10 Security Predictions for 2018 - Thrive safely on your digital transformation journey - DXC Technology

 
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10 Security Predictions
for 2018
Thrive safely on your digital
transformation journey
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Table of contents                  10 Security Predictions for 2018: Thrive safely
Cyberwarfare heats up          2   on your digital transformation journey
Ransomware gains
sophistication                3    The tense battle between cybersecurity defenders and
Patching expectations              attackers continues to escalate, yet far too many organizations
feed frustration              4    are still in reactive mode. In 2018, it’s time to get proactive.
Serverless computing
                                   As outlined in DXC Technology CTO Dan Hushon’s recent 6 Technology Trends
skews security                5
                                   for 2018, what’s needed is cyber-resilience. Every organization needs to plan and
IoT blurs the edge            6    practice for attacks and threats, because these incidents will happen.

The CISO deploys an                Here are 10 security predictions and DXC’s guidance on the best ways to respond to
army of clones                 7   these new challenges in order to secure and protect your enterprise on your digital
                                   transformation journey.
Credential theft gets
automated                     8
                                   1. Cyberwarfare heats up
The SOC is dead —
                                   Geopolitical tensions among countries known to have offensive cyber capabilities are
long live the SOC             9
                                   on the rise, and this trend will grow. Rogue nation-states will continue to target the
Cyberattacks go deeper        10   critical national infrastructure and operational technology of their adversaries for
                                   political and financial gain.
Cryptocurrencies come
under attack                  11   To limit the impact, enterprises need advance planning. As in any military
                                   engagement, expeditionary activities should be used to inform and set the stage for
                                   future activities. Attackers will use external intelligence to find vulnerabilities; implant
                                   malware for future intelligence; and perform reconnaissance by discovering and
                                   mapping network topologies, asset locations, software inventories and more.

                                   In response, nation-states will update their military doctrines to account for this
                                   new mix of physical and cyberwarfare. Examples include the UK government’s plans
                                   for “full spectrum” operations (including “offensive cyber”)2 and the concept of
                                   “nonlinear or hybrid warfare.”3

                                   DXC perspective

                                   Most organizations will benefit from taking a posture of “assumed compromise.”
Top global risks:
                                   This reinforces the need for defense in depth, in which single points of failure are
Cyberattacks are among them,
                                   minimized, thereby reducing the risk of exposing the organization’s prized assets.
finds the World Economics Forum1
                                   This should be followed by the shaping of a cyber warfare-aware strategy that both
                                   secures the organization and ensures its cyber-resilience.

                                   Organizations should conduct periodic maturity reviews to ensure that their security
                                   capabilities still support their digital strategy and adequately protect against
                                   cyberattacks. By using an agreed-on framework, security teams can not only detect
                                   gaps, but also manage them.

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                                      2. Ransomware gains sophistication
                                      The frequency of ransomware incidents is likely to increase. Attackers who succeed
                                      once will attack again, hoping to maximize their returns with larger ransom demands.
                                      With practice, these attacks will grow increasingly sophisticated.

$25+
                                      Ransomware will also become the new standard for covering sophisticated data
                                      thefts. Because ransomware can target below a system’s operating system, thereby
                            million   “bricking” the system and rendering it unusable, ransomware can help remove any
                                      trace of the attacker’s activities on the endpoint. Additionally, ransomware itself
Ransoms paid by ransomware            is a plausible financial reason for an attack, which may hide the attacker’s more
victims over the last 2 years4        nefarious motives.

                                      Watch for a new type of ransomware, called “doxware,” which is essentially a form
                                      of extortion.5 Rather than simply attempting to deny access to information through
                                      cryptography, doxware attackers threaten to publicly release personal data unless
                                      the victim pays a ransom.

                                      DXC perspective

                                      Every organization needs to focus on resilience against ransomware. Prevention
                                      techniques include early detection and network compartmentalization. Organizations
                                      must also define response and recovery scenarios.

                                      It’s important to educate employees on how to avoid, recognize and report
                                      ransomware attacks. Special attention should also be paid to endpoint hardening,
                                      traditional antivirus and host-intrusion detection and prevention, incident-response
                                      tooling, and patch management.

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                                3. Patching expectations feed frustration
                                Rolling out frequent software patches can make high availability a challenge. Yet
                                patching remains an important part of vulnerability management, even extending to
                                partners and suppliers. It’s a powerful way for organizations to protect IT systems.

                                Many organizations will need to modernize their patch-deployment cycles, as the
                                pace of attacks quickens. Three years ago, the time between a vulnerability being
                                identified and an exploit becoming operational “in the wild” could be 5 weeks or
                                more; today it’s just 7 days.

