Toyota Breach-Aftermath of Data Breach Catastrophe

A couple of months ago, Toyota, the leading manufacturer in the automobile industry, was dealing with an augmenting catastrophe. It was distressing to hear that a company with such an amplitude of resources in diverse fields was heisted of its crucial information. Over a mere period of six months, it fell victim to a series of data breaches in Australia, Thailand, Vietnam and Japan. Toyota itself affirmed the data breach on its official website on 29th March 2019. In this breach, unethical hackers exploited over 3.1 million people’s sensitive data. After a deep-dive into the scenario, the officials concluded that the violation was an outcome of unauthorized access to a server connected to the company’s network.

It was a sign of relief for everyone when the organization announced that no customer credit card information was disclosed. However, Toyota notified that personal information exposed through unauthorized access included name, birth date and employment information. In a manner, the breach did stir up with the parts supplies process, thus resulting in delays at the service brand centre. The Toyota Motor North America (TMNA) ministered the situation, and thus reassured that data breach in no manner affected the customers in the United States.

Commencing in Japan, the cyberattack was strategically organized at eight different Toyota sales subsidiaries or their affiliates, including independent Toyota and Lexus car dealerships in Tokyo. Affected units by third party hackers included Toyota Tokyo Sales Holdings, Toyota Tokyo Motor, Tokyo Toyopet, Toyota Tokyo Corolla, Nets Toyota Tokyo, Lexus Koishikawa Sales, Jamil Shoji (Lexus Nerima), and Toyota West Tokyo Corolla. Amidst all these events, Toyota took a considerable approach. Not only did they publicly apologized to the masses, but also assured their diligence about implementing end to end information security measures at dealers and entire Toyota group.

Be it Toyota data breach or other thousands of data breaches that happen every year around the globe, all of them are directly or indirectly linked to the vulnerabilities within their IT Infrastructure. So this brings us to next question  What are Vulnerabilities ?

The simplest definition states that “The quality or state of being exposed to the possibility of being attacked or harmed“. Vulnerabilities are weakness of IT infrastructure which can be oppressed by attackers granting them access to your database or take control over your system. Let’s get familiar with some of the most common vulnerabilities :

– Security Misconfiguration  – Security misconfiguration vulnerabilities could occur if a particular element within an IT environment is liable to an attack due to insecure security misconfigurations. Security misconfiguration can take place at any level of the application stack, including multiple components like app platform, web server & application server, framework, and custom code.

Example: Unintentional installation of app server admin console and failure of its deportation.

– SQL injection  – This is a code injection technique which spotlights the databases of organization. This type of attack is initiated by releasing a sophisticated and malicious SQL statement as an input to the system. Attackers use SQL injection vulnerabilities to bypass the in place installed security measures, thus achieving their cybercrime goal.

Example: UNION operator is most vividly used SQL injection technique. This facilitates the attacker to initiate the output of more than 2 SQL statement in one single code.

– Buffer overflow attack  -Every database has a transitory area of data storage within its scope which is termed as a buffer area. When an attacker gives input to program in such a manner that data limit is outreached in the buffer area, which results in exploitation of system, it is termed as buffer overflow attack

EX: Heap-based buffer overflow attack is a sophisticated attack which aims at exploiting the buffer area reserved for a program itself, thus resulting in the crashing of program.

– Remote Code Execution  – In remote code execution, the attacker shoots out commands or codes remotely into a system which is physically or geographically inaccessible. This gives liberty to the attacker to intrude remote IT infrastructure and make undesirable modifications.

EX: CVE-2018-8248 vulnerability, also known as Microsoft Excel Remote Code Execution Vulnerability, allows an attacker to run malware on the vulnerable computer.

– SMB –  Server Message Block  protocol is a connection between the client and the remote server. It facilitates a platform where the client can get access to files, printers, serial ports and other resources on a network. Over here, the attackers use the unpatched system to get access to the infrastructure in a multitude of possibilities.

Example: Eternal Blue is a common SMB vulnerability where the attacker execute arbitrary code on the victim machine, as the SMB version 1 is incapable of handling specially crafted packets from remote attackers.

