The Ripple Effect of API Breaches: Analyzing Business Consequences and Mitigation Strategies

Posted on January 14, 2025 by Brent Huston

Businesses rely heavily on Application Programming Interfaces (APIs) for seamless communication and data exchange, the stakes have never been higher. API breaches can lead to significant vulnerabilities, affecting not only the targeted organization but also their customers and partners. Understanding the causes and consequences of these breaches is essential for any business operating in a connected world.

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High-profile incidents, such as the T-Mobile and Dropbox API breaches, have demonstrated the ripple effect these security lapses can have across various industries, from financial services to healthcare and e-commerce. The repercussions can be devastating, ranging from substantial financial losses to lasting damage to an organization’s reputation. As companies navigate this complex landscape, they must recognize that an API breach is much more than just a technical issue—it can alter the course of a business’s future.

This article will delve into the nature of API breaches, explore the consequences they bear on different sectors, and analyze effective mitigation strategies that can enhance API security. By examining key case studies and extracting valuable lessons, we will equip businesses with the knowledge and tools necessary to protect themselves from the ever-evolving threat of API breaches.

Understanding API Breaches

API breaches have emerged as a significant threat in today’s digital landscape. They are becoming the largest attack vector across various industries, including telecommunications and technology. In 2022 alone, these security breaches resulted in estimated financial losses ranging from $12 billion to $23 billion in the US and up to $75 billion globally. Notable incidents, such as T-Mobile’s exposure of over 11.2 million customer records, underline the severe repercussions of API vulnerabilities, leading to costs exceeding $140 million for the company.

The business impact of API breaches goes beyond financial losses, extending to reputational damage and loss of customer trust. Malicious actors often exploit API vulnerabilities to gain unauthorized access to sensitive customer information such as email addresses, social security numbers, and payment card details. This surge in API attacks and ransomware incidents underscores the need for a proactive approach in API security.

Effective API security involves regular updates, patch management, automated vulnerability scans, and continuous monitoring. It’s crucial to safeguard against evolving threats, as malicious code and sophisticated attacks are increasingly targeting application programming interfaces. Organizations must also conduct regular security audits and incorporate strong authentication measures like multi-factor authentication to bolster their security posture.

Definition of APIs

Application Programming Interfaces (APIs) are essential for modern software interactions, facilitating the seamless sharing of a company’s most valuable data and services. They enable communication between diverse software applications, forming the backbone of interconnected and efficient digital ecosystems. The rapid growth in the number of APIs—with a 167% increase over the last year—highlights their expanding role in technology.

As APIs continue to proliferate, they have also become a significant target for cyber threats. The widespread adoption of APIs has posed new challenges, with API security breaches disrupting the technological landscape. It’s imperative for organizations to integrate robust API security measures as APIs emerge as the predominant attack vector in cybersecurity incidents.

Common causes of API breaches

Unprotected APIs are at the forefront of security vulnerabilities, becoming the largest attack vector as predicted by Gartner. One of the common causes of API breaches is the lack of visibility into unsecured APIs, allowing attackers to exploit these gaps without detection. Organizations often fail to implement a strong governance model, resulting in inconsistent coding practices and inadequate security measures during API development.

Breaches frequently occur due to the poor protection of sensitive data. For instance, exposing an AWS S3 bucket without a password can lead to unauthorized access to sensitive information. Such oversights signal a need for improved security practices in managing API access. Even minor breaches pose significant threats, as exposed API tokens and source code can permit attackers to exploit security vulnerabilities and potentially infiltrate more sensitive areas of a network.

To mitigate these risks, organizations should focus on regularly auditing their API endpoint security, enforcing security policies, and employing encryption methods to protect data in transit and at rest. Additionally, leveraging third-party services for monitoring API usage and potential weak points can significantly enhance an organization’s overall security posture in the face of an increasingly complex threat landscape.

High-Profile API Breaches

In recent years, the business impact of API breaches has become increasingly visible, with widespread security incidents causing significant financial and reputational harm. According to a study, 92% of surveyed organizations reported experiencing at least one API security incident in the last 12 months. The economic ramifications are substantial, with API breaches in 2022 alone resulting in financial losses estimated between $12–$23 billion in the US and $41–$75 billion globally. These figures highlight the immense threat landscape that organizations must navigate.

One notable incident was the Optus API breach, where attackers exploited a publicly exposed API lacking authentication. This oversight led to the exposure of sensitive customer data, emphasizing the critical importance of securing endpoints. Mitigation strategies such as implementing multi-factor authentication (MFA) and conducting regular security updates can significantly enhance an organization’s security posture against such threats. Moreover, exposed API tokens present severe risks, as they allow unauthorized access and actions, underscoring the need for robust security measures.

Case Study: T-Mobile Breach

In January 2023, T-Mobile faced a significant security incident when a malicious actor exploited an API to access personal data from approximately 37 million customer accounts over a six-week period. The breach exposed customer names, email addresses, phone numbers, birthdates, account numbers, and service plan features, affecting both prepaid and subscription customers. While T-Mobile assured that social security numbers, passwords, credit card information, and financial details remained secure, the incident still posed considerable security risks.

The leaked information, such as phone numbers and email addresses, increased the risk of social engineering attacks like sophisticated phishing attempts. Since 2018, T-Mobile has experienced multiple security incidents, highlighting their ongoing vulnerability and the critical need for a proactive approach to API security.