                                Organizations need to scrutinize application development and provide a consistent
                                and stable operating environment for automated patching — along with structured
                                DevSecOps programs, in which security is a foundational part of development.

50%
                                DXC perspective

                                Organizations should review their approach to rapid patch deployment and consider
                                the use of automated updates. Autopatching can cut deployment times, but still requires
                                downtime and can introduce unpredictability into a system, due to undocumented
Share of IT security pros who
                                dependencies and glitches.7 In addition, attackers may subvert automatic patch-
say client-side security
patches are being released at
                                distribution mechanisms, allowing them to introduce malicious software.
unmanageable rates6             Examine patching at the policy level. By categorizing different systems and patching
                                expectations, system availability will better match vulnerability management.
                                Patching must move beyond the operating system to the database, core common
                                software, servers, switches and more. From this broader perspective, a software
                                patch is one of a number of instruments for shaping and managing the risk-exposure
                                window. However, most controls do have consequences; in the case of patching,
                                there is a trade-off of confidentiality, integrity and availability against the risk of lost
                                productivity due to testing and downtime. Therefore, policy decisions should consider
                                this risk trade-off.

                                New technologies and tools can help reduce risk. For example, microsegmentation
                                used in network virtualization environments lets organizations take a “zero trust”
                                approach to individual workloads. This creates digital barriers as the default, then
                                opens up lateral movement only when it’s predefined in a specific workload. Similarly,
                                techniques such as microvirtualization will let malware run only in a protected “virtual
                                container” where it can be safely observed, studied and ultimately killed.8

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$7.72
                                       4. Serverless computing skews security
                                       Serverless computing is a growing trend in the cloud that radically changes security
                             billion   requirements. With serverless computing, end users no longer manage a virtual
                                       machine (VM) or its operating system.
Predicted market for serverless
computing in 2021, for a 5-year        That means users no longer have traditional controls through endpoint and network
CAGR of nearly 33%9                    protection, such as host-based intrusion detection, endpoint detection and response,
                                       and file-integrity monitoring. However, support services are growing for serverless
                                       computing platforms, including Amazon Lambda, Microsoft Azure Functions and
                                       Google Cloud Platform Functions.

                                       As more workloads move to the cloud, organizations will shift security spending
                                       toward two emerging areas — target application security, which ensures that the
                                       code is secure and well-written, and cloud service providers (CSPs), which will provide
                                       increased transparency and more granular controls to ensure that operational events
                                       and data-handling logging is available.

                                       DXC perspective

                                       Cloud services users should modify supplier contracts to ensure that expectations
                                       for architectural design blueprints and security controls — such as compliance and
                                       audit APIs, and event log exports — continue to be relevant.

                                       Enterprises should focus on application security, promote DevSecOps development
                                       practices and invest in training and data handling. Best practices for APIs include
                                       utilizing Transport Layer Security (TLS) to protect channels between servers and
                                       clients; authenticating subjects securely; and relying on established standards for
                                       single sign-on, identity federation, the exchange of authorization data, and the
                                       generation of cryptographic material. Also, ensure that regular penetration testing
                                       is done and, where possible, use web application firewalls to inspect and control
                                       method-calls and returned data.

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                                       5. IoT blurs the edge
                                       Edge computing, which typically supports high-value, line-of-business activities,
                                       will continue to support the growth of the internet of things (IoT). However, the edge
                                       computing trend will also be a driver for increased attacks because edge systems
                                       are typically excluded from overall monitoring and reporting, creating pockets of
                                       vulnerability. As enterprises increasingly embed IoT sensors and devices into their
                                       physical infrastructure, vulnerabilities will continue to grow.
Only

30%
                                       DXC perspective

                                       Prepare a clear framework for managing the introduction of IoT at scale. Build in
                                       security at the start of any software development project. The alternative — updating
                                       and upgrading already-installed IoT devices — is cost-prohibitive.
Share of organizations that feel
ready to handle IoT security risks10   Check the growth of “shadow IT.” Enterprises should make corporate procurement,
                                       IT and security processes as frictionless as possible to discourage the use of
                                       unauthorized cloud resources by the business and to ensure consistent security
                                       policies and reporting.

                                       Other key approaches include security virtualization and strong cryptographic
                                       controls, which ensure that system attacks are “tamper evident” and limit a
                                       successful breach to a single device.

                                       Similarly, organizations should conduct “war games” that simulate their IoT systems
                                       being compromised, to understand the impact an attack would have. They can
                                       further uncover technical, economic, social and legal ways to improve recovery,
                                       minimize downtime and limit reputation loss.

