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New Federal Cybersecurity Mandates Enacted and SEC Rules Proposed, Amidst Never-Ending Ransomware Attacks

Reading Time: 5 minutes

March 17, 2022

By Rich Gadomski, Head of Tape Evangelism

As I started to write this blog on recent ransomware observations, an email message popped up on my PC from our IT department advising of additional and more stringent security enhancements taking place almost immediately to toughen my company’s cybersecurity and increase our protection against current and emerging threats. A sign of these cybercrime times, indeed!

Ransomware Trending
According to a February 2022 Alert from CISA (Cybersecurity & Infrastructure Security Agency), 2021 trends showed an increasing threat of ransomware to organizations globally with tactics and techniques continuing to evolve in technological sophistication. So-called “big game” organizations like Colonial Pipeline, Kronos, JBS, Kaseya, and SolarWinds made the ransomware headlines over the past year or so. But according to the CISA Alert, by mid-2021, many ransomware threat actors, under pressure from U.S. authorities, turned their attention toward mid-sized victims to reduce the scrutiny and disruption caused by said authorities.

In a recent Enterprise Strategy Group (ESG) study, 64% of respondents said their organization had paid a ransom to regain access to data, applications, or systems. These findings are supported by the latest Threat Landscape report from the European Union Agency for Cybersecurity. It highlighted a 150% rise in ransomware in 2021 compared to 2020. The agency expects that trend to continue, and even accelerate in 2022.

But these numbers hide the stark reality of the ransomware scourge. Gangs like DarkSide, REvil, and BlackMatter are terrorizing organizations with ransomware – and they are getting smarter and more organized. They have moved beyond the basic ploy of infecting files, locking users out of their data, and demanding a fee. They still want money. But they also endanger reputations by exposing attacks, blackmailing companies by threatening to reveal corporate or personal dirty laundry, and selling intellectual property (IP) to competitors.

As a result, cybersecurity spending has become a priority in most organizations. According to ESG, 69% of organizations plan to spend more on cybersecurity in 2022 than in the previous year, while 68% of senior IT decision-makers identify ransomware as one of their organization’s top 5 business priorities.  Such is the fear factor that organizations are now treating cybersecurity ahead of other organizational imperatives such as the cloud, artificial intelligence (AI), digital transformation, and application development.

New Federal Mandate and the SEC Takes Action
On March 15th, in an effort to thwart cyberattacks from foreign spies and criminal hacking groups, President Biden signed into law a requirement for many critical-infrastructure companies to report to the government when they have been hacked. This way, authorities can better understand the scope of the problem and take appropriate action.

It’s also no wonder that the Security and Exchange Commission (SEC) is taking action. On March 9th, the SEC voted 3 to 1 to propose reporting and disclosures related to cybercrime incidents and preparedness. In a nutshell, the SEC will be asking publicly traded companies:

  • To disclose material cybersecurity incidents
  • To disclose its policies and procedures to identify and manage cybersecurity risks
  • To disclose management’s role and expertise in managing cybersecurity risks
  • To disclose the board of director’s oversight role

Specifically, the SEC will want to know:

  • Whether a company undertakes activities to prevent, detect and minimize the effects of cybersecurity incidents
  • Whether it has business continuity, contingency, and recovery plans in the event of a cybersecurity incident
  • Whether the entire board, certain board members, or a board committee is responsible for the oversight of cybersecurity risks
  • Whether and how the board or board committee considers cybersecurity risks as part of its business strategy, risk management, and financial oversight

Holding publicly traded companies and their boards accountable for best practices in combating ransomware is a big step in the right direction and will no doubt free up the required budgets and resources.

Lowering the Fear Factor
Cybersecurity is already a top spending priority for 2022 and with SEC regulations looming, will likely continue to be a priority for quite some time. Companies are busy beefing up the tools and resources needed to thwart ransomware. They are buying intrusion response tools and services, extended or managed detection and response suites, security information and event management platforms, antivirus, anti-malware, next-generation firewalls, and more, including cybercrime insurance policies.

What may be missing in the spending frenzy, however, are some fundamental basics that can certainly lower the fear factor. Backup tools are an essential ingredient in being able to swiftly recover from ransomware or other attacks. Similarly, thorough and timely patch management greatly lowers the risk of hackers finding a way into the enterprise via an unpatched vulnerability.

Another smart purchase is software that scans data and backups to ensure that no ransomware or malware is hidden inside. It is not uncommon for a ransomware victim to conduct a restore and find that its backup files have also been corrupted by malware. Cleansing data that is ready to be backed up has become critical. These are some of the fundamental basics that need to be in place in the fight against ransomware. Organizations that neglect them suffer far more from breaches than those that take care of them efficiently.

Adding an Air Gap
Another fundamental basic is the elegantly simple air gap. When data is stored in the cloud, on disk, or in a backup appliance, it remains connected to the network. This leaves it vulnerable to unauthorized access and infection from bad actors. An air gap is essentially a physical gap between data and the network. It disconnects backed up or archived data from the Internet.

