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.

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!

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.

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.

Social Media Targeting: A Cautionary Tale

Posted on February 5, 2015 by Brent Huston

I was recently doing some deep penetration testing against an organization in a red-team, zero knowledge type exercise. The targets were aware of the test at only the highest levels of management, who had retained myself and my team for the engagement. The mission was simple, obtain either a file that listed more than 100 of their key suppliers, or obtain credentials and successfully logon to their internal supply system from an account that could obtain such a file.

Once we laid some basic groundwork, it was clear that we needed to find the key people who would have access to such data. Given the size of this multi-national company and the thousands of employees they had across continents, we faced two choices – either penetrate the network environment and work our way through it to find and obtain the victory data and/or find a specific person or set of persons who were likely to have the data themselves or have credentials and hack them get a shortcut to victory.

We quickly decided to try the shortcut for a week or less, preserving time for a hack the network approach should we need it as a backup. We had approximately 6 weeks to accomplish the goal. It turned out, it took less than 6 hours…

We turned our TigerTrax intelligence & analytics platform to the task of identifying the likely targets for the shortcut attack. In less than 30 minutes, our intelligence team had identified three likely targets who we could direcly link to the internal systems in question, or the business processes associated with the victory condition. Of these three people, one of them was an extensive participant in their local dance club scene. Their social media profile was loaded with pictures of them dancing at various locales and reviewing local dance clubs and DJs.

A plan was quickly developed to use the dance club angle as an approach for the attack, and a quick malware serving web site was mocked up to look like an new night club in the target’s city. The team them posted a few other sites pointing to a new club opening and opened a social media account for the supposed club’s new name. The next day, the penetration team tested the exploits and malware against the likely OS installs of the victim (obtained from some of their social media data that was shared publicly). Once the team was sure the exploits and malware were likely to function properly, the club’s social media account sent a tweet to the account of the target and several other people linked to the club scene, inviting them to a private “soft opening” of the club — starring the favorite DJ of the target (obtained from his twitter data). Each person was sent a unique link, and only the target’s link contained the exploit and malware. Once the hook was delivered, the team sat back and waited a bit. They continued to tweet and interact with people using the club’s account throughout the rest of the day. Within hours, the target followed the club’s account and visited the exploit site. The exploit worked, and our remote access trojan (RAT) was installed and connected back to us.

It took the team about an hour to hoover through the laptop of the target and find the file we needed. About the same time, an automated search mechanism of the RAT returned a file called passwords.xls with a list of passwords and login information, including the victory system in question. The team grabbed the victory files, screen shotted all of our metrics and data dashboards and cleaned up after themselves. The target was none the wiser.

When we walked the client through this pen-test and explained how we performed our attack, what controls they lacked and how to improve their defenses, the criticality of social media profiling to attackers became crystal clear. The client asked for examples of real world attackers using such methods, and the team quickly pulled more than a dozen public breach profiles from the last few years from our threat intelligence data.

The bottom line is this – this is a COMMON and EFFECTIVE approach. It is trivial for attackers to accomplish these goals, given the time and will to profile your employees. The bad guys ARE doing it. The bigger question is – ARE YOU?

To learn more about our penetration testing, social engineering and other security testing services, please call your account executive to book a free education session or send us an email to info@microsolved.com. As always, thanks for reading and until next time, stay safe out there!

Ask The Experts: Why Do Security Testing of Internal Computer Networks?

Posted on October 30, 2014 by Brent Huston

Most organizations have realized the need to have vulnerability assessments of their internet-facing (external) computer networks performed periodically. Maybe they are alarmed by all the data compromises they hear about on the news or perhaps they are subject to regulatory guidance and are required to have vulnerability assessments done. But many organizations draw the line there and never have the security of their internal networks tested. This is a mistake! At least it’s a mistake if your goal is actually to protect your computer systems and the private information they store and process.

