Contents

Preface

Acknowledgments

About the Author

Chapter 1 Dark Matters

1.1 Dark Breaches

1.1.1 What Is a Data Breach?

1.1.2 Unprotected Personal Information

1.1.3 Quantifying Dark Breaches

1.1.4 Undetected Breaches

1.1.5 Dark and Darker Breaches

1.2 Skewed Statistics

1.2.1 Public Records

1.2.2 Raise Your Hand if You’ve Had a Data Breach

1.2.3 Cybersecurity Vendor Data

1.3 Why Report?

1.4 What’s Left Unsaid

Chapter 2 Hazardous Material

2.1 Data Is the New Oil

2.1.1 Secret Data Collection

2.1.2 The TRW Breach

2.2 The Five Data Breach Risk Factors

2.3 The Demand for Data

2.3.1 Media Outlets

2.3.2 Big Advertising

2.3.3 Big Data Analytics

2.3.4 Data Analytics Firms

2.3.5 Data Brokers

2.4 Anonymization and Renonymization

2.4.1 Anonymization Gone Wrong

2.4.2 Big Data Killed Anonymity

2.5 Follow the Data

2.5.1 Pharmacies: A Case Study

2.5.2 Data Skimming

2.5.3 Service Providers

2.5.4 Insurance

2.5.5 State Government

2.5.6 Cost/Benefit Analysis

2.6 Reducing Risk

2.6.1 Track Your Data

2.6.2 Minimize Your Data

2.7 Conclusion

Chapter 3 Crisis Management

3.1 Crisis and Opportunity

3.1.1 Incidents

3.1.2 Data Breaches Are Different

3.1.3 Recognizing Crises

3.1.4 The Four Stages of a Crisis

3.2 Crisis Communications, or Communications Crisis?

3.2.1 Image Is Everything

3.2.2 Stakeholders

3.2.3 The 3 C’s of Trust

3.2.4 Image Repair Strategies

3.2.5 Notification

3.2.6 Uber’s Skeleton in the Closet

3.3 Equifax

3.3.1 Competence Concerns

3.3.2 Character Flaws

3.3.3 Uncaring

3.3.4 Impact

3.3.5 Crisis Communications Tips

3.4 Conclusion

Chapter 4 Managing DRAMA

4.1 The Birth of Data Breaches

4.1.1 Data Breaches: A New Concept Emerges

4.1.2 The Power of a Name

4.2 A Smoldering Crisis

4.2.1 The Identity Theft Scare

4.2.2 The Product Is . . . You

4.2.3 Valuable Snippets of Data

4.2.4 Knowledge-Based Authentication

4.2.5 Access Devices

4.3 Prodromal Phase

4.3.1 The Smoldering Crisis Begins . . .

4.3.2 Isn’t It Ironic?

4.3.3 A Suspicious Phone Call

4.3.4 Hiding in Plain Sight

4.3.5 Recognize

4.3.6 Escalate

4.3.7 Investigate

4.3.8 Scope

4.4 Acute Phase

4.4.1 Ain’t Nobody Here But Us Chickens

4.4.2 Just California . . . Really

4.4.3 . . . Oh, and Maybe 110,000 Other People

4.4.4 The Explosion

4.4.5 The Blame Game

4.4.6 That New Credit Monitoring Thing

4.4.7 Act Now, While Goodwill Lasts

4.5 Reducing Harm

4.5.1 Devalue the Data

4.5.2 Monitor and Respond

4.5.3 Implement Additional Access Controls

4.6 Chronic Phase

4.6.1 Call in the Experts

4.6.2 A Time for Introspection

4.6.3 Testifying before Congress

4.7 Resolution Phase

4.7.1 The New Normal

4.7.2 Growing Stronger

4.7.3 Changing the World

4.8 Before a Breach

4.8.1 Cybersecurity Starts at the Top

4.8.2 The Myth of the Security Team

4.9 Conclusion

Chapter 5 Stolen Data

5.1 Leveraging Breached Data

5.2 Fraud

5.2.1 From Fraud to Data Breaches

