MOBILE SECURITY THREAT LANDSCAPE: RECENT TRENDS AND 2016 OUTLOOK A LOOKINGGLASS CYBER SOLUTIONS WHITE PAPER | MARCH 2016
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Mobile Security Threat Landscape: Recent Trends and 2016 Outlook A Lookingglass Cyber Solutions™ White Paper | March 2016
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2015: Year In Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The 2016 Threat Landscape. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Table of
Contents
Mobile Security Threat
Landscape: Recent Trends
and 2016 Outlook
© 2016 LookingGlass Cyber Solutions™
2
Executive Summary
The mobile landscape is exploding, with a prediction that there will be more than six billion
global smartphone users by 2020.1 As more people turn to their phones and other mobile
devices, mobile applications are becoming a primary portal for interacting online. However,
the more invested we become in mobility, the more we open ourselves up to new forms
of intrusions from malicious actors. In this white paper, we examine notable trends and
events in mobile security during 2015 and look forward to what security professionals
should expect in 2016.
In 2015, we saw threat actors shift their tactics to smaller targets with mobile-ransomware
focusing more on individuals and less on corporations. The Bring Your Own Device (BYOD)
environment became more pervasive with organizations realizing the importance of
establishing concrete BYOD policies, and more mobile applications were found sharing
data with third-parties. Looking ahead, the Internet of Things (IoT) will be a main target
for increased hacking of every day devices, there will be more attacks targeting the iOS
platform, and the transition from novelty to mainstream use of mobile payment systems
will make it a target for new vulnerabilities and exploits.
1 http://techcrunch.com/2015/06/02/6-1b-smartphone-users-globally-by-2020-overtaking-basic-fixed-phone-subscriptions/
Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 3
Section
01 Mobile-Ransomware Targeted Individuals
2015: Year Mobile-malware, which is designed to specifically infect the operating system (OS) and applications of
mobile devices, grew 185 percent in 2015.2 Mobile-ransomware was ranked the “number one mobile
In Review malware threat.” 3 While mobile-malware has been on the rise for some time now, mobile-ransomware
typically stuck to targeting corporations. However, as mobile-malware has evolved and made its way into
applications, it’s become that much easier for cyber criminals to victimize the general public with mobile-
ransomware. Perpetrators no longer need to only target companies that have the resources to pay out
large sums of money.
Mobile-ransomware can lock a phone, encrypt files, and hijack administrative privileges to make it difficult
to remove the malware. Devices infected with ransomware will stay encrypted until victims pay a ransom
somewhere in the neighborhood of $500. With the continued adoption of electronic currency like bitcoin,
it’s becoming easier to transact ransom fees anonymously, reducing the risk of getting caught.
Ransomware attacks can come in the form of applications that a user installs on their device, often
downloaded from one of hundreds of unofficial app stores (referred to as “sideloading”). Many attacks
can be attributed to adult sites and apps, which, at 36 percent, is the top infection vector. One particular
Mobile Security Threat
Landscape: Recent Trends
2 http://www.pcworld.com/article/2010278/10-common-mobile-security-problems-to-attack.html
and 2016 Outlook 3 http://www.darkreading.com/endpoint/ransomware-ranked-number-one-mobile-malware-threat/d/d-id/1322886
© 2016 LookingGlass Cyber Solutions™
4
ransomware case on an Android device involved Adult Player, a porn viewing app. It was not available in legitimately vetted storefronts, and was instead being downloaded directly from the author’s website. Once installed, the app took a picture of the user and threatened to expose the individual’s identity unless they paid the ransom.4 Although Android devices saw 97 percent of mobile-malware action in 2015, iOS users should still be cautious when downloading and installing applications from unfamiliar authors.5 As we will discuss later in this paper, the iOS platform is not immune to attack, and will likely see more targeted malware and other threats in 2016. The Evolution Of The Bring Your Own Device (Byod) Environment When mobile devices and tablets were first introduced into the office, they were typically only used by executives that wanted to have the latest, greatest technology. However, as more employees realized they could access corporate email and systems from their personal devices, and workforces became more mobile, the demand for Bring Your Own Device (BYOD) policies in the workplace became an enterprise necessity. This year, we saw that shift in BYOD policies becoming more established in the workplace, with 74 percent of organizations having, or planning on creating, an enterprise-wide BYOD environment.6 4 http://www.bbc.com/news/technology-34173372 5 http://www.scmagazineuk.com/updated-97-of-malicious-mobile-malware-targets-android/article/422783/ 6 http://www.zdnet.com/article/research-74-percent-using-or-adopting-byod/ Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 5
BYOD allows employees to use personal devices in the workplace to access corporate information. While BYOD has enabled companies
to cut down on hardware and service costs, it has also brought about new information security concerns such as privacy and legal policies.
