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The Human Element with Valecia Maclin

Ep. 21

For Women’s History Month, we wanted to share the stories of just a few of the amazing women who make Microsoft the powerhouse that it is. To wrap up the month, we speak with Valecia Maclin, brilliant General Engineering Manager of Customer Security & Trust, about the human element of cybersecurity. 

 

In discussion with hosts Nic Fillingham and Natalia Godyla, Valecia speaks to how she transitioned into cybersecurity after originally planning on becoming a mechanical engineer, and how she oversees her teams with a sense of humanity - from understanding that working from home brings unique challenges, to going the extra mile to ensure that no member of the team feels like an insignificant cog in a big machine - Valecia is a shining example of what leadership should look like, and maybe humanity too. 

 

In this Episode You Will Learn: 

• The importance of who is behind cybersecurity protocols 

• How Microsoft’s Engineering, Customer Security & Trust team successfully transitioned to remote work under Valecia’s leadership 

• Tips on being a more inclusive leader in the security space 

 

Some Questions that We Ask: 

• What excites Valecia Maclin about the future of Cybersecurity 

• How does a mechanical engineering background affect a GM’s role in Infosec 

• How Valecia Maclin, General Manager of Engineering, Customer Security & Trust, got to where she is today 

 

Resources:  

Valecia’s LinkedIn:  

https://www.linkedin.com/in/valeciamaclin/ 


Advancing Minorities’ Interest in Engineering:  

https://www.amiepartnerships.org/

 

SAFECode: 

https://safecode.org/ 

 

Microsoft’s TEALS: 

https://www.microsoft.com/en-us/teals

 

Microsoft’s DigiGirlz: 

https://www.microsoft.com/en-us/diversity/programs/digigirlz/default.aspx

 

Nic’s LinkedIn:  

https://www.linkedin.com/in/nicfill/   

  

Natalia’s LinkedIn:  

https://www.linkedin.com/in/nataliagodyla/   

  

Microsoft Security Blog:  

https://www.microsoft.com/security/blog/   

 

Related:

Security Unlocked: CISO Series with Bret Arsenault

https://SecurityUnlockedCISOSeries.com


Transcript

[Full transcript can be found at https://aka.ms/SecurityUnlockedEp21]


Nic Fillingham:

Hello, and welcome to Security Unlocked, a new podcast from Microsoft, where we unlock insights from the latest in news and research from across Microsoft security engineering and operations teams. I'm Nic Fillingham.


Natalia Godyla:

And I'm Natalia Godyla. In each episode, we'll discuss the latest stories from Microsoft security, deep dive into the newest threat intel research and data science.


Nic Fillingham:

And profile some of the fascinating people working on artificial intelligence in Microsoft security.


Natalia Godyla:

And now let's unlock the pod. Hey Nic, welcome to today's episode. How are you doing today?


Nic Fillingham:

Hello Natalia, I'm doing very well, thank you. And very excited for today's episode, episode 21. Joining us today on the podcast is Valecia Maclin, general manager of engineering for customer security and trust someone who we have had on the shortlist to invite onto the podcast since we began. And this is such a great time to have Valecia come and share her story and her perspective being the final episode for the month of March, where we are celebrating women's history month. So many incredible topics covered here in this conversation. Natalia, what were some of your highlights?


Natalia Godyla:

I really loved how she brought in her mechanical engineering background to cybersecurity. So she graduated with mechanical engineering degree and the way she described it was that she was a systems thinker. And as a mechanical engineer, she thought about how systems could fail. And now she applies that to cybersecurity and the- the lens of risk, how the systems that she tries to secure might fail in order to protect against attacks. And I just thought that that was such a cool application of a non-security domain to security. What about yourself?


Nic Fillingham:

Yeah. Well, I think first of all, Valencia has a- a incredibly relatable story up front for how she sort of found herself pointed in the direction of computer science and security. I think people will relate to that, but then also we spent quite a bit of time talking about the importance of the human element in cybersecurity and the work that Valecia does in her engineering organization around championing and prioritizing, um, diversity inclusion and what that means in the context of cybersecurity.


Nic Fillingham:

It's a very important topic. It's very timely. I think it's one that people have got a lot of questions about, like, you know, we're hearing about DNI and diversity and inclusion, what is it? What does it mean? What does it mean for cybersecurity? I think Valecia covers all of that in thi- in this conversation and her perspective is incredible. Oh, and the great news is, as you'll hear at the end, Valecia is hiring. So if you like me are inspired by this conversation, great news is actually a bunch of roles that you can go and, uh, apply for to go and work for Valecia on her team.


Natalia Godyla:

On with the pod?


Nic Fillingham:

On with the pod. Valecia Maclin, welcome to the Security Unlocked podcast. Thank you so much for your time.


Valecia Maclin:

Thank you, Nic and Natalia.


Nic Fillingham:

We'd love to start to learn a bit about you. You're, uh, the general manager of engineering for customer security and trust. Tell us what that means. Tell us about your team, us about the amazing work that you and- and the people on your team do.


Valecia Maclin:

I am so proud of our customer security and trust engineering team. Our role is to deliver solutions and capabilities that empower us to ensure our customers trust in our services and our products. So I have teams that build engineering capabilities for the digital crimes unit. We build compliance capabilities for our law enforcement and national security team. And our team makes sure that law enforcement agencies are in compliant with their local regulatory responsibilities and that we can meet our obligations to protect our customers.


Valecia Maclin:

I have another team that provides on national security solutions. We do our global transparency centers on where we can ensure that our products are what we say they are. I have two full compliance engineering teams that build capabilities to automate our compliance at scale for our Microsoft security development lifecycle, as well as, uh, things like, uh, advancing machine learning, advancing open source security, just a wealth of enterprise wide, as well as stakeholder community solutions. Um, I could go on and on. We do digital safety engineering, so a very broad set of capabilities all around the focus and the mission of making sure that the products and services that we deliver to our customers are what we intend and say that they are


Nic Fillingham:

Got it. And Valencia so how does your engineering org relate to some of the other larger engineering orgs at Microsoft that are building, uh, security compliance solutions?


Valecia Maclin:

So our other Microsoft organizations that do that are often building those capabilities within a particular product engineering group. Um, customer security and trust is actually in our corporate, external and legal affairs function. So we don't have that sales obligation. Our full-time responsibility is looking across the enterprise and delivering capabilities that meet those broad regulatory responsibility. So again, if we think about our digital crimes unit that partners with law enforcement to protect our customers around the world, well building capabilities for them or digital safety, right? If you think about the Christ church call and what happened in New Zealand, we're building capabilities to help with that in partnership with what those product groups may need to do. So, um, so we're looking at compliance more broadly.


Nic Fillingham:

Got it. And does your team interface with some of the engineering groups that are developing products for customers?


Valecia Maclin:

Absolutely. So when you think about the work that we do in the open source security space, our team is kinda that pointy end of the spear to do, um, that assessment and identify here where some areas are that we need to put some focus and then the engineering, the product engineering groups will then and build, go and build that resiliency into the systems.


Nic Fillingham:

To follow up questions. One is on the podcast, we've actually spoken to some- some folks that are on your team. Uh, Andrew Marshall was on an earlier episode. We spoke with Scott Christianson, we've had other members of the digital crimes unit come on and talk about that work, just a sort of a sign post for listeners of the podcast. How does Andrew's work, uh, fit in your organization? How does Scott's work fit into your organization?


Valecia Maclin:

So, um, both Andrew and Scott are in a team, um, within my org, uh, that's called security engineering and assurance, and they're actually able to really focus their time on that thought leadership portion. So again, if you think about the engineering groups and the product teams, they have to, you know, really focus on the resiliency of the products, what our team is doing is looking ahead to think about what new threat vectors are. So if you think about the work that Andrew does, he partnered with Harvard and- and other parts of- of Microsoft to really advance thought leadership and how we can interpret adversarial machine learning.


Valecia Maclin:

Um, when you think about some of our other work in our open source security space, it is let's look forward at where we need to be on the edge from a thought leadership perspective, let's prototype some capabilities operationalizes, so that it's tangible for the engineering groups that then apply and then, uh, my guys will go and partner with the engineering groups and gi- and girls, right? So- so, um, we will then go and partner with the product groups to operationalize those solutions either as a part of our security, um, development life cycle, or just a general security and assurance practices.


Nic Fillingham:

Got it. And I think I- I can remember if it was Scott or Andrew mentioned this, but on a previous podcast, there was a reference to, I think it's an internal tool, something called Liquid.


Valecia Maclin:

Liquid, yes, uh, yeah.


Nic Fillingham:

Is that, can you talk about that? Cause we, uh, it was hinted at in the previous episode?


Valecia Maclin:

Absolutely. Yes. Yeah. So Liquid, um, actually have a full team that builds and sustains Liquid. It is a, um, custom built capability that allows us to basically have sensors within our built systems. Um, and so when you think about our security development life cycle, and you think about our operational security requirements, it's given us a way to automate not only those requirements, but you know, ISO and NIST standards. Um, and then that way, with those hooks into the build systems, we can get a enterprise wide look at the compliance state of our bills as they're going on.