Case Study: Dropbox Breach

On November 1, 2022, Dropbox suffered a breach resulting from a phishing scam that compromised its internal GitHub code repositories. The attack began when threat actors deceived Dropbox employees into entering their GitHub credentials and a One-Time Password on a fake CircleCI page. Although no user data was accessed, 130 GitHub repositories containing sensitive API keys and user data were compromised.

The Dropbox incident was uncovered on October 14, following a GitHub alert about suspicious activities dating back to October 13. Despite the fortunate absence of unauthorized access to user data, the breach underscored the vulnerabilities associated with social engineering attacks and the importance of vigilant security posture and regular security audits.

In conclusion, these high-profile API breaches illustrate the severe consequences organizations face when they fall victim to sophisticated API attacks. To protect sensitive customer data and maintain customer trust, companies must adopt a proactive approach to API security. This includes regular security audits, robust endpoint protection, and enhanced authentication mechanisms to safeguard against unauthorized access and mitigate the risk of reputational damage.

Consequences of API Breaches for Businesses

API breaches represent a significant threat to businesses, exposing sensitive data and inflicting substantial financial, reputational, and regulatory damage. These vulnerabilities, if left unchecked, can be exploited by malicious actors who exploit security gaps to gain unauthorized access to critical systems and databases. Let’s explore the multi-faceted consequences of API breaches and learn lessons from real-world incidents.

Financial losses

The financial repercussions of API breaches can be catastrophic. In 2022, breaches in the United States alone resulted in losses estimated between $12–$23 billion, while globally, the impact ranged from $41–$75 billion. Notable incidents like the Clop ransomware gang’s exploitation of MOVEit Transfer software demonstrate how these security incidents can cost organizations between $75 million and $100 million in extortion alone. Moreover, the Kronos API hack underscores the potential for direct financial losses, with approximately $25 million siphoned from a single cryptocurrency trading firm.

Organizations must also shoulder the costs of forensic audits, customer notifications, and implementation of technical fixes following breaches. These expenses add to the financial strain, as does the need to manage additional costs associated with evolving work environments. For instance, according to IBM’s findings, data breaches related to remote work cost companies around $1 million more than those without remote operations. The financial impact of API vulnerabilities is undoubtedly severe, underscoring the necessity for robust security measures.

Reputational damage

In addition to financial losses, API breaches can severely harm a business’s reputation. When insider data theft occurs, as seen in Tesla’s case, the disclosure of confidential information and potential for a $3.3 billion fine due to inadequate data protection can significantly damage a company’s public image. Similarly, the 2022 data breach at Optus resulted in the exposure of personal information of approximately 2.1 million customers, eroding consumer trust and harming the company’s reputation.

T-Mobile’s history of security incidents is a cautionary tale — a recent API breach exposed 11.2 million customer records, further deteriorating customer confidence and trust. When customer records, email addresses, or sensitive data like social security numbers are compromised, the fallout is swift and severe, often leading to business losses as customers choose more secure alternatives. Regulatory breaches and supply chain attacks add to the perception that an organization cannot safeguard its stakeholders’ data.

Regulatory consequences

Regulatory bodies impose stringent requirements on organizations regarding data protection and timely breach notifications. The failure to adhere to these regulations can result in hefty fines and even potential prison sentences for those responsible. High-profile API breaches have exposed millions of user records due to inadequate security measures, attracting significant penalties and lawsuits.

For example, the Optus data breach involved an unsecured API, leading to an attempted $1 million extortion threat. Such incidents highlight the necessity for a proactive approach in aligning with evolving regulatory standards to mitigate risks associated with data breaches. Organizations must prioritize protecting sensitive data like customer names, credit cards, and social security numbers. Non-compliance not only results in legal and financial consequences but also compels businesses to face rigorous scrutiny from watchdogs and the public alike.

The complex and ever-evolving threat landscape necessitates a vigilant and proactive stance on API security. Businesses must invest in regular security audits and enhance their security posture to safeguard against sophisticated attacks by threat actors. By learning from past incidents and implementing comprehensive security measures, organizations can protect themselves from the dire consequences of API breaches.

The Impact on Different Industries

API breaches have highlighted a significant and growing threat across various industries, with reported incidents increasing by a staggering 681% within a single year. This sharp rise underscores the crucial vulnerabilities present in the interconnected systems many sectors rely upon. Notably, the telecom industry has experienced a substantial uptick in data breaches due to unprotected APIs, signaling an urgent call for enhanced security measures in highly interconnected environments. Real-world incidents demonstrate that the average time for detecting and responding to these breaches stands at 212 days. This delay presents a major challenge for organizations focused on minimizing both financial and reputational damage. According to a joint study, 60% of organizations reported experiencing an API-related breach, reflecting pervasive security struggles in safeguarding digital assets. Beyond immediate security concerns, these vulnerabilities often translate to prolonged business disruptions, eroding user trust and tarnishing organizational credibility.

Financial Services

The financial sector is particularly vulnerable to cyberattacks due to the high value of stored data and ongoing digital transformation efforts, which open more attack vectors. Financial institutions must learn from past breaches to avoid similar pitfalls, given the enormous financial repercussions. API-related breaches have cost the industry an estimated $12–$23 billion in the US and up to $75 billion globally. A strong software engineering culture, including conducting blameless postmortems, can aid in effective breach responses and bolster system security. Implementing a robust API governance model is essential to mitigate vulnerabilities and promote consistent API design and coding practices across organizations in this sector.

