Home Automation Security: Is it too late?

In a casual conversation with my realtor friend, I learned that many upscale tract builders now include home automation to increase margin. We’ve come a long way since the X10 days.

Home automation is still a splintered industry. No end-to-end solutions exist. There are, of course, the commercial integrators targeting custom estates with project cost measured in the percentage of home values.

The value of these integrators is that these specialized vendors found various sub-systems that work well together. These solutions are often around for decades. The security works by virtue of being discrete systems interconnected via serial copper links, some with odd protocols like bit banging. These are easy to hack, but one needs physical access. We have not heard of many breaches for that reason.

Apple, Amazon Change the Game

But with Apple HomeKit and Amazon Echo, the world changed dramatically. From a vendor’s perspective, solutions such as HomeKit significantly decrease the complexity of a product. A HomeKit vendor only focuses on contributing a small part of a solution, which can be as small as a single light bulb. HomeKit brings it all together.

Some devices have built-in Ethernet or Wi-Fi interfaces, but many speak some proprietary wired or wireless protocols and use a small device called a “bridge” or a “hub” to translate to a central controller. I actually like the bridge approach. It brings many legacy players into the consumer arena with very solid solutions.

Echo and HomeKit are not the only controllers in town. There are many many other products from old dogs, such as HomeSeer, to new vendors, like Wink, popping up each day. Some are already exiting. Any of these devices can be grouped into on-prem and cloud solutions.

Home automation: On-prem or in the cloud

On-prem controllers theoretically can be deployed with air-gap. They do not need internet access other than for optional remote access and software updates, and perhaps initial licensing. Cloud controllers need internet access to work. If you lose access to the internet, devices stop working.

Complexity doesn’t end there. Since vendors came up with bridges and hubs, it does not cost them much more to add out-of-the box siloed cloud access, giving consumers an instant plug-and-play experience without the need of a controller. Consumers appreciate the ease of deployment, but need an app for each island.

Geeks like me appreciate the APIs into these bridges, which provide the same benefits as systems that used to cost into the tens of thousands of dollars.

3 Best Practices for Home Automation Security

How do we secure all of this? Because of the diversity of systems around, I cannot give a flat response. Here are some basic tips:

  1. Unique emails and passwords. First, give anything with cloud access a very secure password registered to an email account that is not used for anything else and not generally known.
  2. Secure and segment Wi-Fi access. Secure the home network very thoroughly with a strong Wi-Fi password. Add an isolated guest network for devices outside the family. This goes, of course, with solid perimeter controls, such as gateway antivirus (GAV) and intrusion prevention systems (IPS).
  3. Implement network isolation. This can be challenging. Many systems need client devices — smart phones, bridges and controllers — to all be in the same broadcast domain.For instance, HomeKit uses an Apple TV as a remote access hub to HomeKit devices within the broadcast domain.  Firewalls can be still deployed here, but in L2 bridged mode. Luckily, bridges typically use HTTPS, SSH, telnet and HTTP to communicate, in that order. Occasionally, you see some odd sockets. But, mostly, we can control them via SPI rules and apply IPS on common services. L2 segmentation is the key word here, such as Native Bridge support in SonicOS 6.5.

It will be very exciting to observe the consumer home automation industry mature — both from capabilities and security. You will hear more from us in the coming quarters as SonicWall takes a special interest in IoT.

Cryptocurrency, Ransomware and the Future of Our Economy

History is full of people who’ve labored over missed opportunities. Like all other non-bitcoin-owning people, I am one of them.

I first heard of cryptocurrency in early 2013 and scoffed at the idea that something with no intrinsic or collectable value would trade for $20. The concept of owning a portion of a cryptographic code — and it having actual value — is still hard for many to swallow.

Now that an available bitcoin (BTC) is valued at over $19,000 (USD), I languish the fact that an investment of $1,000 in 2013 would have net me half of a million dollars today. Furthermore, had I been tuned into the movement in 2010, I would be a billionaire today. You too. Stings a little, doesn’t it?

At no point in history has it been so easy to become extremely wealthy out of thin air. And it is not just people like you and me who think about this, but criminals as well. This is not only causing major shifts in financial markets, but also in malware development.

What is Cryptocurrency?