Valecia Maclin:

So a developer in a product group doesn't have to think about, am I compliant with SDL? Um, what they can do is, you know, once the- the data is looked at, we can do predictive and reactive analysis and say, hey, you know, there's critical bugs in this part of the application that haven't been burned down within 30 days. And so rath- rather than a lot of manual and testation, we can do, um, compliance a scale. And I- I just mentioned manual and testation of security requirements. Oh, one of my other teams, um, has recently just launched


Valecia Maclin:

.. the capability that we're super excited about that leverages what we call Coach UL or used to be called Simile. That again, is automating kind of on the other edge, right? So, with liquid, it's once we pulled in the build data. Um, we're working with the engineering groups in Microsoft now to, um, do the other edge where they don't have to set up a test that they're compliant with security requirements. Um, we're, we're moving very fast to, um, automate that on behalf of the developer, so that again, we're doing security by design.


Nic Fillingham:

So, how has your team had to evolve and change, uh, the way that they, they work during this sort of the COVID era, during the sort of work from home? Was your team already set up to be able to securely work remotely or were there sort of other changes you had to make on the fly?


Valecia Maclin:

So, you know, uh, as we've been in COVID, my team does respond to phenomenally. We were actually well positioned to work from home and continue to function from home. You know, there were some instances where from an ergonomic perspective, let's get some resources out to folks because maybe their home wasn't designed for them to be there, you know, five days a week. So, the, the technical component of doing the work, wasn't the challenge. What I, as a leader continuously emphasized, and it's what, what my team needed, frankly, is making sure we stayed with the connectedness, right?


Valecia Maclin:

How do we continue to make sure that folks are connected, that they don't feel isolated? That, you know, they feel visibility from their, from their managers? And consider I had, I had 10 new people start in the past year, entirely through COVID including three new college hires. So, can you imagine starting your professional-


Nic Fillingham:

Wow.


Valecia Maclin:

... career onboarding and never being in the office with your peers or colleagues and, and, you know, and the connected tissue you would typically organically have to build relationships. And so through COVID, during COVID, we've had to be very creative about building and sustaining the connective tissue of the team. Making sure that we were understanding folks, um, personal needs and creating a safe space for that. You know, I was a big advocate way back in August where I said, Hey folks, you know, 'cause the sch- I knew the school year was starting. And even though we hadn't made any statements yet about when returned to work would, you know, would advanced to, I made a statements to my team of, Hey, it's August, we've been at this for a few months. It's not going anywhere anytime soon.


Valecia Maclin:

So, I don't want us carrying ourselves as if we're coming back to the office tomorrow. Let's, you know, give folks some space to reconcile what this is gonna look like if they have childcare, if they have elder care, if they're just frozen from being in- indoors this amount of time. Let's make sure that we're giving each other space for that. Also during the past year, you know, certainly we had, I would say, parallel once in a generation type events, right?


Valecia Maclin:

So, we had COVID, but we also had, uh, increased awareness, you know, of, of the racial inequities in our country. And for me as a woman of color that's in cybersecurity, I've spent my entire career being a, a series of first, um, particularly at the executive table. And so, you know, so it was a, an opportunity we also had in the past year to advance that conversation so that we could extend one another grace, right? So I personally was touched by COVID. I, I lost five people in the past year. Um, and I was also-


Nic Fillingham:

I'm so sorry.


Valecia Maclin:

Yeah. (laughs) And you keep showing up, right? And I was personally touched as a black woman who once again, has to be concerned about, you know, I have, uh, I have twin nephews that are 19, one's autistic and the other is not, but we won't allow him to get a driver's license yet 'cause he, my, my sister's petrified because, you know, that's a real fear that a young man who's 6'1", sweetest thing you would ever see, soft-spoken, um, but he's 6'1". He has, you know, dreadlocks in his hair or locks. He would hate to hear me say they were dreads. He has locks in his hair. Um, and he dresses like a 19 year old boy, right?


Valecia Maclin:

But on spot, that's not what the world sees. And so, um, that's what we're all in. Then you think about what's happening now with our Asian-American community. That's also bundled with folks who are human, having to be isolated and endorse, which that's not how humanity was designed. And so we have to remember that that shows up. And, and when you're in, in the work of security, where you're always thinking about threat actors, and I often say that some of our best security folks have kind of some orthogonal thinking that's necessary to kind of deal with the different nuances.


Valecia Maclin:

When you, when you are thinking about how do you build resiliency against ever evolving threats, (laughs) not withstanding the really massive one that, you know, was the next one we, we dealt with at the end of the last calendar year. Those are all things that work in the circle. And I always say that people build systems, they don't build themselves. And in this time more than ever, hopefully, as security professionals, we're remembering the human element. And we're remembering that the work that we do, um, has purpose, which is, you know, why I entered this space in, in the first and why I've spent my career doing the things I've done is because we have a phenomenal responsibility increasingly in a time of interconnectedness from a technology perspective to secure our way of life.


Nic Fillingham:

Wow. Well, on, on that note, you talked about sort of why you went into security. I'd love to sort of, I'd love to go there. Would you mind talking us through how you sort of first learnt of security and, and why you're excited about it, and how you made the decision to, to go into that space?


Valecia Maclin:

Absolutely. So, mine actually started quite awhile ago. I was majoring in mechanical engineering and material science, uh, at Duke university. I was in my junior year and, um, I should preface it with, I did my four year engineering degree in three and a half years. So, my, my junior year was pretty intense. I worked, was working on a project for mechanical engineering that I'd spent about seven hours on and I lost my data.


Nic Fillingham:

Ah!


Valecia Maclin:

I was building a model, literally, I sat at the computer because, you know, you know, back then, you know, there weren't a whole lot of computer resources, so you try to get there early and, and, and snag the computer so that you could use it as long as you needed to. I went in actually, on a holiday because I knew everybody would be gone. So, if I, I could have the full day and not have to give up the computer to someone. So, I'd spend seven hours building this model and it disappeared.


Valecia Maclin:

And it was the, you know, little five in a 10 floppy, I'm pulling it out, I'm looking at the box (laughs). It's gone. The, the, the model's gone. I was gonna have to start all over. I started my homework over again, but then I said, I will never lose a homework assignment like that again. So, I went and found a professor in the computer science school to agree to do an independent study with me, because as a junior, no one was gonna allow me to change my major for mechanical engineering that far in, at Duke University. So, (laughs) not, not my parents, anyway. So, I, um, did an independent study in computer science and taught myself programming. So, I taught myself programming, taught myself how to understand the hardware with, with my professors help, of course. But it was the work I did with that independent study that actually led to the job I was hired into when I graduated.


Valecia Maclin:

So, I've never worked as a mechanical engineer. I immediately went into doing national security work, um, where I worked for companies that were in the defense industrial base for the United States. And so I, I started and spent my entire career building large scale information systems for, you know, the DOD, for the intelligence community, and that vectored into my main focus on large, um, security systems that I was developing, or managing, or leading solutions through. So, it started with loss data, right? (laughs) You know, which is so apropos for where we are today, but it started with, you know, losing data on a software, in a software application and me just being so frustrated


Valecia Maclin:

Straight and said, that's never gonna happen to me again (laughs) that, um, that led me to pursue work in this space.


Natalia Godyla:

How did your degree in mechanical engineering inform your understanding of InfoSec? As you were studying InfoSec, did you feel like you were bringing in some of that knowledge?


Valecia Maclin:

One of the beautiful things and that was interesting is I would take on new roles, I'll, I'll never forget. Um, I, I got wonderful opportunities as, as my career was launched and folks would ask me, well, why are you gonna go do that job? You've never done that before, you know, do you know it? (laughs) And so what that taught me is, you know, you don't have to know everything about it going in, you just need to know how to address the problem, right? So, I consider myself a systems thinker, and that's what my mechanical engineering, um, background provided was look at the whole system, right? And so how do you approach the problem? And also because I also had a material science component, we studied failures a lot. So, material failure, how that affected infrastructure, you know, when a bridge collapse or, or starts to isolate. Um, so it was that taking a systems view and then drilling down into the details to predictively, identify failures and then build resiliency to not have those things happen again. Is that kind of that, that level of thinking that played into when I went into InfoSec.


Natalia Godyla:

That sounds incredibly fitting. So, what excites you today about InfoSec or, or how has your focus in InfoSec changed over time? What passions have you been following?


Valecia Maclin:

So, for me, it's the fact that it's always going to evolve, right? And so, you know, obviously the breaches make the headlines, but I'm one, we should never be surprised by breaches, just like we shouldn't be surprised by car thefts or home invasions, or, you know, think about the level of insurance, and infrastructure, and technology, and tools and habits (laughs) that we've, uh, we've developed over time for basic emergency response just for our homes or our life, right?


Valecia Maclin:

So, for me, it's just part of the evolution that we have, that there's always gonna be something new and there's always gonna be that actor that's gonna look to take a shortcut, that's gonna look to take something from someone else. And so in that regard, it is staying on the authence of building resiliency to protect our way of life. And so I, I am always passionate and again, it's, it's likely how I, you know, spent almost, you know, over 27 years of my career is protecting our way of life. But protecting it in a way where for your everyday citizen, they don't have to go and get the degree in computer science, right?


Valecia Maclin:

That they can have confidence in the services and the, the things that they rely on. They can have confidence that their car system's gonna break, that the brakes are gonna hit, you know, activate when they hit it. That's the place I wanna see us get to as it relates to the dependency we now have on our computer systems, and in our internet connected devices and, and IOT and that sort of thing. So, that's what makes me passionate. Today it may look like multi-factored authentication and, you know, zero trust networks, but tomorrow is gonna look like something completely different. And what I, where I'd love to see us get is, you know, think about your car. We don't freak out about the new technologies that show up in our car, you know, 'cause we know how, we, we, we get in and we drive and, and we anxiously await some people.


