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The SolarWinds hack and the subsequent Senate hearings attended by principal players in that event have made supply chain cybersecurity a national discussion. Some of the questions being asked suggest that America is for the first time considering how to protect our supply chains, form effective public/private partnerships, share cyber threat intelligence and enforce mandatory breach disclosure among a relevant group of stakeholders. However, it is not the first time; many parts of the federal government have been working hard to answer these questions with considerable progress for a long time. Specifically, I can speak from my nearly thirteen-years of experience and the progress I have witnessed firsthand between the Department of Defense (DoD) and the Defense Industrial Base (DIB).

A Public/Private Partnership 

The public/private partnership between the Department of Defense, the largest procurement authority in the world, and its supply chain has substantially answered nearly every salient question being asked in the wake of the SolarWinds breach. The partnership has spanned four presidential administrations and gained a decade of bipartisan support. The parties have operationalized threat information sharing, breach disclosure, and mandatory minimums for supply chain cybersecurity. Some of the very people I worked with more than a decade ago when the DoD, Intelligence Community and Industry came together for the first time are now leading the way for the current presidential administration. Anne Neuberger, for example, has been appointed to lead the government’s response to the SolarWinds hack for President Biden. Anne has been on the front lines of these issues since at least 2009 when I worked with her as a part of the Defense Industrial Base Cybersecurity initiative (DIBCSI), and she understands the issues inside and out. Anne knows the legal limitations of our intelligence agencies domestically, has heard all of the industry’s concerns and has long been a part of the teams working through these issues.

DIBCSI, initially led many years ago by Victoria Morgan, an unsung heroine who dragged along reluctant defense industry prime contractors, questioning, “who is going to pay for this?,” to a partnership with DoD, has evolved into the Cybersecurity Maturity Model Certification (CMMC). Led by another DoD heroine, Katie Arrington, CMMC has answered the cost question, made the program law, and dramatically increased awareness of the responsibilities that come with being a defense contractor. Defense contractors have had a seat at the table for more than a decade in this partnership and have helped DoD and the federal government answer many of the questions being posed in the wake of the SolarWinds breach.

 

Long Road to CMMC Timeline

 

Let’s look at the critical questions being asked and the answers that the DoD and their supply chain have collectively crafted throughout the decade-plus partnership.

 

Threat Information Sharing and Breach Disclosure

The DoD and industry partnership produced DFARS clause 252.204-7012 Safeguarding Covered Defense Information and Cyber Incident Reporting, which mandates rapid reporting of cyber incidents to DoD. Specifically, the clause requires:

(c) Cyber incident reporting requirement.

(1) When the Contractor discovers a cyber incident that affects a covered contractor information system or the covered defense information residing therein, or that affects the contractor’s ability to perform the requirements of the contract that are designated as operationally critical support and identified in the contract, the Contractor shall—

(i) Conduct a review for evidence of compromise of covered defense information, including, but not limited to, identifying compromised computers, servers, specific data, and user accounts. This review shall also include analyzing covered contractor information system(s) that were part of the cyber incident, as well as other information systems on the Contractor’s network(s), that may have been accessed as a result of the incident in order to identify compromised covered defense information, or that affect the Contractor’s ability to provide operationally critical support; and

(ii) Rapidly report cyber incidents to DoD.

(2) Cyber incident report. The cyber incident report shall be treated as information created by or for DoD and shall include, at a minimum, the required elements.

(3) Medium assurance certificate requirement. In order to report cyber incidents in accordance with this clause, the Contractor or subcontractor shall have or acquire a DoD-approved medium assurance certificate to report cyber incidents. 

(d) Malicious software. When the Contractor or subcontractors discover and isolate malicious software in connection with a reported cyber incident, submit the malicious software to DoD Cyber Crime Center (DC3) in accordance with instructions provided by DC3 or the Contracting Officer. Do not send the malicious software to the Contracting Officer.

(e) Media preservation and protection. When a Contractor discovers a cyber incident has occurred, the Contractor shall preserve and protect images of all known affected information systems identified in paragraph (c)(1)(i) of this clause and all relevant monitoring/packet capture data for at least 90 days from the submission of the cyber incident report to allow DoD to request the media or decline interest.