Healthcare

In 2023, a significant ransomware attack on Change Healthcare brought to light the critical need for stringent security measures in the healthcare sector. Such incidents disrupt operations and compromise patient records, emphasizing the strategic target healthcare providers present to cybercriminals. These attacks cause operational disruptions and delays in essential services like payment processing. Collaborative efforts across industries are crucial for enhancing shared knowledge and forming unified strategies against evolving AI-related and cybersecurity threats. Comprehensive training and awareness are fundamental for healthcare staff at all levels to tackle unique cybersecurity challenges. As the AI landscape evolves, healthcare organizations must adopt a forward-thinking approach and allocate adequate resources for robust security protocols to safeguard sensitive data and ensure uninterrupted service.

E-commerce

E-commerce data breaches have now overtaken those at the point of sale, signaling a shift in vulnerabilities as online shopping increasingly dominates the market. The financial implications of such breaches are also rising, posing significant risks to businesses in this sphere. A prevalent issue is the alarming lack of corporate self-awareness about cybersecurity practices, leaving many companies vulnerable to breaches. These incidents can expose personal data, heightening risks such as identity theft and spam for affected users. Many breaches, often linked to API vulnerabilities, could be prevented with proper security measures, such as firewalls and rigorous authorization strategies. Businesses must focus on proactive practices to secure sensitive customer data and protect their operations from malicious actors.

Mitigation Strategies for API Security

With the rise of cyber threats targeting Application Programming Interfaces (APIs), businesses must adopt robust mitigation strategies to safeguard customer names, email addresses, social security numbers, payment card details, and other sensitive customer data from unauthorized access. A comprehensive and proactive approach to API security can significantly reduce the risk of security breaches, reputational damage, and financial loss.

Implementing API governance

Implementing a strong API governance model is vital for ensuring security and consistency in API development. A well-defined governance framework mandates the documentation and cataloging of APIs, which helps mitigate risks associated with third-party services and unauthorized parties. By adopting API governance, organizations ensure that their security teams follow best practices, such as regular security audits, from project inception through completion. Governance also includes blameless postmortems to learn from security incidents without assigning blame, thereby improving overall security practices and reducing API vulnerability.

Establishing proactive monitoring

Proactive monitoring is crucial for identifying suspicious activities and unauthorized access in real-time, enabling businesses to respond swiftly to API attacks. Continuous monitoring systems and threat detection tools provide immediate alerts to security teams about potential threats, such as malicious actors or sophisticated attacks. This approach includes routine audits, vulnerability scans, and penetration tests to assess security posture and detect API vulnerabilities. By maintaining a comprehensive overview of user activities, organizations can swiftly address anomalies and enhance their overall cybersecurity posture against threat actors and supply chain attacks.

Conducting employee training

Human factors often pose significant risks to API security, making employee training indispensable. Regular cybersecurity training empowers employees to recognize potential threats, such as social engineering attacks, and prevent data breaches like those experienced by companies such as Experian. Training programs should focus on cyber threat awareness and provide practical insights into avoiding common mistakes leading to data exposure, like those observed in the Pegasus Airlines incident. By conducting regular security audits and reinforcing knowledge on best practices, organizations enhance their defenses and ensure that employees contribute to a secure environment, minimizing the impact of ransomware attacks and malicious code.

Implementing these strategic initiatives—strong governance, vigilant monitoring, and continuous education—ensures that businesses maintain a resilient defense against the evolving threat landscape surrounding APIs.

Lessons Learned from Past Breaches

API breaches have become a pressing concern for businesses worldwide, impacting everything from customer trust to financial stability. Real-world incidents provide valuable lessons that organizations must heed to fortify their cybersecurity defenses.

One prominent case, the Parler API hack, underscores the critical nature of requiring authentication for data requests. The absence of such measures led to catastrophic data exposure. Similarly, the Clubhouse API breach highlighted that exposing APIs without adequate authentication can lead to severe vulnerabilities, allowing unauthorized parties access to sensitive customer information.

Another significant incident involved Optus, where an unsecured API endpoint was exposed on a test network connected to the internet. This oversight resulted in a large-scale data breach and attempted extortion, underscoring the need for robust API management visibility. These incidents demonstrate the necessity for organizations to maintain continuous cybersecurity diligence through regular security audits and proactive approaches to identify and address API vulnerabilities.

The alarming increase in API security breaches, with 41% of organizations facing such incidents annually, calls for vigilant monitoring and enhancement of security posture to protect against sophisticated attacks by threat actors operating within today’s dynamic threat landscape. In summary, organizations must learn from past security incidents to anticipate and mitigate future risks.

Key Takeaways from T-Mobile Breach

In January 2023, T-Mobile confronted a significant security breach that exposed the personal data of approximately 37 million customers. This information included names, birthdates, billing and email addresses, phone numbers, and account details. Although more sensitive information like passwords, social security numbers, and credit cards were fortunately not compromised, the breach posed serious risks for identity theft and phishing attacks through exposed email addresses and contact details.

The breach was traced back to unauthorized access via a single API that went unnoticed for around six weeks. This oversight revealed substantial vulnerabilities in T-Mobile’s API management and security protocols. Specifically, the incident emphasized the necessity for stronger security measures targeting prepaid and subscription accounts, as these were predominantly affected.

