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Navigating the Rising Tide of Cyber Attacks: Insights for Small and Medium-Sized Businesses

As we look back on 2023, the surge in cyber attacks has emerged as a formidable challenge, particularly for small and medium-sized businesses (SMBs). With limited resources and often less sophisticated security measures, SMBs have become attractive targets for cybercriminals. 

On average, these incidents cost SMBs an alarming $25,000, a significant financial strain that can jeopardize their survival. The rise in cybercrime is not just a statistic; it’s a call for SMBs to fortify their digital defenses.

Understanding the Current Cybersecurity Landscape 

Common Types of Cyber Attacks: Among the myriad of cyber threats, certain types are more prevalent in targeting SMBs. Malware and ransomware, especially, stand out, with 18% of attacks on small businesses being malware-related.

The Financial Burden: The financial implications of these attacks are substantial. The average cost of a data breach for SMBs has escalated to $4.35 million, the highest on record, and the recovery from a ransomware attack can cost nearly as much. 

The Prolonged Response Time: Another critical aspect of the current landscape is the time it takes to identify and contain a breach. On average, it took about 277 days, approximately nine months, to identify and contain a breach in 2022. This prolonged response time can exacerbate the damage caused by a breach, both financially and in terms of customer trust. 

The Role of Human Error: It’s important to note that human error plays a significant role in the vulnerability of SMBs to cyber attacks. A significant portion of breaches, 43%, involve insider threats, either intentional or unintentional. Additionally, the fact that 94% of malware is delivered via email highlights the need for continuous employee education and vigilant email security practices . 

The Impact of Remote Work: The shift to remote work has introduced additional complexities. Remote work not only increases the attack surface for cybercriminals but also leads to higher costs per breach. Distractions at home contribute to employees falling prey to phishing scams, and breaches in remote work settings take longer to contain. 

The cybersecurity landscape for SMBs is characterized by a high frequency of targeted attacks, significant financial implications, and extended breach identification times. These challenges are compounded by factors such as human error and the increasing prevalence of remote work. Understanding these dynamics is the first step for SMBs in developing a strong cybersecurity strategy that can withstand the rising tide of cyber threats.

The Impact of Cyber Attacks on SMBs 

Cyber attacks on small and medium-sized businesses (SMBs) have wide-ranging and serious consequences, extending beyond immediate financial losses: 

  • Financial Strain: The average cost of a data breach for SMBs is around $4.35 million, and recovering from a ransomware attack can cost nearly $2 million. These costs can significantly strain an SMB’s finances, sometimes leading to bankruptcy. 
  • Operational Disruptions: Cyber attacks can cause extended operational downtimes due to the average breach detection and containment time of 277 days. This downtime disrupts business continuity, affects productivity, and can result in the loss of clients. 
  • Reputational Damage: A security breach can severely damage an SMB’s reputation, leading to a loss of customer trust and potentially long-term business relationships. 
  • Legal and Regulatory Consequences: Breaches can lead to legal and regulatory issues, especially if sensitive customer data is compromised, attracting fines and legal actions. 
  • Psychological Impact: The stress and anxiety associated with a cyber attack affect both business owners and employees, impacting morale and job security. 
  • Strategic Setbacks: Resources diverted to manage and recover from an attack can delay or cancel business growth or innovation initiatives. 
  • Increased Cybersecurity Costs: Post-attack, businesses often face increased spending on cybersecurity measures, adding to financial burdens. 

The multifaceted impact of cyber attacks underscores the necessity for SMBs to prioritize robust cybersecurity measures to safeguard their operations, finances, and reputation. 

Key Vulnerabilities in SMBs 

Small to medium-sized enterprises (SMEs) encounter numerous challenges in cybersecurity:

  • Scarcity of Resources: They often do not have enough budget or personnel to implement thorough cybersecurity measures.
  • Training Deficiencies Among Employees: There’s a lack of adequate cybersecurity awareness and training among staff, making them prone to email phishing and malware attacks.
  • Utilization of Obsolete Technologies: Reliance on outdated computers and software makes them more vulnerable to cyber attacks. Poor Access Management: Ineffective control over user access increases the likelihood of unauthorized access from within.
  • Absence of a Cybersecurity Incident Plan: Many SMEs do not have a specific strategy for managing cyber incidents, which can worsen the impact of breaches.
  • Underplaying Cyber Risks: SMEs might not fully recognize the extent of cyber threats, often adopting a wait-and-see approach to cybersecurity.
  • Dilemmas Posed by Remote Working: The shift towards more remote work broadens the potential for cyber attacks and makes managing breaches more complex.

It’s crucial for SMEs to address these security weaknesses to enhance their defense mechanisms against the continuously changing cyber threat environment.

Strategies for Enhanced Cybersecurity 

  1. Regular Updates and Patch Management: Ensure devices are configured for automatic updates and regularly check for installed updates. 
  2. Strong Password Policies: Implement policies for complex, unique passwords, and encourage using password managers. 
  3. Access Control & Multi-Factor Authentication: Employ strong access control and multi-factor authentication to prevent unauthorized access. 
  4. Data Backup and Recovery: Maintain reliable data backups and test backup procedures regularly, especially against ransomware threats. 
  5. Firewall and Endpoint Detection: Implement firewall security and endpoint detection systems to block suspicious traffic and identify unusual activities. 
  6. Data Encryption: Encrypt sensitive data both at rest and in transit. 
  7. Regular Security Audits: Conduct audits to evaluate cybersecurity controls and address vulnerabilities. 
  8. Incident Response Plan: Develop and regularly rehearse a detailed incident response plan. 
  9. Employee Education and Awareness: Train employees on cybersecurity best practices, including recognizing phishing attempts. 

