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Current State of Cyber Warfare and Impact on US Business

Current State of Cyber Warfare and Impact on US Business. Infragard – ISSA Meeting. Charly Shugg, Brig Gen, USAF (Retired). Chief Operating Officer, Sylint Group Inc. Clients - Fortune 100, Gov’t, Public, Private NSA, Air Force Cyber Component, Army CID, Law Enforcement

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Current State of Cyber Warfare and Impact on US Business

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  1. Current State of Cyber Warfare and Impact on US Business Infragard – ISSA Meeting

  2. Charly Shugg, Brig Gen, USAF (Retired) • Chief Operating Officer, Sylint Group Inc. • Clients - Fortune 100, Gov’t, Public, Private • NSA, Air Force Cyber Component, Army CID, Law Enforcement • Cyber Security provider to Fortune 100 companies & think tanks • Digital Data Forensics Lab /Licensed Private Investigators • Criminal Investigations for Law Enforcement • US Secret Service | Federal Bureau of Investigation • Payment Card Industry QSA & PFI

  3. Cyber Warfare* Examples • Saudi Aramco (Aug 12) • “Cutting Sword of Justice” or Iran? • South Korea (Mar 13) • Bureau 121 suspected • Ukraine (Mar 14) • “Cyber Berkut”, pro-Russia group suspected • Sony Pictures (Nov 14) • “Guardians of Peace” or North Korea or Russia / China or Inside Job? *Leave the discussion of what constitutes a “Cyber Warfare / Attack” off the table for now

  4. Traditional Major “Threat Actors” • Nation States • State Security Espionage • Organized Crime • Economic Gain • Hacktivist • Civil Disobedience & Activism • Script Kiddies • Personal Gratification Primary Focus on “Confidentiality” of Information

  5. Evolving “Threat Actors” • Nation States • Economic competitiveness • Supplementing Kinetic Operations • Expanding workforce by collaborating with Organized Crime, infiltrating Hacktivist groups, and transforming Script Kiddies into novice “Cyber Patriots” • Terrorist Groups • Cyber domain primarily used as Command and Control vehicle • Potential to supplement Kinetic Operations • Collaboration with Organized Crime and sympathetic nation state players Tactics /Techniques starting to blend making attribution that much more difficult

  6. Evolving “Attack Process” • Stages of Attack • Intelligence Gathering • Initial Attack • Network Modeling / Mapping / Info gathering • BREAK (Digest Information) • Data Collection • Potential Interruption (INCIDENT RESPONSE) • Intrusion Maintenance Well orchestrated operation with isolated groups using various focused tactics and tools

  7. Cyber Warfare Strategy – Digital “Pearl Harbor” • Ultimate Weapon • Moves at speed of light • Unlimited by geography or political boarders • Capable of simultaneous attacks on multiple targets in multiple locations • Difficult to accurately attribute • Primary focus on destruction or disruption (“Availability”) • Seeking Immediate effects • Potential Target Set(s): • Critical Assets / Infrastructure

  8. Cyber Warfare Strategy – Digital “Pearl Harbor” (cont) • Potential Drawbacks • Damage Containment Difficult • Ethics and Morality drive employment • Little concern for others (results justify means) • Future Access • Could be tied to intelligence channels • Potential Threat Actors: • Low end “Offensive Capable” nation states • Terrorist / Organized Crime

  9. Cyber Warfare Strategy – Digital “Death by a Thousand Cuts” • Discrete Support Weapon • Primary focus on discretely manipulating perceptions and eroding situational awareness / trust (Integrity) • Win – Win Outcome • Unaware of attack – Mode perceptions and potentially create confusion with operations • Aware of attack – Loss of trust for previous tools and methodologies for implementing various operations

  10. Cyber Warfare Strategy – Digital “Death by a Thousand Cuts” (cont) • Potential Target Sets: • Banking & Finance • Communication • Local Law Enforcement • Healthcare • Probable Actors: • High end “offensive capable” nation states • Sophisticated International criminal element

  11. US Business Ramifications - Scope of the Problem • FBI Director believes nearly 100% of US businesses compromised • 80% of breached companies don’t know it • 98% of US companies are SMB • 60% SMB fail 6 months after cyber attack • Intangible assets represent 80% of S&P 500 company valuations • $100 Billion / Year estimated damage to US businesses due to cyber attacks

  12. US Business Ramifications - Unrealistic Protection Expectations • Use physical world security analogy • Attacks from foreign nation states • Attacks from organized crime • Gov’t Compliance and Regulatory Measures • Reality cannot meet security expectations • US Government / Military • US Government / Law Enforcement • Gov’t Compliance and Regulatory Measures

  13. US Business Ramifications - Potential Outcomes • Disrupt / Destroy basic economic premise of capitalism • Stolen proprietary information • Stolen trusted information • Loss of brand reputation • Erode Public Trust in economic system and government • Loss of critical infrastructure • Arguments regarding public resiliency

  14. US Business Ramifications – Future Strategy • Reduce attack surface exposure and become threat aware • Create Resiliency • Exercise Incident Response • Support US Cyber Security Thought Leadership

  15. Sylint.com

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