– Local file inclusion  – It gives the attacker the freedom to encompass files on the server via a web browser. This kind of vulnerability comes into the picture when a web application includes a file without verifying the input which allows the attacker to manipulate the input data and rephrase it according to their own convenience.

Example: The attacker can see the content of a sensitive file by replacing contact.php with the path of confidential data. This type of LFI arises when the developer fails to implement appropriate filtering at parsing component of a language interpreter.

– Remote file exclusion  – In this vulnerability, the webserver is intruded through a script, including a remote host file. The remote host file then intrudes the system producing changes as per the attacker’s will. These types of attack generally happen at PHP running websites. In this technique, the attacker can execute code hosted on his machine and get unauthorized access within the victim machine

Example: Custom code infamous C99 is a malicious script used by the attacker for PHP based RFI vulnerability.

As every disaster has an underlying truth and a lesson within itself, this breach also taught us that every organization should be diligent about their cybersecurity controls and measures. We learnt that basic security controls are not sufficient to protect your organization from modernistic cyberattacks. Hence, additional layers of security controls are fundamentals of robust hardwired secure IT infrastructure. The organizations should execute physical, logical and administrative controls to linearize organization safety on a tenacious path. How organizations can pursue such up to date security is by obliging to global standards as such PCI DSS, PA DSS, PCI 3DS, ISMS, GDPR, SOC (1, 2 & 3) and HIPAA etc.

RBI issues new norms for digital payments

With rising cases of cyber fraud and security incidents, RBI published a Master Direction providing necessary guidelines stating the directions of security control,” Reserve Bank of India (Digital Payment Security Controls) Directions 2021”  to strengthen the nation’s digital payments architecture, improving the security, control, and  compliance  among banks, gateways, wallets, and other non-banking entities,

The efforts are to regulate security in commercial banks, small finance banks, payment banks and credit card-issuing non-banking financial companies (NBFC). The new set of norms also specifies the criteria under which regulated entities can form partnerships and interact with third-party apps and ecosystem players such as  mobile applications, payment operators and gateways.

The comprehensive guidelines aim to tackle the recent severe rise in digital outages, cyber frauds and data breaches incidents. The control guidelines consolidates multiple vital aspects of the cybersecurity space like:

  1. Governance and Management of Security Risks
  2. Other Generic Security Controls
  3. Application Security Life Cycle (ASLC)
  4. Authentication Framework
  5. Fraud Risk Management
  6. Reconciliation Mechanism
  7. Customer Protection, Awareness, and Grievance Redressal Mechanism

Apart from the General guideline, the directive consists of separate controls namely :

  1. Internet Banking Security Controls
  2. Mobile Payments Application Security Controls
  3. Card Payments Security

With NPCI’s plan to revamp the IT infrastructure across popular payment channels like UPI, IMPS, AePS etc, the latest RBI directives are considered as a crucial update to improve the security of digital payment channels and also customer convenience. The Master guideline aids in setting up a robust governance structure and implementing common minimum standards of security controls for digital payment products and services.

Adhering to the guideline, all the regulated entities (REs) need to update their secure process and policies time to time and place an online dispute resolution for resolving disputes and grievances of customers pertaining to digital payments. In view of a security incident, the financial institutions are expected to inform about the threats and attack against their digital payment product and ensure that precautionary  safeguards  are in place to avoid incidents like ” phishing, remote access, safeguard of PIN, credentials, card details” etc.

RBI has given all the regulated entities to comply within the next six months

Full document here :

Master Direction on Digital Payment Security Controls

About Us:
As a CERT-in empanelled organization    QRC Assurance and Solutions  has been a forerunner on the cybersecurity front, empanelled with CERT-in, certified to provide PCI DSS QSA, PA QSA, PCI 3DS, PCI SSF, ISO 27001, ISO 27701 Certifications along with other security compliance services. As forerunners in Cybersecurity Space, QRC supports our customers to establish, document, implement and maintain Data Security and Privacy frameworks to protect their sensitive data from all Internal / External Threats and manage the confidentiality, Integrity, availability, Security, Privacy of such information systematically.