Professional Cybersecurity Solutions 

Consider solutions like CoreArmor and CoreComply, which provide advanced threat detection, managed security services, and strategic planning tailored to SMB needs. CoreArmor, for example, bundles essential cybersecurity services into a comprehensive package, covering real-time monitoring, incident response, penetration testing, vulnerability scanning, and user awareness training. While CoreComply, strengthens compliance operations, aligning them with business processes and helping to identify and close gaps in current practices. 

Implementing these strategies and leveraging professional solutions like CoreArmor and CoreComply can significantly enhance an SMB’s cybersecurity posture, protecting against a broad spectrum of cyber threats and vulnerabilities. 

What You Can Do

In the face of evolving cyber threats, small and medium-sized businesses must prioritize robust cybersecurity. Coretelligent offers tailored solutions like CoreArmor and CoreComply, blending advanced threat detection, strategic planning, and compliance management. Protect your business with our comprehensive cybersecurity services. 

If you’re interested in learning what you can do to fortify your business’s defenses, watch our recent webinar, where we bring together a panel of experts, including an FBI special agent that that works on cybercrime cases, a cyber insurance specialist, and our very own team as they dive into trends, tips, and valuable insights you can use to understand the various threats at play.  

 

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AI-Driven Cyber Threats: A Guide for C-Suite Executives and IT Managers

AI-driven cyber threats are not just a fact; they are an ever-evolving issue for many industries. In the span of three years, Artificial Intelligence (AI) has evolved from a budding concept to a monumental force, revolutionizing industries and paving new pathways for innovation. However, with every digital stride we take, the underbelly of the cybersecurity world reveals more complexities. The same AI, which stands as a beacon of progress, is now being weaponized by nefarious minds, leading to the creation of threats more sophisticated than ever before.

ai-driven threats

 

The AI Threat Landscape:

The digital underworld is abuzz with cybercriminals harnessing the power of AI, amplifying their hacking prowess. Whether it’s the automation of cunning phishing schemes or the deployment of machine learning for relentless password attacks, the malicious use of AI is not just a concern—it’s an alarming reality. These AI-infused threats are not just multiplying; they evolve, learn, and outpace traditional defense mechanisms.

For a deeper understanding of defense against AI-driven threats and to equip your organization with the right tools and knowledge, explore this free Risk Assessment.

The Ripple Effect on Key Industries:

While the digital age offers boundless opportunities, it also brings unprecedented challenges, especially with AI-driven cyber threats. With its treasure troves of sensitive data, the Financial Services sector finds itself in the eye of the storm. The surge of AI in cyber warfare means these institutions are grappling with new threats daily.

Life Sciences entities, guardians of invaluable intellectual property, aren’t spared either. They, too, are prime targets for AI adversaries. Any entity handling confidential data, especially those with deep pockets, is in the line of fire. Life Sciences entities, guardians of invaluable intellectual property, aren’t spared either. They too are prime targets for AI adversaries. Simply, any entity handling confidential data, especially those with deep pockets, is in the line of fire.

Proactive Defense Strategies:

Over the past several years, the world has seen numerous case studies on how these AI-driven cyber threats can impact a business, even Fortune 500 companies. In the face of these threats, businesses must adopt a comprehensive and proactive defense strategy. Here are a few of the most recommended strategies and how companies could have better utilized them.

Continuous Monitoring and Real-time Threat Detection:

Implementing systems that continuously monitor network traffic and user behavior can help in early detection of any anomalies. Real-time threat detection can alert IT teams immediately, allowing them to act before significant damage occurs.

For example, T-Mobile experienced data breaches in May and January 2023. Had a more robust real-time threat detection system existed, the breaches might have been detected and mitigated sooner.

Advanced AI Defense Strategies:

Utilizing AI to counteract AI-driven threats can be an effective strategy, but too few companies are taking the time to implement these tools proactively. AI can predict potential attack vectors and strategies that hackers might use, preparing businesses for the next big attack.

In another case, Latitude Financial experienced a massive breach in March of 2023, compromising over 14 million records. Advanced AI defense strategies could have predicted the attack vectors used against the company.

Employee Training and Awareness:

Regularly training employees to recognize potential AI-driven cyber threats like phishing emails or suspicious links can prevent the most sensitive area of cybersecurity, the human element. While typos and grammatical mistakes were once a clear indicator of phishing, AI can quickly fix these issues and even make the phrasing more compelling to act. That’s why informed and vigilant employees are often the first line of defense.

Case in point: MailChimp faced a data breach in 2023. Hackers obtained employee credentials, allowing them access to Mailchimp’s support and admin platforms. Such breaches often start with a single employee clicking on a malicious link. However, social engineering tactics can be much more effective. Regular training could reduce such risks.

There are two other examples: MGM and Ceasar’s, who faced a similar breach that occurred earlier this year, both of which started with a simple phone call to the support desk.

State-of-the-art Cybersecurity Tools:

Employing the latest cybersecurity tools that offer multi-layered protection, including firewalls, intrusion detection systems, and encrypted/blockchain communication, can form a robust defense against some of the more common threats.