Valecia Maclin:

I, I'm kind of a control freak, I wanna still drive my car. I don't want it to drive itself (laughter). Um, but nevertheless, with each, you know, generational evolution of the car, we didn't freak out and say, Oh my gosh, it's doing this now. If we can start to get there to where there's trust and confidence. And, and that's why I love, you know, what my org is responsible for doing is, you know, that there's trust and confidence that when Microsoft, when you have a Microsoft product or service, you, you, you can trust that it's doing what you intend for it to do. And, and that's not just for here, but then, you know, when you're again, whether it's the car, or your refrigerator, or your television, that's where I'd love to, that's where I want to see us continue to evolve. Not only in the capabilities we deliver, but as a society, how we expect to interact with them.


Natalia Godyla:

Are you particularly proud of any projects that you've run or been part of in your career?


Valecia Maclin:

I am. And it's actually what led me to Microsoft, I had my greatest career success, but it, it came also at, at a time of, of, of my greatest personal loss. Literally they were concurrent on top of each other. And so I was responsible, I was the, the business executive responsible for the cybersecurity version of, of, of the JEDI program. Uh, so I was the business executive architecting our response to that work that was what the department of Homeland Security. I worked for a company that at the time wasn't known for cybersecurity, and so it was a monumental undertaking to get that responsibility. And the role was to take over and then modernize the cybersecurity re- system responsible for protecting the .gov domain. So, it was tremendously rewarding, especially in the optic that we have today. I received the highest award that my prior company gives to an individual.


Valecia Maclin:

I was super proud of the team that I was able to lead and, and keep together during all the nuances of stop, start, stop, start that government contracting, um, does when there's protests. But during that same time, you know, 'cause it was, so it was one of those once in a career type opportunities, if you've ever done national security work, to actually usher an anchor in a brand new mission is how we would label it, um, that you would be delivering for the government. But at the same time, that, that wonderfully challenging both technically and from a business perspective scenario was going on, I, in successive moments, lost my last grandparent, suddenly lost my sister. 12 months later, suddenly lost my mother, six months later had to have major surgery. So, that all came in succession while I was doing this major once in a career initiative that was a large cyber security program to protect our government.


Valecia Maclin:

And I, I survived, (laughs) right? So, um, the, the program started and did well, but I, I then kind of took a step back, right? Once I, I, uh, I'd promised the company at the time of the government that I would, I would give it a year, right? I would make sure the program transitioned since we'd worked so hard to get there. And then I took a step back and said, Hmm, what do I really wanna do? This was a lot (laughs). And so I did take a step back and got a call from Microsoft, actually, um, amongst some other companies. Uh, I thought it was gonna take a break, but clearly, um, others had, had different ideas. And so, um, (laughter) I had, I had multiple opportunities presented to me, but what was so intriguing and, and what drew me to Microsoft was first of all, the values of the company. You know, I'm a values driven person and the values, um mean a lot and I'm gonna come back to that in a moment.


Valecia Maclin:

But then also I, I mentioned that the org I lead is in corporate external and legal affairs. It's not within the product group. It's looking at our global obligations to securing our products and services from a, not just a regulatory perspective, but not limited by our, our sales target. And so the ability to be strategic in that way is what was intriguing and what, what drew me. When you think about the commitments the company has made to its employees and to its vendors during a time, um, that we've been in, it says a lot about the fabric of, of who we are to take that fear of employability insurance and those sorts of things that are basic human needs, to recall how early on we still had our cafeteria services going so that they could then go and provide meals for, for students who would typically get school meals. And at the same


Valecia Maclin:

... time it meant that those vendors that provide food services could continue to do their work. When you think about our response to the racial inequity and, and justice, social justice initiative, and the commitments were not only, not only made, but our, our keeping is the fabric of the company and the ability to do the work that I'm passionate about, that, that drew me here.


Nic Fillingham:

You talked about bringing the human element to security. What does that mean to you and how have you tried to bring that sort of culturally into your organization and, and, and beyond?


Valecia Maclin:

So, if you think about the human element of security, the operative word is human. And so as humans, we are a kaleidoscope of gender, and colors, and nationalities and experiences. Even if you were in the same town, you have a completely different experience that you can bring to bear. So, when I think about how I introduce, um, diversity, equity and inclusion in the organization that I lead, it is making sure that we're more representative of who we are as humans. And sometimes walking around Redmond, that you don't always get that, but it's the, you know, I, I come from the East Coast. So, you know, one of the going phrases I would use a lot is, I'm not a Pacific Northwestner or I don't have this passive aggressiveness down, I'm pretty direct (laughs). And so that's a different approach, right, to how we do our work, how we lean in, how we ask questions.


Valecia Maclin:

And so I am incredibly passionate about increasing the opportunities and roles for women and underrepresented minorities, underrepresented, uh, minorities in cybersecurity. And so we've been very focused on, you know, not just looking at internal folks that we may have worked on, worked on another team, you know, for years, and making sure that every opportunity in my organization is always opened up both internally and externally. They're always opened up to make sure that we're, we're looking beyond our mirror image to, um, hire staff. And it's powerful having people that think the same way you do, because you can coalesce very quickly. But the flip side of that is sometimes you can lose some innovation because everybody's seeing the same thing you see. And, and it's so important in, in security because we're talking about our threat actors typically having human element, is making sure that we can understand multiple voices and multiple experiences as we're designing solutions, and as we're thinking about what the threats may be.


Natalia Godyla:

So, for women or, uh, members of minority groups, what guidance do you have for them if they're not feeling empowered right now in security, if they don't know how to network, how to find leaders like yourself, who are supporting DNI?


Valecia Maclin:

One of the things I always encourage folks to do, and, and I mentor a lot is, just be passionate about who you are and what you contribute. But what I would say, uh, Natalia, is for them to take chances, not be afraid to fail, not be afraid to approach people you don't know, um, something that I got comfortable with very early as if I was somewhere and heard a leader speak on stage somewhere, or I was, uh, you know, I saw someone on a panel internally or externally, I would go up to them afterwards and introduce myself and ask, you know, would you be willing to have a career discussion with me? Can I get 30 minutes on your calendar? And so that was just kind of a normal part of my rhythm, which allowed me to be very comfortable, getting to meet new executive leaders and share about myself and more importantly, hear about their journeys.


Valecia Maclin:

And the more you hear about other's journey, you can help cultivate a script for your own. And so, so that's what I often encourage 'cause a lot of times folks are apr- afraid, particularly women and, and minorities are afraid to approach to say, think, well, you know, I don't know enough, or I don't know what to ask. It can be as simple as, I heard you speak, I would love to hear more about your story. Do you have time? Do you have 20 minutes? And then let, you know, relationships start from there and let the learning start from there.


Nic Fillingham:

As a leader in the security space, as a leader at Microsoft, what are you excited about for the future? What what's sort of coming in terms of, you know, it could be cultural change, it could be technology innovation. What, what are you sort of looking and seeing in the next three, five, 10 years?


Valecia Maclin:

For me it the cultural change. I'm looking forward and you heard me kind of allude to a little bit of this of, you now have the public increasingly aware of what happens when there's data loss. I'm so excited to look forward to that moment when that narrative shifts and the public learns and knows more of security hygiene, cyber security hygiene. And, and not, you know, both consumer and enterprise, because we take for granted that enper- enterprises have nailed this. And, and we're in a unique footing as a company to have it more part of our DNA, but not every company does. And so that's what I'm looking forward to for the future is the culture of that young person in the midst of schooling, not having to guess about what a cybersecurity or security professional is, much like they don't guess what a lawyer or a doctor is, right? So, that's what I look forward to for the future.


Nic Fillingham:

Any organizations, groups that you, you know, personally support or fans of that you'd also like to plug?


Valecia Maclin:

Sure. So, I actually support a, a number of organizations. I support an organization called Advancing Minorities in Engineering, which works directly with historically black colleges and universities to not only increase their learning, but also create opportunities to extend the representation in security. I also am a board member of Safe Code, which is also focused on advancing security, design, hygiene across enterprises, small midsize and large businesses. And so, so those are, are certainly, uh, a couple of, of organizations that, you know, I dedicate time to.


Valecia Maclin:

I would just encourage folks, you know, we have TEALS, we have DigiGirlz. everyone has a role to play to help expand the perception of what we do in the security space. We're not monolithic. The beauty of us as a people is that we can bring our differences together to do some of the most phenomenal, innovative things. And so that would be my ask is in, whatever way fits for where someone is, that they reach out to someone and make that connection. I v- I very often will reach down and, uh, I'll have someone, you know, a couple levels down and say, Oh my gosh, I can't believe you called and asked for a one-on-one.


Valecia Maclin:

So, I don't wait for folks to ask for a one-on-one with me. I, I'll go and ping and just, you know, pick someone and say, Hey, you know, I wanna, I just wanna touch base with you and see how you're doing and see what you're thinking about with your career. All of us can do that with someone else and help people feel connected and seen.


Natalia Godyla:

And just to wrap here, are you hiring, are there any resources that you want to plug or share with our audience, might be interested in continuing down some of these topics?


Valecia Maclin:

Absolutely. Thank you so much. Um, so I am hiring, hiring data architects, 'cause you can imagine that we deal with high volumes of data. I'm hiring software engineers, I'm hiring, uh, a data scientist. So, um, data, data, and more data, right?