5.3 Sale

5.3.1 Selling Stolen Data

5.3.2 Asymmetric Cryptography

5.3.3 Onion Routing

5.3.4 Dark E-Commerce Sites

5.3.5 Cryptocurrency

5.3.6 Modern Dark Data Brokers

5.4 The Goods

5.4.1 Personally Identifiable Information

5.4.2 Payment Card Numbers

5.4.3 Data Laundering

5.5 Conclusion

Chapter 6 Payment Card Breaches

6.1 The Greatest Payment Card Scam of All

6.2 Impact of a Breach

6.2.1 How Credit Card Payment Systems Work

6.2.2 Consumers

6.2.3 Poor Banks

6.2.4 Poor Merchants

6.2.5 Poor Payment Processors

6.2.6 Not-So-Poor Card Brands

6.2.7 Poor Consumers, After All

6.3 Placing Blame

6.3.1 Bulls-Eye on Merchants

6.3.2 Fundamentally Flawed

6.3.3 Security Standards Emerge

6.4 Self-Regulation

6.4.1 PCI Data Security Standard

6.4.2 A For-Profit Standard

6.4.3 The Man behind the Curtain

6.4.4 PCI Confusion

6.4.5 QSA Incentives

6.4.6 Fines

6.5 TJX Breach

6.5.1 Operation Get Rich or Die Tryin’

6.5.2 Point-of-Sale Vulnerabilities

6.5.3 Green Hat Enterprises

6.5.4 The New Poster Child

6.5.5 Who’s Liable?

6.5.6 Struggles with Security

6.5.7 TJX Settlements

6.5.8 Data Breach Legislation 2.0

6.6 The Heartland Breach

6.6.1 Heartland Gets Hacked

6.6.2 Retroactively Noncompliant

6.6.3 Settlements

6.6.4 Making Lemonade: Heartland Secure

6.7 PCI and Data Breach Investigations

6.7.1 PCI Forensic Investigators

6.7.2 Attorney-Client Privilege

6.8 Conclusion

Chapter 7 Retailgeddon

7.1 Accident Analysis

7.1.1 Pileup

7.1.2 Small Businesses Under Attack

7.1.3 Attacker Tools and Techniques

7.2 An Ounce of Prevention

7.2.1 Two-Factor Authentication

7.2.2 Vulnerability Management

7.2.3 Segmentation

7.2.4 Account and Password Management

7.2.5 Encryption/Tokenization

7.3 Target’s Response

7.3.1 Realize

7.3.2 The Krebs Factor

7.3.3 Communications Crisis

7.3.4 Home Depot Did a Better Job

7.4 Ripple Effects

7.4.1 Banks and Credit Unions

7.4.2 Widespread Card Fraud

7.4.3 To Reissue or Not to Reissue?

7.5 Chip and Scam

7.5.1 Alternate Payment Solutions

7.5.2 Card Brands Push Back

7.5.3 Changing the Conversation

7.5.4 Preventing Data Breaches . . . Or Not

7.5.5 Who Owns the Chip?

7.5.6 Public Opinion

7.5.7 Worth It?

7.5.8 No Chip, Please Swipe

7.6 Legislation and Standards

7.7 Conclusion

Chapter 8 Supply Chain Risks

8.1 Service Provider Access

8.1.1 Data Storage

8.1.2 Remote Access

8.1.3 Physical Access

8.2 Technology Supply-Chain Risks

8.2.1 Software Vulnerabilities

8.2.2 Hardware Risks

8.2.3 Hacking Technology Companies

8.2.4 Suppliers of Suppliers

8.3 Cyber Arsenals

8.3.1 Weapons Turned

8.3.2 Calls for Disarmament

8.4 Conclusion

Chapter 9 Health Data Breaches

9.1 The Public vs. the Patient

9.1.1 Gaps in Protection

9.1.2 Data Breach Perspectives

9.2 Bulls-Eye on Healthcare

9.2.1 Data Smorgasbord

9.2.2 A Push for Liquidity

9.2.3 Retention

9.2.4 A Long Shelf Life