The T-Mobile breach reinforces the importance of effective API cataloging and protection to prevent unauthorized access and potential data breaches. Businesses must regularly audit their API frameworks and implement robust security measures as a proactive approach to safeguarding sensitive customer information.

Key Takeaways from Dropbox Breach

The Dropbox breach, which surfaced on November 1, 2022, marked another significant incident involving APIs. Initiated through a sophisticated phishing scam, the attack prompted employees to unwittingly share their GitHub credentials. This breach led to unauthorized access to 130 internal GitHub repositories containing sensitive API keys and user data.

Detected on October 14, 2022—just one day after suspicious activities began—the breach was flagged by GitHub, highlighting the essential role of timely incident detection. The phishing attack involved deceptive emails impersonating the CircleCI platform, showcasing advanced social engineering tactics by malicious actors.

Although the breach’s severity was notable, there was no evidence that user data was accessed or compromised, mitigating potential damage to Dropbox’s user base. This situation underscores the critical need for organizations to train employees on identifying and defending against social engineering attacks while reinforcing internal security teams’ response protocols to swiftly address potential threats.

Future Trends in API Security

As the digital landscape evolves, so does the reliance on APIs, particularly as distributed systems and cloud-native architectures gain ground. A staggering 92% of organizations surveyed reported experiencing at least one API security incident in the last year. This highlights the increasing frequency and severity of these vulnerabilities. It’s imperative that companies adapt their security measures to manage these evolving threats effectively, with continuous monitoring and automated scanning becoming essential components of a robust API security strategy.

One telling example is the Twitter API breach, which underscored how API vulnerabilities can severely impact user trust and platform reputation. This incident illustrates the crucial need for efficient vulnerability detection and response mechanisms. As APIs continue to evolve in complexity and usage, the necessity for a proactive security posture will only intensify.

Evolving Cyber Threats

Cyber threats are growing more sophisticated, as shown by notorious incidents such as the 2020 US government data breach that targeted multiple agencies. This attack raised alarms globally, emphasizing the perilous nature of modern cybersecurity threats. In 2022, Roblox faced a data breach exposing user data, which is particularly concerning given the platform’s popularity among children. Similarly, the ChatGPT data leak in 2023 highlighted the difficulties in securing new technologies and underscore the need for continuous security protocol updates.

These incidents illustrate that cyber threats are evolving at an unprecedented pace. Organizations must adopt a proactive approach by investing in cutting-edge security technologies and fostering a culture of awareness. This includes adopting advanced defense mechanisms and continuously updating their threat landscape assessments to stay ahead of potential vulnerabilities.

The Role of AI in API Security

Artificial Intelligence is revolutionizing how organizations protect their API systems. By enhancing threat detection capabilities, AI enables continuous real-time monitoring, identifying unauthorized access, or suspicious behaviors effectively. AI-driven defense systems allow businesses to anticipate threats and proactively counteract potential breaches.

Furthermore, AI supports security teams by streamlining audits and vulnerability assessments, pinpointing deficiencies in API implementations that could lead to breaches. However, it is vital to note that while AI bolsters security defenses, it can also empower malicious actors to execute sophisticated attacks. This dual nature necessitates an equally sophisticated and adaptive protective strategy to effectively safeguard sensitive customer data, including email addresses and payment card information.

Best Practices for Staying Ahead of Threats

To maintain a strong defense against API vulnerabilities, organizations should adopt the following best practices:

Automated Vulnerability Scans: Regular automated scans are crucial for identifying and addressing potential security gaps timely.
Strong Authentication Protocols: Implement stringent authentication measures to ensure only authorized parties can access API functions.
Comprehensive API Inventory: Keep a detailed record of all APIs to ensure all endpoints are accounted for and appropriately secured.
Continuous Monitoring: Continual oversight is essential for detecting and mitigating threats before they escalate into serious security incidents.
Regular Security Audits and Penetration Tests: Conduct frequent audits and tests to dynamically assess and improve the security posture.

Utilizing AI-infused behavioral analysis further enhances these best practices, enabling organizations to identify and block API threats in real time. By adopting a proactive approach, companies can safeguard sensitive customer data such as social security numbers, email addresses, and credit cards from unauthorized access, thus ensuring robust protection against potential malicious code or supply chain attacks.

Get Help from MicroSolved

MicroSolved offers robust solutions to bolster your organization’s API security posture. One key strategy is implementing secure secrets management solutions to securely store API keys, tokens, and credentials. This helps minimize risk if a breach occurs, by preventing exposure of sensitive information.

Continuous monitoring and threat detection tools from MicroSolved can identify unauthorized access or suspicious behavior in real-time. This proactive approach allows you to address threats before they escalate, safeguarding your customer records, such as email addresses and social security numbers, from unauthorized access and malicious actors.

Regular security audits of your APIs are essential for identifying vulnerabilities and weaknesses, especially when integrating with third-party services. MicroSolved can assist in conducting these audits, reducing the risk of security breaches.

A strong software engineering culture is crucial for improving your API security processes. MicroSolved encourages adopting a governance framework for API development. This not only enforces consistent design and coding practices but also reduces the chance of high-profile API breaches.