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                              6. The CISO deploys an army of clones
                              Chief information security officers (CISOs) are repositioning discrete security groups
                              and embedding security throughout the operation, with each department having a
                              person responsible for security — often reporting to a central authority.

                              Several factors are driving this trend, such as challenges in recruiting highly
                              experienced, executive-level security specialists. Truly qualified candidates are rare —
                              and they command impressive pay.12 Maintaining a discrete security team able to
                              keep up with the pace of change is more and more challenging. Finally, with cloud
                              adoption growing, infrastructure security is increasingly “baked into” the system,
                              which means the need for user organizations to provide their own infrastructure
                              security will diminish. At the same time, new areas of application and identity
                              security will grow, possibly requiring new resources with different skills.

52%
                              The CISO organization is being repositioned in the enterprise with a “security by
                              corporate design” approach. It will borrow tactics from DevSecOps practices, where
                              security is not a final add-on, but an integral part of every software development
                              project from the start. Additionally, parts of risk and compliance will become
Share of all companies that   embedded in its corporate functions. Security professionals, meanwhile, will shift
employ a CISO11               their focus from IT infrastructure to innovation, digital transformation, identity, data
                              protection and threat intelligence.

                              DXC perspective

                              Before deploying security to functional areas, consider whether information security
                              is still meeting your organization’s needs. Start by cataloging the components of your
                              cyber resiliency function, examining operational security, where risk takes place, and
                              how your third-party suppliers deliver secure services.

                              Be sure to link security with business functions as you structure communications
                              and plans, and develop forward-looking security capabilities. Simply understanding
                              the technical issues isn’t enough. Apply risk management to business issues
                              and opportunities, and encourage wider use of technology to improve business
                              productivity.

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                                   7. Credential theft gets automated
                                   The credential process, a fundamental part of the Microsoft Windows operating
                                   environment, continues to be a favored entry point for cybercriminals.

                                   Normally, the credential process involves a mechanism for authenticating various
                                   servers and devices on a network. It’s a better way of activating services and calling
                                   on remote resources. To do its work, the system stores volatile memory artifacts
                                   related to each user’s login credentials.

#1
Ranking of credential harvesting
                                   Unfortunately, hackers have known for some time how to gain access to those
                                   artifacts and use them for credential theft, many using a widely available tool,
                                   Mimikatz.14 Primary targets include privileged accounts with access to the greatest
                                   number of infrastructure devices and interfaces.

among hackers’ top post-           Hackers are already using automated credential theft to infect authentication
exploitation13                     mechanisms. Recent examples such as NotPetya, malicious code that combines
                                   ransomware with the ability to propagate itself rapidly across a network,15 are likely
                                   to reappear in 2018.

                                   DXC perspective

                                   Organizations should strive to make 2018 the year of identity. That means shifting
                                   protection strategies for existing identities and preparing for increasing demand for
                                   IoT-based device identities.

                                   To minimize the ability of hackers to steal Windows credentials, system and network
                                   administrators must adopt new practices, such as using different local passwords
                                   on each system, creating minimal levels of privilege, and avoiding the routine use of
                                   highly privileged accounts.

                                   Privileged account managers can manage large numbers of passwords and help
                                   users avoid the dangerous practice of applying the same password to many
                                   machines. These same tools can help organizations more easily identify attempts at
                                   credential theft. Windows Defender Credential Guard can help to mitigate against
                                   Mimikatz-style pass-the-hash attacks.16

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                              8. The SOC is dead — long live the SOC
                              Overwhelmed by existing traffic volumes and held back by a shortage of skilled
                              workers, the average Security Operations Center (SOC) is approaching a state of
                              crisis. The challenge facing SOCs will only worsen as this trend continues.

                              The SOC’s mission is vital: detect and respond to all threats. Unfortunately, most
                              SOCs today fall short. They were designed with just one or two core products,
                              focused on logging and the control of dedicated environments.

44%
                              The typical SOC operating model of “monitor and report” limits the ability to
                              proactively respond to threats. Instead, many SOCs issue the same vulnerability
                              reports month after month, hoping the problems will be corrected, but desensitizing
                              the recipients with so much repetition. Many security issues require cross-team
Share of all companies that   coordination and control. If the owner of a troublesome machine fails to remediate
have no SOC whatsoever17      the issues, the machine can be left infected for weeks, even months, possibly
                              exposing the organization to serious breaches.