Average users may not understand the security implications of a BYOD policy, such as how downloading a rogue application onto their device
can allow cyber criminals to access proprietary corporate data, login credentials, Personally Identifiable Information (PII) /PHI, sensitive client
information, and more. In fact, 78 percent of organizations say security concerns are the primary reason why they would not implement a
BYOD strategy.
Another issue security practitioners need to be aware of with BYOD is backdoors. A backdoor is a program designed to allow remote access
to computers and other devices. These can be tricky as they can serve both legitimate and illegitimate purposes; many software developers
install backdoors to legitimately upgrade, improve, or enhance end-user applications. Regardless of whether a backdoor is legitimate or not, it
still allows a developer unhindered access to data on the device.
When implementing a BYOD policy, businesses should first and foremost be concerned with the integrity of the manufacturer’s supply chain to
address concerns about malicious backdoors.
This can be done by:
• Educating employees on why it’s important to purchase mobile devices from reputable companies
• Whitelisting or approving certified-for-use devices from reputable companies with uncompromised supply chains
• Creating stricter standards and appropriate application controls for devices that have higher level of access
to valuable company information
• Remaining cognizant of the origin of employee devices; smartphones with pre-installed malware frequently surface
in Asia through dubious or substandard third-party vendors who market inferior knockoffs or counterfeit brands of
popular smartphones via online marketplaces like eBay or Amazon
Information Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 6
Additionally, when adopting a BYOD policy, users should take the following precautions:
• Only download applications from the official app store related to your device’s OS
• Be aware of the information you’re authorizing apps to access (e.g., why does a flashlight app need access
to your photos and contacts?)
• Use password padding
• Be cautious about open wireless networks; disable your Wi-Fi from connecting to any random open network; when in doubt,
ask the establishment’s employees for the official Wi-Fi hotspot name
• Disable Bluetooth and mobile hotspots when you’re not actively using them
• Use a VPN application when you’re connecting to an unknown network; some top-rated ones are VyperVPN, NordVPN,
Iron Socket, and ExpressVPN
• Keep software up-to-date to make sure security fixes are applied
• Turn off location-based tracking on all apps that do not need it to function
As wearables and the Internet of Things (IoT) gain ground, security teams will need to update their security policies, business continuity, and
incident response plans to accommodate the vast amount of new devices that could be introduced into the workplace.7
Mobile Applications Sharing Data With Third-Parties
A big debate in 2015 was whether mobile applications should be able to share user data with third-parties, especially if users were unaware
of these actions. It is estimated that almost 30 percent of mobile apps sell personal data to third parties.8 While in many cases users are
consenting to sharing their information in order to use the application (i.e. similar to agreeing to Apple’s terms and agreement to use iTunes),
in 2015 it became more widespread for apps to share or ‘leak’ data without the owner’s consent.
