Cyber and Technology Risk Management Forum, Park City, UT

This is the student handbook for the September 10-13, 2018 Cyber and Technology Risk Management Forum held in Park City, UT.

Cyber & Technology Risk Management Forum  Park City, UT 

Monday 9/10  11:00am – 1:00pm Registration  1:00pm 1:15pm  Welcome Remarks  G. Edward Leary 

Commissioner of Financial Institutions  Utah Department of Financial Institutions  Mary Beth Quist  Senior Vice President, Supervisory Processes  Tom McVey   Director of Learning Services  Conference of State Bank Supervisors  

1:15pm 2:45pm  Cyber Threat Landscape  David Thompson 

Resident Agent in Charge – Salt Lake City  US Secret Service  

2:45pm 3:00pm  Break  3:00pm 4:30pm  Federal Technology Update 

Federal Deposit Insurance Corporation  Aaron Demory  BA Section Chief  Federal Deposit Insurance Corporation 

5:30pm 7:30pm  Networking Reception 

Tuesday 9/11  8:30  9:30 

CSBS Technology Roadmap & More  Tom Bayer  Chief Information Officer  Todd Scharf   Chief Information Security Officer 

Charles Hill  IT Security Engineering & Operations Senior Director  Conference of State Bank Supervisors 

9:30 

9:45 

Break

Cyber & Technology Risk Management Forum  Park City, UT 

CSBS Technology Roadmap  Conference of State Bank Supervisors  State of State Information Technology  Doug Robinson  Director  National Association of State CIOs 

9:45 

10:30 

10:30 

12:00 

Lunch – on your own 

12:00  1:15 

1:15  2:00 

Accelerating Threats & The Future of State IT Supervision  Phillip Hinkle, 

Director of IT Examinations,   Texas Department of Banking

Break 

2:15  2:30 

2:30  3:30 

State Examination System Platform Demo & Update  Kyle Thomas  Vice President, Supervisory Processes & Accreditation  Conference of State Bank Supervisors 

Break

3:30  3:45 

3:45  4:30 

State Examination System Platform Demo & Update Kyle Thomas 

4:30pm 5:30pm  Technology Committee Meeting  (Committee members only) 

Wednesday  9/12 

Prospector 4 

Prospector 1‐2 

10:00  Cybersecurity Metrics  Mary Siero  MIS Training Institute 

10:00  Data – Strategy & Structure  Tom Bayer 

8:30 

8:30 

Chief Information Officer  Conference of State Bank  Supervisors 

10:00  10:15  Break 

10:15  Break 

10:00  10:15 

11:45  Cybersecurity Metrics 

10:15  11:45  Sheltered Harbor Overview  Trey Maust  CEO, Sheltered Harbor  Executive Vice Chairman, Lewis  & Clark Bank 

Lunch – on your own

11:45  1:00 

Cyber & Technology Risk Management Forum  Park City, UT 

Federal Technology Update  Federal Reserve  Dustyn DeSpain  

1:00 

2:00 

Brandon Howell  Supervisory Financial Analyst  Federal Reserve Board 

Manager, Business Solutions Delivery  Federal Reserve Bank of Kansas City  

Break 

2:00  2:15 

2:15  3:45 

Cloud Services Foundational Overview & More  Dave Dadoun  Global Head of Legal and Regulatory Affairs ‐ Financial Services Industry 

Jeffrey Gallucci  Principal PM Manager 

Susan Linnstaedter  Lead US Attorney for Financial Services  Microsoft Corporation  The Game of Click ‐ Phishing Risks  Lauren Lamp  Professional Services  COFENSE 

3:45 

5:00 

Adjourn 

5:00 

Thursday 9/13  8:30 

10:00  Strengthening Our Defenses Against Ransomware  Chad Knutson  President / Co‐founder  SBS Cybersecurity 

10:15  Break 

10:00  10:15 

11:30  ETS Update & More  Tim Rayborn 

Alabama State Banking Department 

Jami Flynn  Director, Supervisory Processes  Conference of State Bank Supervisors 