                              The introduction of IoT security events will compound these issues. They may have
                              overriding safety imperatives that require real-time detection, immediate prioritization
                              and response. Streaming analytics, machine learning and orchestration will no doubt
                              be part of any solution.

                              DXC perspective

                              Smart organizations will create next-generation SOCs and related services by
                              fostering collaboration between the SOC and the business. Changes to the CISO
                              organization, mentioned above, should change the SOC, too, helping it forge stronger
                              connections with the business. Ideally, that includes the use of common incident
                              management systems, which enable fewer handoffs between teams while providing a
                              consolidated view.

                              Security and IT teams must collaborate more effectively — with each other and
                              with the business. In this way, they can ensure that threat responses are prioritized
                              according to the objectives of the business, not those of IT.

                              Automating data collection and analysis is also necessary. These analytics allow
                              teams to deal confidently with an otherwise overwhelming number of alerts. Similarly,
                              given rising concern over data breaches, smart organizations will establish connected
                              hubs of information from which they can share threat indicators and incident
                              response processes with partners and suppliers.

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                                      9. Cyberattacks go deeper
                                      Cyberattacks in 2018 will not only be more numerous, but also more sophisticated.
                                      Criminals will move deeper into the software stack, even into firmware and hardware,
                                      to gain new levels of access while remaining undetected by most defenders. As the
                                      recent Meltdown and Spectre security threats illustrate, the need for trustworthy
                                      cyber resilient systems has never been greater.

52%
                                      To their credit, some government agencies are responding. Recent moves include
                                      the NIST SP 800-193 draft standard, a U.S. government effort to set platform-wide
                                      resiliency guidelines.19 Similarly, the European Commission’s Shield project proposes
                                      a universal solution for dynamically establishing and deploying trustworthy virtual
                                      security infrastructures into ISP and corporate networks.20
Share of organizations that
prioritize security within hardware   IT vendors are responding as well. For example, Google’s Titan project aims to build a
life-cycle management that have       secure, low-power microcontroller designed with security requirements and scenarios
also reported at least one incident   in mind.21 Microsoft and Intel have launched Project Cerberus, an open source
of malware-infected firmware          industry standard for platform security.22
being introduced into a system18

                                      DXC perspective

                                      With threat actors diving deeper into the stack, organizations must become aware of
                                      the value of their business assets. Then they can assess both new and old threats they
                                      may face. Finally, they can manage these risks according to their appetite and budget.

                                      Scanning the horizon for new threats and countermeasures is also important. It
                                      should inform an organization’s IT procurement and security strategy, providing for
                                      longer-term protection as threats develop.

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                                 10. Cryptocurrencies come under attack
                                 Cryptocurrencies such as Bitcoin, as well as the underlying blockchain technology,
                                 are extremely disruptive to the finance industry — and extremely attractive to cyber
                                 criminals. Criminals who steal bitcoins have made quite a lot of money in ways that
Share of all Bitcoin exchanges
                                 have been extremely difficult to trace. Cryptocurrencies typically buy and sell illegal
hacked between 2009 and 201523
                                 goods and services, and bitcoin is the currency of choice for ransomware payments.

                                 While an individual’s cryptocurrency balance is theoretically secured by unique
                                 encryption codes, thieves have managed to breach their digital wallets by stealing
                                 passwords. Several attacks on cryptocurrencies have already been reported,
                                 including one theft at Seoul-based exchange Youbit that authorities suspect was
                                 directed by the North Korean government.24 Blockchain’s security also could be
                                 undermined by new and recent theoretical work. For example, researchers have
                                 raised the alarm over possible attacks on Bitcoin and other cryptocurrencies by
                                 quantum computers.25

                                 DXC perspective

                                 It’s getting easier for organizations to utilize blockchain technology. Several CSPs
                                 now offer cryptocurrency services, and new use cases are emerging for many
                                 industries. As a result, blockchain can now be considered part of an organization’s
                                 digital transformation. However, with the industry still adapting and adjusting, security
                                 professionals must constantly monitor the related risks.

                                 In general, cryptocurrencies carry a higher risk than does conventional currency.
                                 These new risks need to be evaluated by an organization’s risk teams in areas including
                                 finance, operations and IT.

                                 Organizations should keep up with the latest technological developments around
                                 cryptocurrencies. They’ll need to understand how advances in areas such as quantum
                                 computing, silicon and algorithm-specific attacks could affect their organization’s
                                 cyber-resilience.