7 http://searchsecurity.techtarget.com/answer/How-can-proper-BYOD-and-IoT-device-onboarding-improve-security
8 http://www.networkworld.com/article/2930791/microsoft-subnet/what-apps-sell-or-steal-your-data-or-take-over-your-phone-privacyhawk-can-tell-you.html
Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 7
When apps share information, not only is a users’ personal information being shuffled around without their knowledge, but also if a third-party is breached, threat actors can capture data to create sophisticated social engineering and phishing campaigns. A recent study showed that 73 percent of Android apps share personal information such as email addresses with third parties, and 47 percent of iOS apps share geo- coordinates and other location data.9 Apps can share a unique ID to the individual, enabling whoever has the data to track their movements.10 If a hacker gets access to this information, they could potentially uncover places a user frequents, email addresses, photos, contacts, and much more. 9 http://www.networkworld.com/article/3014185/mobile-wireless/how-ios-android-apps-share-your-data-without-notifications.html 10 http://jots.pub/a/2015103001/ Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 8
Exploring The Encryption Debate There has been substantial discussion with regards to tech companies being legally required to provide law enforcement with backdoors to access encrypted data. Events like the 2015 Paris terrorist attacks, where the attackers reportedly used “end-to-end” encryption to communicate through instant messaging services like WhatsApp and Telegram, have further emboldened calls for the companies who own the proprietary encryption software that drives these apps to voluntarily cooperate with law enforcement. However, end-to-end encryption, which protects data-in-transit (sometimes known as data-in-motion), is only one part of the problem facing law enforcement’s access to encrypted data. Encryption that prevents law enforcement from viewing the data stored on mobile devices, also known as data-at-rest, presents another dilemma to authorities. According to FBI Director James Comey, encryption hinders law enforcement’s access to data stored on mobile devices, which could significantly delay the pursuit of criminal or terrorist activity if authorities are not given a key or backdoor to the encryption mechanism. According to one news report, smartphone encryption impeded the prosecution of 120 criminal cases.11 When it comes to encryption, many believe the issue revolves around access to the encrypted data or communications. In reality, it’s about access to the mechanisms that unlock or allow entry (encryption keys, backdoors, etc.) to end-user data, whether that’s data-at-rest or in motion. For instance, cryptographic techniques like end-to- end encryption make it almost impossible for unwanted, third-parties to intercept the bidirectional communications, or data-in-transit, of two end-users. 11 http://www.thedailybeast.com/articles/2015/12/28/manhattan-da-smartphone-encryption-foiled-120-criminal-cases.html Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 9
Exploring The Encryption Debate (cont.) Currently, civil liberties and privacy concerns prevail over law enforcement requests. In a time where data breaches have become a frequent occurrence exposing millions of victims, security professionals and consumers alike are championing the need for increased security. In December 2015, Apple CEO Tim Cook defended his commitment to preserving user privacy through encryption.12 The very same backdoors that would provide law enforcement a way into communication channels could be leveraged by hostile actors seeking sensitive data or further admittance to other areas. If all companies maintained a backdoor to these channels, these would pose an attractive target for all threat actors, from cyber criminals to nation-state actors. Governments are divided on the topic of legally mandating backdoors in encrypted products. The United Kingdom leans in favor of banning all end-to-end encryption, while the Dutch Government recently published a position paper in which it formally opposed backdoors in any encryption products, citing the security and safety of consumers to be paramount.13 / 14 While the U.S. has not made a decision on the topic, the Federal Bureau of Investigation (FBI), which has served as the advocate for backdoors, recently called upon tech companies to alter their business models away from favoring customer privacy and towards public safety.15 The more law enforcement and government officials push for national security over privacy, the more fears of government surveillance are raised. Interestingly, China has passed legislation similar to what is advocated by U.S. law enforcement. China’s “Counterterrorism Law” specifically mandates Internet Service Providers (ISPs) to disclose encryption keys to government authorities for the same security considerations as given by U.S. law enforcement officials.16 The encryption/privacy debate doesn’t appear to be coming to a resolution anytime soon, but organizations should stay abreast of any news, as potential legislation could affect the privacy of their data. 12 http://abcnews.go.com/Technology/tim-cook-defends-encryption-smartphones/story?id=35885560 13 http://bgr.com/2015/12/22/apple-fights-weak-encryption-law/ 14 http://www.theregister.co.uk/2016/01/04/dutch_government_says_no_to_backdoors/ 15 http://www.wsj.com/articles/fbi-seeks-to-reframe-encryption-debate-1451417252 16 http://www.lexology.com/library/detail.aspx?g=851ceeee-75e0-42be-8ab9-5da0e670ebfa Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 10
Section
02 The Hacking Of Everything
The 2016 The Internet of Things (IoT) – interconnected devices that can communicate without human control – is
growing, and fast. Analyst firm Gartner estimates that there will be almost 21 billion IoT devices by 2020
Threat and market research firm IDC predicts there will be 30 billion by that date.17/ 18 While the convenience-factor
Landscape of IoT is great, the reality is that threat actors are taking advantage of all these newly-connected devices
and hacking anything and everything connected to the Internet.
The list of Internet-connected devices grows every day, and includes everything from wearables (fitness
trackers and smart watches), webcams, and cars to children’s toys, gaming devices, TVs, and refrigerators.
In 2015, we saw smart TV’s and refrigerators that could be hacked and used as a backdoor into
networks.19 / 20 We also witnessed some genuinely chilling things that a hacker could do to the computer in
cars.21 In July, two hackers showed how they could hijack a Jeep by hacking into its system, taking over
the vents, radio, and even the accelerator.