Such a gap commonly exists by partitioning in, or removing tapes from, an automated tape library and either storing them on a shelf or sending them to a secure external service provider. If that data is properly scanned prior to being backed up or archived to ensure it is free of infection, it offers certainty that a corruption-free copy of data exists. If a ransomware attack occurs, the organization can confidently fall back on a reliable copy of its data – and avoid any ransom demands.

Effectively Combatting Ransomware
There is no silver security bullet that will 100% guarantee freedom from ransomware. It is truly a multi-faceted strategy. Implementation of best-of-breed security tools is certainly necessary. But they must be supported by the steadfast application of backup and patching best practices and the addition of a tape-based air gap.

CISA, the FBI, and cybersecurity insurance companies all recommend offline, offsite, air-gapped copies of data. This can be achieved cost-effectively with today’s removable, and highly portable modern tape technology. The boards of publicly traded companies will likely want to do whatever it takes to demonstrate compliance with best practices to meet the SEC requirements. This should include air-gapped tape as part of a prudent and comprehensive strategy. A best practice in these cybercrime times, indeed!

 

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5 Ways an Active Archive can Mitigate the Risk of Ransomware

Reading Time: 2 minutes

December 27, 2021

By Rich Gadomski

As we head into 2022, I recall a quote from an IT industry executive who said in his 2021 predictions: “Ransomware is just in its infancy”.  Indeed, ransomware reigns as today’s chief malware threat with no signs of subsiding anytime soon. Businesses may lose revenue, employee talent, customers, and even shut down from a ransomware attack. Coupled with the ransomware problem, exponential data growth challenges organizations with gathering, storing, and protecting their data cost-effectively with limited budgets. Strong data governance through active archive solutions helps organizations mitigate ransomware attacks and provides a framework for strategically managing their data growth.

A New White Paper by DCIG

In a recently published white paper by the Data Center Intelligence Group (DCIG), commissioned by the Active Archive Alliance, it is stated that active archiving solutions offer permanent and long-term protection for archived data against malicious intrusion as well as accidental data loss or corruption.

The report highlights numerous ways that active archive solutions can provide ransomware mitigation including:

  1. Protecting archive data from modification. WORM (write once, read many) and retention management features keep archived data safe from malicious encryption or overwrite.
  2. Replicating archived data and securing offline storage. Active archive solutions may secure archived data through offline storage, providing an air gap defense that removes the data from the network where it cannot be attacked. Archived data may be replicated for additional protection.
  3. Replicating data to a secure cloud. Data remains online in a secure cloud, protecting it with security features like Secure Socket Layers (SSL) encryption and multi-factor user authentication.
  4. Supporting 3-2-1 data archiving. The 3-2-1 model maintains three replicated copies stored on two different storage types, such as a disk-based backup system, a secure cloud platform, and online or offline tape.
  5. Enabling rapid recovery. The more data sets that reside in primary storage, the greater the opportunity for hackers. Active archiving minimizes attack opportunities in primary storage by identifying and moving inactive files to secure cloud and offline archives. This approach leaves fewer data sets to test and recover on primary storage and primary backup, speeding up recovery with minimal business impact.

Let’s hope 2022 does not represent the “terrible 2s” as ransomware matures from its infancy. But if it does, it’s good to have strategic solutions like an active archive that help manage both the data and the threat!

Download the full report here: Mitigating Ransomware through Active Archive Solutions

 

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Ransomware Protection Must Include an Air Gap

Reading Time: 4 minutes

July 28, 2020

By Rich Gadomski, Tape Evangelist at Fujifilm Recording Media, U.S.A, Inc.

Ransomware statistics can be frightening! Research studies suggest that over two million ransomware incidents occurred in 2019 with 60% of organizations surveyed experiencing a ransomware attack in the past year. To make matters worse, the cybercriminals have moved up the food chain. Two thirds of those attacked said the incident cost them $100,000 to $500,000. Another 20% said the price tag exceeded half a million. Overall, the losses are measured in billions of dollars per year. And it’s getting worse. Enterprise Strategy Group (ESG) reports that about half of all organizations have seen a rise in cyber attacks since the recent upsurge in people working from home.

Understandably, this is a big concern to the FBI. It has issued alerts about the dangers of ransomware. One of its primary recommendations to CEOs is the importance of backup with the following key questions:

“Do you backup all critical information? Are backups stored offline? Have you tested your ability to revert to backups during an incident?”

The key word in that line of questioning is “offline.” Hackers have gotten good at staging their attacks slowly over time. They infiltrate a system, quietly ensuring that backups are infected as well as operational systems. When ready, they encrypt the files and announce to the company that they are locked out of their files until the ransom is paid. Any attempt to recover data from disk or the cloud fails as the backup files are infected, too.

The answer is to make tape part of the 3-2-1 system: Three separate copies of data, stored on at least two different storage media with one copy off-site. This might mean, for example, one copy retained on onsite disk, another in the cloud, and one on tape; or one on onsite disk, one on onsite tape as well as tape copies stored offsite.

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