Malware alert for Android phone users 0 149

Malware alert for Android

Internet security company ESET East Africa has issued an alert to mobile phone users running on the Android platfom to be wary of alternative app stores’ potential to spread malware such as screen locking malware.

According to Teddy Njoroge, Kenya Country Manager for ESET, ransomware is a fast growing problem for users of mobile devices.  “Just like SMS trojans, ransomware threats have evolved over the past few years with hackers  adopting techniques that have proven effective in regular desktop malware to develop lock-screen types and file-encrypting ransomware. These have been causing major financial and data losses for years and which have now made their way to the Android platform“, he said.

The alert comes after Cyber-crime researchers at ESET discovered that www.CepKutusu.com, a Turkish alternative Android app store was spreading malware under the guise of all the offered Android apps on the site

When users browsed the Turkish alternative app store CepKutusu.com and proceeded to downloading an app, the “Download now” button led to banking malware detected as Android/Spy.Banker.IE instead of the desired app.

After ESET researchers turned to the store’s operator with the discovery of the attack, the store ceased the malicious activity. ESET Android malware researcher, Lukas Stefanko said this was an entrirely new tactic by cybercrimnals.

“This is the first time I’ve seen an entire Android market infected like that. Within the Windows ecosystem and in browsers, this technique is known to have been used for some time but in the Android ecosystem, it’s really a new attack vector“, he said.

Athough the misdirection on www.CepKutusu.com was from a legitimate app to the malicious banking malware, the crooks behind the campaign added an exception, a tactic commonly used to increase the chances of staying longer under the radar.

The hackers introduced a seven-day window of not serving malware after a malicious download, thus falsely serving the user with clean download links, only to be redirected to the malware once they try to download any application from the store after the period lapses.

Although focused in Turkey and parts of Europe, the incident points to the growing appetite for mobile malware by hackers using masking tactics to hoodwink users and which could soon become the biggest cybersecurity problem yet.

To protect yourself, Njoroge advises that you should always download apps from official app stores and also practice caution when downloading any content from the internet. Always pay attention to anything suspicious in file name, size and extension.

Lastly is to use a reliable mobile security solution to protect you from the latest threats.

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Why Financial Institutions are being hit hard by Cyber Criminals 0 201

  • Kenyan bank accounts are at risk. Kenya lost about $175million last year to cyber crime.
  • The Serianu 2016 Kenya Cyber security Report, which highlighted that about 44% of financial institutions run on a cyber security budget of $1-1,000 annually.
  • With the increased terrorist activities within Kenya, the Internet presents national enemies such as the Al-Shabaab and other extremist groups with a unique and ubiquitous opportunities.
  • There is no existing comprehensive data protection regulation in the jurisdiction of Kenya.
Why Financial Institutions are being hit hard by cybercriminals

Kenya has been widely celebrated as one of the foremost innovators around the question of financial inclusion. With the acclaim of being the leading nation in the adoption and use of mobile banking platforms such as M-PESA and Equitel, numerous fintech start-ups are opening office in the Silicon Savannah.

In Kenya, the effect of innovation by fintech companies has been brilliantly positive. Per a 2016 Finaccess Household Survey endorsed by the Central Bank of Kenya and the Kenya National Bureau of Statistics, the number of Kenyans formally included by the financial system has grown by 50% in the last ten years.

More than 75.3% of Kenyans are formally banked

Over three-quarters (75.3%) of Kenyans are now formally included, up from 66.8% in 2013. Financial exclusion, which is now down to 17.4%, has more than halved since 2006.

Cyber crime on the rise:

There is no simple way to say this. Kenyan bank accounts are at risk.

The latter statement has been evidenced by the statistics present in the recent Cyber security Report published by Serianu, which asserts that Kenya lost about $175million last year.

Moreover, the Report managed to establish that cyber criminals are deliberately targeting the Kenyan digital economy with the intention of wreaking havoc and making away with millions.

Essentially, in terms of cyber resilience, the Kenyan digital economy can be likened to a slow, plump gazelle stumbling through the “cyber-savannah” in the full view of agile, informed and hungry cyber-predators who have begun to sink their teeth into their sumptuous prize.

Cybersecurity is a budgetary concern

With more than 75.3% of Kenyan citizens formally included in financial services, one would logically expect a correspondent increase in cyber security investments in the financial services sector.

Notably, the Serianu 2016 Kenya Cyber security Report, which highlighted that about 44% of financial institutions run on a cyber security budget of $1-1,000 annually, whilst about 33% of financial institutions in Kenya have $0 spend on all matters cyber security.

44% of financial institutions run on a cyber security budget of $1-1,000 annually Click to Tweet

Effective infrastructural cybersecurity measures come at a budgetary cost which must be respected by C-Suite executives. The threat landscape is constantly evolving as hackers collectively invest in their own expertise and tools to hack siloed

Financial organisations should staff more cyber security specialists

Notably, 63% of financial organisations in Kenya have an in-house cybersecurity department. However, only 29% of the employees within in-house cybersecurity departments in financial organisations are security certificate holders.