(f) Access to additional information or equipment necessary for forensic analysis. Upon request by DoD, the Contractor shall provide DoD with access to additional information or equipment that is necessary to conduct a forensic analysis.

(g) Cyber incident damage assessment activities. If DoD elects to conduct a damage assessment, the Contracting Officer will request that the Contractor provide all of the damage assessment information gathered in accordance with paragraph (e) of this clause.

 

CMMC: A Framework that has Considered and Solved Legal, Logistical, and Operational Issues

Looking at this list of reporting requirements, we have a framework that has considered and solved many legal, logistical, and operational issues around threat information sharing and breach disclosure.  Many elements of the law have been in place for almost six years now, with some having been implemented voluntarily for more than a decade.  It changes the behavior of the largest supply chain in the world and was created to answer many of the questions currently being asked before important government bodies.

The efforts of the DoD and their industry partners have made the DoD supply chain materially stronger and continue to evolve with regulatory requirements like CMMC. Many of Sen. Mark R. Warner, D-VA, and Sen. Rubio, Marco R-FL questions have been effectively answered but require more resources and attention for implementation. Of course, there is more work to do, and the answers need updating, but we are not starting from scratch. Senator Warner and Senator Rubio have been vocal in their quest for answers. I am optimistic that the Senators’ staff will look to the DoD and DIB partnership for a decade-plus of answers and operational feedback.

 

Scrutiny of defense industrial base (DIB) cybersecurity has never been higher. The costs and impacts of security lapses are on full display in the wake of the SolarWinds breach, as federal agencies continue to investigate the full scale of the intrusion, likely the work of Russia.

Even before recent events, Cybersecurity Maturity Model Certification (CMMC) loomed large among the DIB. We took a snapshot this fall of where DoD contractors stand, surveying more than 200 senior executives to find out what work still needs to be done, the risks and challenges they face, and how to ensure long-term security and compliance.

The results reveal new opportunities, including mitigation and investment strategies, and highlight some of the biggest remaining unknowns that the DIB must quickly address.

This report is designed to help the DIB, the US DoD, and the general security community better understand the level of compliance, the acceptance of new rules, the level of understanding of the cyberattack threat landscape, and current levels of preparedness and business impacts.

Once you learn what DoD suppliers are thinking, find out what they’ve been doing for the past five years. We’re opening the vault on data from the hundreds of Prime and Sub-contractor assessments we’ve completed and scored, sharing trends and benchmarks to help contractors better navigate the road to CMMC compliance. Join our free webinar on February 3, 2021 for all the findings.

 

Among the key findings of the Fall 2020 executive survey:

 

Finding 1: 21% of DIB companies surveyed have experienced a cybersecurity incident

 A little over one-fifth of DIB companies indicated that they have been a victim of a cyberattack, highlighting the risk that CMMC aims to curb. But as the demand for security professionals outpaces supply, executives are increasingly looking to public cloud and key DIB partners to assist in managing security.

Public cloud infrastructure offers some of the best bets, and allows DIB companies to compete effectively in today’s digital world and stay secure. Moreover, as cyberattacks become more rampant, DIB C-Suite professionals are looking for active management and continuous monitoring of all infrastructures.

 

Finding 2: 82% of DIB contractors are handling CUI, a Critical Element in DFARS Compliance (CMMC / NIST 800-171)

Of DIB companies surveyed, 82% understand that they process Controlled Unclassified Information (CUI) as first defined by a ruleset under the Obama administration. As a result, they inherit the most onerous requirements of CMMC and NIST 800-171 security standards, which are critical to ensuring future DoD revenue.

Executives are concerned about the impact security threats can have on business performance, pointing to the potential loss of customers, brand reputation, and operational productivity. Many report adjusting budget priorities to better secure networks and prevent attacks.

The impacts of attacks on DIB corporate networks can vary depending on the industry in which companies compete. Manufacturers that have long embraced automation to boost production efficiencies now plan to integrate artificial intelligence in security measures with a corresponding shift in their IT budgets.

