methods, models and tech- said Hensley. “A threat actor could build infrastructure in the nologies to identify viable and sustainable approaches that cloud using highly available on-line developer tools, then use it to support national cyber security objectives. command-and-control exploited computers by hiding in what we thought was benign traffic.” “The collaborative nature of open source and open technolo- gies provide unique technical and economic value, and Computer hardware may be another frontier for emerging threats. opportunities for government users,” said Joshua Davis, “We’re seeing a current trend with all malware moving down the associate division head at GTRI’s Cyber Technology and stack,” said Alperovitch. “Threats are becoming embedded in Information Security Laboratory and principal investigator for hardware. There are threats that modify the basic input/output the HOST program. system (BIOS), embed themselves in firmware and persist outside the operating system. We will need new hardware and software GTRI is leading HOST efforts in conjunction with the Open approaches to combat this problem.” Technology Research Consortium (OTRC), a collaborative network of leading academic research institutions, industry Researchers with the Georgia Tech Research Institute (GTRI) agree partners and open source community organizations that work that the hardware supply chain presents a risk. “No one controls to promote the advancement of open source software adop- tion within government agencies. E M E R G I N G C Y B E R T H R E AT S R E P O R T 2 0 1 2 11
  • 14. Advanced Persistent Threats “Enhanced situational awareness based on reliable threat intelli- “A compartmentalized approach to network architecture is better gence is critical to forming effective defense strategies against these for defending and detecting APTs. Important assets and externally advanced threat actors. Without a thorough understanding of the facing user populations should be placed in separate enclaves with threat, defensive strategies and spending will be inefficient at best additional security controls,” said Hensley. and ineffective at worst,” said Hensley. “Cybercrime is growing and evolving rapidly across all spectrums, Hensley advocates a layered security process and controls, continu- including APTs, fake antivirus, phishing, identity theft, mobile ously applied and updated based on ongoing visibility of evolving threats and fraud,” said Hensley. “At the same time, we still see threats. Security processes and controls should include vulnerability successful attacks which exploit weak or default passwords, such lifecycle management, endpoint protection, intrusion detection/pre- as Morto, Stuxnet and Conflicker. We need a national awareness vention systems, firewalls, logging visibility, network visibility and campaign to highlight how critical the situation really is. Even home security training. users are today’s citizen soldiers as their complacency may contrib- ute to a greater national vulnerability.” “Network architecture does matter,” said Hensley. “While large, flat networks with perimeter defenses at the Internet ingress/egress point are common, this model breaks down quickly in the face of an APT. Once an APT gets a foothold, the interior of the network is highly vulnerable to additional attack stages.” [ Georgia Tech Emerging Cyber Threats Report 2012 Contributors ] Dr. Mustaque Ahamad Dan Kuykendall Director of the Georgia Tech Information Security Center (GTISC) Co-CEO and Chief Technology Officer for NT OBJECTives Dmitri Alperovitch Dr. Wenke Lee Independent Security Expert Professor, Georgia Tech College of Computing Dr. Gregory Conti Gunter Ollmann Associate Professor, Department of Electrical Engineering and Vice President of Research at Damballa Computer Science, United States Military Academy Bo Rotoloni Joshua Davis Director, Cyber Technology and Information Security Laboratory Associate Division Head, Cyber Technology and Information (CTISL) at GTRI Security Laboratory (CTISL) at GTRI Paul Royal Dr. Richard DeMillo Research Scientist, Georgia Tech Information Security Center Director of the Center for 21st Century Universities (C21U) (GTISC) and Professor of Computer Science, Georgia Tech College of Computing Dan Schutzer CTO of BITS, the technology policy division of The Financial Dr. Nick Feamster Services Roundtable Assistant Professor, Georgia Tech College of Computing Christopher Smoak Repor t Des igned B y Ed ward Th arp De sign er Dr. Barry Hensley Research Scientist, Cyber Technology and Information Security Director of the Counter Threat Unit/Research Group for Dell Laboratory (CTISL) SecureWorks Tony Spinelli Andrew Howard Senior Vice President and Chief Security Officer for Equifax, Inc. Research Scientist, Associate Division Head, Cyber Technology and Information Security Laboratory (CTISL) at GTRI Dr. Patrick Traynor Assistant Professor, Georgia Tech College of Computing 12 GEORGIA TECH CYBER SECURITY SUMMIT 2011