An Introduction to the War Between Businesses and Cyber Criminals

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An Introduction to the War Between Businesses and
Cyber Criminals

• By Jeremy Poch

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What Is Cyber Crime

• Cyber crime encompasses any criminal act dealing
  with computers and networks (i.e.
  hacking).
• Cyber crime also includes traditional crimes
  conducted through the Internet.
• For example hate crimes, telemarketing and
  Internet fraud, identity theft, and credit card
  account thefts are considered to be cyber crimes
  when the illegal activities are committed through
  the use of a computer and the Internet.

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How Cyber Crime Affects Businesses and Individuals

• Costs Companies billions of dollars per year
• Estimates worldwide have soared up to 100
  billion
• Hard to get a figure a high percentage of cyber
  crime goes unreported.

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Two Types of Cyber Crime

• Against a person
• Against property or a company

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Against a person

• Pornography/Offensive Content
• Harassment
• Cyber stalking

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Against Property or a Company

• Neo-Traditional Crime
• Phreaking
• Hacking
• Cyber-Terrorism
• Internet Scams

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Neo-Traditional Crimes

• Computer not needed but the addition has provided
  new avenues for such crimes
• Any attempt of fraud done by use of a computer
• IP-Spoofing
• alter packet headers to conceal ones identity
• Salami Technique
• Redirect small sums of money into another account
  which adds up over time.

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Phreaking

• A precursor to hacking, where individuals gain
  access for bragging rights, often do relatively
  minor damage
• An older definition is using a computer or other
  device to trick a phone system. Typically,
  phreaking is used to make free calls or to have
  calls charged to a different account.
• One of the most prevalent tools was a whistle
  from a box of Capn Crunch which had a frequency
  of 2600 cycle tone which allowed for free long
  distance phone calls.
• Steve Jobs and Steve Wozniak founders of Apple
  Computers used blue boxes (devices that made the
  2600 tone) to get access to long distance lines
  for computing while in college

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Hacking

• Process by which individuals gain unauthorized
  access to computer systems for the purpose of
  stealing and corrupting data.
• Corrupting Data Worms, viruses, DDoS
• Stealing Data Credit Card info, customer
  Database
• Cyber-Terrorism

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Seven Steps of Hacking

• Pick a target
• Find the computers of that target that are
  accessible via the internet
• Discover vulnerable computer systems that
  potentially contain what is being sought
• Break into the computer system (Easy to do with
  software available online)
• Elevate access privileges to the maximum level
  (called rooting a box)
• Monitor what other computer users are doing to
  find more vulnerable systems
• Install backdoors that allow re-entering at a
  later date if the original vulnerability has been
  fixed

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Generally two skill levels among hackers

• Expert hacker (Outsider)
• develops software scripts and codes exploits
• usually a master of many skills
• will often create attack software and share with
  others
• Script kiddies (Insider or teenager)
• hackers of limited skill
• use expert-written software to exploit a system
• do not usually fully understand the systems they
  hack

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Cyber-Terrorism

• Politically motivated cyber crime which attacks
  people, companies and even the government which
  that person opposes.
• Some believe Al-Qaeda is planning such attacks

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Types of Internet Scams

• ISP Jacking
• Web Cramming
• Phishing
• Identity Theft

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ISP Jacking

• Involves disconnecting individual users form
  their selected Internet Service Provider and
  redirecting them to an illegitimate server.
• Extremely costly to the victim because of the
  incurred long distance phone charges

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Web Cramming

• Criminals develop a new web page for a company or
  non-profit organization for little or no cost.
  While advertising for free, they actually make
  unauthorized phone charges on the companys
  account.

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Phishing

• Criminals Send Email Posing As
• Banks
• Credit Card Companies
• Escrow services
• Internet auction sites (EBay)
• Example of Phishing

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Identity Theft

• Stealing a companys or an individuals identity
  for illegal purposes
• Companys reputation is hurt, plus will lose
  customers if it is their fault
• Hurts individuals credit rating, insurance rates
  etc.

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Who commits these crimes?

• Insiders - employees or former employees
• Outsiders - professional hackers

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Why do they commit these crimes?