11:45  Wrap up & Adjourn

11:30 

Cyber and Technology Risk Management Forum Park City, Utah September 10 ‐ 13, 2018

Attendees Arkansas State Bank Department Darren Barry

dbarry@banking.state.ar.us jcameron@banking.state.ar.us ddodge@banking.state.ar.us mgreen@banking.state.ar.us jhouseholder@banking.state.ar.us

501‐324‐9019 501‐324‐9019 501‐324‐9019 501‐324‐9019 501‐324‐9019

Jeffrey Cameron Donna Dodge Michael Green John Householder

California Department of Business Oversight Rafael Dominguez

rafael.dominguez@dbo.ca.gov phatthason.manisouk@dbo.ca.gov

619‐952‐2030 619‐952‐0926

Phatthason Manisouk

Delaware Office of the State Bank Commissioner Carrie Garey

carrie.garey@state.de.us

302‐744‐2102

Federal Deposit Insurance Corporation Jane Slattery

jaslattery@fdic.gov

972‐761‐8696

Georgia Department of Banking and Finance David Baranko

dbaranko@dbf.state.ga.us ccook@dbf.state.ga.us hherndon@dbf.state.ga.us bhouston@dbf.state.ga.us jjackson@dbf.state.ga.us jmcelheney@dbf.state.ga.us smosley@dbf.state.ga.us tsturrup@dbf.state.ga.us stan@dbf.state.ga.us cward@dbf.state.ga.us jwerner@dbf.state.ga.us

770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633 770‐986‐1633

Casey Cook

Hersha Herndon

Billy Houston Jack Jackson

Justin McElheney Spencer Mosley Theon Sturrup

Stan Tan

Chris Ward Josh Werner

Hawaii Division of Financial Institutions Marjorie Bragado

mbragado@dcca.hawaii.gov

808‐586‐2820 808‐586‐2820

Joanne Hara

dfi@dcca.hawaii.gov

Idaho Department of Finance Blake Wickham

blake.wickham@finance.idaho.gov

208‐332‐8026

Iowa Division of Banking Gretchen Chamberlain

gretchen.chamberlain@idob.state.ia.us

515‐281‐4014

Kansas Office of the State Bank Commissioner Amy Baccus

amy.baccus@osbckansas.org elizabeth.haase@osbckansas.org matt.hodges@osbckansas.org matt.jones@osbckansas.org

785‐296‐1687 785‐296‐1687 785‐296‐1884 785‐296‐1871 785‐296‐1880

Elizabeth Haase Matt Hodges

Matt Jones

Joe Tosh

joe.tosh@osbckansas.org

Kentucky Department of Financial Institutions Benjamin Grawe

benjamina.grawe@ky.gov bradley.johnson@ky.gov

502‐514‐6498 502‐545‐2755

Brad Johnson

Louisiana Office of Financial Institutions Danny Ragan

dragan@ofi.la.gov

225‐925‐4308

Michigan Department of Insurance and Financial Services Eric Faust fauste1@michigan.gov Mississippi Department of Banking & Consumer Finance Paul Parrish paul.parrish@dbcf.ms.gov

517‐284‐8834

601‐321‐6940 601‐321‐6901

Erik Smith

erik.smith@dbcf.ms.gov

Missouri Division of Finance Rob Fritchey

rob.fritchey@dof.mo.gov

573‐751‐3395

Nebraska Department of Banking and Finance Mike Fabry

mike.fabry@nebraska.gov rachel.newell@nebraska.gov

402‐430‐8905 308‐708‐9162

Rachel Newell

New Jersey Department of Banking and Insurance Vijay Sukheja North Carolina Office of Commissioner of Banks Kenneth Biser kbiser@nccob.gov

vijay.sukheja@dobi.nj.gov

609‐292‐7272

919‐733‐3016 919‐733‐3016

Stephen Snively

ssnively@nccob.gov

North Dakota Department of Financial Institutions Doug Hoselton dghoselton@nd.gov

701‐746‐9493

Oklahoma State Banking Department Deron Brubaker

deron.brubaker@banking.ok.gov kenneth.fisher@banking.ok.gov mike.kellum@banking.ok.gov carter.mathews@banking.ok.gov ashley.wilson@banking.ok.gov