With all of the noise about cryptocurrency, here is what we know as we near 2018:

  • There are, or have been, over 1,300 other cryptocurrencies on the market. These are called altcoins.
  • Most people have never owned a single “coin” from any blockchain.
  • Most have no basis for value, which means it’s subjective and speculative (e.g., like a baseball card or an artistic sketch). The community dictates the value.
  • Some are tied to a real currency (e.g., 1 Tether coin = $1 USD).
  • Governments struggle with regulation and don’t want to encourage the use of decentralized currencies.
  • They often function like startups. Founders get an early crack at the supply chain and hold an equitable stake in the algorithm. Instead of a stock IPO they release them as part of an Initial Coin Offering (ICO).
  • Most of the popular coins cannot be mined by your computer anymore. Today, it’s only achieved through professional-grade mining operations.
  • No one knows how high or low bitcoins and cryptocurrency will go; either they will die or become the basis for our future economy.
  • The popular coins today are desired by cybercriminals and are the main form of payment within ransomware.
  • Like a TLS digital certificate, cracking the actual encryption is nearly impossible. Bitcoins are, however, fairly easy to steal and even easier to lose or destroy.
  • Malware is used to steal coins and to also turn infected endpoints into mining bots.

Bitcoin Is the Great Ransomware Enabler

Because cryptocurrency is virtually un-trackable, holds great value and is easily traded online, they are the preferred way to get paid on the black market. Without the value of bitcoin, you wouldn’t have heard about ransomware.

Ransomware is responsible for causing billions of dollars (USD) in damage across the world. Furthermore, the actual cost of the problem isn’t the cost of bitcoin to return your files (if you ever get them back), but the fallout from an attack.

Ransomware is fun for the media because you can easily quantify the ransoms and take photos of the demand screens, but not so fun for hackers. Through the development, updates and propagation of the malware, only between five and 10 percent of people pay the demands. But there is another way.

Bitcoin Mining

Instead of having your victims pay you once, what about having your victims unknowingly work for you? Well, that is what a lot of malware is doing today. By leveraging a portion of your compute power to form a bitcoin mining pool, hackers don’t have to kill the goose that lays the golden egg.

The result? The home computer has less power to run normal processing and incurs higher energy costs. When this approach works its way into a corporate network, it could cause major productivity and service issues.

For some hackers, these two attack vectors are small-time thinking. Instead of counting on a distributed attack vector across a global landscape of endpoints with mixed vulnerabilities, what about a single targeted attack?

Hackers don’t attack the algorithm behind the coins, they attack where they are stored. Cryptocurrency banks and exchanges are ripe targets for attacks. If you factor in the price of a bitcoin (at the time of I started writing it was $8,160 and after editing its $16,000) — the second Mt. Gox attack emptied bitcoin wallets to the tune of over $11 billion USD. Wow! At the time, the bitcoin haul was nearly 744,000 coins worth $436 million USD and caused the value of bitcoin to fall to a three-month low.

Cryptocurrency: Is it the Future?

Like most dual-sided arguments, those inside a social ecosystem are bullishly optimistic. Those outside remain pessimistic. I’m in between. I see the opportunity to capitalize on the attention, but recognize the many limitations behind cryptocurrencies that cap their viability into the future.

I’ve never owned a bitcoin coin but have entered into a few key platforms for the short-term. As mentioned, the value is purely subjective, much like an arbitrary piece of art, which can be a good investment as long as there is a large pool of people with the financial ability to support and bloat its value.

What is the difference in value between this rare Honus Wagner T206 card ($3.12 million USD) and the common Dusty Baker’s 1987 Topps card ($0.70 USD)? The answer lies in the availability of the item and the demand from the consumer.

Bitcoin, Ethereum and Monero all have value because a community of people feels it does. The more people who enter this pool, the greater the potential value. Some are investors and others are victims buying a ransom. But what truly drives the cost of bitcoin is attention — just like a piece of sports memorabilia. When you mirror Google’s search trend data to the historical price of BTC, you see a direct correlation.

What does this tell me? Once the attention fades, people will lose interest. At that point, the price will come down, similar to a Derek Jeter autographed baseball. Additionally, as ransomware becomes less effective, fewer people will buy bitcoin for the sake of digital freedom. And that freedom is the primary thing cryptocurrency can buy.

In the past year, every time the price of bitcoin dropped the Chicken Littles of the world wanted to be the first to cry out, “The sky is falling!” I do believe there will come a time when bitcoins will have the value the 1986 Topps Traded Pete Ladd sitting in the back of your closet (less than $1), but its value won’t crumble in a day.
With the remaining 1,000-odd altcoin cryptocurrencies (that currently hold value) out there with a collective market cap of over $400 billion (at the time of writing), it would take a lot for crypto-investors to create the needed fire sale that would cause the market’s topple. Instead, I see it like the Ice Age; built in stages and then a slow recession.