• Revenge
• Profit
• Glory
• To help show security flaws

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How to Monitor and Stop Cyber Crime

• Firewalls
• Honeypots
• Sneakers
• Law Enforcement

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Firewalls

• Especially for Cable Access where user is always
  On-Line
• Once you have a firewall in place, you should
  test it.

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Honeypots

• Act of putting up a new server with fake data and
  watching who accesses it.
• All who access are unauthorized, can monitor what
  is being done and how.
• Brings up many ethical and law questions.
• Can be expensive to do

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Sneakers

• Have hackers test your security
• Who knows more than a professional hacker?
• Risky

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Law Enforcement

• FBI Cyber Division (Operation Websnare)
• Secret Service Electronic Crime Task Force
• Local Law Enforcement

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FBI Cyber Division Mission

• To coordinate, supervise and facilitate the FBI's
  investigation of those federal violations in
  which the Internet, computer systems, or networks
  are exploited as the principal instruments or
  targets of terrorist organizations, foreign
  government sponsored intelligence operations, or
  criminal activity and for which the use of such
  systems is essential to that activity
• form and maintain public/private alliances in
  conjunction with enhanced education and training
  to maximize counterterrorism, counter-intelligence
  , and law enforcement cyber response capabilities.

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Operation Websnare

• Led to 100 arrests/convictions
• 116 indictments
• These criminals caused 230 million worth of
  damage to 870,000 victims
• A significant number, but only a fraction of the
  Cyber crime problem is represented, showing the
  need for sustained law enforcement focus, and the
  continuing development of expanded partnerships
  as well.

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Electronic Crime Task Force

• The Secret Service developed a new approach to
  increase the resources, skills and vision by
  which local, state, and federal law enforcement
  team with prosecutors, private industry and
  academia to fully maximize what each has to offer
  in an effort to combat criminal activity. By
  forging new relationships with private sector
  entities and scholars, the task force opens
  itself up to a wealth of information and
  communication lines with limitless potential.
• Regional Contacts include New York, Boston,
  Chicago, Cleveland, Miami

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Local Law Enforcement

• Very few have their own cyber crime division
• Those that do have only one or two people in that
  division
• Many cant afford a division

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The 2002 CSI/FBI survey found

• 90 of organizations responding detected computer
  security breaches within the last year
• 80 lost money to computer breaches
• The number of attacks that came across the
  Internet rose from 70 in 2001 to 74 in 2002
• Only 34 of organizations reported their attacks
  to law enforcement

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Why Cyber Crime is so Difficult to Stop

• Cyber Crime can be performed across country
  boundaries making jurisdiction difficult to
  determine
• Corporations are involved in the investigations
  now more than ever
• The criminal can be very intelligent

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Difficulty of Collecting Evidence

• Must find relevant data, warrants only allow
  searches of specified portions of the computer
• Ensure data isnt compromised
• Must make multiple copies of data gathered on
  write once drives
• Must be able to break the cryptography or
  steganography that was used
• Must do some sort of authentication probably with
  a message digest (digital fingerprinting)

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Wireless Networking

• Harder to secure than a traditional network since
  access can occur just standing outside the
  building

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User Convenience

• Convenience is the Culprit
• More features and ease of use helps customers but
  hurts security
• More technology leads to more risks

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Failure To Report

• Why not report cyber crimes to law enforcement?
• Causes embarrassment due to going public
• Feel a full fledged investigation will interfere
  too much
• Feel there wont be a conviction
• Prosecutors wont file the charges

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Conclusion

• Information is the target
• Dont forget about employees within the
  organization
• Global Cooperation is needed
• Any Questions????

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References

• Steven Branigan. (2005). High-Tech Crimes
  Revealed Cyberwar Stories From The Digital
  Front. Boston Pearson Education Inc.
• Marjie T. Britz. (2004). Computer Forensics and
  Cyber Crime. New Jersey Pearson Education Inc.
• Joseph Migga Kizza. (2002). Computer Network
  Security and Cyber Ethics. North Carolina
  McFarland Company Inc.
• www.cybercrime.gov
• http//cybercrimes.net
• www.fbi.gov