It is true that the most attacks against information systems come from external attackers, but that does not mean the internal threat is negligible. About one sixth of data compromises are due to employees and privileged insiders such as service providers and contractors. But there are many other reasons for testing the security of your internal networks besides the internal threat. For one thing, once cyber-criminals find a hole in your external defenses they are suddenly “insiders” too. And if your internal systems are not configured correctly, hardened and monitored, it becomes trivial for these attackers to own your systems and compromise all the private information you have.

The type of testing that gives you the most bang for the buck is internal vulnerability assessment. Doing this type of testing regularly has many benefits. One benefit that people usually don’t associate with internal vulnerability assessment is that it can be used to make maps and inventories of the network. These are essentials of information security. After all, if you don’t know what you have on your network and where it is, how can you protect it? Another benefit is that it allows you to view your internal network with perspective. In other words, it lets you see it the way an attacker would. It will reveal:

Access control issues such as default and blank passwords mistakenly left on the network during administration, open files shares or anonymous FTP sites that may contain private data or user accounts that are suspicious or inappropriate.
Systems that are missing security patches or that are running out of date software or operating systems that are no longer supported by the vendors.
Systems that have been misconfigured or that reveal too much information to unauthorized users.
Ports that are inappropriately left open or dangerous services such as Telnet or Terminal Services present on the network.
Poor network architecture that fails to properly segment and enclave information assets so that only those with a business need can access them.
How well third party systems present on your network are patched, updated and secured.

Also, from a business perspective, performing regular internal vulnerability assessments shows your customers that you are serious about information security; a factor that could influence them to choose your organization over others.

In addition to vulnerability testing, it is also more than just desirable to have penetration testing of the internal network performed occasionally. While vulnerability assessment shows you what flaws are available for attackers to exploit (the width of your security exposure), penetration testing shows you what attackers can actually do with those flaws to compromise your systems and data (the depth of your security exposure). Internal penetration testing can:

Reveal how attackers can exploit combinations of seemingly low risk vulnerabilities to compromise whole systems or networks (cascading failures).
Show you if the custom software applications you are using are safe from compromise.
Show you not only what is bad about your network security measures, but what is working well (this can really save you money and effort by helping you chose only the most effective security controls).

One other type of penetration testing that is well worth the time and expense is social engineering testing. As network perimeters become increasingly secure, social engineering techniques such as Phishing emails or bogus phone calls are being used more and more by attackers to gain a foothold on the internal network. We at MSI are very aware of just how often these techniques work. How well do you think your employees would resist such attacks?

Thanks to John Davis for this post.

More on MSI Lab Services Offerings

Posted on March 17, 2014 by Brent Huston

MSI has built a reputation that spans decades in and around testing hardware and software for information security. Our methodology, experience and capability provides for a unique value to our customers. World-class assessments from the chip and circuit levels all the way through protocol analysis, software design, configuration and implementation are what we bring to the table.

Some of the many types of systems that we have tested:

consumer electronics
home automation systems
voice over IP devices
home banking solutions
wire transfer infrastructures
mobile devices
mobile applications
enterprise networking devices (routers, switches, servers, gateways, firewalls, etc.)
entire operating systems
ICS and SCADA devices, networks and implementations
smart grid technologies
gaming and lottery systems
identification management tools
security products
voting systems
industrial automation components
intelligence systems
weapon systems
safety and alerting tools
and much much more…

To find out more about our testing processes, lab infrastructure or methodologies, talk to your account executive today. They can schedule a no charge, no commitment, no pressure call with the testing engineer and a project manager to discuss how your organization might be able to benefit from our experience.