The altcoins wouldn’t exist today if bitcoin wasn’t popular and a goldmine for the early investors. The creators of these algorithms are like the leaders of pyramid scams. They created the rules and the ecosystem to make money and only exist if their supporters exist, much like an Amway Double-Dutch Triple-Black Platinum Diamond Founder’s Crown Elite Wizard. These will be the first to die. The beginning of their end is when bitcoin hits a plateau lasting more than two months.

In the Ice Age analogy, bitcoin is much like a large glacier that icicles attach to. As the sun shines, they will melt, leaving only the strongest cryptocurrencies to linger. I see bitcoin and Ethereum lasting for years, but only at a small price point. The coins in active circulation will be mostly in the possession of cyber criminals (if they aren’t already) and will be sold to the victims of cybercrimes to pay ransoms until the practice to buy cryptocurrency is outlawed country by country.

And, with that, the official death of ransomware.

Death in a Cathedral

Thirty years from now when we look back at cryptocurrency, we will reminisce about the second coming of the roaring ‘20s. Without the presence of Babe Ruth and the Charleston, we’ll have great unregulated wealth that comes to a crash.

In my conservative outsider-ish advice, I recommend minor, short-term cryptocurrency investments that you are not afraid to lose. Watch the price of bitcoin. When you see a plateau lasting a month, sell. (However, I’m not a financial advisor and I have no fiduciary duties to you. Please do your own research.)

Remember the old adage: movements are built in caves and die in cathedrals. Bitcoin is in the cathedral phase of its life. And if you understand the politics and history of cathedrals, you would be wary of entry. If not, read The Gothic Enterprise: A Guide to Understanding the Medieval Cathedral. Pay attention to fallout surrounding the bankrupt Bishop Milo de Nanteuil.

The Marriage Between Malware & Cryptocurrency

Another adage I was raised with, “make hay when the sun shines,” is what hackers are doing today. As the flames of bitcoin flare, more moths will be drawn to its light. The illicit creation, extortion and theft of digital coins will drive the price to an all-time high.

Because of the outrageous volume of ransomware infections of 2016, and the infamous attacks in 2017, malware defense is at an all-time high too, but it is not enough. Network and end-point security needs to be a serious topic of discussion.

At SonicWall, we’ve made great strides to get ahead of the cryptocurrency attacks; far before a hunk of digital code was valued at dollar volumes higher than what your grandfather paid for his first home.

Before the public release of Zcash, we released the SonicWall Capture Advanced Threat Protection service, which is a cloud-based network sandbox that works in line with SonicWall next-gen firewalls to run and test suspicious code in an isolated environment to prevent newly developed ransomware attacks (and other forms of malware too).

To bolster endpoint protection, we created an alliance with SentinelOne to provide an enhanced endpoint security client framework to provide next-generation anti-virus capabilities to our current endpoint offerings.

To learn more on how SonicWall can prevent malicious attacks, please read our solution brief, Five Best Practices for Advanced Threat Protection. If you’d like to discuss this blog, the marriage between malware and cryptocurrency, and to send your potentially future-worthless digital collectibles, reach out to me on Twitter.

3 Disruptive Trends Driving Demand for Automated Cyber Security for SMBs

Organizations typically struggle to provide a holistic security posture. There are many security vendors providing exciting and innovative solutions. But from a customer perspective, they often become various point solutions solving several unique problems. This often becomes cumbersome, expensive and unmanageable. Some of the most recent trends in this area are discussed in this blog, which could bring about even further complexity to an organizations security posture.

IoT the new mobile?

Internet of Things (IoT) brings similar challenges to the industry, to those which mobile introduced over the last eight years. These endpoints are non general-purpose computing devices often with a specific function, but typically have an operating system, applications and internet access. Unlike Mobile, IoT devices do not usually have the same high level of user interaction, so breaches are more likely to go unnoticed.  The result of poor security controls can result in similar events, to the recent IoT botnet which caused havoc to major online services, including Twitter, Spotify and GitHub.

The industry should look to the lessons from securing mobile and apply these to IoT. This is most important in the consumer space, but as with mobile we’ll see risks arise in the commercial also, including HVAC, alarm systems and even POS devices.

Mobile and Desktop Convergence

More focus needs to be spent on unifying the identity, access and controls for mobile and desktop security. As this often requires custom integration across differing solutions and products, it’s difficult to maintain and troubleshoot when things go wrong.

Some solutions only focus on data protection, endpoint lockdown or only on mobile applications. By themselves, none of these go far enough, and software vendors should aim to provide more open ecosystems. By exposing well documented APIs to customers and integration partners, this would allow for better uniformity across services, with a richer workflow and improved security.

