Bomb with lit fuseLaw firms, like most businesses today, have embraced the convenient but usually hidden technologies known as the “Internet of Things.”  This extension of internet connectivity into everyday objects and physical devices offers everything from constant video monitoring, to automatic locks, to dynamic heating and cooling adjustments.  IoT devices look, listen, transmit, and record trillions of data points, and a report by ForeScout Technologies suggests that the number of connected devices will reach more than 20 billion by next year.

But all this convenience comes at a price.  IoT devices are particularly vulnerable to compromise because they are relatively invisible to routine patching (if they allow patches), often do not have any security safeguards, and do not always have access controls.  An infected device can, for example, open the backdoor to denial of service attacks, enable hacker control of locks and surveillance equipment, open opportunities for snooping and recording of phone calls, and generally create a gateway through which to launch spam campaigns, steal data, and change credentials.

Let’s look at some vulnerable IoT devices commonly found in today’s law firm:

IP-Connected Security Systems and Infrastructure.  Think of cameras, smart meters, and HVAC controls.  Hacks of these devices can cause problems ranging from spying via video and audio, to destruction or disabling of critical equipment to disrupt operations or to allow for physical break-in.

Smart Video Conference Systems.  This category includes smart TVs, as well as DVR devices, which are typically connected via Wi-Fi or Ethernet.  Compromise scenarios include real-time monitoring of communication, as well as use of the system as a launch pad to the network.

Printers & Phones.  Wireless printers can allow almost undetectable access to confidential information (real-time or stored jobs) or, if compromised generally could allow a hacker to obtain administrative passwords and create a network bridge.  Because VoIP phones are internet connected, their configuration settings may be compromised to allow call snooping or even to create outbound calls.

Light Bulbs?  Yes, light bulbs!  According to the above ForeScout report, smart lightbulbs operate on Wi-Fi and mesh networks.  “In a wireless mesh network, the network connection is spread out among dozens or even hundreds of wireless mesh nodes that “talk” to each other to share the network connection across a large area.”  The more nodes, the more avenues for entry into a system without being on the network.
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pickpocket stealing walletIn a federal court criminal complaint filed yesterday, the Department of Justice alleges that Paige Thompson hacked into Capital One Financial Corporation’s cloud storage earlier this year and exfiltrated large volumes of Capital One’s consumer data.

The complaint paints a picture of an alleged hacker living up to the handle “erratic.”  According to the complaint,

One Bullet in Gun BarrelHaving too much data causes problems beyond needless storage costs, workplace inefficiencies, and uncontrolled litigation expenses.  Keeping data without a legal or business reason also exacerbates data security exposures.  To put it bluntly, businesses that tolerate troves of unnecessary data are playing cybersecurity roulette … with even larger caliber ammunition.

Surprisingly few U.S. data security laws and standards expressly require that protected data be compliantly disposed of once legal and business-driven retention periods expire.   PCI DSS v3.2.1, Requirement 3.1, provides “[k]eep cardholder data storage to a minimum by implementing data retention and disposal policies ….”  HIPAA regulations  mandate that business associate agreements require service providers, upon contract termination, to return or destroy all PHI received or created on the covered entity’s behalf, if feasible.  Alabama and Colorado require that records containing state-level PII be disposed of when such records are no longer needed.  And biometric data privacy laws in Illinois, Texas, and Washington generally require that biometric data be disposed of once it has served its authorized purpose.

Instead, most such laws and standards focus on securely sanitizing or destroying storage media.  For example, the NIST Cybersecurity Framework v. 1.1 includes as a security control (PR.IP-6) that “[d]ata is destroyed according to policy,” and ISO 27002 (§ 8.3.2) provides that “[m]edia should be disposed of securely when no longer required, using formal procedures.”

But data security is not achieved by simply running through a checklist of explicit compliance requirements – it instead requires assessing risks and establishing effective security controls.  And one of the most powerful security controls is to not keep too much data, for too long.
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Hands pointing towards businessman holding head in hands Being a CISO is a tough gig.  The perpetual deluge of news items on hack after hack, breach after breach, has finally conveyed that data security is an imperative for all companies, large and small.  But the perception still lingers that the Chief Information Security Officer (or her InfoSec team) will single-handedly prevent breaches at “our” company – and if one should occur, will take care of the response.  For some CISOs, it may feel like High Noon, all over again.

This is unfair to the CISO, and wrong on at least two counts.  First, regardless of the CISO’s job description, the full range of cyber risk exceeds the scope of the CISO’s practical control.  Second, effective breach response requires up to ten channels of coordinated activity, and nine of the ten fall outside of the CISO’s authority.
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Depressed employee with laptopMost people have elevated stress during the holiday season — work, travel, family, money, time.  And holiday stress can make people inattentive, tired, frustrated, and willing to take short cuts, especially when it comes to computer and Internet use.  This is when mistakes happen.  It’s when we decide to evade policy by emailing work home or by using the unsecured airport Wi-Fi because our plane is delayed.  It’s also when malicious acts of information theft, sabotage, and fraud can more easily occur and go undetected.

According to a recent survey, insider threats — as opposed to outside actors — can account for nearly 75% of cyber incidents.  These incidents occur because of the actions of employees, suppliers, customers, and previous employees.  Law firms are not exempt, particularly small to medium size firms.  In fact, smaller firms typically have fewer resources to devote to cybersecurity and use more outside suppliers.