Key Steps To Prioritize Cybersecurity Risk Management

COVID-19 pandemic has largely affected the way industries used to operate. A major portion of the industry has moved on to hassle adoption to remote working. These changing and emerging trends in operations and information systems have made it critical for management and stakeholders to understand new organizational challenges and have collaborative solutions to defend against the growing cyber threatscape. The pandemic has gifted attackers and even nation-state groups in leveraging the situation for targeted campaigns.

As an organization, it is important to adopt resilience and prioritize cyber preparedness along with the key mission-critical activities. Cybersecurity Risk can be overwhelming, considering the potential of disaster. Threat actors are always seeking new doors and move in to plunder your most valuable asset, your Data

The rush to digital adoption in these uncertain times for organizations that have relied on legacy technology is currently facing an unprecedented issue when it comes to cybersecurity risk management.

  1. How to determine the newly evolved cybersecurity posture.
  2. How to efficiently direct their resources to mitigate the risks posed by the gaps.

Managing these form a key portion of an effective cyber risk management program, evidently essential during this pandemic time in an increasingly digital world.

  1. Deep Dive In Your Current Cybersecurity Posture And Identify Your Security Gaps with the “new normal”
    Organizations need to analyze their critical infrastructure as to how their security posture has changed. Especially critical services sectors need to fast pace on this aspect and the leadership needs to identify the new change since any failure in identifying the new blind spots will lead to potential losses.

    Identifying your current posture is especially the most difficult part of the information security management process. The leadership with a clear understanding of the impacts of security risk and willingness to expose even their failures in implementing a secure digital transformation initiative are of immense value.

    Organizations can refer to voluntary frameworks like the  NIST Cybersecurity Framework.  These frameworks will aid the CISOs in understanding where they stand by assessing the compliance and security controls defined by these frameworks. The leadership should focus on building a cyber risk strategy by identifying risks across multiple aspects of the technology and operation, while planning along with the organization’s objective.

  2. Mitigate the Security Gaps by Improving the current Process
    Identifying the current gaps is one part of the process, after that the team should focus on closing the gaps disclosed in the most efficient way possible. Mitigation of these gaps does involve a lot of fuss and activity namely the email chains, the Q& A session with multiple teams, and the spreadsheets.

    In these scenarios, the leadership should step in and communicate the stepwise approach and optimize the entire workflow by using audit-ready templates and automation. Prioritizing risks effectively and efficiently by the best-known practices must be the forte as they aid in combating the known threats in multiple areas of business continuity and security. CISOs and CIOs need to standardize processes that can be implemented rapidly.

    Prioritizing the mitigation process and implementing resilient systems will help in understanding accurate data and making informed decisions for cyber risk management activities.

  3. Facilitate Adoption of New Technologies and Effective Processes, promoting Culture ChangeEven in dire today’s situations, the pandemic has thrown an opportunity for a massive paradigm shift in working culture which would have taken longer to adopt under normal circumstances. But switching to new technologies isn’t just sufficient for managing the cyber risk efficiently. As an organization,the management will need to focus on translating the cyber risk in terms of business in this era of digitization.

    Roles like Digital Risk officers can serve for assessing the risks related to new products and services in the truly digital age along with focusing on the areas of cyber risk and compliance management aligned with the business goals. The organizations should seize this opportunity in creating a clear, concise, and actionable cybersecurity program and support their efforts to build cyber resilience.

    Following the three-step process,  organizations can align their cybersecurity goals and fix their cybersecurity posture to avoid a fallout during an unforeseen security incident. With a clear understanding of the requirements and use of modern solutions, organizations can measure the impact of cybersecurity compliance and  risk management. The leadership should focus on building a culture of cybersecurity resilience and productivity.

Merchant’s guide for payment security requirements

Ecommerce, online payment transactions are advancing their path in this developing technology. The customer is concerned with the payment security and that the bank credentials are maintained in a confidential way. To develop a good merchant customer relationship the merchant needs to provide payment security to his customers. They need to ensure that the best payment security measures are taken and that customers don’t need to worry about their data.