A lesson Verizon learned after having records of over 7 million users posted on a hacker forum in March 2023. Using state-of-the-art tools could have prevented unauthorized access since, according to their year’s report, 74% of breaches began through human error, social engineering or misuse.”

Incident Response Plan:

A well-documented and practiced incident response plan ensures that when a breach occurs, the organization can swiftly mitigate damage, communicate with stakeholders, and recover data.

Likewise, MOVEit, a File Transfer and Automation Software company faced a significant data breach in June of 2023. The breach impacted over 200 companies that utilized the platform, including the Department of Energy and schools across the US. The result is a security vulnerability in their software. These vulnerabilities can be impossible to predict. However, an effective incident response plan could have minimized the impact and duration of the breach.

Conclusion:

The integration of AI in cybersecurity is a double-edged sword. While it offers enhanced protection mechanisms, it also presents new challenges as cybercriminals harness its power for malicious intent. As we navigate this new frontier, the importance of continuous learning, adaptation, and proactive defense cannot be overstated.

Concerned about AI-driven cyber threats? Contact Coretelligent today and fortify your defenses.

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what is third party risk management

What is Third-Party Risk Management?

As business operations become increasingly complex and interconnected, third-party risk management (TPRM) is no longer optional.

what is third party risk management

You Are Only as Safe as Your Vendors

Companies rely heavily on third-party vendors, suppliers, and partners to perform critical functions in today’s business landscape. A recent study reports that 71% of organizations have seen their third-party networks increase in the last three years. While these relationships can drive growth and efficiency, they also introduce potential risks that need to be carefully managed.

What is Third-Party Risk Management?

Third-Party Risk Management refers to the strategies and processes used to identify, assess, and mitigate risks from doing business with third-party entities. These external entities can include suppliers, vendors, contractors, affiliates, or any other organization your business interacts with.

The risks associated with third-party relationships can be varied, ranging from operational and financial risks to reputational and legal risks. For instance, if a vendor suffers a data breach, your company could be exposed to operational risks, financial losses, regulatory penalties, reputational damage, lawsuits, and even dissolution.

The Importance of TPRM in Today’s Business Environment

In recent years, high-profile incidents have highlighted the significant risks that third-party relationships can pose. 59% of organizations reported experiencing a data breach caused by a third party, with 54% reporting breaches within the last 12 months.

The consequences of not effectively managing third-party risks can be severe, from data breaches involving third-party vendors to operational disruptions caused by supplier failures.

Furthermore, regulatory bodies are increasingly focusing on third-party risk management. Data regulations like HIPAA, SEC, CCPA, and the New York Shield Act, among others, include requirements for data protection that require robust third-party risk management practices in place.

Implementing Effective TPRM: Key Steps for Business Executives

Effective third-party risk management requires a strategic and proactive approach. Here are some key steps that business executives should consider:

  1. Conduct Thorough Due Diligence: Before engaging with a third party, conduct a comprehensive due diligence process to understand their capabilities, reliability, and track record. This process includes assessing their financial stability, compliance status, and cybersecurity measures.
  2. Establish Clear Contracts: Ensure your contracts with third parties clearly outline roles, responsibilities, and expectations, including defining performance metrics, data protection requirements, and penalties for non-compliance.
  3. Regularly Monitor Third Parties: Continuous monitoring of your third parties is crucial for detecting and responding to potential risks promptly. Implement regular audits, performance reviews, and compliance checks.
  4. Develop a Response Plan: Have a contingency plan in place to respond to incidents involving third parties. This plan should include steps for mitigating damage, notifying stakeholders, and resolving the issue.
  5. Leverage Technology: Utilize technology solutions to streamline your TPRM processes. This can include a solution that will automate due diligence, monitor third-party performance, alert you to potential risks, as well as strategic guidance.
  6. Conduct a Risk Assessment: Regularly review your third-party relationships to identify any potential risks and address them promptly.

The reality of today’s digital ecosystem means that third-party risk management is a critical aspect of modern business strategy. By understanding the potential risks and implementing effective solutions, business executives can protect their organizations, enhance operational resilience, and drive sustainable growth.

DOWNLOAD THE FREE GUIDE → Comprehensive Guide to Third-Party Risk Management

 

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Cost of Cyber Attacks: One Company’s Worst-Case Scenario

Cyber attacks are becoming increasingly common, and cybercriminals see small to medium-sized businesses as prime targets. The devastating consequences of a cyber attack can be long-lasting and far-reaching, as demonstrated by the chilling story of Expeditors, a logistics company that fell victim to a ransomware attack in 2022 and discovered the true cost of cyber attacks.

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The Immediate Effects of Expeditors’ Cyber Attack

The ransomware that hit Expeditors left their data and infrastructure at risk, forcing them to halt operations. The immediate effects of the attack were catastrophic, resulting in $47 million in lost revenue, overages, and payouts to customers. Additionally, the company spent $18 million on remediation and recovery efforts, further impacting its bottom line.

Ongoing Impacts: The 2023 iRobot Lawsuit

The fallout from the cyber attack didn’t end with the initial shutdown. In February 2022, Expeditors CIO Christopher J. McClincy said, “The cyber-attack limited our ability to arrange shipments or manage customs and distribution activities, or to perform certain accounting functions, for approximately three weeks after the attack.” Later in the statement, he added, “We continue to navigate residual effects.”

Then in 2023, the company was hit with a lawsuit from iRobot, one of their biggest customers. The lawsuit claims “Expeditors’ own inattentiveness and negligence exposed its systems to attack, and Expeditors lacked and/or failed to implement the necessary business continuity plan to ensure that it could continue providing services to iRobot.”