17 http://www.informationweek.com/mobile/mobile-devices/gartner-21-billion-iot-devices-to-invade-by-2020/d/d-id/1323081
18 http://www.forbes.com/sites/gilpress/2015/07/30/9-new-predictions-and-market-assessments-for-the-internet-of-things-iot/
Mobile Security Threat 19 http://arstechnica.com/security/2015/11/man-in-the-middle-attack-on-vizio-tvs-coughs-up-owners-viewing-habits/
Landscape: Recent Trends 20 https://www.yahoo.com/tech/a-samsung-smartfridge-just-got-hacked-are-your-127575156174.html
21 http://www.wired.com/2015/07/hackers-remotely-kill-jeep-highway/
and 2016 Outlook
© 2016 LookingGlass Cyber Solutions™
11This increase in Internet-connected devices begs the question: How much access do hackers have to these devices and what could they do with that access? The answer varies, as some companies have implemented mature security frameworks, while others have not.22 This self-regulation of security protocols means hackers can target specific devices that are less secure and exploit it in mass quantities. It is much easier to find the vulnerability first and then decide what to do with it later. In 2016, we expect that threat actors will increasingly attempt to breach Internet-connected devices within individuals’ homes, especially devices with cameras, such as webcams and gaming consoles. We saw an uptick in this tactic in 2015, when some families became victims of pranks through IP cameras, which may seem like a harmless prank at first, but can have much larger consequences. Hackers can use their access to the compromised system as a gateway for a number of malicious activities, including using stolen information for blackmail or extortion, or using camera access to scope out the interior spaces of office buildings or homes in order to carry out physical attacks. The adoption of radio frequency identification (RFID) and near field communication (NFC) technologies will also lend a hand in a continued rise in the hacking of Internet-connected things, as well as the multiplication of hackable vectors on the average citizen. This will likely lead to a whole range of crimes including theft, compromising photo and email leaks, blackmail, espionage, and worse. 22 http://www.theverge.com/2015/1/27/7921025/will-self-regulation-be-a-huge-problem-for-privacy-in-the-internet-of Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 12
Apple Devices Will Increasingly Be Targeted By Hackers
In 2015, mobile hacking stories about new vulnerabilities found in Android devices dominated the news. However, as more people begin to
use iOS devices in 2016, we expect hackers to expand their focus to target Mac OS X and iOS platforms.
Since the App Store’s launch, Apple has touted strong security. Now, as hackers become more sophisticated, we are seeing more malware
and vulnerabilities in Apple’s devices. Reports indicate that 2015 was the “most prolific year for Mac malware in history” with there being five
times more cases of malware instances than 2010-2014 combined.23 Mac OS X and iOS also registered the most disclosed vulnerabilities in
2015, with OS X having 384 security flaws and iOS having 375.24 One malware in particular, XcodeGhost infected as many as 4,000 apps and
compromised passwords and devices’ name, type, and universally unique identifier (UUID).25
Often times, jailbroken iOS devices are the reason malware can get onto the device. Removing the original security layers can allow threat
actors to install spyware or viruses, attack networks, and steal proprietary and personal information.26 As confirmed in the Hacking Team
breach this year, not only can malware can be installed physically onto a device, but also if that device is connected to a previously labeled
“Trusted” computer that has since been compromised.