405‐521‐2782 405‐521‐2782 405‐521‐2782 405‐521‐2782 405‐521‐2782

Kenneth Fisher Mike Kellum Carter Mathews Ashley Wilson

Pennsylvania Department of Banking and Securities Mark Goffredo mgoffredo@pa.gov

717‐579‐6766 717‐783‐4242 717‐783‐4242 717‐783‐8241

Charles Jones Charles Martier

chajones@pa.gov cmartier@pa.gov wotto@pa.gov

Will Otto

Tennessee Department of Financial Institutions Josh Robertson

josh.robertson@tn.gov

865‐806‐7615

Texas Department of Banking Mario Crosthwait

mario.crosthwait@dob.texas.gov michelle.hodge@dob.texas.gov brett.howard@dob.texas.gov michelle.wilson@dob.texas.gov

512‐475‐1300 512‐475‐1300 512‐475‐1300 512‐475‐1300 512‐475‐1300 801‐538‐8830 801‐538‐8830 801‐538‐8830 801‐538‐8830

Michelle Hodge Brett Howard Michelle Wilson

Kevin Wu

kevin.wu@dob.texas.gov

Utah Department of Financial Institutions Daniel Gardiner

dgardiner@utah.gov doldroyd@utah.gov bstewart@utah.gov lstillman@utah.gov

Donald Oldroyd Bruce Stewart Lonny Stillman

Virginia Bureau of Financial Institutions Ronald Prillaman

ron.prillaman@scc.virginia.gov

804‐371‐9704 804‐371‐9704

Mark Trenor

mark.trenor@scc.virginia

West Virginia Division of Financial Institutions John France jfrance@wvdob.org

304‐558‐2294 304‐558‐2294 304‐558‐2294

Martin Grimm Dawn Holstein

mgrimm@wvdob.org dholstein@wvdob.org

Speakers Alabama State Banking Department Tim Rayborn

timothy.rayborn@banking.alabama.gov

COFENSE Lauren Lamp

lauren.lamp@cofense.com

Federal Deposit Insurance Corporation Aaron Demory

ademory@fdic.gov

Federal Reserve Bank of Kansas City Dustyn  DeSpain

dustyn.despain@kc.frb.org

Federal Reserve Board Brandon Howell

brandon.r.howell@frb.gov

Microsoft Corporation Susan Linnstaedter

susan.linnstaedter@microsoft.com jeffrey.gallucci@microsoft.com

Jeffrey Gallucci Dave Dadoun

ddadoun@microsoft.com

MIS Training Institute Mary Siero

msiero@iitconsulting.org

National Association of State CIOs Doug Robinson

drobinson@nascio.org

SBS CyberSecurity, LLC Chad Knutson

chad.knutson@sbscyber.com

Sheltered Harbor Trey Maust

tmaust@lewisandclarkbank.com

Texas Department of Banking Phillip Hinkle

phillip.hinkle@dob.texas.gov

U.S. Secret Service David Thompson

david.thompson@usss.dhs.gov

Utah Department of Financial Institutions G. Edward Leary

eleary@utah.gov

CSBS Staff Tom Bayer Jami Flynn Charles Hill Tom McVey

tbayer@csbs.org jflynn@csbs.org chill@csbs.org tmcvey@csbs.org mbquist@csbs.org tscharf@csbs.org mstevens@csbs.org kthomas@csbs.org

202‐306‐6161 202‐728‐5718 304‐919‐6875 304‐549‐9584 202‐728‐5722 304‐620‐5716 202‐728‐5701 202‐407‐7131

Mary Beth Quist

Todd Scharf

Michael Stevens

Kyle Thomas

…and The Future of State IT Supervision? Phillip Hinkle – Texas Department of Banking

y Threat Sources y Accelerating Technology & Threats y Status of Cybersecurity y Regulator Gap: Federal vs State y Risk to States & Banking Departments y Steps to Consider for State IT Supervision y Options for State IT Supervision y Summary Action Items