This legal action added to the ongoing financial impact faced by the company and reignited news stories about the attack—likely impacting the company’s reputation with potential clients, current clients, partners, investors, and other stakeholders.

What’s Your Risk Exposure?

The story of Expeditors should serve as a stark example of the increasing threat that cyber attacks pose to all businesses, but especially to small and mid-sized companies. According to a recent report, 47% of all U.S. businesses suffered some kind of cyber attack in 2022. At the same time, another report found that companies with less than 1,000 employees are three times as likely to be the target of a cyber attack as larger businesses like Expeditors.

Cybersecurity experts say that it’s not if a company will be a target, but when. In fact, a study of penetration testing results found that cybercriminals can penetrate 93 percent of company networks.

Invest in Proactive Measures

Small to medium-sized businesses are seen as easy targets by criminals since they often invest less in cybersecurity and lack security expertise. Cybercriminals understand this and take advantage of these weaknesses, using techniques like phishing, malware, ransomware, and other malicious tactics to gain access to sensitive data or disrupt operations. As a result, it is essential for businesses to invest in robust cybersecurity solutions that can help protect them from cyberattacks.

However, according to the Cyberspace Solarium Commission, many “cybersecurity budgets at U.S. organizations are increasing linearly or flat” when they should be growing in response to the exponential growth of cyber threats.

Best Practices to Mitigate the Risk from Cyber Attacks

Investing in multi-layered cybersecurity is the surest way to keep you and your company out of the headlines. By implementing cybersecurity solutions utilizing best practices, businesses can significantly reduce the likelihood and severity of a cyber incident.

Some key strategies include:

  1. Investing in robust security solutions: Deploying firewalls, real-time monitoring, and intrusion detection systems can help identify and prevent unauthorized access to your network and data.
  2. Regularly updating and patching systems: Keeping software and systems up to date ensures protection against known vulnerabilities, making it more difficult for cyber criminals to exploit your systems.
  3. Implementing strong access controls: Restricting access to sensitive data and systems through multi-factor authentication and the principle of least privilege minimizes the risk of unauthorized access.
  4. Educating employees on cybersecurity best practices: Regular training on topics such as recognizing phishing emails and creating strong passwords can reduce the risk of employees inadvertently compromising your network.
  5. Developing a comprehensive incident response plan: A well-defined incident response plan outlines the steps to be taken during a breach, including containing the incident, assessing the damage, and recovering from the attack.

By learning from the Expeditors case study and prioritizing cybersecurity, businesses can better protect themselves from the devastating consequences of cyber attacks and ensure long-term success. Protect your business from cyber threats with a comprehensive security risk assessment that can help identify any areas of vulnerability and provide guidance on best practices to shield your organization.

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Cybersecurity for RIAs

RIA Cybersecurity: Prepare for New SEC Cybersecurity Requirements (2023)

Last year the Securities and Exchange Commission (SEC) voted to implement new and amended SEC RIA requirements to the Advisers Act of 1940 for cybersecurity risk management for registered investment advisers (RIAs) and funds.

Is your firm ready?

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sec ria cybersecurity requirements

The proposed SEC rule changes would oblige RIA firms to develop and implement written policies and procedures to reduce cybersecurity risks that could harm clients and fund investors. The proposed regulations would also force advisers to report cybersecurity incidents like data breaches involving client information to the SEC.

Additionally, the proposed changes call for publicly disclosing cybersecurity risks and significant incidents from the last two fiscal years in their marketing materials and registration statements.

“The proposed rules and amendments are designed to enhance cybersecurity preparedness and could improve investor confidence in the resiliency of advisers and funds against cybersecurity threats and attacks,” said SEC Chair Gary Gensler.

While comments initially closed in April 2022, comments were reopened on March 15, 2023. Once comments are fully closed, the finalized rules will most likely become effective later in 2023. We will be providing future updates once the final regulations are published.

What do the New SEC RIA Cybersecurity Requirements Entail?

The four significant proposed changes include the following:

  1. The proposal consists of new rule 206(4)-9 under the Advisers Act and new rule 38a-2 under the Investment Company Act. In addition, the proposed cybersecurity risk management rules require public companies to adopt and implement policies and procedures for identifying, assessing, and mitigating cyber risks.
  2. The proposal also includes a reporting requirement under new rule 204-6 mandating companies report significant cybersecurity incidents affecting the adviser, its fund, or private fund clients.
  3. The updated rules include changes to Form ADV Part 2A requiring advisers and funds to publicly disclose cybersecurity risks and significant cybersecurity incidents that occurred in the last two fiscal years in their brochures and registration statements.
  4. The proposal also includes new recordkeeping requirements under the Advisers Act and Investment Company Act Rule 204-2 to improve the availability of cybersecurity-related information and help facilitate the Commission’s inspection and enforcement capabilities.

RELATED CONTENT → Security vs. Compliance: Differences & Similarities

What Can You Do to Prepare for RIA Cybersecurity Enforcement?

Here are some expert tips on being ready for enforcement when the changes go into effect later this year.

  •  Develop and Implement Policies and Procedures

RIAs and funds must create comprehensive cybersecurity policies and procedures to mitigate cybersecurity risks per the proposed rules. Keep in mind that these policies and procedures must be both compliant and actionable.