Financial organisations such as banks and fintech companies should ensure that their customers’ data is under the watch of certified cyber security professionals who can:

  • Promptly update their security infrastructure to match threat trends,
  • Clearly communicate the organisation’s cyber security needs to Board Executives,
  • Collaborate with digital product creators to ensure that their consumers enjoy safer technology,
  • Train other employees in online hygiene as a safety net against social engineering,
  • Swiftly respond to hacking incidences to mitigate losses and collect forensic data for litigation support.

Certified security specialists are a key asset for any financial organisation, as they not only guarantee their organisations’ business continuity by perpetuating trust and reliability of financial products, but also as business enablers who can assist in ensuring that there is security by design in the creation of new financial products.

Immature Data Protection Regulation:

There is no existing comprehensive data protection regulation in the jurisdiction of Kenya. This is in vast contrast to other thriving digital economies such as South Africa, states within the European Union and Canada.

One of the impactful consequences of poor data protection is the immensely secretive way through the occurrence of breaches is treated.

Financial institutions are not necessitated by any law to proactively inform the public regarding any substantial data breaches that have occurred to the detriment of their consumers.

This contrasts with the impending General Dara Protection Regulation in Europe, the Protection of Personal Information Act of South Africa and the Digital Privacy Act (whose adoption introduced mandatory notification via an amendment in the Personal Information Protection and Electronic Documents Act) who urge that any data breach that may result in a risk to the rights and freedoms of individuals should be reported to the relevant supervisory authority.

If unaddressed such breaches can have significant detrimental effect on individuals, i.e, discrimination, damage to reputation, financial loss, loss of confidentiality or any other significant economic or social disadvantage.

Under the Constitution of Kenya 2010, Kenyans’ consumer rights as well as the right to privacy has been asserted as a fundamental right that should be protected by the full legislative might of the Government.

Innovative legislators should get to work to protect the economy of the Republic of Kenya.

Conclusion

Large banks, microfinance institutions even cutting-edge fintech firms have been taking hooks to the jaw thrown by hungry cyber criminals who can see the vulnerabilities present within Kenya’s financial ecosystem.

The reputational harm to the financial sector has been immense as confidence in new, innovative financial products continues to decline sharply.

The finance market runs on the foundational principal of user trust. If financial institutions in Kenya do not champion the cyber security agenda, share threat intelligence to develop a fresh, synergised approach to cybercriminals, those heavy blows to their infrastructure will continue to wreak havoc to their stellar brands.

The role of Kenyan Legal Professionals in Cybersecurity 0 314

  • Over 26.7 million Kenyans are currently online and engaging in digital transactions daily.
  • According to UN Research, at least one out of ten mobile money transactions in the World occur in Kenya.
  • These statistics make Kenya a prime target for cybercriminals who, according to the National Cybersecurity Strategy, published by the Ministry of ICT, have continued to evolve in terms of the complexity and severity of their attacks.
  • Unfortunately, Kenya shows a staggering lack of awareness and investment in cybersecurity solutions wit around 96% of all organisations investing less than $5000 in cybersecurity.
Kenya cybercriminal activity

According to the words of the Honorable Warren E. Burger, lawyers and judges remain necessary to society, so long as it is a place where men and women are gathered, as they must fulfil the noble role of healing conflict and providing reason as a lubricant to the rigours of the socio-economic engine which ought to drive the development of any civilisation.

Moreover, it is the role of the legal minds of society to act as sentinels, standing guard against man’s threat unto himself, his own inclination towards self-enrichment at the detriment of the common good in its entirety.

As such, society gives the highest of legal minds the power to influence, pass or ratify policies, to ensure their safety and continuity against the overwhelming urges of vices, human wickedness and in certain cases, natural catastrophes.

The legal minds of Kenya can thus be termed as, not only stewards of conflict resolution,but also as sentinels, who wield the power of policy-making to safeguard the development and evolution of the socio-economic organs of the nation-state whose well-being remains pivotal to Her survival.

Kenya is facing an exponential increase in cybercriminal activity

The digital wave has hit Kenya, and its effect upon our economy has been immensely positive. With the development of innovative products such as Safaricom’s M-Pesa money transfer service, as well as iCow, a farming digital product that has optimized dairy farmers’ productivity, the consumer market has developed an appetite for sound, data-centric solutions in order to enhance the various socio-economic activities present within Kenya.

The effect of digitisation in our economy has been significant. Since the advent of M-PESA, more than 73.1% of Kenyans are now formally banked.

In addition, according to the Quarterly Statistics Report for the Financial Year of 2016 (April-June 2016), mobile data/ internet subscriptions stood at 26.7 million during the quarter marking an increase of 8.3 per cent from 24.7 million subscriptions posted in the preceding quarter. The number has grown remarkably by 35.0 per cent from the same period of the previous year.

This essentially means that over 26.7 million Kenyans are currently online and engaging in digital transactions daily.

Kenya also boasts the largest mobile money transaction service in the World. According to UN Research, at least one out of ten mobile money transactions in the World occur in Kenya.

These statistics make Kenya a prime target for cybercriminals who, according to the National Cybersecurity Strategy, published by the Ministry of ICT, have continued to evolve in terms of the complexity and severity of their attacks.