Cloud and SaaS

As we see endpoints split across mobile and desktop, customers are rapidly splitting data across a hybrid IT environment. While we expect hybrid to be the norm for many years to come, organizations need to consider how the security and usability can be blended, in a way that security controls don’t become too fragmented, or result in a poor experience for users and unmanageable for IT.

How SMBs can automate breach detection and prevention

The impact of a security breach to the SMB is significant. When large organizations detect fraudulent activities, they expect to write off a fair percentage of the cost. On the flip side, the impact of a $50,000-$200,000 incident to a small business could be enough for it to cease trading. To the attacker, SMBs are a relatively easy target; as they may not have the expertise or man-power to protect against an advanced and persistent threat.

For 25 years, SonicWall has maintained a rich security portfolio, which is primarily focused on delivering enterprise-grade security for our SMB customers. Our vision is to simplify and automate, to solve complex security challenges — all while meeting the constantly evolving threats. It’s an ongoing arms race after all!

Taking full advantage of our vast database of threat intelligence data, coupled with our advanced research from SonicWall Capture Labs team, we ensure our customers of all sizes can detect and prevent from these threats.  The breadth and depth of our portfolio, also includes those that specifically help with mobile, cloud and IoT security.

Stop ransomware and zero-day cyber attacks

One of our biggest strengths is combatting advanced persistent threats, ransomware and zero-day cyber attacks with the award-winning SonicWall Capture Advanced Threat Protection (ATP) multi-engine sandbox. Capture ATP is now available as a security service across each product in our portfolio, providing a unique protection solution across a multitude of scenarios.

Simplify endpoint protection

For endpoint protection, we are also very excited with our recent partnership agreement with SentinelOne.  This brings the highest level of zero-day malware prevention on the endpoint while concurrently simplifying solutions for organizations of all shapes and sizes.

To learn more about how SonicWall helps our customers implement mobile security, download: Empowering Mobile Workforce to Collaborate Securely.

Civilian Casualties in the Cyberwar

Have you been the victim of cybercrime?  If I asked you that question in 2012, you might have said, “I’m not sure.”  But in 2017, I am sure your answer is, “Yes, I’ve been victimized many times.”  That’s bad news.

I joined SonicWall in 2012 and witnessed firsthand the rise of cybercrime headlines occurring on a monthly, weekly, and now daily basis. Among the familiar companies that have been breached over those five years are Target, Home Depot, eBay, PayPal, LinkedIn, Anthem, Yahoo, iCloud, Dropbox, Evernote, and Equifax.  If you use any of these, then you have been an indirect victim of cybercrime and undoubtedly, most of your personal information is somewhere on the Dark Web.

According to http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/ the last five years has seen an escalation of cybercrime on the scale of a world-wide cyberwar. The weapons of this cyberwar are simple and inexpensive to make and deliver compared to conventional weapons. This is due to the ubiquity and connectedness of the Internet that is at once its strength and its weakness. The ubiquity of the internet is a strength in that it enables a free exchange of information and commerce by connecting individuals, businesses, and governments. Yet, this connectedness is a weakness in that it enables criminal, espionage, and terrorist organizations to directly victimize the public, enterprises, and nations on a global scale.

Should you resign yourself to being a casualty in the cyberwar? Go off the grid and forgo connected technologies?  Neither of these options is acceptable for those who desire the convenience that comes with technical innovations such as Alexa and Nest. Then should you hack back? We don’t recommend it since that would be like a civilian joining a conventional war with a pellet gun – you’d have little to gain and much to lose.

In the cyberwar, you are more secure as a non-combatant, but that does not mean you need to be a passive participant. Instead, make sure you have a good defense. If hackers are climbing a ladder to get to you, then build a wall that is higher than their ladder. Windows and MacOS Firewall are defensive tactics, but they are dated architectures that are easy to penetrate. Firewalls in antivirus and wireless routers are marginally better than Windows and MacOS, but they are still not enough to thwart hackers in today’s cyberthreat environment.

To be safe in the cyberwar of 2017, use a next-generation firewall (NGFW) running a full suite of security services.  Unlike less sophisticated firewalls, NGFWs are not static; they learn and grow higher over time, staying higher than the ladders that the hackers are building. The SonicWall Capture Threat Network updates signatures globally around the clock to keep your firewall “higher than the hacker’s ladders.” And if they happen to put a ladder where you didn’t expect one (with a zero-day or unknown malware), you can use Capture ATP to “push away that ladder” before the threat can enter your network.

Tomorrow will bring news of another organization that has been hacked, but you can securely protect the data and devices on your network and avoid being a casualty of the cyberwar. Download – 8 Ways to Protect Your Network Against Ransomware.