  • Conduct a Risk Assessment

Evaluate cybersecurity risks by identifying, categorizing, and prioritizing cybersecurity risks related to your systems and operations. By conducting an effective risk assessment, you’ll have the necessary information to develop compliant policies and procedures to combat potential cybersecurity risks.

  • Prepare for Disclosure Obligations

When it comes to disclosures associated with cybersecurity risks or incidents, develop procedures for clear, accurate, and timely disclosures to the SEC, clients, investors, and other market participants.

  • Continuity Planning

In the event of a cybersecurity incident, you must be able to maintain system operations. So, test your incident response and business continuity plans through tabletop exercises to ensure compliance with the requirements.

  • Reporting and Documentation

Employing a governance, risk, and compliance (GRC) solution will ensure you have well-documented evidence that your cybersecurity program is compliant.

In addition to ensuring that your firm will align with the changes, these suggestions are also considered best practices for mitigating the risks from data breaches and other cyber attacks. Following these and other practices makes good sense whether your firm is required to or not.

To learn more about GRC, download our free guide →  Understanding Governance, Risk Management, and Compliance for Financial Services.

By employing these practices, you’ll be ready for any forthcoming changes to cybersecurity regulations and well-protected against potential security threats. One solution for preparing now or later is to work with an experienced and knowledgeable IT service provider. An IT partner experienced with RIA firms, and one employing robust cybersecurity and compliance solutions can reduce the time and resources it takes to comply with and implement these and other cybersecurity compliance standards.

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security vs compliance

Security vs. Compliance: Differences & Similarities (2023)

Security and compliance are often used interchangeably in IT, but that is actually a misnomer as they are not equivalent. So, just what are the differences between security vs. compliance?

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security and compliance

Security Vs. Compliance

In understanding security vs. compliance, it’s important to recognize that they are both equally important but for varying reasons. Whereas security drivers are related to mitigating business risks, compliance drivers are regulatory or legal in nature. Compliance and security have similar objectives around managing risks and securing sensitive data and systems. However, they have different processes and workflows to accomplish these goals.

Compliance involves applying regulatory standards to meet contractual or third-party regulatory requirements.  In contrast, security constitutes the implementation of adequate technical controls to protect digital assets from cyber threats.

Still, again, they are similar but not equal. So why is the distinction between security and compliance important? It is significant because implementing one without the other could lead to devastating consequences for your company.

Cybersecurity

That’s the motivation behind implementing cybersecurity—the desire to protect the confidentiality, integrity, and availability of company assets through security controls and best practices.

IT security is unique to each organization—the measures set by one entity may be entirely different from those of another. Security focuses on comprehensively mitigating any risk that may threaten an organization’s data confidentiality, availability, and integrity—it relates to all the electronic and physical data of an organization and not just those covered by compliance.

We don’t walk around with our bank account or social security numbers on our foreheads—that would be reckless. Instead, we do our best to secure sensitive information from individuals who want to steal it because securing valuable data is a prudent action to reduce the associated risks of identity theft and drained bank accounts.

Cybersecurity acts the same way. Recognizing the risks, smart business leaders choose to secure assets to protect their business from harm and keep their business. The fallout from inadequately securing business assets can lead to loss of business revenue, costly lawsuits and settlements, theft of intellectual property and proprietary information, reputational loss, inability to operate, and business shutdown.

Related Content →  Evaluate your security readiness with our  Cybersecurity Checklist.

Compliance

The confusion between the two functions arises because the outcomes from implementing compliance measures often overlap with implementing security measures. However, the motivation behind organizational compliance is to ensure that obligations and requirements are satisfied to avoid negative consequences and ensure business viability.

These external compliance requirements and standards include a range of often intersecting and complicated networks of government, industry, financial, and even customer requirements. Cybersecurity is often a small part of a greater set of requirements. Examples include:

  • Self-regulatory organizations like PCI Security Council (PCI DSS) and Financial Industry Regulatory Authority (FINRA)
  • Governmental bodies like the U.S. Securities and Exchange Commission (SEC)
  • Government regulations, including Gramm-Leach-Bliley Act (GBLA), FTC Safeguard Rule, Sarbanes-Oxley (SOX)
  • Privacy standards, including HIPAA/HITECH, GDPR, CCPA
  • Technical Standards and Certifications, including ISO27001, SOC2
  • Control frameworks, including NIST CSF, CIS Critical Security Controls
  • Client SLAs
  • Due Diligence requests (DDQ)
  • And more depending on your industry and other factors.

Looking at the worst possible outcomes, the legal and financial ramifications of non-compliance with these and other standards would lead to your organization paying hefty fines and penalties, facing costly lawsuits, being blocked from working in certain locations and industries, not being able to take payments, loss of financing and investors, not being able to acquire insurance, and more.

Related Content → What is Governance, Risk, and Compliance?

Security vs. Compliance the Big Picture

The reality is that neither IT security nor compliance lives in a vacuum. Instead, they are complementary—symbiotic even. They successfully function from a mutually beneficial association that enhances and reinforces the benefits of each other. One without the other would be like trying to make water without oxygen or hydrogen.

Being compliant with a specific set of standards is not the same as having an effective and robust information security system. Compliance simply measures whether your security protocols meet a given set of one-size-fits-all security standards at a given point in time.

A robust security system makes it easier for an organization to meet compliance standards since most of the needed controls will already be in place. All that would remain to attain compliance would be documentation work and adherence to industry-specific policies.