The evolution of cyber threats between 2006 and 2012 are an iconic example. These threats include; Advanced Persistent Threats, Botnet Threats, Converged Threats, Cyberterrorism and Next Generation DoS (inclusive of DDoS).

The socio-economic impact of cybercrime in Kenya has been immense. According to a Serianu Cybersecurity Report, Kenya’s losses as at 2016, stood at a whopping $185m, a sharp increase from the estimated $100m lost in the previous year.

Notably, when cybercriminals face justice, only about 2% of prosecutions are successful. This can be attributed to the lack of proper regulation regarding data protection and cybersecurity, and the lack of appropriate measures to collect sufficient evidence to enable criminal prosecution.

The Legal Profession and the unique risks posed to them by cybercriminals

 

Kenya cybercriminal activity

Numerous professions in Kenya are facing digitisation as well. The legal industry has not been an exception. With the incorporation of modern filing systems, the use of e-mails and digital devices such as mobile handsets and laptops within law firms and legal offices, sensitive client data is being transacted and stored at a digital level across various platforms in various forms. Cybercriminals are aware of this and can exploit the gaps present in various ways.

A staggering lack of awareness and investment in cybersecurity solutions

Notably, around 96% of all organisations in Kenya invest less than $5000 in cybersecurity. A significant percentage of these sampled organisations consist of law firms, financial institutions, NGOs and governmental bodies where legal and compliance advisors safeguard the agenda of their respective institutions.

Around 96% of all organisations in Kenya invest less than $5000 in cybersecurity Click to Tweet

This highlights how low a priority cybersecurity is for institutions who are the custodians of sensitive data which can be compromised for profit by cybercriminals.

Man-in-the Middle Attacks

Legal practitioners often handle particularly sensitive internal or external, i.e. client information to carry out their mandate. An ideal example would be where numerous clients correspond with their hired advocates via e-mail, transacting confidential documents and data over the Internet with the faith that those communication channels are encrypted or secure. This makes law firms particularly prime for man-in-the-middle attacks.

A man-in-the-middle occurs where the attacker secretly relays and possibly alters the communication between two parties who believe they are directly communicating with each other.

An example would be where files were intercepted over the network, and redirected to hostile parties, who then changed the details of those files and dropped them back into the firm’s filing system.

The entire scam could go on for months, until all the data is collected and collated by the criminals, and subsequently utilised in a terrible heist of client funds.

Various rights of the client had been substantially breached, such as their constitutional right to privacy and, if the law firm had no cybersecurity measures in place, a valid claim under the tort of negligence, as the advocate in question had failed to fulfil an essential duty of care in protecting the client’s information.

The loss of a client’s data integrity

The loss of a client’s data integrity remains one of the largest risks for any legal enterprise. This is due to its resultant effect which is a substantial erosion of trust and an adverse breach of the client confidentiality relationship which is part and parcel of the legal profession.

Data leaks can lead to truly disastrous results for any legal practice once their clients’ data is made public by hackers, regardless of their motivation. A prime example could be the occurrence of the Panama Papers leak in 2015.

The Panama Papers are 11.5 million leaked documents that detail financial and attorney–client information for more than 214,488 offshore entities. The documents, which belonged to the Panamanian law firm and corporate service provider Mossack Fonseca, were leaked in 2015 by an anonymous source, some dating back to the 1970s.

The leaked documents contain personal financial information about wealthy individuals and public officials that had previously been kept private.

While offshore business entities are legal, reporters found that some of the Mossack Fonseca shell corporations were used for illegal purposes, including fraud, tax evasion, and evading international sanctions.

The damage to the reputation of the legal enterprise was immeasurable and to date, their clients’ data remains available for scrutiny for members of the Press and the public.

Ransomware

Cybercriminals are also targeting legal enterprises because of the urgency of the data required. Law firms require constant updates of their: research material regarding continuing court cases, recordings of proceedings, updated legal documents and documentary evidence.

Moreover, legal enterprises must be able to quickly retrieve, edit, update and restore their work files within those particular systems. This makes them prime targets for malicious attacks which lock users out of their various digital filing and retrieval systems.

A prime example of this would be the deployment of ransomware within a law firm’s IT environment. Ransomware, as the name suggests, demands the payment of ransom in Bitcoin, upon encryption of computer files within a system.

Other variations of ransomware, known as lock-screen ransomware lock out users from accessing the computer system and demand payment in Bitcoin to unlock and gain access.

Conclusion

A joint awareness campaign

In collaboration with numerous law firms in Kenya, ESET East Africa is engaging with certain legal practitioners based in Kenya’s digital market to raise awareness regarding the numerous risks present for their enterprises as well as the nation with the advent and growth of cybercrime within Kenya.

This will be done through joint events, programs and training sessions to sensitize legal enterprises about their issues.

Policy recommendations

As a driver of thought leadership across the globe, the ESET brand is honoured to collaborate with the lawyers and cybersecurity specialists in suggesting cybersecurity policies designed to safeguard the Kenyan populace from the evolved threat of cybercrime within Kenya.