Few steps as stated can be taken to manage risk and provide a secure online service :

Getting PCI Compliant

PCI DSS is a set of comprehensive requirements developed by the founding payment brands of the PCI Security Standards Council, to enhance payment account data security. The standard is applicable to any organization that accepts, stores, processes and/or transmits cardholder data, whether you are a merchant, acquirer bank, credit card processor or a payment card brand.

The PCI DSS standard includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. By complying with PCI DSS requirements, merchants meets their following obligations:

  • Development of Consumer Trust in the Security of their Sensitive Information
    If the customers feel that they are “safe” with their merchants, it helps grow confidence in the services. Confident customers are loyal and they share their experiences with others
  • Reduce Direct Losses and Operational Expenses.
    Adequate data security protects cardholders and limits risk exposure,minimizing the losses and expense that might stem from compromised cardholder information.
  • Maintained Positive Image
    With Information security at the center of everyone’s mind, data loss or compromise not only hurts customers, it can seriously damage a business’s reputation. Compliance with PCI DSS manages to reduce the risk of breach considerably.

SSL protocol

Customers should be ascertained with trust and peace of mind when they are using e-commerce websites. Hence, it’s necessary to implement SSL protocol on the payment application as the first thing crucial for your payment security. SSL helps us to encrypt information that goes on the site such as credit card details and sensitive data that customers share during the checkout process. Transport layer security (TLS) provides a trademark for all E-commerce websites as it verifies the data transaction whatever happens is safe or not.

The identification of an SSL protocol is to check whether the payments page on the internet shall start with https:// and the padlock icon visible in the URL bar next to your web address. This builds your credibility as a secure service provider

Tokenization

Tokenization initiates secure payments and it is very much difficult to engineer the card details from the token. Tokenization reduces the PCI to strive hard for secure payments  and optimises the cost. The customers can store the card information in their e-wallets without exposing their original card information. Merchants accepting the recurring payments can get habituated easily and also offer quick mobile payments and easy purchases.

Delivery attacks the increasing of payment fraud

Ongoing Corona Crisis have led to a spike in the number of fraudulent transactions and cybercriminals nowadays are sitting tight to exploit the new avenues. Reports spurred in showing the increasing curve of the fraud attacks and how even AI and ML technologies alone are proving ineffective against them. Ecommerce has been the major target, apart from the prevalent areas of cards and user accounts.

Pandemic has unfortunately led to increased “Delivery Attacks” that target the BOPIS segment, (Buy Online, Pickup In Store) as customers and merchants both try to accommodate with the needed social distancing norms. The prime vulnerability in the BOPIS segment is the end delivery point, since there have observed inconsistencies in verifying the information against who has purchased the commodities. Frauds as such are on the rise in regions that are still under lockdown. Mobile orders have seen as prime victims in the increasing rise of account takeover attacks

Fraudsters have been using multiple attack vectors to hamper the security overtime. While initial activities involved were meant for information gathering, actors have stepped up and started verifying the compromised credentials as valid. News accounts are made and kept dormant with the merchants and overtime create an illusion of being a longtime customer. They make them fall under the category of more relaxed fraud strategies, trying to build trust and credibility, which actually makes it difficult for the analysts to differentiate it from genuine accounts.

These observations spotlights the fact that how organized and sophisticated the fraud regines are and while the world is dealing with the pandemic, new actors are on the rise to make a quick buck even in these situations and considering the ongoing situations the fraud activities can only be expected to rise since the world and economy has shifted online for a major portion of their operations.

AI and ML in fraud mitigation.

Adaptation of AI based anti-fraud systems have increased, but it has also been observed that technology alone cannot be relied on against payment frauds. In times where the customer buying pattern changes rapidly, it is difficult to stick on one logic or strategy.

Let’s take a look at the travel industry, normally the last minute purchase of a one way ticket is flagged as high risk, but the COVID-19 showcased the surge in the purchase of tickets at that particular time even before restrictions took effect. The increasing activities of using Amazon vouchers and other gift cards which are cash redeemable.