You can make your device more secure by:
• Downloading applications from only trusted sources
• Limiting new application purchases
• Using only trusted wireless networks
• Turning off WiFi and BlueTooth connections when not needed
• Not jailbreaking your phone
23 http://bgr.com/2015/10/21/mac-malware-increase-2015/
24 http://www.securityweek.com/mac-os-x-ios-registered-most-disclosed-vulnerabilities-2015
25 http://mashable.com/2015/09/21/ios-app-store-malware/#eF4kPDBDdkqH
26 https://support.apple.com/en-us/HT201954
Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 13More Mobile Payment System Vulnerabilities
In 2015, Apple Pay, Samsung Pay, and Android Pay continued to increase
their footholds in the market as consumers looked to their smartphones as
a means of payment. Many of these payment systems, such as Apple Pay
and Android Pay are reliant on near field communication (NFC) technologies
– a short-range communication system that uses near field (NF) wireless to
connect compatible NF technologies together and exchange information
without the need of an Internet connection.27 Apple Pay and Android Pay in
particular are reliant on NFC technologies. Nevertheless, the hype around
mobile payment systems has brought to light consumer concern around
potential security ramifications of systems using NFC technologies.28
The more mainstream NFC technologies become, the more they will
invariably be targeted by hackers. In 2015, there were several instances
of hostile actors exploiting mobile payment apps. In May, hackers targeted
the Starbucks payment app, which garnered concern given that the
previous year approximately $2 billion was processed in mobile payment
transactions, about one-sixth of which were conducted using the Starbucks
app.29 In October, suspected Chinese hackers breached Loop Pay, an
important component of Samsung Pay. While in this instance the hackers
appeared to be trying to steal the payment technology rather than any
financial data, the incident still shows how susceptible these platforms
are to attack.30
27 http://www.idigitaltimes.com/new-android-nfc-attack-could-steal-money-credit-cards-anytime-your-phone-near-445497
28 http://www.infosecurity-magazine.com/news/hackers-target-starbucks-mobile/
29 http://www.nytimes.com/2015/10/08/technology/chinese-hackers-breached-looppay-a-contributor-to-samsung-pay.html?_r=0
30 http://www.bizjournals.com/stlouis/blog/biznext/2015/12/target-responds-to-walmart-with-its-own-mobile.html
Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 14Despite these initial attacks, mobile payment wallets continue to be implemented by retailers and other non-technology companies in order to enhance the consumer shopping experience and provide efficient means to pay. In December 2015, both Target and Walmart announced their intentions to develop their own mobile payment platforms. Walmart Pay in particular is designed to allow users to register the payment type of their choice (e.g., credit card) and use their smartphone’s camera to scan QR codes at the register to check out.31 Movement towards mobile payment wallets has led the Merchant Customer Exchange, a merchant-owned mobile commerce network created to streamline customer shopping across all major retail verticals, to develop CurrentC, a mobile wallet that could be used by several retailers.32 If developed and implemented by several organizations, CurrentC would likely not only improve customer shopping habits, but draw considerable attention from criminals looking to make the next big score. Mobile payment systems are expected to have similar vulnerabilities that have plagued point-of-sale (PoS) systems, such as PoS malware and Trojans. In 2013, one security researcher discovered that by installing Trojan relay software on a victims’ Android phone, the attacker could initiate Google Pay payments using the NFC properties in the victim’s device.33 Similarly, in 2015, the same researcher found that hackers could utilize the NFC properties on the victim’s mobile phone to steal money from the physical credit cards instead of Google Pay when the cards came in contact with the phone. Identified as a “relay attack,” it allowed the forwarding of an entire wireless communication over a large distance requiring four different components to execute a successful attack.34 Cyber criminals’ resilience and ingenuity in targeting and compromising targets will continue as mobile payment systems become more mainstream. If the payout is high enough, a more involved plan is not out of the question. As with any app, companies need to be aware of what their employees download onto their phones, regardless of if you have a Bring Your Own Device (BYOD) policy, if you provide corporate phones, or if your employees input corporate credit card information into a mobile payment system. If compromised, hackers would be able to redirect payments to alternate locations, as well as access any transaction data stored in these systems.35 31 http://www.forbes.com/sites/lauraheller/2015/12/21/walmart-and-target-will-win-big-with-mobile-wallets/#2715e4857a0b51b9f2062cac 32 http://www.reuters.com/article/us-target-mobile-payment-exclusive-idUSKBN0U11U920151218 33 http://www.idigitaltimes.com/new-android-nfc-attack-could-steal-money-credit-cards-anytime-your-phone-near-445497 34 http://www.idigitaltimes.com/new-android-nfc-attack-could-steal-money-credit-cards-anytime-your-phone-near-445497 35 http://offers.bluebox.com/resource-whitepaper-tis-the-season-risk-mobile-app-payments.html Mobile Security Threat Landscape: Recent Trends and 2016 Outlook | © 2016 LookingGlass Cyber Solutions™ 15
Conclusions As more Internet-connected devices enter the market, standard security protocols need to be put
into place in order to combat the threat of malicious actors. Multiple types of devices and operating
platforms mean more attack vectors for hackers. Organizations with BYOD policies need to be
aware of the type of devices being brought into the corporate environment, and create policies and
procedures to ensure the security of proprietary employee and client information. However, this will all
be ineffective unless a robust cyber security awareness training program is put in place. Employees
need the proper training so they can identify and mitigate potential threats before they become a
bigger issue for your organization as a whole.
Mobile Security Threat
Landscape: Recent Trends
and 2016 Outlook
© 2016 LookingGlass Cyber Solutions™
16Cyber Threat Center
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