End-of-year activities for law firms also make them especially vulnerable to insider threats, whether inadvertent or malicious: the push to bill and collect for more hours, time-sensitive legal matters that must be resolved before the end of the calendar year, attending to year-end tax accounting, case and client review, bonus calculations.  Lawyers and their staff feel the strain of extra hours, looming deadlines, and sometimes contentious clients at the same time we all feel holiday pressures at home.

What is at risk?
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Fish tempted by fishing hookAs technical security improves, human security vulnerabilities are increasingly in the bulls-eye.  For a fresh look at social engineering, and how best to defend against it, there’s no better source than a hacker.  So, I reached out to Cliff Smith, Ethical Hacker & CISSP at Parameter Security, for his take on the current social engineering battleground.  Here’s what he shared:

Confidence games have been around forever.  Is there anything fundamentally different about social engineering practiced by hackers?

Modern social engineering is no different than the classic con games.  They all run on information, trust, and emotions.  The biggest change in the past 20 years or so is that technology makes the attacker’s job much easier, for several reasons.  First, a skilled practitioner can use countless tactics to make their first contact appear more legitimate, such as spoofing a message’s source or creating a legitimate-looking website.  Second, the average user operates on autopilot much of the time when using their phones or computers.  It’s so easy, for example, to click on a link without stopping to think about the danger, which makes phishing attacks much more likely to succeed.  Third, technology makes the consequences of social engineering much more dire.  In just a few clicks, you can accidentally ruin your financial life, or someone else’s.

It’s commonly understood that phishing is a problem, and that phishing is a deceptive email with a malicious link.  Is it that simple, or are there other social engineering attacks to be concerned about?
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Last Piece of PuzzleWhew – we’ve survived yet another round of states enacting or amending their PII breach notification laws.  If a trial lawyer’s vacation is the time between her question and the witness’s answer, a data security lawyer’s vacation is when state legislatures are out of session.

Back in 2002, California enacted the first state law mandating notification of individuals whose personally identifiable information (PII) is breached.  Now every state has followed suit, with the final two holdouts, Alabama and South Dakota, joining the other forty-eight states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands by enacting PII breach notification statutes.  Each state has its own unique approach, and the states continue to expand their requirements, especially their definitions of what constitutes PII and the timing and content of mandated notifications.

These laws are triggered by the affected individuals’ residency, not where the breach occurred. So, when an organization with employees or customers in many states suffers a data breach, it must comply with a wide variety of conflicting and evolving state breach notification laws. And differ and evolve they do:
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Ignorant DoctorIf you had a choice between doctors to perform surgery on you, which would you pick:  a doctor who has sat through training on how to perform an appendectomy; or assurance that your doctor will successfully perform your appendectomy?

The answer seems obvious, but on the topic of dealing effectively with human vulnerabilities in cybersecurity, most of us seem satisfied with “awareness training.”  It’s a check-the-box response to regulatory compliance or client demands.   Sign everyone up for an on-line phishing exercise and you’re done.  Yet the consequences of ineffective training can be dire.  You will most certainly lose productivity, you’ll probably lose money, and you may lose the company.

This is not to say that awareness is unimportant.  But raising awareness is just the first step in effective cybersecurity defense.  Employees—and management—must come to understand why and how security incidents occur and learn how to recognize and guard against them.  In other words, you must develop assurance that everyone in your organization is equipped to protect the company and its assets.
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Hacker at work with Russian flag on backgroundThe indictment filed last Friday by Special Counsel Robert Mueller explains how Russian military intelligence officers hacked into computer systems of the DNC, the DCCC, and Clinton Campaign employees during the 2016 presidential race.  With sweeping, specific details that have compelled unanimous confidence among Americans (except apparently our President), the 29-page indictment is a textbook on sources and methods.  No, not intelligence-gathering sources and methods, which are of course highly classified.  Instead, the indictment catalogs the sources of data that were stolen, and the methods used by the GRU intelligence units to methodically hack into the targeted systems, exfiltrate the data, evade detection, and weaponize the data through publications timed to inflict maximum impact.

The lessons to be learned from the indictment’s allegations, summarized below, are useful to any organization serious about data security and prevention, detection, and response to hacking, whether state-sponsored or otherwise.


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Security dial turned to highest settingHow time flies.  Seventeen years ago, I went to work for a small, visionary company based in Seattle—Computer Forensics, Inc.   Indeed, the founder was so early in the e-discovery and forensics industry that our URL was forensics.com.  Laptop drives typically had 8 GB of storage, and servers were more often than not simply a bigger box that sat in a closet.

Lots has changed since then.  New technologies, expanded data sources and media types, and more raw data have flooded consumer and business marketplaces alike.  We’ve all seen the scary statistics on increasing information volumes and the security risks that follow.  Unfortunately, our controls for the creation, management, retention, and disposition of those data have not kept pace.  Yet how we manage our data on a day-to-day basis goes also to the heart of how we protect our data and ensure that our information assets are secure from theft or compromise.

During my years at CFI and since, I’ve found myself pondering “what if?” questions.  What if we only had to protect 20% of our information?  What if clients could take dollars earmarked for e-discovery and increased storage and spend them instead on better systems and operational improvements?  What if a client faced with the reality of a data breach didn’t have to wonder how many unnecessary skeletons were now visible?  The promise of information governance is that we can answer these questions affirmatively.  This is good news, and more importantly, news you can use.
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