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Author

Simon Arnell is security chief technologist, Office of the CTO, at DXC Technology.
He has a background in applied security research and development, and in running
proofs-of-concept for clients. Previously, Simon led the commercialization of the DXC
(legacy HP) DNS monitoring service, pioneering the use of software-defined networks
for rapid incident response and the application of stochastic process modeling and
simulation for strategic security-policy decision support. Connect with Simon on
Twitter @simonarnell, via email at simon.arnell@dxc.com, or on LinkedIn at linkedin.
com/in/simonarnell.

Thanks to the other DXC professionals who contributed to this report: Richard
Archdeacon, head of security strategy, Office of the CTO; Rhod Davies, customer
advocate, managed security services; Sydney Tran, manager, security detection
and investigation services; and Mark Teicher, security architect, managed security
services engineering. Thanks, also, to Jack O’Meara, DXC’s chief information security
officer, for his reviewing assistance.

This report received executive sponsorship from Chris Moyer, vice president and
general manager of security, DXC.

Tweet: @DXC security experts reveal their top 10 security predictions for 2018.

LinkedIn: DXC’s 10 security predictions for 2018: DXC security gurus put their heads
together and came up with 10 predictions for 2018, as well as actionable advice on
how enterprises should respond to the new threat landscape.

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                     References:                                              15
                                                                                   	“NotPetya Technical Analysis — A Triple Threat:
                                                                                     File Encryption, MFT Encryption, Credential
                     1
                          	Top global risks: World Economic Forum,                 Theft,” CrowdStrike
                             Global Risks Report 2016, 11th Edition, 2016
                                                                              16
                                                                                   	“Protect derived domain credentials with
                                                                                    Windows Defender Credential Guard,”
                     2
                          	“National Security Strategy and Strategic              Microsoft Windows IT Pro Center
                            Defence and Security Review 2015,” UK
                            Government, Nov. 23, 2015                         17
                                                                                   	44%: EY Global Information Security Survey
                                                                                     2016-17. 2018
                     3
                          	“Hybrid war — does it even exist?” NATO
                            Review Magazine, May 1, 2015
                                                                              18
                                                                                   52%: ISACA survey via HelpNetSecurity, 2016
                     4
                          	$25+ million: Google study via The Verge, 2017

                     5
                          	 “What does Doxware mean?” Technopedia
                                                                              19
                                                                                   	“Platform Firmware Resiliency Guidelines,”
                                                                                    U.S. National Institute of Standards and
                     6 	
                           50%: Tripwire, Combating Patch Fatigue, 2016             Technology

                                                                              20
                                                                                   	“Shield: An innovative approach to
                     7
                          	“Hot-patching and the rise of third-party              information security,” European Commission
                            patching,” Black Hat USA, 2006
                                                                              21
                                                                                   	“Titan in depth: Security in plaintext,” Google
                     8
                          	 Task introspection, Bromium                           Cloud Platform Blog

                     9
                           $7.72 billion: MarketsAndMarkets, 2017             22
                                                                                   	“Microsoft’s Project Olympus delivers cloud
                                                                                    hardware innovation at scale,” Microsoft
                                                                                    Azure Blog
                     10
                          	Only 30%: Black Hat survey, IoT Risks and
                           Cyber War, 2016                                    23
                                                                                   	One third: U.S. Dept. of Homeland Security via
                                                                                    Bitcoinist.com, 2017
                     11
                          	52%: CSO: The Global State of Information
                            Security Survey, 2018                             24
                                                                                   	“North Korea Is Suspected in Bitcoin Heist,”
                                                                                    The Wall Street Journal
                     12
                          	“CISO salaries may soon hit £1 million – but
                            few qualified for top roles,” SC Magazine UK,
                                                                              25
                                                                                   	“Quantum attacks on Bitcoin, and how to
                            May 22, 2017                                            protect against them,” Cornell University
                                                                                    Library
                     13
                          	#1: SANS Institute 6, 2018

                     14
                          	“He Perfected a Password-Hacking Tool —
                           Then the Russians Came Calling,” Wired

Learn more at
dxc.technology/
security18

                     About DXC Technology

                     DXC Technology (DXC: NYSE) is the world’s leading independent, end-to-end IT services company, helping
                     clients harness the power of innovation to thrive on change. Created by the merger of CSC and the Enterprise
                     Services business of Hewlett Packard Enterprise, DXC Technology serves nearly 6,000 private and public
                     sector clients across 70 countries. The company’s technology independence, global talent and extensive
                     partner network combine to deliver powerful next-generation IT services and solutions. DXC Technology is
                     recognized among the best corporate citizens globally. For more information, visit www.dxc.technology.

www.dxc.technology   © 2018 DXC Technology Company. All rights reserved.                                          MD_7258a-18. February 2018
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