It’s All About Managing Risk

The real question every business leader should be asking is how to leverage both security and compliance to reduce exposure and risk. Compliance establishes a comprehensive baseline for covering an organization’s overall posture. At the same time, security practices build on that baseline to ensure that the business is protected from every angle.

It’s all about risk. Or, more accurately, reducing risk. And security combined with compliance is the one-two punch every business needs to minimize risk and protect assets.

For companies of any size, Governance, Risk, and Compliance (GRC) is about aligning cyber and information technology with business objectives, while managing risk and meeting regulatory compliance requirements. Therefore, an effective GRC strategy is essential because it pulls together the complexity of various risk, compliance, and governance functions into a single strategy.

Successful companies address cyber risk in a business context. From that point of view, avoiding fines and data breaches are preferable. In establishing and implementing compliance and security, smart leaders treat them as a risk-management concern and not just an “IT problem.” Integrating your security and compliance teams into your risk assessment program will lead to mutually assured success.

Additionally, certain industries, like financial services and life sciences, have overlapping requirements originating from a variety of sources which can make fore a complicated matrix to follow. Working with an IT vendor who specializes in your particular industry is ideal to ensure compliance across all regulations.

Choosing the right security and compliance solutions is also critical. Operating with a “checkbox” approach to either compliance or security will lead your organization toward a rocky future. Instead, focus on developing and adhering to robust policies and choosing the right solutions based on your industry needs, risk assessment, and business goals to satisfy and streamline your compliance and security activities.

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Data Breach Detection

Breach Detection: Could You Detect a Data Breach?

With the increasing reliance on technology in today’s business world, the risk of data breaches is at an all-time high, making breach detection a crucial factor in protecting sensitive data.

Data Breach Detection

Detecting a data breach early on can help organizations limit the damages, preserve their reputation, and prevent further unauthorized access to their systems. Despite this importance, many businesses struggle to identify data breaches as they happen, only realizing something is wrong when it’s too late. We outline some helpful insights about the importance of breach detection and the strategies they can adopt to improve their breach detection capabilities to protect their business before, during, and after a data breach.

Causes of a Data Breach

A variety of factors can cause a data breach, including human error, malicious attacks, and software errors. Human error includes misconfiguring security settings or sending sensitive data to the wrong recipient. Malicious activities, such as ransomware attacks or phishing scams, are escalating and increasing in frequency and can lead to unauthorized access to sensitive information or data loss. Additionally, software system errors or vulnerabilities can provide entry points for attackers to exploit.

The growing reliance on third-party vendors and the complexity of supply chains have also increased the potential for supply chain attacks, where attackers target a third-party vendor’s systems to get access to valuable information. Therefore, understanding the causes of data breaches is vital for businesses to identify vulnerabilities and implement appropriate security measures to prevent them.

Data Breach Detection

The majority of data breaches are discovered by external sources, meaning that an external entity, rather than the affected business, was the first to recognize the breach. This makes it clear companies need to improve their data breach detection systems to monitor and detect potential breaches in real time.

With so many data breaches occurring every day, it’s critical for organizations to stay vigilant and invest in the latest technologies, and to detect potential breaches as soon as possible. By prioritizing breach detection and response, businesses can mitigate the damage caused by a breach, protect their customers’ data, and maintain their reputation.

Identifying High-Value Data

Identifying and securing high-value data is critical in protecting sensitive information from unauthorized access, loss, or theft. High-value data can include business trade secrets, intellectual property, financial information, personally identifiable information, and other sensitive information that could harm your business or customers if leaked or breached. To identify high-value data, a company must conduct a thorough inventory of data assets, categorize data based on sensitivity, and apply appropriate security controls to protect it from unauthorized access.

Effective security controls should include access controls, encryption, multi-factor authentication, and data loss prevention tools. Protecting high-value data may require additional resources and investment, but the potential cost of a data breach can be devastating. By prioritizing data protection for high-value data, businesses can minimize the risks associated with a data breach and build a trusted reputation with their customers.

Active Monitoring Processes

Active monitoring processes are essential for preventing data breaches and protecting sensitive information from unauthorized access. Active monitoring involves continuous monitoring of a system’s security posture to identify potential threats, suspicious activities, or vulnerabilities. By proactively monitoring networks, applications, and data usage, businesses can quickly detect and respond to security incidents before they become full-blown breaches.

Active monitoring processes can include but are not limited to, security information and event management (SIEM) solutions, intrusion detection and prevention systems, network and endpoint protection tools, and data analytics platforms. These tools provide a holistic view of the organization’s security posture and enable businesses to take timely action against probable security threats. Through active monitoring and timely response, organizations can prevent data breaches, protect sensitive information, ensure compliance, and maintain their reputation.

Rapid Remediation After a Data Breach

Rapid remediation is a crucial step in limiting the damage caused by a data breach. Once a breach has been detected, acting quickly and decisively to contain it and minimize the harm is essential. Rapid remediation strategies may include, among others, isolating affected systems, disabling breached accounts or systems, restoring from backups, identifying and removing malware or other malicious software, and conducting forensic analysis to determine the extent and root cause of the breach. The ultimate goal of rapid remediation is to lessen the severity of the breach and protect sensitive data from further exposure.

By responding to a breach quickly, businesses can reduce their financial and legal liabilities, safeguard their reputation, and mitigate operational disruptions. Effective remediation requires a well-defined incident response plan, including clear roles and responsibilities, thorough documentation, and continuous improvements in response to changing threat landscapes.