9.3 HIPAA: Momentous and Flawed

9.3.1 Protecting Personal Health Data

9.3.2 HIPAA Had “No Teeth”

9.3.3 The Breach Notification Rule

9.3.4 Penalties

9.3.5 Impact on Business Associates

9.4 Escape from HIPAA

9.4.1 Trading Breached Data

9.4.2 Mandated Information Sharing

9.4.3 Deidentification

9.4.4 Reidentification

9.4.5 Double Standards

9.4.6 Beyond Healthcare

9.5 Health Breach Epidemic

9.5.1 More Breaches? Or More Reporting?

9.5.2 Complexity: The Enemy of Security

9.5.3 Third-Party Dependencies

9.5.4 The Disappearing Perimeter

9.6 After a Breach

9.6.1 What’s the Harm?

9.6.2 Making Amends

9.6.3 Health Breach Lawsuits

9.6.4 Learning from Medical Errors

9.7 Conclusion

Chapter 10 Exposure and Weaponization

10.1 Exposure Breaches

10.1.1 Motivation

10.1.2 Doxxing

10.1.3 Anonymous

10.1.4 WikiLeaks

10.1.5 Weaponization

10.2 Response

10.2.1 Verify

10.2.2 Investigate

10.2.3 Data Removal

10.2.4 Public Relations

10.3 MegaLeaks

10.3.1 Manning’s Crime

10.3.2 Caught!

10.3.3 Cooperation: A New Model

10.3.4 Drowning in Data

10.3.5 Redaction

10.3.6 Data Products

10.3.7 Timed and Synchronized Releases

10.3.8 Takedown Attempts Backfire

10.3.9 Distribution

10.3.10 Punishment Backfires

10.3.11 Copycats

10.3.12 Consequences

10.4 Conclusion

Chapter 11 Extortion

11.1 Epidemic

11.1.1 Definition

11.1.2 Maturation

11.2 Denial Extortion

11.2.1 Ransomware

11.2.2 Encryption and Decryption

11.2.3 Payment

11.2.4 World Domination

11.2.5 Is Ransomware a Breach?

11.2.6 Response

11.3 Exposure Extortion

11.3.1 Regulated Data Extortion

11.3.2 Sextortion

11.3.3 Intellectual Property

11.3.4 Response

11.4 Faux Extortion

11.4.1 Case Study: NotPetya

11.4.2 Response

11.5 Conclusion

Chapter 12 Cyber Insurance

12.1 Growth of Cyber Insurance

12.2 Industry Challenges

12.3 Types of Coverage

12.4 Commercial Off-the-Shelf Breach Response

12.4.1 Assessing Breach Response Teams

12.4.2 Confidentiality Considerations

12.5 How to Pick the Right Cyber Insurance

12.5.1 Involve the Right People

12.5.2 Inventory Your Sensitive Data

12.5.3 Conduct a Risk Assessment

12.5.4 Review Your Existing Coverage

12.5.5 Obtain Quotes

12.5.6 Review and Compare Quotes

12.5.7 Research the Insurer

12.5.8 Choose!

12.6 Leverage Your Cyber Insurance

12.6.1 Develop

12.6.2 Realize

12.6.3 Act

12.6.4 Maintain

12.6.5 Adapt

12.7 Conclusion

Chapter 13 Cloud Breaches

13.1 Risks of the Cloud

13.1.1 Security Flaws

13.1.2 Permission Errors

13.1.3 Lack of Control

13.1.4 Authentication Issues

13.2 Visibility

13.2.1 Business Email Compromise (BEC)

13.2.2 Evidence Acquisition

13.2.3 Ethics

13.3 Intercepted

13.3.1 The Beauty of End-to-End Encryption

13.3.2 The Ugly Side of End-to-End Encryption

13.3.3 Large-Scale Monitoring

13.3.4 Investment in Encryption

13.4 Conclusion

Afterword

Index

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