Categories of Threats Actors

ORGANIZED CRIME

Theft of Money

Disruption and Theft of Secrets

NATION-STATES

HACKTIVIST

DDoS Attacks

Stolen Customer Databases and Secrets

INSIDER

Internet of Things

iPhone 2007

Internet Commercialized

“Internet” Banking 2006 – ‘09

Cloud Computing

Virtual Servers

Widespread Use of ATMs

Mobile Payments

Search Engines Mature

Mobile Banking

Internet Birth (TCP/IP)

AI

2015

2007

1980

2000

2010

1990

25 years

10 Years

United Nations Office on Drugs and Crime: “By the year 2020, the number of networked devices (the ‘Internet of Things’ … IoT) will out number the people by six to one...”

5

Accelerating Threats

CryptoLocker Ransomware

2009 DDoS Attacks

Ping-Pong (Bouncing Ball)

Mirai Botnet

Love Bug

SWIFT Thefts

Stuxnet t

Robbery while ATM is loaded

Zeus

ATM Blackbox

Melissa

2017

2007

1980

2000

2010

1990

25 years

10 Years

Prior to 2007, viruses were primarily written for mischief

FromMischievous to Criminal

ATM Cash Out Thefts 2016

DDoS - IoT Attack 2016

Large Dollar Thefts 2015

Destructive Malware 2014

Cosmos Bank, Pune, India 2018

SPEI - Large Dollar Thefts 2018

Global Ransomware 2017

ATM Jackpotting 2017

FromMischievous to Criminal (cont.)

Merge Databases for Whaling Attacks

21.5 Million Records

80 million accounts

145 million accounts

Accelerating Threats

The Future of State IT Supervision?

Status of Cybersecurity (Our Communities are the Target)

• The persistent threat of attacks is a societal issue • The national dialog needs to increase • Bankers are community leaders • Action Items: • Speak up to your managers with new ideas • Encourage bankers to speak on cyber threats • Encourage promotion of Cyber Security Awareness Month (October)

Status of Cybersecurity (Cont.) • Cyber threats continue to advance (Mirai botnet, Ransomware, ATM Jackpotting, SWIFT thefts).

• Cyber Initiatives Have Stalled • No significant FFIEC initiative • since the CAT in June 2015 • Banks, especially smaller ones, have reverted to a compliance thinking. • State bank regulators, with a few exceptions, are focused on credit quality.

• The OCC called for the creation of the CCIWG, • OCC led develop of the CAT • The FDIC lead revamping of IT exam procedures • The federal agencies lead FFIEC IT Examination Handbooks, • The FRB Chicago operated a Technology training. • The Federal agencies have formal IT training programs. (For both commercial and IT SME, and IT Specialists) • Most states have IT generalists or no one trained for IT risks. But, there are exceptions.

• As threats accelerate, bank’s protective measures must change faster • Adversaries may attack a dozen smaller banks than attempt breaching a mega-bank. • Potential media coverage of a dozen community banks could have devastating impact on community banking. • A loss of confidence in community banks could result in large shift to mega-banks.

• Examinations: To protect banking system • Community Banking: Crucial to economy • As threats accelerate, banks must change faster than they have historically

• More bank failures due to IT risks will occur. • SWIFT thefts should be a wakeup call. • Waiting for a failure is a poor approach to managing risk. • Will commissioners be called before state congressional panels or governor’s office after a major breach / bank failure? • Are you prepared to explain your efforts to protect local economies? • Are you evaluating if a bank is safe and sound or if it is simply making good loans?

Transformational change needed due to accelerating risks • Add cyber talking points to every speaking event. Shift thinking from compliance. • Require EIC to discuss cybers at each intro and exit meeting. • Strengthen IT training – include all non-IT examiners. • Share the “Best Practice” documents with every bank’s CEO. • Review/strengthen the state’s IT/ Cyber examination procedures. • Ask for additional resources – or reallocate resources to cyber.

Steps SBDs should Consider: (Cont.)