These incidents have mirrored the need of a multi layered fighting approach which the technologies are clubbed with a rule-based strategy. Since AL and ML require established pattern recognition to detect fraudulent transactions, a rule based strategy enables the business to set the context and define parameters. Relying alone on the ‘black box’ of an AI / ML technology can be dangerous, we require an explanatory and context based approach or XAI the upcoming generation of AI models.

2019 What’s In Store For The Payment And Security

As we close out the year of 2018, we have to recognise the year gone by as one that brought us closer to existing threats and using technology to counter them. Many industry experts look at many of the fin-tech companies to evolve and reshape the payments landscape in 2019. Rightly so too, keeping these points to expect –

Cyber security is more important than ever

It has been professed that the next World War would be battled out in Cyber space and it seems to be a safe statement to go by. There have been several major leaks of biometric-based data around the world over the last year. Thus, creating a calling for more secure methods of identification and authentication across financial institutions. Access to biometric data could expose pass-codes, touch ID and facial recognitions. Stronger encryption of this data across payment methods are expected to be the biggest change in 2019. In fact, many  payment security specialists  see it as the largest kill upgrade to make.

Faster payment methods

Many expect the following year to bring about faster or real-time payment techniques, with organizations like QRC supporting secure implementations. Of course, these would come by the bigger players in the market since it would require significant investments too improve capabilities in every function department.

Raising the skill- bar

Upscaling in very department would be a mandate. More professionals in the industry would have to acquire deep understanding skills of transactional security – very similar to the  PCI certification  requirements that are expected.

Focusing on service

The past couple of years was heavily driven by the force of Cryptocurrencies and transactions at the point of sale. 2019 is going to be driven harder on tokenisation and with the intent to make transaction safer and easier. The goal would be to expand the payment options at hand for the consumer and the merchants along with reducing processing fees. This would impact on higher revenue and therefore bring a need for better experiences and services – closing this gap is going to be of utmost importance for many companies in the fintech space.

Read more about this: Cybersecurity Compliance and e-Rupee: Need for Strong Measures

The rise of the file-less malware

Everyone has been harping on this for the last few years and we see it to be a differentiator this year too. There has been a consistent rise with file-less malware and many organisations are not equipped to deal with such risks. With this compromise, it is even harder to defend your organisation from such an attack. The rush to prevent may prove to be a first-mover advantage.

AI could go rogue

We all saw the Will Smith starrer ‘A.I’ and never believed it could happen. Well, hold that thought. There’s an obvious threat coming from malicious chat bots that can push you to clicking links or even sharing personal information. Of course, we have seen huge steps of growth in machine learning techniques over the years and even though chat bots do provide to be a helpful layer in customer experience, it can also lead to be an easy way for hackers to hijack the entire system. In the simplest example, imagine a fake chat bot app on your banking website – all hell could break loose. 2019 is going to be the year to block this divide and ensure a safer transactional experience.

Everything You Need To Know About Data Protection

India took a massive step with its own data protection act last year when the Srikrishna Committee shared its assessment and suggestions on data privacy and management. It is a great sign for the country as it solidifies the support that is envisioned for customers – especially keeping India’s digital economy in mind. This act will keep a set of privacy laws, policies and procedures in place to ensure that there is minimum encroachment in to any person’s privacy. This will include the storage, extraction or breakdown of data.

The first question that pops here is the line that is drawn on personal data – it is classified as any data that can be used to related or identify the person either from the government or from a private entity. Many people do raise questions on our fundamental rights to privacy – but take a check, that is not patently granted by the Constitution of India.

Looking at Section 43A of the Indian information technology act 2000, an organization that is in possession, dealing or handling sensitive information or personal data and is negligent in the implementation or maintenance with the pre-required security will be liable to pay for damages. Do note that there is no upper limit to the to the compensation that can be claimed in such an event – the damages can be put out to any extent.

What qualifies as personal information?