Events that most influence how executives view their companies’ security vulnerabilities include high-profile data breaches and nation-state attacks on peer companies, cyber-attacks on their organizations, and government regulations.

 

Finding 3: 93% of DIB companies are aware of CMMC

The DIB C-Suite research reveals that nearly all companies in the sector – 93% – are aware of the new CMMC rules and the important sector trends. DIB companies are attempting to educate themselves about the effects of recent rule changes on security requirements. Suppliers of all sorts need to consider documentation, adherence, and, in some cases, transformation of their security practices to protect and comply with the requirements of the new DoD rules.

Fortunately, only 13 of 201 respondents cited that they were unaware of the CMMC rules. Unfortunately, many in the DIB are ill prepared to actually implement them.

 

Finding 4: A third of DIB companies don’t know which CMMC level to focus on

 The CMMC will encompass multiple maturity levels that range from “Basic Cybersecurity Hygiene” to “Advanced/Progressive.” The intent is to incorporate CMMC as a requirement for contract award.

While 56% of respondents said they’re focused on Levels 1-3, with 42% focused on Level 3 alone, a large portion of respondents still don’t know which level to focus on. Some 33% of respondents said the level they would focus on is “uncertain.” That will limit their speed in adopting and certifying their compliance with the level they eventually must meet.

 

Finding 5:  More than half of DIB companies outsource IT and security functions

DIB C-suite executives face tough choices when deciding where to invest resources to propel their businesses forward. At least 4 in 10 respondents identify increasing infrastructure complexity, digital transformation plans, integrations of artificial intelligence, and migration to the cloud as putting pressure on security planning and budget allocation.

Executives understand that compliance to DFARS, NIST 800-171, and CMMC is paramount and to transform their businesses, they must embrace the integration of new technologies.

At the same time, they’re facing an internal skills gap. One-third of respondents report dependence on their internal IT talent, promoted from within, which can create a knowledge gap in security strategy.

The internal skills gap is not easily solved because the demand for security professionals outpaces supply. As a result, more executives report the need to look to outside security vendors for assistance.

In fact, more than 54% of executives report outsourcing both IT and IT Security to gain traction on competent and quick compliance. They’ve decidedly moved toward public and private cloud environments, and the survey data also reveals a shift of network security budgets toward technologies that employ more automation, more technology integration, and the ability to operate from a sovereign US environment on government-certified FedRAMP environments.

 

Finding 6: China and Russia aren’t the only risks on DIB companies’ minds

DIB C-Suite executives face tough choices when deciding where to invest resources to propel their businesses forward. As the threat of network attacks becomes a question of when, not if, chief executive officers and chief security officers must carefully evaluate the risks associated with security vulnerabilities and the costs of implementing effective security solutions.

At least 4 in 10 respondents identify these factors as putting pressure on their organizations’ security planning and investment:

  • Increasing infrastructure complexity
  • Threat from China, Russia, and Iran
  • Compliance to new regulations
  • Migration to the cloud

 

Finding 7: 40% of DIB companies estimate the cost of an attack at more than $1 million

Data breaches are expensive. They rack up monetary costs that directly affect companies’ bottom lines, but more troubling is the damage inflicted to intangibles such as brand reputation and customer trust.

Almost 40% of respondents estimated the hard cost of every attack to be more than 1 million USD/EUR/GBP, with cost estimates surging to more than 25 million USD/EUR/GBP for 5% of respondents. While soft costs are difficult to quantify, it is likely their impact is much higher over the long run than hard costs.

Hard and Soft Costs

Executive-Ranked-Top-3

 

About the Research

On behalf of CyberSheath, BAO surveyed 201 Executives from July to September 2020. To participate in the 2020 DIB C-Suite Compliance Security Survey, respondents were required to be a company who contracts with the US DoD and by design, the survey required at least half respondents to be C-level executives, though this year’s research attracted far more C-level corporate leaders. About 2/3rds of the companies in the survey have less than 500 employees.