In conclusion, data breaches are becoming more sophisticated and prevalent, making breach detection an essential component of data protection strategies. Therefore, organizations must stay up to date with the latest technologies and adopt a multilayered approach to cybersecurity, including monitoring, training, and incident response planning.

Related Content

Looking to evaluate your organization’s current security coverage? Use our Cybersecurity Evaluation Checklist to help you appraise your firm’s cybersecurity readiness. This checklist is a jumping-off point to help your enterprise determine its ability to mitigate the risk of cyberattacks before it is too late.

Cybersecurity Checklist

 

Only by adopting a proactive, comprehensive approach can organizations hope to prevent significant breaches, mitigate their impact, and protect sensitive data. However, when it comes to data breaches, it’s not a matter of if but when. Therefore, businesses must continuously assess their IT security posture and adopt proactive measures to detect and respond to potential breaches. Only then can they safeguard sensitive data, ensure compliance, maintain operations, avoid liability, and avoid the headlines.

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How to Spot a Phishing Email

10 Tips to Better Spot Phishing Emails

How to Spot a Phishing EmailEmail phishing activity is reaching a new high, especially in the financial services sector.

Common attacks are nothing more than online scams involving gift cards, while some are targeted spear phishing campaigns with the goal of gaining access to corporate networks. The best defense against fraudulent emails is educating end-users on how to spot suspicious emails. Phishing schemes often have signs that can trigger recipients to question their veracity. The key is to slow down and pay attention to the details. To that end, we have put together a list of ten common phishing email characteristics.

10 Signs of a Phishing Scam

  1. It just doesn’t look right – Is there something a little off with the emails? Too good to be true? Trust your instincts about the warning signs of potentially suspicious activity.
  2. Generic salutations –  Instead of directly addressing you, phishing messages often use generic names like “Dear Customer.” Using impersonal greetings saves the cybercriminals time so they can maximize their number of potential victims.
  3. Links to official-looking sites asking for sensitive data – These fake websites are often very convincing, so before revealing personal information or confidential data, examine the site to make sure it’s not a fraudulent website.
  4. Unsolicited email that uses personal details about you – Information like job title, previous employment, or personal interests can be gleaned from social networking sites like LinkedIn and then used to make a phishing email more convincing.
  5. Unnerving phrases – Thieves often use phrases meant to scare you (such as saying your account has been breached) to trick you into acting without thinking and in doing so, revealing information you ordinarily would not.
  6. Bad grammar or spelling – Grammar mistakes and misspelled words are a dead giveaway in a basic phishing attack. The use of unusual syntax is also a sign that something is wrong.
  7. Urgent request – For example: “If you don’t respond within 48 hours, your account will be closed.” By convincing you the clock is ticking, phishing scammers hope you’ll make a mistake by clicking on a phishing link or opening a malicious attachment.
  8. You’ve won the grand prize – This phishing technique is common but easy to spot. A similar, trickier variation asks you to complete a survey (thus giving up your personal information) in return for a prize.
  9. Verify your account –  These types of phishing attacks spoof real emails asking you to verify an online account with a site or organization. Always question why you’re being asked to verify – there’s a good chance it’s a scam.
  10. Cybersquatting – Often, cybercriminals will purchase and squat on website names that are similar to an official website in the hopes that users go to the wrong site, such as www.google.com vs. www.g00gle.com. Always take a moment to check out the URL before entering your personal information.

Related content: 6 Steps to Reduce Phishing 

Coretelligent’s Recommendation:

It is essential for your organization to have comprehensive solutions for cybersecurity designed by a trustworthy, proactive provider. Our CoreArmor solution offers 24/7 intrusion detection and monitoring, in-depth assessment to identify vulnerabilities, best-in-class phishing testing and end-user awareness training, and more. Your organization must be protected against emerging email threats in 2024 and beyond. Contact us today for strategic guidance on how to mitigate the security risk from phishing attempts.

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Multi-layered Security

Multi-Layered Security: How to Improve Your Cybersecurity Strategy

Are you utilizing a multi-layered security solution? In today’s escalating environment, it is not enough to just have a cybersecurity solution, instead, your company needs a robust multilayered security solution that includes multiple checks and protections against intrusions.

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Multi-layered Security

Multi-Layered Security: How to Improve Your Cybersecurity Strategy

Cyber attacks are increasing at an alarming rate. In fact, global cyber attacks were up by 38% in 2022 over the previous year–and this trend doesn’t appear to be slowing down for 2023 either.

In light of this increase, are you putting yourself and your business at risk because of your deficient posture? The consequences of not being prepared for a data breach, ransomware, or other cyber incident are severe and include:

  • Financial loss from shutdowns and restoration efforts
  • Reputational damage
  • Personal liability
  • Fines and penalties from regulators
  • Permanent loss of proprietary data
  • Exposure of confidential and proprietary data
  • Costly lawsuits from clients, employees, and others impacted by data breaches or loss of productivity from stoppages
  • The complete failure and dissolution of your company

In evaluating your current posture,  it is important to ask yourself the following questions:

  1. When was your company’s last vulnerability assessment?
  2. Have you made the recommended improvements?
  3. Do you know how to address your security vulnerabilities?
  4. Could you defend your current strategy to investors and regulators if a breach occurred?