At A Glance Call Outs:

Deep security testing of hardware, software & web applications
20+ year history of testing excellence
Committed to responsible vulnerability handling
Commercial & proprietary testing tools
Available for single test engagements
Can integrate fully into product lifecycle
Experience testing some of the most sensitive systems on the planet

Key Differentiators:

Powerful proprietary tools:

Proto-Predator™
HoneyPoint™
many more solution specific tools

Circuit & chip level testing
Proprietary protocol evaluation experience
Customized honeypot threat intelligence
Methodology-based testing for repeatable & defendable results

Other Relevant Content:

Project EVEREST Voting Systems Testing https://stateofsecurity.com/?p=184

Lab Services Blog Post https://stateofsecurity.com/?p=2794

Lab Services Audio Post https://stateofsecurity.com/?p=2565

More on Persistent Penetration Testing from MSI

Posted on August 22, 2013 by Brent Huston

MicroSolved has been offering Persistent Penetration Testing (PPT) to select clients now for a couple of years. We have been testing and refining our processes to make sure we had a scalable, value driven, process to offer our full client base. We have decided to open the PPT program up to another round of clients, effective immediately. We will be open to adding three additional clients to the PPT group. In order to qualify, your organization must have an appetite for these services and meet the criteria below:

The services:

MSI will actively emulate a focused team of attackers for either a 6 or 12 month period, depending on complexity, pricing and goals
During that time, MSI will actively and passively target your organization seeking to reach a desired and negotiated set of goals (usually fraud or theft of IP related data, deeper than traditional pen testing)
Full spectrum attacks will be expressed against your organization’s defenses in red team mode, across the time window
Once an initial compromise occurs and the appropriate data has been identified and targeted, we will switch to table top exercises with the appropriate team members to discuss exploitation and exfiltration, prior to action
If, and only if, your organization approves and desires, then exploitation and exfiltration will occur (note that this can be pivoted from real world systems to test/QA environments at this point)
Reporting and socialization of the findings occurs, along with mitigation strategies, awareness training and executive level briefings
The process then repeats, as desired, through the terms and sets of goals

The criteria for qualification; Your organization must:

Have full executive support for the initiative, all the way to the C-level and/or Board of Directors
Have a mature detection and egress process in place (otherwise, the test will simply identify the needs for these components)
Have the will to emulate real world threat activity without applying compliance-based thinking and other unnatural restraints to the process
Have a capable security team for MSI to work with that has the capability to interface with the targeted lines of business in a rapid, rational and safe manner
If desired, have the capability to construct testing/QA platforms and networks to model real world deployments in a rapid and accurate fashion (requires rapid VM capability)
Be open to engaging in an exercise with an emulated aggressive adversary to establish real world risk and threat profiles
Be located in the US (sorry, we are not currently accepting non-US organizations for this service at this point)

If your organization meets these requirements and you are interested in discussing PPT services, please drop me a line (Twitter: @lbhuston), or via email at Info at microsolved dot com. You can also reach me via phone at (614) 351-1237 x 201.

Guest Blog Post: Less Pwn, More Help!

Posted on June 7, 2013 by Brent Huston

By: Mick Douglas (@bettersafetynet)

The client looked at us from across the table, grimacing as they gulped the foul coffee (sure it’s awful, but hey it’s a free perk!). They leaned in and said conspiratorially “So can you… umm… sort of… help us get the inside scoop on how we can pass this pentest?”

I pause and close my eyes for a second. I’ve heard pleas like this throughout my career. If you’re a veteran pentester, no doubt you have too. And what I always think… no matter how large or small the client… Nobody passes pentests! It’s their turn to suffer under our boot as we hijack the network and have shells fall down on us like rain. Nobody… nobody passes a pentest. There’s always a way in. Once we’re in, we make their worst nightmares come alive right under their own nose! No, pentests aren’t for passing. They’re to be endured.

Strong though the predatory instinct is, I must push it aside. The “pop ’em all” approach — while immensely fun — is not the way of the true pentester. All too often InfoSec practitioners focus on the technical aspect of the pentest. If you’re reading this site, chances are good you’re a techie… not a suit. So unless fate has given you a tour of duty on the other side of the table, you have no idea what hell you’re about to bring to someone who’d rather be doing anything else than deal with you — the pentester. Things are about to get ugly, and your shell count has nothing to do with it. You are about to turn their world upside down in ways you cannot begin to fathom.