 

Don’t forget: Sign up for our free webinar on February 3, 2021 to learn what high- and low-scoring organizations have in common, variables that negatively affect most businesses, and characteristics of companies attaining compliance. Don’t miss it!

How Secure is the DIB Supply Chain?

In today’s digital world, no matter what type of sensitive data you handle, attackers are hard at work developing ways to access it. The rash of high-profile security breaches making headlines every day is clear evidence of the struggle businesses face in trying to stay ahead of these sophisticated cyber attacks.

In response to these threats, local and federal governments around the world have begun to impose increasingly stringent regulations to force companies to re-examine their internal cybersecurity standards.

DFARS clause 252.204-7012, HIPAA, PCI DSS, and GDPR are just some of the many compliance mandates that companies are currently juggling. And considering the disastrous fallout of even the smallest breach, not to mention the heavy penalties associated with non-compliance, there’s no time to waste in getting up to date.

The Risks of Non-compliance

As early as 2005, former U.S. President Barack Obama voiced his concern about cyberattacks, calling them a “national emergency.” In the years following this call to action, Federal agencies continually increased the regulatory mandates for private contractors, and over half of the state governments in the U.S. passed laws to put in place punitive measures for companies that fail to sufficiently protect sensitive data.

These include hefty fines and in some cases, jail time. Of course, these punishments are minuscule when compared to the consequences of actually being hacked. The costs of penalties, legal fees, and possible compensation for damages pile up quickly and can completely change the financial outlook of your company. Most damaging, however, is the subsequent destruction of your company’s reputation and the irreparable loss of confidence from your customer base.

Entities with the proper vision and intelligence work exceptionally hard to avoid these outcomes at all cost by prioritizing day-to-day operational security. Not only does this protect the company as a whole, but it ensures that the satisfaction of government or contractual requirements is a natural outcome of day-to-day security practices.

An Industry Leader in Cyber Protection

The unfortunate truth is that, even though compliance is absolutely essential, it’s not easy. Combing through the myriad of regulatory requirements to assess which apply to your business, coupled with the complex processes of then actually meeting these standards, leaves many companies lost.

With the right support, businesses can dramatically simplify this process. An industry leader in cybersecurity, CyberSheath has developed the one-of-a-kind systematic Measure Once, Comply Many ® approach to cybersecurity, enabling companies to reach compliance by implementing a specifically tailored security strategy.

CyberSheath starts by expertly identifying the vulnerabilities in your network and then uses this information to plan and build a strategic security organization that optimizes your personnel, security processes, and technology. We then monitor your systems in real-time, providing you early threat recognition and proactive prevention that helps eliminate the risk of attacks.

By using this proven and patented method, CyberSheath paves the way towards both reaching regulatory milestones and achieving optimal operational cybersecurity.

Measure Once, Comply Many ® utilizes the following services to provide a full-service comprehensive security platform, keep your data safe and secure, and assure across-the-board compliance:

• Centralized 24/7/365 Security Operations Center (SOC) capabilities.
• SIEM, network IDS, host IDS, file integrity monitoring, vulnerability reporting and management, and more.
• Real-time security intelligence, including correlation directives, IDS signatures, NIDS signatures, and asset fingerprints.
• Full suite of compliance reporting, including DFARS clause 252.204-7012, NIST 800-171, HIPAA, PCI DSS, GDPR, and state data breach laws.
• Instant detection and notification of ransomware and other malware variants.
• Managed Privilege Account Management Services to stop security breaches involving privileged accounts.

With these advantages in place, you’ll never be caught off-guard, regardless of the current regulatory measures. Your business will not only take the necessary steps towards compliance, but you’ll also be able to continually read and react to the latest state-of-the-art threats. It’s all part of our patented system designed to achieve compliance as a result of committing to optimal operational security.

Assure Your Cybersecurity Now

Staying on top of your cybersecurity requirements can be overwhelming, but being hacked is undoubtedly even worse. Partnering with CyberSheath can help you gain peace of mind by putting a proactive plan in place to ensure your business is not just compliant, but also efficient and thorough in every aspect of cybersecurity. Contact us today to learn more about Measure Once, Comply Many ®.