• Action Items: • Evaluate if your banking department has the right focus on cyber. • Put cyber in every kick-off and board meeting • Talk to bankers about security thinking (NIST - use CSBS Cybersecurity 101) • Direct bankers to CIS Top 20 (fka SANS Top 20) • Share Bankers ECTF Best Practices

Equifax Multi-State Examination

NIST Cybersecurity Framework

Identify Protect Detect

Respond Recover

y Identify (Identify what to protect and threats to them) y Protect (How do you protect those assets) y Detect (How do you monitor for attacks in progress) y Respond (What actions do you take during an attack) y Recover (How do you return to normal operations)

( http://www.csbs.org/CyberSecurity/Pages/default.aspx )

The Critical Security Controls www.cisecurity.org

1: Inventory and Control of Hardware Assets 2: Inventory and Control of Software Assets 3: Continuous Vulnerability Management 4: Controlled Use of Administrative Privileges 5: Secure Configuration for Hardware and Software on Mobile Devices, Laptops, Workstations, and Servers 6: Maintenance, Monitoring, and Analysis of Audit Logs

y FFIEC IT Handbooks y InTREX y FFIEC CAT y Bankers ECTF Best Practices

Most Common Cyber Threats (New fraud patterns will evolve as technology evolves) • Business email Compromise (BEC) • Corporate Account Takeover (CATO) attacks Best Practices of Bankers ECTF 1. Large Funds-Transfers (SWIFT like thefts but thru non-SWIFT network) 2. Ransomware 3. DDoS 4. ATM Jackpotting ABA and ICBA have the Best Practices on the secure / private section of their websites.

High Risk Task Force

• Community bank CEOs identified four threats of concern • Developed mitigation practices to share

• Orrstown Bank, Shippensburg, Penn. • Berkshire Bank, Pittsfield, Mass. • PeoplesBank, Holyoke, Mass. • First Savings Bank, Clarksville, Ind. • Bank of Oak Ridge, Oak Ridge, N.C. • Texas Bank & Trust, Longview, Texas • Happy State Bank, Happy, Texas • First Northern Bank, Dixon, Calif.

• Bank of Utah, Ogden, Utah • Mainstreet Bank, Cook, Neb. • RCB Bank, Claremore, Okla. • Lewis & Clark Bank, Oregon City, Ore. • Farmers Bank & Trust Company, Magnolia, Ark. • Community Bancshares of Mississippi, Brandon, Miss. • The Commercial and Savings Bank of Millersburg, Ohio

Large Funds-Transfer

(SWIFT Like) Thefts

• $81 million - Bangladesh central bank - Feb 2016 – Community banks don’t use SWIFT, but… • SWIFT like thefts thru non-SWIFT networks – FedWire, CHIPS, and regional correspondents can become targets. • FBI Fraud Alert - Sept 2012 – Thefts were basically CATOs. ( o ) to the attackers in order to decrypt and recover their files.

FBI Fraud Alert – Target Small FIs -

Option 1 – Fullest Commitment– InTREx – 1 Examiner – 4 Weeks Option 2 – Implementation of InTREx “Lite” – 1 Examiner – 2 Weeks (A scaled down version of Option 4 (InTREx) used at smaller / lower risk institutions.) Option 3 – Review of FFIEC CAT (Completed by the Bank) - 1 Examiner – 2 days Option 4 – Discuss Bankers ECTF Best Practices – 1 Examiner – 1 day

Supplemental Options (NIST, CIS Critical Security Controls)

• Put cyber in every kick-off and board meetings • Talk about Security Thinking (NIST) • Encourage Bankers to Speak on Cyber Threats • Encourage promotion of Cybersecurity Awareness month (October) • Direct them to CIS Top 20 (fka SANS Top 20) • Direct them to Bankers ECTF High Risk Threats • Promote the need to evaluate if your banking department has the right focus on cyber.

Questions

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THE ART OF CYBERSECURITY METRICS

Mary G. Siero, CISSP, CISM, CRISC

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Copyright

Copyright 2018 iiT Consulting Reprinted by MIS Training Institute, Inc. with permission of owner.

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About the Instructor - Mary G. Siero

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CYBERSECURITY IN THE BOARDROOM

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Breaches Are Now “White Noise”

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VALUE OF METRICS

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Discover Qualitatively…Prove Quantitatively

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