Natalia Godyla:

(laughs).


Valecia Maclin:

And, um, and software engineers that are inquisitive to figure out the, the right ways for us to, you know, make the best use of it.


Natalia Godyla:

Awesome. Well, thank [crosstalk 00:35:11] you for that. And thank you for joining us today, Valecia.


Valecia Maclin:

Thank you, Natalia. Thank you, Nic. I really enjoyed it.


Natalia Godyla:

Well, we had a great time unlocking insights into security from research to artificial intelligence. Keep an eye out for our next episode.


Nic Fillingham:

And don't forget to tweet us @msftsecurity or email us at securityunlocked@microsoft.com with topics you'd like to hear on a future episode. Until then, stay safe.


Natalia Godyla:

Stay secure.

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Ep. 36
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I'm Nic Fillingham.Natalia Godyla:And I'm Natalia Godyla. In each episode, we'll discuss the latest stories from Microsoft Security, deep dive into the newest threat intel, research and data science.Nic Fillingham:And profile some of the fascinating people working on artificial intelligence in Microsoft Security.Natalia Godyla:And now, let's unlock the pod. (music)Natalia Godyla:Welcome everyone to another episode of Security Unlocked. Today we are joined by first time guest, Arjmand Samuel, who is joining us to discuss IoT Security, which is fitting as he is an Azure IoT Security leader a Microsoft. Now, everyone has heard the buzz around IoT. There's been constant talk of it over the past several years, and, but now we've all also already had some experience with IoT devices in our personal life. Would about you, Nic? What do you use in your everyday life? What types of IoT devices?Nic Fillingham:Yeah. I've, I've got a couple of smart speakers, which I think a lot of people have these days. They seem to be pretty ubiquitous. And you know what? I sort of just assumed that they automatically update and they've got good security in them. I don't need to worry about it. Uh, maybe that's a bit naïve, but, but I sort of don't think of them as IoT. I just sort of, like, tell them what I music I want to play and then I tell them again, because they get it wrong. And then I tell them a third time, and then I go, "Ugh," and then I do it on my phone.Nic Fillingham:I also have a few cameras that are pointed out around the outside of the house. Because I live on a small farm with, with animals, I've got some sheep and pigs, I have to be on the look out for predators. For bears and coyotes and bobcats. Most of my IoT, though, is very, sort of, consummary. Consumers have access to it and can, sort of, buy it or it comes from the utility company.Natalia Godyla:Right. Good point. Um, today, we'll be talking with Arjmand about enterprise grade IoT and OT, or Internet of Things and operational technology. Think the manufacturing floor of, uh, plants. And Arjmand will walk us through the basics of IoT and OT through to the best practices for securing these devices.Nic Fillingham:Yeah. And we spent a bit of time talking about zero trust and how to apply a zero trust approach to IoT. Zero trust, there's sort of three main pillars to zero trust. It's verify explicitly, which for many customers just means sort of MFA, multi factorial authentication. It's about utilizing least privilege access and ensuring that accounts, users, devices just have access to the data they need at the time they need it. And then the third is about always, sort of, assuming that you've been breached and, sort of, maintaining thing philosophy of, of let's just assume that we're breached right now and let's engage in practices that would, sort of, help root out a, uh, potential breach.Nic Fillingham:Anyway, so, Arjmand, sort of, walks us through what it IoT, how does it relate to IT, how does it relate to operational technology, and obviously, what that zero trust approach looks like. On with the pod.Natalia Godyla:On with the pod. (music) Today, we're joined by Arjmand Samuel, principle program manager for the Microsoft Azure Internet of Things Group. Welcome to the show, Arjmand.Arjmand Samuel:Thank you very much, Natalia, and it's a pleasure to be on the show.Natalia Godyla:We're really excited to have you. Why don't we kick it off with talking a little bit about what you do at Microsoft. So, what does your day to day look like as a principle program manager?Arjmand Samuel:So, I am part of the Azure IoT Engineering Team. I'm a program manager on the team. I work on security for IoT and, uh, me and my team, uh, we are responsible for making sure that, uh, IoT services and clients like the software and run times and so on are, are built securely. And when they're deployed, they have the security properties that we need them and our customers demand that. So, so, that's what I do all a long.Nic Fillingham:And, uh, we're going to talk about, uh, zero trust and the relationship between a zero trust approach and IoT. Um, but before we jump into that, Arjmand, uh, we, we had a bit of a look of your, your bio here. I've got a couple of questions I'd love to ask, if that's okay. I want to know about your, sort of, tenure here at Microsoft. Y- y- you've been here for 13 years. Sounds like you started in, in 2008 and you started in the w- what was called the Windows Live Team at the time, as the security lead. I wonder if you could talk a little bit about your, your entry in to Microsoft and being in security in Microsoft for, for that amount of time. You must have seen some, sort of, pretty amazing changes, both from an industry perspective and then also inside Microsoft.Arjmand Samuel:Yeah, yeah, definitely. So, uh, as you said, uh, 2008 was the time, was the year when I came in. I came in with a, a, a degree in, uh, security, in- information security. And then, of course, my thinking and my whole work there when I was hired at Microsoft was to be, hey, how do we actually make sure that our product, which was Windows Live at that time, is secure? It has all the right security properties that, that we need that product to have. So, I- I came in, started working on a bunch of different things, including identity and, and there was, these are early times, right? I mean, we were all putting together this infrastructure, reconciling all the identity on times that we had. And all of those were things that we were trying to bring to Windows Live as well.Arjmand Samuel:So, I was responsible for that as well as I was, uh, working on making sure that, uh, our product had all the right diligence and, and security diligence that is required for a product to be at scale. And so, a bunch of, you know, things like STL and tech modeling and those kind of things. I was leading those efforts as well at, uh, Windows Live.Natalia Godyla:So, if 2008 Arjmand was talking to 2021 Arjmand, what would he be most surprised about, about the evolution over the past 13 years, either within Microsoft or just in the security industry.Arjmand Samuel:Yeah. Yeah. (laughs) That's a great, great question, and I think in the industry itself, e- evolution has been about how all around us. We are now engulfed in technology, connected technology. We call it IoT, and it's all around us. That was not the landscape 10, 15 years back. And, uh, what really is amazing is how our customers and partners are taking on this and applying this in their businesses, right? This meaning the whole industry of IoT and, uh, Internet of Things, and taking that to a level where every data, every piece of data in the physical world can be captured or can be acted upon. That is a big change from the last, uh, 10, 15 to where we are today.Nic Fillingham:I thought you were going to say TikTok dance challenges.Arjmand Samuel:(laughs)Natalia Godyla:(laughs)Nic Fillingham:... because that's, that's where I would have gone.Arjmand Samuel:(laughs) that, too. That, too, right? (laughs)Nic Fillingham:That's a (laughs) digression there. So, I'm pretty sure everyone knows what IoT is. I think we've already said it, but let's just, sort of, start there. So, IoT, Internet of Things. Is, I mean, that's correct, right? Is there, is there multiple definitions of IoT, or is it just Internet of Things? And then, what does the definition of an Internet of Things mean?Arjmand Samuel:Yeah, yeah. It;s a... You know, while Internet of Things is a very recognized acronym these days, but I think talking to different people, different people would have a different idea about how Internet of Thing could be defined. And the way I would define it, and again, not, not, uh, necessarily the authority or the, the only definition. There are many definitions, but it's about having these devices around us. Us is not just people but also our, our manufacturing processes, our cars, our, uh, healthcare systems, having all these devices around, uh, these environments. They are, these devices, uh, could be big, could be small. Could be as small as a very small temperature sensor collecting data from an environment or it could be a Roboticom trying to move a full car up and down an assembly line.Arjmand Samuel:And first of all, collecting data from these devices, then bringing them, uh, uh, using the data to do something interesting and insightful, but also beyond that, being able to control these devices based on those insights. So, now there's a feedback loop where you're collecting data and you are acting on that, that data as well. And that is where, how IoT is manifesting itself today in, in, in the world. And especially for our customers who are, who tend to be more industrial enterprises and so on, it's a big change that is happening. It's, it's a huge change that, uh, they see and we call it the transformation, the business transformation happening today. And part of that business transformation is being led or is being driven through the technology which we call IoT, but it's really a business transformation.Arjmand Samuel:It's really with our customers are finding that in order to remain competitive and in order to remain in business really, at the end of the day, they need to invest. They need to bring in all these technologies to bear, and Internet of Things happens that technology.Nic Fillingham:So, Arjmand, a couple other acronyms. You know, I think, I think most of our audience are pretty familiar with IoT, but we'll just sort of cover it very quickly. So, IoT versus IT. IT is, obviously, you know, information technology, or I think that's the, that's the (laughs) globally accepted-Arjmand Samuel:Yeah, yeah.Nic Fillingham:... definition. You know, do you we think of IoT as subset of IT? What is the relationship of, of those two? I mean, clearly, there are three letters versus two letters, (laughs) but there is relationship there. Wh- wh- what are your thoughts?Arjmand Samuel:Yeah. There's a relationship as well as there's a difference, and, and it's important to bring those two out. Information technology is IT, as we know it now for many years, is all about enterprises running their applications, uh, business applications mostly. For that, they need the network support. They need databases. They need applications to be secured and so on. So, all these have to work together. The function of IT, information technology, is to make sure that the, there is availability of all these resources, applications, networks and databases as well as you have them secured and private and so on.Arjmand Samuel:So, all of that is good, but IoT takes it to the next level where now it's not only the enterprise applications, but it's also these devices, which are now deployed by the enterprise. I mentioned Roboticoms. Measured in a conference room you have all these equipment in there, projection and temperature sensors and occupancy sensors and so on. So, all of those beco- are now the, the add on to what we used to call IT and we are calling it the IoT.Arjmand Samuel:Now, the interesting part here is in the industrial IoT space. Th- this is also called OT, operation technology. So, you know, within an organization there'll be IT and OT. OT's operation technology and these are the people or the, uh, function within an organization who deal with the, with the physical machines, the physical plant. You know, the manufacturing line, the conveyor belts, the Roboticoms, and these are called OT functions.Arjmand Samuel:The interesting part here is the goal of IT is different from the goal of OT. OT is all about availability. OT's all about safety, safety so that it doesn't hurt anybody working on the manufacturing line. OT's all about environmental concerns. So, it should not leak bad chemicals and so on. A while, if you talk about security, and this is, like, a few years back when we would talk about security with an OT person, the, the person who's actually... You know, these are people who actually wear those, uh, hard hats, you know, on, uh, a manufacturing plant. And if you talk about security to an OT person, they will typically refer to that guard standing outside and, and, uh, the-Nic