It doesn’t matter if you’re internal, external, a consultant… whatever… you are the enemy.. and not in the way you think. Sure, you’re the “enemy” as The Almighty Red Team here to cause mayhem and pop boxes. However, what you might not realize is that the havoc is just getting started once you leave the engagement. Next to nobody will remember the pivots, the recon, or the OSINT you did. None of that really matters… What they will remember is that “Jake the InfoSec Guy” failed at his job — miserably. But wait there’s more! Not only did he fail, but someone — who doesn’t know our systems — was able to use freely available tools from the internet to compromise our entire network!! To make matters worse, it was done in under a week!! It’s a safe bet that soon the client will look at the budget spent on firewalls, AV, IDS, even the salaries — everything — and think “All this spending… for what? They brushed aside our best efforts as if they were nothing more than cobwebs!”

If all your client gets out of your pentest is that they’ve got a crappy infosec program, then know what? You’re a crappy pentester.

You may hate to hear this, but you *owe* your client.

You need to give them a complete assessment which checks for multiple paths to the victory conditions.

You need to give them reports which are understandable, actionable, and brief.

You need to teach them what you did so they can re-test for themselves.

You have to show what’s wrong, but also give them multiple options on how to fix, remediate, or compensate for the findings.

You need to offer “quick win” fixes so the infosec program can start rebuilding their credibility after you clipped their wings.

You need to give them suggestions on how to alter business operations to better avoid risks altogether.

You need to give them a road map on how to get better tomorrow… and the next day after.

You need to give and give.

Most of all, you need to give them hope.

About the Author:

Mick Douglas (twitter.com/bettersafetynet) does R&D, PenTesting, and profesional services for Diebold Inc. When he’s not doing tech stuff, he’s off in the woods somewhere hiking or trying — mostly in vain — to improve his photography chops.

Thanks to Mick for contributing. I think he’s right on with what we need to do as penetration testers. — Brent Huston

Surface Mapping Pays Off

Posted on October 26, 2012 by Brent Huston

You have heard us talk about surface mapping applications during an assessment before. You have likely even seen some of our talks about surface mapping networks as a part of the 80/20 Rule of InfoSec. But, we wanted to discuss how that same technique extends into the physical world as well.

In the last few months, we have done a couple of engagements where the customer really wanted a clear and concise way to discuss physical security issues, possible controls and communicate that information to upper management. We immediately suggested a mind-map style approach with photos where possible for the icons and a heat map approach for expressing the levels of attack and compromise.

In one case, we surface mapped a utility substation. We showed pictures of the controls, pictures of the tools and techniques used to compromise them and even shot some video that demonstrated how easily some of the controls were overcome. The entire presentation was explained as a story and the points came across very very well. The management team was engaged, piqued their interest in the video and even took their turn at attempting to pick a couple of simple locks we had brought along. (Thanks to @sempf for the suggestion!) In my 20+ years of information security consulting, I have never seen a group folks as engaged as this group. It was amazing and very well received.

Another way we applied similar mapping techniques was while assessing an appliance we had in the lab recently. We photographed the various ports, inputs and pinouts. We shot video of connecting to the device and the brought some headers and tools to the meetings with us to discuss while they passed them around. We used screen shots as slides to show what the engineers saw and did at each stage. We gave high level overviews of the “why” we did this and the other thing. The briefing went well again and the customer was engaged and interested throughout our time together. In this case, we didn’t get to combine a demo in, but they loved it nonetheless. Their favorite part were the surface maps.

Mapping has proven its worth, over and over again to our teams and our clients. We love doing them and they love reading them. This is exactly how product designers, coders and makers should be engaged. We are very happy that they chose MSI and our lab services to engage with and look forward to many years of a great relationship!

Thanks for reading and reach out on Twitter (@lbhuston) or in the comments if you have any questions or insights to share.