Whether faced with sophisticated attacks or API vulnerability exploitation, MicroSolved provides the expertise to protect your assets from threat actors in today’s dynamic threat landscape.

Contact MicroSolved today for assistance with your API security posture. Email: info@microsolved.com. Phone: +1.614.351.1237

* AI tools were used as a research assistant for this content.

Strengthening Your Digital Front Door: Best Practices for API Security Assessments

Posted on January 6, 2025 by Brent Huston

APIs (Application Programming Interfaces) are the building blocks of modern applications and digital ecosystems. They enable applications to communicate seamlessly, power integrations, and drive innovation. However, as APIs become the backbone of interconnected systems, they also become high-value targets for cybercriminals. A single vulnerability can open the door to devastating breaches. This is why API security assessments are not just a best practice—they’re a business imperative.

APISec

Why API Security Assessments Are Critical

APIs are highly versatile, but their flexibility and connectivity can make them vulnerable. Common threats include:

Injection Attacks: Attackers can exploit unvalidated input to inject malicious commands.
Broken Authentication: Weak authentication mechanisms can allow unauthorized access.
Data Exposure: Misconfigured APIs often inadvertently expose sensitive data.
Rate Limiting Issues: APIs without proper rate-limiting controls are prone to Denial-of-Service (DoS) attacks.
Exploited Business Logic: Attackers can manipulate API functionality in unintended ways.

Key Best Practices for API Security Assessments

Inventory and map all APIs.
Understand the business logic behind your APIs.
Enforce authentication and authorization using best practices like OAuth 2.0.
Validate inputs and encode outputs to block injection and scripting attacks.
Implement rate limiting and throttling to prevent DoS attacks.
Conduct regular vulnerability scanning and combine SAST and dynamic analysis.
Test for authentication failures to prevent session hijacking and credential stuffing.
Secure APIs using centralized API gateways.
Align with industry standards like OWASP API Security and CIS Controls v8.
Perform regular penetration testing to uncover complex vulnerabilities.

How MSI Stands Out in API Security Assessments

Tailored Assessments: MSI customizes assessments to your unique API ecosystem.
Beyond Vulnerability Scanning: Manual testing uncovers complex attack vectors.
Contextual Reporting: Actionable insights, not just raw data.
Long-Term Partnerships: Focus on sustainable cybersecurity improvements.
Proprietary Tools: MSI’s HoneyPoint™ Security Server and other patented technologies provide unmatched insights.

More Information

APIs are the lifeblood of digital transformation, but with great power comes great responsibility. Don’t let vulnerabilities put your business at risk.

Contact MSI today to schedule your API security assessment and take the first step toward building a resilient, secure API ecosystem. Visit MicroSolved.com or email us at info@microsolved.com to learn more.

Let’s secure your APIs—together.

* AI tools were used as a research assistant for this content.

Intruder Pro Game Launched in GPT Store

Posted on January 14, 2024 by Brent Huston

Thanks to the launch of the OpenAI GPT Store, I am proud to announce the immediate availability of a new penetration testing game and hack-the-box simulation platform – Intruder Pro.

Though not a product of MicroSolved, it is personally designed by our CEO and Security Evangelist, L. Brent Huston.

The GPT is a text-based role-playing game that simulates real-world penetration tests and hack-the-box games. It leverages real-world tools, and teaches you a bit along the way.

Even better, you can get a new simulation with new targets and new services to exploit every single game! The system can also provide coaching and score your efforts at any time in the game.

Feedback has been great, and people all around the world are playing, learning, and gaining insights about information security all at the same time.

Check it out by clicking here and let me know on Twitter (@lbhuston) what you think!

Keeping Track of Your Attack Surfaces

Posted on October 24, 2023 by Brent Huston

In the modern, digitally connected realm, the phrase “out of sight, out of mind” could have calamitous implications for organizations. As cyber adversaries incessantly evolve in their nefarious techniques, staying ahead in the cybersecurity arms race is imperative. One robust strategy that has emerged on the horizon is Continuous Threat Exposure Management (CTEM) programs. These programs are pivotal in enabling organizations to meticulously understand and manage their attack surface, thus forming a resilient shield against malicious onslaughts such as ransomware attacks.

A deeper dive into CTEM unveils its essence: it’s an ongoing vigilance protocol rather than a one-off checklist. CTEM programs provide a lucid view of the potential vulnerabilities and exposures that adversaries could exploit by continuously scanning, analyzing, and evaluating the organization’s digital footprint. This proactive approach transcends the conventional reactive models, paving the way for a fortified cybersecurity posture.

Linking the dots between CTEM and ransomware mitigation reveals a compelling narrative. Ransomware attacks have metamorphosed into a menace that spares no industry. The grim repercussions of these attacks underscore the urgency for proactive threat management. As elucidated in our previous blog post on preventing and mitigating ransomware attacks, a proactive stance is worth its weight in digital gold. Continuous Threat Exposure Management acts as a linchpin in this endeavor by offering a dynamic, real-time insight into the organization’s attack surface, enabling timely identification and remediation of vulnerabilities.

MicroSolved (MSI) stands at the forefront in championing the cause of proactive cybersecurity through its avant-garde CTEM solutions. Our offerings are meticulously crafted to provide a panoramic view of your attack surface, ensuring no stone is left unturned in identifying and mitigating potential threats. The amalgamation of cutting-edge technology with seasoned expertise empowers organizations to stay several strides ahead of cyber adversaries.