Fillingham:Physical security.Arjmand Samuel:The physical security and the, the walls and the cameras, which would make sure that, you know, and then a key card, and that's about all. This was OT security, but now when we started going in and saying that, okay, all these machines can be connected to, to each other and you can collect all this data and then you can actually start doing something interesting with this data. That is where the definition of security and the functions of OT evolved. And not evolving, I mean different companies are at different stages, but they're now evolving where they're thinking, okay, it's not only about the guard standing outside. It's also the fact that the Roboticom could be taken over remotely and somebody outside, around the world, around the globe could actually be controlling that Roboticom to do something bad. And that realization and the fact that now you actually have to control it in the cyber sense and not only in the physical sense is the evolution that happened between OT.Arjmand Samuel:Now, IT and OT work together as well because the same networks are shared typically. Some of the applications that use the data from these devices are common. So, IT and OT, this is the other, uh, thing that has changed and, and we are seeing that change, is starting to work and come closer. Work together more. IoT's really different, but at the same time requires a lot of stuff that IT has traditionally done.Natalia Godyla:Hmm. So, what we considered to be simple just isn't simple anymore.Arjmand Samuel:That's life, right? (laughs) Yeah.Natalia Godyla:(laughs)Arjmand Samuel:(laughs)Natalia Godyla:So, today we wanted to talk about IoT security. So, let's just start with, with framing the conversation a little bit. Why is IoT security important and what makes it more challenging, different than traditional security?Arjmand Samuel:As I just described, right, I mean, we are now infusing compute and in every environment around us. I mean, we talked a little bit about the conveyor belt. Imagine the conference rooms, the smart buildings and, and all the different technologies that are coming in. These are technologies, while they're good, they're serve a scenario. They, they make things more efficient and so on, but they're also now a point of, uh, of failure for that whole system as well as a way for malicious sectors to bring in code if possible. And to either, uh, imagine a scenario where or an attack where a malicious sector goes into the conveyor belt and knows exactly the product that is passing through. And imagine that's something either takes the data and sells it to somebody or, worse case, stops the conveyor belt. That is millions of dollars of loss very, uh, that data that the company might be incurring.Arjmand Samuel:So, now that there's infused computer all around us, we are now living in a target which in a environment which can be attacked, and which can be used for bad things much more than what it was when we were only applications, networks and databases. Easy to put a wall around. Easy to understand what's going on. They're easy to lock down. But with all these devices around us, it's becoming much and much harder to do the same.Nic Fillingham:And then what sort of, if, if we think about IoT and IoT security, one of the things that, sort of, makes it different, I- I th- think, and here I'd love you to explain this, sort of... I- I'm thinking of it as a, as a, as a spectrum of IoT devices that, I mean, they have a CPU. They have some memory. They have some storage. They're, they're running and operating system in some capacity all the way through to, I guess, m- much more, sort of, rudimentary devices but do have some connection, some network connection in order for instruction or data to, sort of, move backwards and forwards. What is it that makes this collection of stuff difficult to protect or, you know, is it difficult to protect? And if so, why? And then, how do we think about the, the, the potential vectors for attack that are different in this scenario versus, you know, protecting lap tops and servers?Arjmand Samuel:Yeah, yeah. That's a good one. So, uh, what happens is you're right. Uh, IoT devices can be big and small, all right. They could be a small MCU class device with a real-time operating system on it. Very small, very, uh, single purpose device, which is imagine collecting temperature or humidity only. Then we have these very big, what we call the edge or heavy edge devices, which are like server class devices running a Roboticom or, or even a gateway class device, which is aggregating data from many devices, right, as a, a, and then take, taking the data and acting on it.Arjmand Samuel:So, now with all this infrastructure, one of the key things that we have seen is diversity and heterogeneity of these devices. Not just in terms of size, but also in terms of who manufactured them, when they were manufactured. So, many of the temperature sensors in environments could be very old. Like, 20 years old and people are trying to use the same equipment and not have to change anything there. And which they can. Technically they could, but then those devices were never designed in for a connected environment for these, this data to actually, uh, be aggregated and sent on the network, meaning they per- perhaps did not have encryption built into it. So, we have to do something, uh, additional there.Arjmand Samuel:And so now with the diversity of devices, when they came in, the, the feature set is so diverse. Some of them were, are more recent, built with the right security principles and the right security properties, but then some of them might not be. So, this could raise a, a challenge where how do you actually secure an infrastructure where you have this whole disparity and many different types of devices, many different manufacturers, many of ages different for these devices. Security properties are different and as we all know talking about security, the attack would always come from the weakest link. So, the attacker would always find, within that infrastructure, the device which has the least security as a entry point into that infrastructure. So, we can't just say, "Oh, I'll just protect my gateway and I'm fine." We have to have some mitigation for everything on that network. Everything. Even the older ones, older devices. We call them brownfield devices because they tend to be old devices, but they're also part of the infrastructure.Arjmand Samuel:So, how do we actually think about brownfield and the, the newer ones we call greenfield devices? Brownfield and greenfield, how do we think about those given they will come from different vendors, different designs, different security properties? So, that's a key challenge today that we have. So, they want to keep those devices as well as make sure that they are secure because the current threat vectors and threat, uh, the, and attacks are, are much more sophisticated.Natalia Godyla:So, you have a complex set of devices that the security team has to manage and understand. And then you have to determine at another level which of those devices have vulnerabilities or which one is the most vulnerable, and then, uh, assume that your most vulnerable, uh, will be the ones that are exploited. It, so, is that, that typically the attack factor? It's going to be the, the weakest link, like you said? And h- how does an attacker try to breach the IoT device?Arjmand Samuel:Yeah, yeah. And, and this is where we, we started using the term zero trust IoT.Natalia Godyla:Mm-hmm (affirmative).Arjmand Samuel:So, IoT devices are deployed in an environment which can not be trusted, should not be trusted. You should assume that there is zero trust in that environment, and then all these devices, when they are in there, you will do the right things. You'll put in the right mitigations so that the devices themselves are robust. Now, another example I always give here is, and, uh, I, your question around the attack vectors and, and how attacks are happening, typically in the IT world, now that we, we have the term defined, in the IT world, you will always have, you know, physical security. You will always put servers in a room and lock it, and, and so on, right, but in an IoT environment, you have compute devices. Imagine these are powerful edge nodes doing video analytics, but they're mounted on a pole next to a camera outside on the road, right? So, which means the physical access to that device can not be controlled. It could be that edge node, again, a powerful computer device with lots of, you know, CPU and, and so on, is deployed in a mall looking at video streams and analyzing those video streams, again, deployed out there where any attacker physically can get a hold of the device and do bad things.Arjmand Samuel:So, again, the attack vectors are also different between IT and OT or IoT in the sense that the devices might not be physically contained in a, in an environment. So, that puts another layer of what do we do to protect such, uh, environments?Nic Fillingham:And then I want to just talk about the role of, sort of, if we think about traditional computing or traditional, sort of, PC based computing and PC devices, a lot of the attack vectors and a lot of the, sort of, weakest link is the user and the user account. And that's why, you know, phishing is such a massive issue that if we can socially engineer a way for the person to give us their user name and password or whatever, we, we, we can get access to a device through the user account. IoT devices and OT devices probably don't use that construct, right? They probably, their userless. Is that accurate?Arjmand Samuel:Yeah. That's very accurate. So, again, all of the attack vectors which we know from IT are still relevant because, you know, if you, there's a phishing attack and the administrator password is taken over you can still go in and destroy the infrastructure, both IT and IoT. But at the same time, these devices, these IoT devices typically do not have a user interacting with them, typically in the compute sense. You do not log into an IoT device, right? Except in sensor with an MCU, it doesn't even have a user experience, uh, a screen on it. And so, there is typically no user associated with it, and that's another challenge. So you need to still have an identity off the device, not on the device, but off the device, but that identity has to be intrinsic off the device. It has to be part of the device and it has to be stable. It has to be protected, secure, and o- on the device, but it does not typically a user identity.Arjmand Samuel:And, and that's not only true for temperature sensors. You know, the smaller MCU class devices. That's true for edge nodes as well. Typically, an edge node, and by the way, when I say the edge node, edge node is a full blown, rich operating system. CPU, tons of memory, even perhaps a GPU, but does not typically have a user screen, a keyboard and a mouse. All it has is a video stream coming in through some protocol and it's analyzing that and then making some AI decisions, decisions based on AI. And, and, but that's a powerful machine. Again, there might never ever be a user interactively signing into it, but the device has an identity of its own. It has to authenticate itself and it workload through other devices or to the Cloud. And all of that has to be done in a way where there is no user attached to it.Natalia Godyla:So, with all of this complexity, how can we think about protecting against IoT attacks. You discussed briefly that we still apply the zero trust model here. So, you know, at a high level, what are best practices for protecting IoT?Arjmand Samuel:Yeah, yeah. Exactly. Now that we, we just described the environment, we described the devices and, and the attacks, right? The bad things that can happen, how do we do that? So, the first thing we want to do, talk about is zero trust. So, do not trust the environment. Even if it is within a factory and you have a guard standing outside and you have all the, you know, the physical security, uh, do not trust it because there are still vectors which can allow malicious sectors to come into those devices. So, that's the first one, zero trust.Arjmand Samuel:Uh, do not trust anything that is on the device unless you explicitly trust it, you explicitly make sure that you can go in and you can, attest the workload, as an example. You can attest the identity of the device, as an example. And you can associate some access control polices and you have to do it explicitly and never assume that this is, because it's a, uh, environment in a factory you're good. So, you never assume that. So, again, that's a property or a principle within zero trust that we always exercise.Arjmand Samuel:Uh, the other one is you always assume breach. You always assume that bad things will happen. I- it's not if they'll happen or not. It's about when they're s- uh, going to happen. So, for the, that thinking, then you're putting in place mitigations. You are