 

 

On December 31, 2017, the deadline for compliance with the NIST 800-171, a mandate for contractors serving local and federal governments, came and went.

This Special Publication provided guidance on the processes and procedures needed to adequately safeguard controlled unclassified information (CUI), defined as any information created by the government or entities on behalf of the government that is unclassified, but still must be appropriately safeguarded.

While some companies were quick to adapt to these new regulatory measures, many companies fell behind because of a lack of resources, confusion over the head-spinning compliance process, or just downright procrastination.

With the deadline long gone and the Department of Defense (DoD) making it crystal-clear that NIST 800-171 is here to stay, becoming compliant is an absolute must for those looking to remain competitive in the industry.

A Common Problem

Unlike previous security mandates, this is the first that impacts sub-contractors working further down the federal supply chain. This means that for many companies, it’s the first time they’re having to figure out compliance.

If this describes your company, you’re by no means alone. Because these standards must be met by anyone who stores, processes, or transmits CUI for the DoD, General Services Administration (GSA), NASA, or other federal or state agencies, many contractors are struggling to wrap their heads around the complex process ahead.

As it’s critical to a supplier’s ability to win new business and keep current defense contracts, both prime and sub-contractors will want to confirm that they are, at the very least, on the path to compliance with NIST 800-171.

Achieving Compliance

Of course, becoming compliant is easier said than done. The fact that there is no certification process for NIST means contractors work on the honor system, attesting that they have reviewed and heeded the applicable requirements specified in the regulation.

This also means that becoming compliant is not a one-time achievement. Rather, it’s an ongoing process of continuous evaluation. Here are the three key actions you can take to get started…

Assess Your Compliance Level

First, you’ll need to do due diligence in identifying CUI as it applies to you. Check with your contracting officers or look through your contract to see if CUI has been clearly defined. In many cases, it may not be, and you’ll have to review the CUI registry to find similar examples of CUI.

Once you’ve clearly defined what you need to protect, you can begin to figure out if it’s actually being protected sufficiently. You’ll have to carefully review your critical systems, including servers, laptops, storage devices, network devices, end-user workstations. You’ll also need to assess the physical security of those devices that contain CUI to make sure they are properly safeguarded.

Design a Plan of Action

Chances are there will be a gap between where you are now and where you need to be. This is common so don’t worry!

Fortunately, clause 3.12.4 allows for the submission of a Security System Plan (SSP) and a Plan of Actions and Milestones (POA&M) to buy yourself some time as you work towards your compliance goal. Since many contractors are not yet compliant, these documents are required to show procurement officials you are heading in the right direction.

An SSP will provide an overview of the security requirements needed for every system you use, describe the curent controls you have in place, and outline the expected behaviors of all who access them. Your POA&M will show a clearly defined corrective strategy for exactly when and how you plan to resolve any security weaknesses. 

Begin Implementation  

All this planning and assessing means nothing if you don’t step up and deliver! Once you’ve put milestones in place, you’ll need to train your staff and ensure they adhere rigorously to these deadlines. You’ll also need to document critical advancements in your quest for compliance, properly maintaining your records as you go.

Still Nowhere Near Compliance? Don’t Panic!

If you missed the December 2017 deadline and you’re starting to feel the pressure, don’t panic. CyberSheath’s Managed Security Services can help you to define your CUI obligations, create a plan of action, and move step-by-step towards full compliance. Contact us today for a free consultation.

 

 

On Friday of last week, Europol reported that a worldwide attack using a piece of ransomware known as “WannaCry” hit more than 150 countries and infected at least 200,000 victims. Europol Director Rob Rainwright said that “the global reach [of the attack] is unprecedented. The attack appears to be targeting businesses and large corporations in the healthcare, financial and infrastructure sectors; these sectors have highly sensitive information ripe for a hostage.

Ransomware is malicious software, a virus, that has two purposes. The first is to encrypt the contents of a machines hard drive, preventing the user from accessing the information without entering a unique key or password. The second purpose is to act as a worm and spread to as many machines as possible. With a large footprint of infected machines, the attacker can then hold the data for ransom, promising to provide the password or key to decrypt the data once the ransom is paid in bitcoin (untraceable digital currency).