As cyber threats loom larger, embracing Continuous Threat Exposure Management is not just an option but a quintessential necessity. The journey towards a robust cybersecurity posture begins with a single step: understanding your attack surface through a lens of continuous vigilance.

We invite you to contact MicroSolved (MSI) to explore how our CTEM solutions can be the cornerstone in your quest for cyber resilience. Our adept team is poised to guide you through a tailored roadmap that aligns with your unique organizational needs and objectives. The digital realm is fraught with peril, but with MicroSolved by your side, you can navigate through it with confidence and assurance.

Contact us today and embark on a journey towards transcending the conventional boundaries of cybersecurity, ensuring a safe and secure digital sojourn for your organization.

* Just to let you know, we used some AI tools to gather the information for this article, and we polished it up with Grammarly to make sure it reads just right!

Example of Pole Mounted Device Threats Visualized

Posted on October 28, 2020 by Brent Huston

As a part of our threat modeling work, which we do sometimes as a stand-alone activity or as part of an deeper assessment, we often build simple mind maps of the high level threats we identify. Here is an example of a very simple diagram we did recently while working on a threat model for pole mounted environments (PME’s) for a utility client.

This is only part of the work plan, but I am putting it forward as a sort of guideline to help folks understand our process. In most cases, we continually expand on the diagram throughout the engagement, often adding links to photos or videos of the testing and results.

We find this a useful way to convey much of the engagement details with clients as we progress.

Does your current assessment or threat modeling use visual tools like this? If not, why not? If so, drop me a line on Twitter (@lbhuston) and tell me about it.

Thanks for reading!

Pole Mounted Environment Threats

Car Dealership Threat Scenario – Wireless Printer Hacking AP Fraud

Posted on September 16, 2020 by Brent Huston

Today, I wanted to talk about a threat scenario that we have modeled recently. In the scenario, the victim was a car dealership, and the target was to commit accounts payable fraud. The testing scenario is a penetration test against a large group of car dealerships, but our research shows the threat to be valid against any number of organizations.

Here’s the basics of the scenario:

The team found a car dealership with an extensive wireless network. Though the network was encrypted and not available to the public, the team was able to compromise the wireless credentials using a wifi pineapple in a backpack, while pretending to shop for a new car.
The team used the credentials to return later, appearing to wait for a service visit and working from the customer lounge. (The coffee and snacks were great! )
The team logged into the wireless network and quickly identified many devices, workstations and such available. Rather than focus on the workstations or attempt an attack on the users – the team instead focused on the shared printers.
One printer was identified with the name “BackOffice”, and access to the print spool was easily obtained through known default passwords which hadn’t been changed on the device.
Our team made notes of attack their recon attack path, and left the dealership.
Once away from the dealership a couple of simple social engineering calls were made to the accounts payable folks, pretending to be a vendor that we had observed at work at the facility. Without any real information, the accounts payable team member explained when we could expect payment, because accounts payable checks were processed every Thursday morning. The social engineer thanked them and completed the call.
On Thursday morning, the team showed up at the dealership again, pretending to wait for a service appointment. While in the lounge, they accessed the compromised network and printer. This time, taking deeper control of the printer’s file buffer.
The team waited for the accounts payable staff to submit their weekly check printing to the printer. Indeed, around 10:45, the printer file showed up in the printer spool, where our penetration testing team intercepted it.
The team quickly edited the file, changing one of the checks in amount (increasing the amount by several thousand dollars) and the payee (making the check payable to a fictional company of our choosing). They also edited the mailing address to come to our office instead of the original vendor. (PS – we alerted the manager to this issue, so that the bill could be paid later — never harm a client while doing testing!!!)
The file was then re-sent to the printer and released. The whole process occurred in under 3 minutes, so the AP person never even noticed the issue.
One expected control was that perhaps the AP staff would manually reconcile the checks against their expected checks, but this control was not in place and the fake check was mailed to us (we returned it, of course!).

This is a pretty simple attack, against a very commonly exploitable platform. Poor wireless network security and default installs of printer systems are common issues, and often not given much thought in most dealerships. Even when organizations have firewalls and ongoing vulnerability scanning, desktop controls, Anti-Virus, etc. – this type of attack is likely to work. Most organizations ignore their printers – and this is an example of how that can bite you.

These types of threat scenarios are great examples of our services and the threat modeling, fraud testing and penetration testing available. If you’d like to learn more about these kinds of activities, or discuss how to have them performed for your organization – get in touch. You can contact us via web form or give us a call at (614) 351-1237. You can also learn more about our role and services specific to car dealerships here.

Thanks for reading and let me know if you have any questions – @lbhuston on Twitter.

3 Lessons From 30 Years of Penetration Testing

Posted on January 10, 2020 by Brent Huston

I’ve been doing penetration tests for 30 years and here are 3 things that have stuck with me.

I’ve been doing penetration testing for around 3 decades now. I started doing security testing back when the majority of the world was dial-up access to systems. I’ve worked on thousands of devices, systems, network and applications – from the most sensitive systems in the world to some of the dumbest and most inane mobile apps (you know who you are…) that still have in-game purchases.

Over that time, these three lessons have stayed with me. They may not be the biggest lessons I’ve learned, or the most impactful, but they are the ones that have stuck with me in my career the longest.