thinking, okay, if bad things are going to happen, how do I contain the bad things? How do I contain? How do I make sure that first of all, I can detect bad things happening. And we have, and we can talk about some of the offerings that we have, like Defender for IoT as an example, which you can deploy on to the environment. Even if it's brownfield, you can detect bad things happening based on the network characteristics. So, that's Defender for IoT.Arjmand Samuel:And, and once you can detect bad things happening then you can do something about it. You get an alert. You can, you can isolate that device or take that device off the network and refresh it and do those kind of things. So, the first thing that needs to happen is you assume that it's going breach. You always assume that whatever you are going to trust is explicitly trusted. You always make sure that there is a way to explicitly trust, uh, uh, uh, either the workload or the device or the network that is connected onto the device.Nic Fillingham:So, if we start with verify explicitly, in the traditional compute model where it's a user on a device, we can verify explicitly with, usually, multi factor authentication. So, I have my user name and password. I add an additional layer of authentication, whether it's an, you know, app on my phone, a key or something, some physical device, there's my second factor and I'm, I'm verified explicitly in that model. But again, no users or the user's not, sort of, interacting with the device in, sort of, that traditional sense, so what are those techniques to verify explicitly on an IoT device?Arjmand Samuel:Yeah. I, exactly. So, we, in that white paper, which we are talking about, we actually put down a few things that you can actually do to, to, en- ensure that you have all the zero trust requirements together. Now, the first one, of course, is you need, uh, all devices to have strong identity, right? So, because identity is a code. If you can not identi- identify something you can not, uh, give it an access control policy. You can not trust the data that is coming out from that, uh, device. So, the first thing you do is you have a strong identity. By a strong identity we mean identity, which is rooted in hardware, and so, what we call the hardware based root of trust. It's technologies like TPM, which ensure that you have the private key, which is secured in our hardware, in the hardware and you can not get to it, so and so on. So, you, you ensure that you have a, a strong identity.Arjmand Samuel:You always have these privilege access so you do not... And these principles have been known to our IT operations forever, right? So, many years they have been refined and, uh, people know about those, but we're applying them to the IoT world. So, these privilege access, if our device is required to access another device or data or to push out data, it should only do that for the function it is designed for, nothing more than that. You should always have some level of, uh, device health check. Perhaps you should be able to do some kind of test station of the device. Again, there is no user to access the device health, but you should be able to do, and there are ways, there are services which allow you to measure something on the device and then say yes it's good or not.Arjmand Samuel:You should be able to do a continuous update. So, in case there is a device which, uh, has been compromised, you should be able to reclaim that device and update it with a fresh image so that now you can start trusting it. And then finally you should be able to securely monitor it. And not just the device itself, but now we have to technologies which can monitor the data which is passing through the network, and based on those characteristics can see if a device is attacked or being attacked or not. So, those are the kind of things that we would recommend for a zero trust environment to take into account and, and make those requirements a must for, for IoT deployments.Natalia Godyla:And what's Microsoft's role in protecting against these attacks?Arjmand Samuel:Yeah, yeah. So, uh, a few products that we always recommend. If somebody is putting together a new IoT device right from the silicone and putting that device together, we have a great secure be design device, which is called Azure Sphere. Azure Sphere has a bunch of different things that it does, including identity, updates, cert management. All these are important functions that are required for that device to function. And so, a new device could use the design that we have for Azure Sphere.Arjmand Samuel:Then we have, a gateway software that you put on a gateway which allows you to secure the devices behind that gateway for on time deployments. We have Defender for IoT, again as I mentioned, but Defender for IoT is on-prem, so you can actually monitor all the tracks on the network and on the devices. You could also put a agent, a Micro Agent on these devices, but then it also connects to Azure Sentinel. Azure Sentinel is a enterprise class user experience for security administrators to know what bad things are happening on, on-prem. So, it, the whole end to end thing could works all the way from the network, brownfield devices to the Cloud.Arjmand Samuel:We also have things like, uh, IoT Hub Device Provisioning service. Device provisioning service is an interesting concept. I'll try to briefly describe that. So, what happens is when you have an identity on a device and you want to actually put that device, deploy that device in your environment, it has to be linked up with a service in the Cloud so that it can, it knows the device, there's an identity which is shared and so on. Now, you could do it manually. You could actually bring that device in, read a code, put it in the Cloud and your good to go because now the Cloud knows about that device, but then what do you do when you have to deploy a million devices? And we're talking about IoT scale, millions. A fleet of millions of devices. If you take that same approach of reading a key and putting it in the Cloud, one, you'd make mistakes. Second, you will probably need a lifetime to take all those keys and put them in the cloud.Arjmand Samuel:So, in order to solve that problem, we have the device provisioning service, which it's a service in the Cloud. It is, uh, linked up to the OEMs or manufacturing devices. And when you deploy our device in your field, you do not have to do any of that. Your credentials are passed between the service and the, and the device. So, so, that's another service. IoT Hub Device Provisioning Service.Arjmand Samuel:And then we have, uh, a work, the, uh, a piece of work that we have done, which is the Certification of IoT Devices. So, again, you need the devices to have certain security properties. And how do you do that? How do you ensure that they have the right security properties, like identity and cert management and update ability and so on, we have what we call the Edge Secured-core Certification as well as Azure Certified Device Program. So, any device which is in there has been tested by us and we certify that that device has the right security properties. So, we encourage our customers to actually pick from those devices so that they, they actually get the best security properties.Natalia Godyla:Wow. That's a lot, which is incredible. What's next for Microsoft's, uh, approach to IoT security?Arjmand Samuel:Yeah, yeah. So, uh, one of the key things that we have heard our customers, anybody who's going into IoT ask the question, what is the risk I'm taking? Right? So, I'm deploying all these devices in my factories and Roboticom's connecting them, and so on, but there's a risk here. And how do I quantify that risk? How do I understand th- that risk and how do I do something about that risk?Arjmand Samuel:So, we, we got those questions many years back, like four, five years back. We started working with the industry and together with the Industrial Internet Consortium, IIC, which a consortium out there and there are many companies part of that consortium, we led something called The Security Maturity Model for IoT. So, so, we put down a set of principles and a set of processes you follow to evaluate the maturity of your security in IoT, right? So, it's a actionable thing. You take the document, you evaluate, and then once you have evaluated, it actually give you a score.It says you're level one, or two, or three, or four. Four, that's the authentication. All else is controlled management. And then based on th- that level, you know where you care, first of all. So, you know what your weaknesses are and what you need to do. So, that's a very actionable thing. But beyond that, if you're at level two and you want to be at level four, and by want to means your scenario dictates that you should be at level four, it is actionable. It gives you a list of things to do to go from level two to level four. And then you can reevaluate yourself and then you know that you're at level four. So, that's a maturityArjmand Samuel:Now, In order to operationalize that program with in partnership with IAC, we also have been, and IAC's help, uh, has been instrumental here, we have been working on a training program where we have been training auditors. These are IoT security auditors, third party, independent auditors who are not trained on SMMs Security Maturity Model. And we tell our customers, if you have a concern, get yourself audited using SMM, using the auditors and that will tell you where you are and where you need to go. So, it's evolving. Security for IoT's evolving, but I think we are at the forefront of that evolution.Nic Fillingham:Just to, sort of, finish up here, I'm thinking of some of the recent IoT security stories that were in the news. We won't mention any specifically, but there, there have been some recently. My take aways hearing those stories reading those stories in the news is that, oh, wow, there's probably a lot of organizations out here and maybe individuals at companies that are using IoT and OT devices that maybe don't see themselves as being security people or having to think about IoT security, you know T security. I just wonder if do you think there is a, a population of folks out here that don't think of themselves as IoT security people, but they really are? And then therefore, how do we sort of go find those people and help them go, get educated about securing IoT devices?Arjmand Samuel:Yeah, that's, uh, that's exactly what we are trying to do here. So, uh, people who know security can obviously know the bad things that can happen and can do something about it, but the worst part is that in OT, people are not thinking about all the bad things that can happen in the cyber world. You mentioned that example with that treatment plant. It should never have been connected to the network, unless required. And if it was connected to the, uh, to the network, to the internet, you should have had a ton a mitigations in place in case somebody was trying to come in and should have been stopped. And in that particular case, y- there was a phishing attack and the administrative password was, was taken over. But even with that, with the, some of our products, like Defender for IoT, can actually detect the administrative behavior and can, can detect if an administrator is trying to do bath things. It can still tell other administrators there's bad things happening.Arjmand Samuel:So, there's a ton of things that one could do, and it all comes down, what we have realized is it all comes down to making sure that this word gets out, that people know that there is bad things that can happen with IoT and it's not only your data being stolen. It's very bad things as in that example. And so, the word out, uh, so that we can, uh, we can actually make IoT more secure.Nic Fillingham:Got it. Arjmand, again, thanks so much for your time. It sounds like we really need to get the word out. IoT security is a thing. You know, if you work in an organization that employs IoT or OT devices, or think you might, go and download this white paper. Um, we'll put the link in the, uh, in the show notes. You can just search for it also probably on the Microsoft Security Blog and learn more about cyber security for IoT, how to apply zero trust model. Share it with your, with your peers and, uh, let's get as much education as we can out there.Arjmand Samuel:Thank you very much for this, uh, opportunity.Nic Fillingham:Thanks, Arjmand, for joining us. I think we'll definitely touch on cyber security for IoT, uh, in future episodes. So, I'd love to talk to you again. (music)Arjmand Samuel:Looking forward to it. (music)Natalia Godyla:Well, we had a great time unlocking insights into security from research to artificial intelligence. Keep an eye out for our next episode.Nic Fillingham:And don't forget to Tweet us @MSFTSecurity or email us at securityunlocked@Microsoft.com with topics you'd like to hear on a future episode. (music) Until then, stay safe.Natalia Godyla:Stay secure. (music)
7/7/2021