The WannaCry ransomware appears to exploit a vulnerability in the Microsoft XP operating system that was discovered as a result of the recent NSA tool dump. It’s unclear at this time whether the ransomware was developed by the NSA or just as the result of the NSA’s day one exploit stockpiling. Microsoft president and chief legal officer Brad Smith responded to the attack stating that it “provides yet another example of why the stockpiling of vulnerabilities by governments is such a problem”. Smith continued his comment stating that “this most recent attack represents a completely unintended but disconcerting link between the two most serious forms of cybersecurity threats in the world today — nation-state action and organized criminal action.

While IT and Security teams have no doubt been working around the clock over the weekend to prevent the spread and manage the fallout, some key actions organizations should take in the immediate fallout are as follows:

  • Immediately backup important and sensitive data in case you are infected soon.
  • Update to the latest Microsoft security patches.
  • Update all anti-virus and conducting immediate scans.
  • Scan all inbound and outbound emails for malicious attachments.
  • Send out a companywide awareness email warning employees about the attack and to be cautious of scams and malicious emails.

Moving forward, organizations should consider a more proactive approach to dealing with ransomware as opposed to reactive. In August of last year, CyberSheath Security Engineers wrote about the rise of ransomware and how using sandboxing techniques in daily operations can be 100% effective against malware attacks when used in combination with least-privilege. Adding to defense in depth, implementing a privileged account management solution can be used to prevent ransomware from spreading to critical servers by securing privileged accounts, and in combination with isolating critical servers with a secure jump host such as CyberArk’s PSM, can be a highly effective combination in combating malicious threats.

Let the security professionals at CyberSheath help you become proactive, not reactive. You can learn more about our approach by viewing our Privileged Access Management service area or clicking the button below to download our detailed Privileged Access Management datasheet.

A list recently compiled by the cyber threat intelligence company Flashpoint (via Crain’s Chicago Business) reveals that law firms are not immune to cyber threats and are indeed active targets for today’s cybercriminals. Since January 2016, 48 elite law firms have been targeted by the criminal “Oleras” and his (or her) gang members attempting to access confidential client information for use in insider trading plots. While there has yet to be any indication that the hackers were successful, it raises the question of when law firms will be held to the same (or any) standards that are starting to be applied to other industries.

While the defense industry now has DFARS 252.204-7012 (and the NIST 800-171 control framework) and the financial industry has PCI DSS, no widely applicable or enforceable compliance standard exists for law firms. It’s also not entirely clear when law firms are required to report a breach. A 2014 Law Firm Cyber Survey conducted by Marsh identified some interesting statistics:

  • 79% of respondents in aggregate viewed cyber/privacy security as one of their top 10 risks in their overall risk strategy.
  • 72% said their firm has not assessed and scaled the cost of a data breach based on the information it retains.
  • 51% said that their law firms either have not taken measures to insure their cyber risk (41%) or do not know (10%) if their firm has taken measures.
  • 62% have not calculated the effective revenue lost or extra expenses incurred following a cyber-attack.

This sounds strikingly similar to the defense industry a decade ago. Organizations realize they should do something, but most don’t know how or where to start. They lack in house expertise, and most, 98% according to Marsh, view cybersecurity strictly as a function of IT and the group responsible for the overall management of cyber and privacy risks.

Last year, the American Bar Association reported in its Legal Technology Survey that 1 in 4 firms with at least 100 attorneys have experienced a data breach. It’s unlikely that smaller firms without in-house expertise or security control implementations would even know if a data breach had occurred, much less have the ability to determine what data had been compromised. As an industry that routinely pushes for their clients to protect themselves against risks, the results show that not all firms practice what they preach.

Regardless of your stance on the issue, your data needs protecting.  CyberSheath has experience with applying cybersecurity strategies with law firms and can assist you and your organization in securing your data.  Start with an assessment today, to identify your weaknesses and gaps.

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