Defend Against Escalating Threats with Layered Security

The potential risk from a deficient or merely adequate cybersecurity posture are just too significant. The escalating cyber threat landscape requires a rigorous, dynamic, and proactive security strategy. The only way to truly protect your firm from cyber threats is with a robust cybersecurity position. The most secure approach is utilizing multi-layered security protection, often referred to as defense-in-depth. Without this method, your company is an easy target for cybercriminals, and it could  be considered negligent in the event of a cybersecurity incident.

To provide some context—your lax security approach is just as negligent as leaving your front door wide open and announcing to the world that you are out of town for the week.

 

Multi-layered Security

This infographic demonstrates the multilayered approach to security, specific best practices, and their associated Coretelligent solutions.

What Does Layered Cybersecurity Encompass?

Defense-in-depth is a system of overlapping security layers that range from easy-to-implement controls to complex security tools. These layers are designed to create an interlocking barrier, not unlike the security system at your home, which might include a door with a deadbolt, motion-detection lights, security cameras, and an alarm system that act as overlapping protections designed to safeguard your home. These individual protections combine to work as a system that is continuously protecting your home. Multilayered cybersecurity operates in the same manner. And just like your home security defends on two fronts—as a deterrent to criminals and as a barrier for any criminals foolish enough to attempt to break in—a strong cybersecurity posture defends on two fronts.

Our defense-in-depth infographic highlights the cybersecurity best practices that Coretelligent employs, including next-generation firewalls, endpoint detection and response, patch management and security updates, access management policies, advanced spam filtering, and more.

Evaluate Your Current Cybersecurity Solution

Looking to evaluate your organization’s current security coverage? Use our Cybersecurity Evaluation Checklist to help you appraise your firm’s cybersecurity readiness. This checklist is a jumping-off point to help your enterprise determine its ability to mitigate the risk of cyberattacks before it is too late.

Cybersecurity Checklist

After completing the checklist, reach out for questions about how Coretelligent can help to strengthen your cybersecurity. Learn more about what we offer, including cloud-based solutions, backup and business continuity services, IT planning and strategy, compliance solutions, and more here.

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How to Avoid Increased Risk from Phishing Attacks

How to Avoid Increased Risk from Phishing Attacks After SVB Shutdown 

Reports of cybercriminals registering suspicious domains after the Silicon Valley Bank shutdown indicate potential coordinated campaigns to trick account holders and users across industries, including tech, life sciences, and investment firms. Learn how to avoid these phishing attacks.

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What is a common indicator of a phishing attempt

 

Since the news about Silicon Valley Bank (SVB) dropped, much of the focus has been on how the shutdown happened and the implications for the industry and the economy at large. However, amidst the worry about the impacts lies another danger—the risk of increased cyber-attacks, particularly from phishing attempts and other social engineering. Of course, it is essential always to remain vigilant, but bad actors often take advantage of opportunities like this to ramp up their efforts.

A sudden change in business procedures can create a vulnerable window of opportunity for cybercriminals to launch malicious campaigns. As we’ve seen with other incidents, attackers have taken advantage of any vulnerabilities arising from the disruption to perpetrate attacks on other companies.

It has been reported that cybercriminals have been registering suspicious domains after the Silicon Valley Bank shutdown that can be used in coordinated campaigns to trick end-users into sharing sensitive information.

With this in mind, organizations must remain extra vigilant for phishing attempts and other social engineering tactics during times of uncertainty that cybercriminals can exploit.

How to Avoid Phishing Attacks?

Here are some tips to help your firm avoid phishing attacks:

  • Expect an increase in phishing, social engineering, and phone calls and email attempts to gain access to your data and accounts.
  • Attackers will use language to appeal to your emotions. For example, click this now, urgent, your money is running out, etc.
  • Finance teams must carefully verify and validate any account changes or new account requests.
  • Implement multifactor authentication if your organization does not already employ it.
  • Ensure that employees are aware of the increased risk and ensure they can recognize social engineering and phishing attempts.
  • Follow up with a regular training program for end-users to ensure employees are always ready to identify the latest tactics utilized by cyber attackers.

What is a common indicator of a phishing attempt?

  • Here are some of the usual signs of an email phishing attempt. Often phishing schemes will include several of these markers.
  • An email sent from an address that does not match the domain associated with the sender. For example, if you receive an email from someone claiming to be from SVB but with a different domain name in the “from” field, this should be a red flag.
  • Emails with misspelled words and grammatical or syntax errors could also signal a malicious attempt.
  • Emails that include links or attachments should be carefully scrutinized. It is always best to err on the side of caution and not click links or open attachments until you can confirm that they are from a trusted source.
  • Unsolicited emails that ask for or direct you to a link or document asking for personally identifying information (PII) like passwords, wire transfer details, login credentials, or other sensitive data should be treated with extreme caution.
  • Finally, if an email contains a sense of urgency, includes offers of immediate assistance, or requests payment now, this could be a sign of a phishing attempt. Again, be sure to take the time to independently verify the request before taking any action.

If you encounter any of these signs, it is best to flag the email and alert your IT department immediately. Taking precautions to protect yourself from phishing attempts is critical in safeguarding your company’s data.

Related Content: Why are Phishing Emails so Dangerous, and How Can You Spot Them?

It is essential to remain vigilant when there is heightened risk from cyber criminals taking advantage of a highly volatile situation like SVB’s recent closure. By following best practices such as implementing multifactor authentication, conducting end-user training, and relying on a multilayered cybersecurity program, you can protect your business from cyber criminals looking to take advantage of the uncertainty during this and the next inciting incident.

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