Looking a Gift Card Horse in the Mouth

Ep. 35
Is it just me, or do you also miss the goodoledays of fraudulent activity?You remember the kind I’m talking about, theemails from princes around the world asking for just a couple hundred dollars to help them unfreeze or retrieve their massive fortune which they would share with you. Attacks havegrownmore nuanced, complex, and invasive since then, but because of the unbelievable talent at Microsoft, we’re constantly getting better at defending against it.On this episode of Security Unlocked, hosts Nic Fillingham and NataliaGodylasit down with returning champion, Emily Hacker, to discuss Business Email Compromise (BEC), an attack that has perpetrators pretending to be someone from the victim’s place of work and instructs them to purchase gift cards and send them to thescammer.Maybe it’s good tolookagift cardhorse in the mouth?In This Episode You Will Learn:Why BEC is such an effective and pervasive attackWhat are the key things to look out for to protect yourself against oneWhy BEC emails are difficult to trackSome Questions We Ask:How do the attackers mimic a true-to-form email from a colleague?Why do we classify this type of email attack separately from others?Why are they asking for gift cards rather than cash?Resources:Emily Hacker’s LinkedIn:https://www.linkedin.com/in/emilydhacker/FBI’s2020Internet Crime Reporthttps://www.ic3.gov/Media/PDF/AnnualReport/2020_IC3Report.pdfNicFillingham’sLinkedIn:https://www.linkedin.com/in/nicfill/NataliaGodyla’sLinkedIn:https://www.linkedin.com/in/nataliagodyla/Microsoft Security Blog:https://www.microsoft.com/security/blog/Related:Security Unlocked: CISO Series with Bret Arsenaulthttps://SecurityUnlockedCISOSeries.comTranscript:[Full transcript can be found athttps://aka.ms/SecurityUnlockedEp35]Nic Fillingham:Hello, and welcome to Security Unlocked, a new podcast from Microsoft, where we unlock insights from the latest in news and research from across Microsoft security engineering and operations teams. I'm Nic Fillingham.Natalia Godyla:And I'm Natalia Godyla. In each episode, we'll discuss the latest stories from Microsoft security, deep dive into the newest thread intel, research and data science.Nic Fillingham:And profile some of the fascinating people working on artificial intelligence in Microsoft security.Natalia Godyla:And now, let's unlock the pod.Nic Fillingham:Hello listeners, hello, Natalia, welcome to episode 35 of Security Unlocked. Natalia, how are you?Natalia Godyla:I'm doing well as always and welcome everyone to another show.Nic Fillingham:It's probably quite redundant, me asking you how you are and you asking me how you are, 'cause that's not really a question that you really answer honestly, is it? It's not like, "Oh, my right knee's packing at the end a bit," or "I'm very hot."Natalia Godyla:Yeah, I'm doing terrible right now, actually. I, I just, uh- Nic Fillingham:Everything is terrible.Natalia Godyla:(laughs)Nic Fillingham:Well, uh, our guest today is, is a returning champ, Emily Hacker. This is her third, uh, appearance on Security Unlocked, and, and she's returning to talk to us about a, uh, new business email compromise campaign that she and her colleagues helped unearth focusing on some sort of gift card scam.Nic Fillingham:We've covered business email compromise before or BEC on the podcast. Uh, we had, uh, Donald Keating join us, uh, back in the early days of Security Unlocked on episode six. The campaign itself, not super sophisticated as, as Emily sort of explains, but so much more sort of prevalent than I think a lot of us sort of realize. BEC was actually the number one reported source of financial loss to the FBI in 2020. Like by an order of magnitude above sort of, you know, just places second place, third place, fourth place. You know, I think the losses were in the billions, this is what was reported to the FBI, so it's a big problem. And thankfully, we've got people like, uh, Emily on it.Nic Fillingham:Natalia, can you give us the TLDR on the, on the campaign that Emily helps describe?Natalia Godyla:Yeah, as you said, it's, uh, a BEC gift card campaign. So the attackers use typosquatted domains, and socially engineered executives to request from employees that they purchase gift cards. And the request is very vague. Like, "I need you to do a task for me, "or "Let me know if you're available." And they used that authority to convince the employees to purchase the gift cards for them. And they then co-converted the gift cards into crypto at, at scale to collect their payout.Nic Fillingham:Yeah, and we actually discuss with Emily that, that between the three of us, Natalia, myself and Emily, we actually didn't have a good answer for how the, uh- Natalia Godyla:Mm-hmm (affirmative).Nic Fillingham:... these attackers are laundering these gift cards and, and converting them to crypto. So we're gonna, we're gonna go and do some research, and we're gonna hopefully follow up on a, on a future episode to better understand that process. Awesome. And so with that, on with the pod.Natalia Godyla:On with the pod.Nic Fillingham:Welcome back to the Security Unlocked podcast. Emily hacker, how are you?Emily Hacker:I'm doing well. Thank you for having me. How are you doing?Nic Fillingham:I'm doing well. I'm trying very hard not to melt here in Seattle. We're recording this at the tail end of the heat wave apocalypse of late June, 2021. Natalia, are you all in, I should have asked, have you melted or are you still in solid form?Natalia Godyla:I'm in solid form partially because I think Seattle stole our heat. I'm sitting in Los Angeles now.Nic Fillingham:Uh huh, got it. Emily, thank you for joining us again. I hope you're also beating the heat. You're here to talk about business email compromise. And you were one of the folks that co-authored a blog post from May 6th, talking about a new campaign that was discovered utilizing gift card scams. First of all, welcome back. Thanks for being a return guest. Second of all, do I get credit or do I get blame for the tweet that enabled you to, to- Emily Hacker:(laughs) It's been so long, I was hoping you would have forgotten.Nic Fillingham:(laughs) Emily and I were going backward forward on email, and I basically asked Emily, "Hey, Emily, who's like the expert at Microsoft on business email compromise?" And then Emily responded with, "I am."Emily Hacker:(laughs)Nic Fillingham:As in, Emily is. And so I, I think I apologized profusely. If I didn't, let me do that now for not assuming that you are the subject matter expert, but that then birthed a very fun tweet that you put out into the Twitter sphere. Do you wanna share that with the listeners or is this uncomfortable and we need to cut it from the audio?Emily Hacker:No, it's fine. You can share with the listeners. I, uh- Nic Fillingham:(laughs)Emily Hacker:... I truly was not upset. I don't know if you apologized or not, because I didn't think it was the thing to apologize for. Because I didn't take your question as like a, "Hey," I'm like, "Can you like get out of the way I did not take it that way at all. It was just like, I've been in this industry for five years and I have gotten so many emails from people being like, "Hey, who's the subject matter in X?" And I'm always having to be like, "Oh, it's so and so," you know, or, "Oh yeah, I've talked to them, it's so-and-so." And for once I was like, "Oh my goodness, it me."Natalia Godyla:(laughs)Emily Hacker:Like I'm finally a subject matter in something. It took a long time. So the tweet was, was me being excited that I got to be the subject matter expert, not me being upset at you for asking who it was.Nic Fillingham:No, I, I took it in it's, I did assume that it was excitement and not crankiness at me for not assuming that it would be you. But I was also excited because I saw the tweet, 'cause I follow you on Twitter and I'm like, "Oh, that was me. That was me." And I got to use- Emily Hacker:(laughs)Nic Fillingham:... I got to use the meme that's the s- the, the weird side eye puppet, the side, side eye puppet. I don't know if that translates. There's this meme where it's like a we-weird sort of like H.R. Pufnstuf sort of reject puppet, and it's sort of like looking sideways to the, to the camera.Emily Hacker:Yes.Nic Fillingham:Uh, I've, and I've- Emily Hacker:Your response literally made me laugh a while though alone in my apartment.Nic Fillingham:(laughs_ I've never been able to use that meme in like its perfect context, and I was like, "This is it."Emily Hacker:(laughs) We just set that one up for a comedy home run basically.Nic Fillingham:Yes, yes, yes. And I think my dad liked the tweet too- Natalia Godyla:(laughs)Nic Fillingham:... so I think I had that, so that was good.Emily Hacker:(laughs)Nic Fillingham:Um, he's like my only follower.Emily Hacker:Pure success.Nic Fillingham:Um, well, on that note, so yeah, we're here to talk about business email compromise, which we've covered on the, on the podcast before. You, as I said, uh, co-authored this post for May 6th. We'll have a, a broader conversation about BEC, but let's start with these post. Could you, give us a summary, what was discussed in this, uh, blog post back on, on May 6th?Emily Hacker:Yeah, so this blog post was about a specific type of business email compromise, where the attackers are using lookalike domains and lookalike email addresses to send emails that are trying, in this particular case, to get the user to send them a gift card. And so this is not the type of BEC where a lot of people might be thinking of in terms of conducting wire transfer fraud, or, you know, you read in the news like some company wired several million dollars to an attacker. That wasn't this, but this is still creating a financial impact and that the recipient is either gonna be using their own personal funds or in some cases, company funds to buy gift cards, especially if the thread actor is pretending to be a supervisor and is like, "Hey, you know, admin assistant, can you buy these gift cards for the team?" They're