Lesson 1: The small things make or break a penetration test. The devil loves to hide in the details.

Often people love to hear about the huge security issues. They thrill or gasp at the times when you find that breathtaking hole that causes the whole thing to collapse. But, for me, the vulnerabilities that I’m most proud of, looking back across my career are the more nuanced ones. The ones where I noticed something small and seemingly deeply detailed. You know the issues like this, you talk about them to the developer and they respond with “So what?” and then you show them that small mistake opens a window that allows you to causally step inside to steal their most critical data…

Time and time again, I’ve seen nuance vulnerabilities hidden in encoded strings or hex values. Bad assumptions disguised in application session management or poorly engineered work flows. I’ve seen developers and engineers make mistakes that are so deeply hidden in the protocol exchanges or packet stream that anyone just running automated tools would have missed it. Those are my favorites. So, my penetration testing friend, pay attention to the deep details. Lots of devils hide there, and a few of those can often lead to the promised land. Do the hard work. Test every attack surface and threat vector, even if the other surfaces resisted, sometimes you can find a subtle, almost hidden attack surface that no one else noticed and make use of it.

Lesson 2: A penetration test is usually judged by the report. Master report writing to become a better penetration tester.

This is one of the hardest things for my mentees to grasp. You can geek out with other testers and security nerds about your latest uber stack smash or the elegant way you optimized the memory space of your exploit – but customers won’t care. Save yourself the heartbreak and disappointment, and save them the glazed eyes look that comes about when you present it to them. They ONLY CARE about the report.

The report has to be well written. It has to be clear. It has to be concise. It has to have make them understand what you did, what you found and what they need to do about it. The more pictures, screen shots, graphs and middle-school-level language, the better. They aren’t dumb, or ignorant, they just have other work to do and need the information they need to action against in the cleanest, clearest and fastest way possible. They don’t want to Google technical terms and they have no patience for jargon. So, say it clear and say it in the shortest way possible if you want to be the best penetration tester they’ve seen.

That’s hard to swallow. I know. But, you can always jump on Twitter or Slack and tell us all about your L33T skillz and the newest SQL technique you just discovered. Even better, document it and share it with other testers so that we all get better.

Lesson 3: Penetration tests aren’t always useful. They can be harmful.

Lastly, penetration tests aren’t always a help. They can cause some damage, to weak infrastructures, or to careers. Breaking things usually comes with a cost, and delivering critical failure news to upper management is not without its risks. I’ve seen CIOs and CISOs lose their jobs due to a penetration test report. I’ve seen upper management and boards respond in entirely unkind and often undeserved ways. In fact, if you don’t know what assets your organization has to protect, what controls you have and/or haven’t done some level of basic blocking and tackling – forget pen-testing altogether and skip to an inventory, vulnerability assessment, risk assessment or mapping engagement. Save the pen-testing cost and dangerous results for when you have more situational awareness.

Penetration testing is often good at finding the low water mark. It often reveals least resistant paths and common areas of failure. Unfortunately, these are often left open by a lack of basic blocking and tackling. While it’s good news that basics go a long way to protecting us and our data, the bad news is that real-world attackers are capable of much more. Finding those edge cases, the things that go beyond the basics, the attack vectors less traveled, the bad assumptions, the short cut and/or the thing you missed when you’re doing the basics well – that’s when penetration tests have their biggest payoffs.

Want to talk more about penetration testing, these lessons or finding the right vulnerability management engagement for your organization? No problem, get in touch and I’ll be happy to discuss how MicroSolved can help. We can do it safely, make sure it is the best type of engagement for your maturity level and help you drive your security program forward. Our reports will be clean, concise and well written. And, we’ll pay attention to the details, I promise you that. 🙂

To get in touch, give me a call at (614) 351-1237, drop me a line via this webform or reach out on Twitter (@lbhuston). I love to talk about infosec and penetration testing. It’s not just my career, but also my passion.

3 Reasons You Need Customized Threat Intelligence

Posted on September 6, 2016 by Brent Huston

Many clients have been asking us about our customized threat intelligence services and how to best use the data that we can provide.

1. Using HoneyPoint™, we can deploy fake systems and applications, both internally and in key external situations that allow you to generate real-time, specific to your organization, indicators of compromise (IoC) data – including a wide variety of threat source information for blacklisting, baseline metrics to make it easy to measure changes in the levels of threat actions against your organization up to the moment, and a wide variety of scenarios for application and attack surface hardening.

2. Our SilentTiger™ passive assessments, can help you provide a wider lens for vulnerability assessment visibility than your perimeter, specifically. It can be used to assess, either single instance or ongoing, the security posture of locations where your brand is extended to business partners, cloud providers, supply chain vendors, critical dependency API and data flows and other systems well beyond your perimeter. Since the testing is passive, you don’t need permission, contract language or control of the systems being assessed. You can get the data in a stable, familiar format – very similar to vulnerability scanning reports or via customized data feeds into your SEIM/GRC/Ticketing tools or the like. This means you can be more vigilant against more attack surfaces without more effort and more resources.

3. Our customized TigerTrax™ Targeted Threat Intelligence (TTI) offerings can be used for brand specific monitoring around the world, answering specific research questions based on industry / geographic / demographic / psychographic profiles or even products / patents or economic threat research. If you want to know how your brand is being perceived, discussed or threatened around the world, this service can provide that either as a one-time deliverable, or as an ongoing periodic service. If you want our intelligence analysts to look at industry trends, fraud, underground economics, changing activist or attacker tactics and the way they collide with your industry or organization – this is the service that can provide that data to you in a clear and concise manner that lets you take real-world actions.