It is important to note that passwords, financial information that may contain the bank or credit card account details, health conditions, sexual orientation, history of medical records and biometric information all fall under personal information or sensitive data. If there is a breach of this data, action can be taken against the firm and they would be liable to pay damages to the person affected.

It is also vital to note that according to section 72A of the Indian information technology act, 2000, disclosure of this kind of sensitive information without consent or if is against a contractual agreement can lead to imprisonment of upto 3 years or a fine of 5 lakhs or both.

Of course, there are conditions at which these rules are relaxed. As per section 69 of the act, there is a general rule of maintenance of privacy and secrecy of the information and an exception on release of the data is necessary. These are,

  • The Sovereignty or Integrity of India,
  • The Defence of the country.
  • Security of a state.
  • Request from a foreign state
  • Public order or
  • Preventing incitement to the commission of any offence that may relate to the above or as an investigation.

In such an event, the government can deem to access or monitor the data or have it decrypted or stored in a computer resource. This data has to be divulged in interest of security and the government may require disclosure of such information. This can include national security, breach of law or fraud.

Can the Government interfere with data?

Now, under section 69 of the IT act, an authorized Government officer can be specially authorized by the Government – to intercept, monitor, decrypt, or cause to be intercepted or monitored, information that is transmitted or received or stored. The scope of section 69 of the IT act allows this for the purpose of investigation of cyber-crimes too. This allows the Government to block access to sites that it may deem dangerous too.

What is the penalty for damage to computer or computer systems under the IT Act?

As per IT Act Section 43, there would be a penalty without an upper limit for

  • Accessing or securing access to a computer or computer network.
  • Downloading or accessing data that may include information or data that is held in a removable storage medium.
  • Damage or cause of damage to a computer or a network.
  • Introduction of contaminant or virus into a computer or a network.
  • Causing disruption to a computer or network.
  • Denies or causes of denial to a person who is authorized access to a computer or a network.
  • Tampering or manipulating a computer or system would mean liability to pay damages by compensation to the affected.
  • Destroying or deleting information in a computer resource.
  • Concealing or altering data or source code used for a computer resource with the intention of causing damage.

As per section 65 of the IT act, the above actions shall be punishable with imprisonment of up to 3 years or with fine of up to Rs 2 Lakh or both.

Also, section 66 of the IT act states that if a person by any means of fraud referred to in section 43, can be punishable with imprisonment for a term of up to 3 years or a fine of Rs 5 Lakh or both.

The data protection act is without doubt one of the most required points in our digitally enabled country today. With more access to computers and networks, it is a must to be implemented today.

California Consumer Privacy Act Certification

Californians can now control movement/use of their personal information with the help of several specific data control rights included in the “California Consumer Privacy Act of 2018 (AB-375)” released on June 28.PCI DSS version 3.2.1 replaces version 3.2 to account for effective dates

The data controls rights include but not limited to:

  • Know what is being collected about them
  • What is being sold and re-disclosed,
  • Prevent the sale of their personal data.

This new law expected to become one of the nation’s strictest data privacy rules.

The requirements of this act will lead to substantial impacts on the data use policies of major technology companies and retailers, and could accelerate federal data privacy legislation.

Without any proof of harm, personnel can take an against data breaches that result in disclosure of personal information, which could lead in rising number data breach actions.

What Does This Law Provision?

Enhanced Privacy Protections around the Globe

The legislation bears some similarities to the European Union’s General Data Protection Regulation (GDPR), particularly the transparency requirements, the right to request deletion, and a strict data breach regime.

  1.   Companies that collect data directly from consumers must disclose the information and the business purpose for which they collect the data.
  2. Consumers can request to delete their personal information through a “verified request” and can opt out entirely from the sale of their personal information.
  3. For companies it is illegal to discriminate against consumers for exercising any of the above rights.
  4. Allows companies to offer financial incentives for collection of personal information.
  5. Prohibits selling the personal data of online consumers under age 16.

QRC is a Payment Card Industry Qualified Security Assessor (PCI QSA) by Payment Card Industry Security Standards Council (PCI SSC)