We have been offering many of these services to select clients for the last several years. Only recently have we decided to offer them to our wider client and reader base. If you’d like to learn how others are using the data or how they are actively hardening their environments and operations based on real-world data and trends, let us know. We’d love to discuss it with you!

Sometimes, It Happens…

Posted on August 29, 2016 by Brent Huston

Sometimes things fail in interesting ways. Sometimes they fail in dangerous ways. Occasionally, things fail in ways that you simply can’t predict and that are astounding.

In a recent assessment of a consumer device in our lab, we found the usual host of vulnerabilities that we have come to expect in Internet of Things (IoT) devices. But, while testing this particular device, which is also tied to a cloud offering for backup and centralization of data – I never would have predicted that a local device would have a full bi-directional trust with a virtual instance in the cloud.

Popping the local device was easy. It had an easy to compromise “hidden” TCP port for telnet. It took my brute force tool only moments to find a default login and password credential set. That’s pretty usual with IoT devices.

But, once I started poking around inside the device, it quickly became apparent that the device configuration was such that it tried to stay continually connected to a VM instance in the “cloud storage and synchronization” environment associated with the device and vendor. How strong was the trust? The local device had mount points on the remote machine and both systems had full trust to each other via a telnet connection. From the local machine, simply telnet to the remote machine on the right port, and without credential check, you have a shell inside the cloud. Not good…

But, as clear of a failure as the scenario above was, the rabbit hole went deeper. From the cloud VM, you could see thousands of other VMs in the hosted cloud environment. Connect from the VM to another, and you need the default credentials again, but, no sweat, they work and work and work…

So, from brute force compromise of a local piece of consumer hardware to a compromise of thousands of cloud instance VMs in less than 30 minutes. Ugh…

Oh yeah, remember that storage centralization thing? Yep, default credentials will easily let you look through the centralized files on all those cloud VMs. Double ugh…

Remember, I said bi-directional? Yes, indeed, a connection from a VM to an end-point IoT device also works with assumed trust, and you get a shell on a device with local network visibility. Now is the time you kinda get sick to your stomach…

These kinds of scenarios are becoming more common as new IoT devices get introduced into our lives. Yes, the manufacturer has been advised, but, closing the holes will take a complete redesign of the product. The moral of this story is to pay careful attention to IoT devices. Ask questions. Audit. Assess. Test. There are a lot of bad security decisions being made out there in the IoT marketplace, especially around consumer products. Buyer beware!

Getting Smart with Mobile App GeoLocation to Fight Fraud

Posted on July 25, 2016 by Brent Huston

If your mobile application includes purchases with credit cards, and a pickup of the merchandise, then you should pay attention to this.

Recently, in our testing lab and during an intelligence engagement, we identified a fraud mechanism where stolen credit cards were being used via the mobile app in question, to fraudulently purchase goods. In fact, the attackers were selling the purchase of the goods as a service on auction and market sites on the dark web.

The scam works like this. The bad guys have stolen credit cards (track data, likely from dumps), which they use to make a purchase for their client remotely. The bad guys use their stolen track data as a card not present transaction, which is standard for mobile apps. The bad guys have access to huge numbers of stolen cards, so they can burn them at a substantial rate without impacting their inventory to a large extent. The bad guy’s customer spends $25 in bitcoins to get up to $100 in merchandise. The bad guy takes the order from the dark net, uses the mobile app to place the order, and then delivers the receipt and/or pickup information to the bad guys customer. The customer then walks into the retailer and shows the receipt for their mobile order, picking up the merchandise and leaving.

The bad guy gets paid via the bitcoins. For them, this is an extremely low risk way to convert stolen credit card info to cash. It is significantly less risky for them than doing physical card replication, ATM use or other conversion methods that have a requirement for physical interaction.

The bad guy’s customer gets paid by picking up the merchandise. They get up to $100 value for a cost of $25. They take on some risk, but if performed properly, the scam is low risk to them, or so they believe. In the odd event, they simply leave the store after making their demands for satisfaction. There is little risk of arrest or prosecution, it would seem, especially at the low rate of $100 – or at least that was how the bad guy was pitching it to their prospective customers…

The credit card issuer or the merchant gets stuck. They are out the merchandise and/or the money, depending on their location in the world, and the merchant agreement/charge back/PCI compliance issues they face.

Understanding the fraud and motivations of the bad guys is critical for securing the systems in play. Organizations could up their validation techniques and vigilance for mobile orders. They could add additional fraudulent transaction heuristics to their capability. They could also implement geo-location on the mobile apps as a control – i.e.. If the order is being physically placed on a device in Ukraine, and pick up is in New York, there is a higher level of risk associated with that transaction. Identifying ways to leverage the sensors and data points from a mobile device, and rolling it into fraud detection heuristics and machine learning analytics is the next wave of security for some of these applications. We are pleased to be helping clients get there…

To hear more about modern fraud techniques, application security testing or targeted threat intelligence like what we discussed above, drop us a line (info at microsolved dot com) or via Twitter (@lbhuston). We look forward to discussing it with your team.