probably gonna use company funds at that point.Emily Hacker:So it's still something that we keep an eye out for. And it's actually, these gift card scams are far and away the most common, I would say, type of BEC that I am seeing when I look for BEC type emails. It's like, well over, I would say 70% of the BEC emails that I see are trying to do this gift card scam, 'cause it's a little easier, I would say for them to fly under the radar maybe, uh, in terms of just like, someone's less likely to report like, "Hey, why did you spend $30 on a gift card?" Than like, "Hey, where did those like six billion dollars go?" So like in that case, "This is probably a little easier for them to fly under the radar for the companies. But in terms of impact, if they send, you know, hundreds upon hundreds of these emails, the actors are still gonna be making a decent chunk of change at the end of the day.Emily Hacker:In this particular instance, the attackers had registered a couple hundred lookalike domains that aligned with real companies, but were just a couple of letters or digits off, or were using a different TLD, or use like a number or sort of a letter or something, something along the lines to where you can look at it and be like, "Oh, I can tell that the attacker is pretending to be this other real company, but they are actually creating their own."Emily Hacker:But what was interesting about this campaign that I found pretty silly honestly, was that normally when the attacker does that, one would expect them to impersonate the company that their domain is looking like, and they totally didn't in this case. So they registered all these domains that were lookalike domains, but then when they actually sent the emails, they were pretending to be different companies, and they would just change the display name of their email address to match whoever they were impersonating.Emily Hacker:So one of the examples in the blog. They're impersonating a guy named Steve, and Steve is a real executive at the company that they sent this email to. But the email address that they registered here was not Steve, and the domain was not for the company that Steve works at. So they got a little bit, I don't know if they like got their wires crossed, or if they just were using the same infrastructure that they were gonna use for a different attack, but these domains were registered the day before this attack. So it definitely doesn't seem like opportunistic, and which it doesn't seem like some actors were like, "Oh, hey look, free domains. We'll send some emails." Like they were brand new and just used for strange purposes.Natalia Godyla:Didn't they also fake data in the headers? Why would they be so careless about connecting the company to the language in the email body but go through the trouble of editing the headers?Emily Hacker:That's a good question. They did edit the headers in one instance that I was able to see, granted I didn't see every single email in this attack because I just don't have that kind of data. And what they did was they spoofed one of the headers, which is an in-reply-to a header, which makes it, which is the header that would let us know that it's a real reply. But I worked really closely with a lot of email teams and we were able to determine that it wasn't indeed a fake reply.Emily Hacker:My only guess, honestly, guess as to why that happened is one of two things. One, the domain thing was like a, a mess up, like if they had better intentions and the domain thing went awry. Or number two, it's possible that this is multiple attackers conducting. If one guy was responsible for the emails with the mess of domains, and a different person was responsible for the one that had the email header, like maybe the email header guy is just a little bit more savvy at whose job of crime than the first guy.Natalia Godyla:(laughs)Nic Fillingham:Yeah, I li- I like the idea of, uh, sort of ragtag grubbing. I don't mean to make them an attractive image, but, you know, a ragtag group of people here. And like, you've got a very competent person who knows how to go and sort of spoof domain headers, and you have a less competent person who is- Emily Hacker:Yeah. It's like Pinky and the Brain.Nic Fillingham:Yeah, it is Pinky and the Brain. That's fantastic. I love the idea of Pinky and the Brain trying to conduct a multi-national, uh- Emily Hacker:(laughs)Nic Fillingham:... BEC campaign as their way to try and take over the world. Can we back up a little bit? We jumped straight into this, which is totally, you know, we asked you to do that. So, but let's go back to a little bit of basics. BEC stands for business email compromise. It is distinct from, I mean, do you say CEC for consumer email compromise? Like what's the opposite side of that coin? And then can you explain what BEC is for us and why we sort of think about it distinctly?Emily Hacker:Mm-hmm (affirmative), so I don't know if there's a term for the non-business side of BEC other than just scam. At its basest form, what BEC is, is just a scam where the thread actors are just trying to trick people out of money or data. And so it doesn't involve any malware for the most part at the BEC stage of it. It doesn't involve any phishing for the most part at the BEC stage of it. Those things might exist earlier in the chain, if you will, for more sophisticated attacks. Like an attacker might use a phishing campaign to get access before conducting the BEC, or an attacker might use like a RAT on a machine to gain access to emails before the actual BEC. But the business email compromise email itself, for the most part is just a scam. And what it is, is when an attacker will pretend to be somebody at a company and ask for money data that can include, you know, like W-2's, in which case that was still kind of BEC.Emily Hacker:And when I say that they're pretending to be this company, there's a few different ways that that can happen. And so, the most, in my opinion, sophisticated version of this, but honestly the term sophisticated might be loaded and arguable there, is when the attacker actually uses a real account. So business email compromise, the term might imply that sometimes you're actually compromising an email. And those are the ones where I think are what people are thinking of when they're thinking of these million billion dollar losses, where the attacker gains access to an email account and basically replies as the real individual.Emily Hacker:Let's say that there was an email thread going on between accounts payable and a vendor, and the attacker has compromised the, the vendor's email account, well, in the course of the conversation, they can reply to the email and say, "Hey, we just set up a new bank account. Can you change the information and actually wire the million dollars for this particular project to this bank account instead?" And if the recipient of that email is not critical of that request, they might actually do that, and then the money is in the attacker's hands. And it's difficult to be critical of that request because it'll sometimes literally just be a reply to an ongoing email thread with someone you've probably been doing business with for a while, and nothing about that might stand out as strange, other than them changing the account. It can be possible, but difficult to get it back in those cases. But those are definitely the ones that are, I would say, the most tricky to spot.Emily Hacker:More common, I would say, what we see is the attacker is not actually compromising an email, not necessarily gaining access to it, but using some means of pretending or spoofing or impersonating an email account that they don't actually have access to. And that might include registering lookalike domains as in the case that we talked about in this blog. And that can be typosquatted domains or just lookalike domains, where, for example, I always use this example, even though I doubt this domain is available, but instead of doing microsoft.com, they might do Microsoft with a zero, or like Microsoft using R-N-I-C-R-O-S-O-F-t.com. So it looks like an M at first glance, but it's actually not. Or they might do something like microsoft-com.org or something, which that obviously would not be available, but you get the point. Where they're just getting these domains that kind of look like the right one so that somebody, at first glance, will just look up and be like, "Oh yeah, that looks like Microsoft. This is the right person."Emily Hacker:They might also, more commonly, just register emails using free email services and either do one of two things, make the email specific to the person they're targeting. So let's say that an attacker was pretending to be me. They might register emilyhacker@gmail.com, or more recently and maybe a little bit more targeted, they might register like emily.hacker.microsoft.com@gmail.com, and then they'll send an email as me. And then on the, I would say less sophisticated into the spectrum, is when they are just creating an email address that's like bob@gmail.com. And then they'll use that email address for like tons of different targets, like different victims. And they'll either just change the display name to match someone at the company that they're targeting, or they might just change it to be like executive or like CEO or something, which like the least believable of the bunch in my opinion is when they're just reusing the free emails.Emily Hacker:So that's kind of the different ways that they can impersonate or pretend to be these companies, but I see all of those being used in various ways. But for sure the most common is the free email service. And I mean, it makes sense, because if you're gonna register a domain name that cost money and it takes time and takes skill, same with compromising an email account, but it's quick and easy just to register a free email account. So, yeah.Nic Fillingham:So just to sort of summarize here. So business email compromise i-is obviously very complex. There's lots of facets to it.Emily Hacker:Mm-hmm (affirmative).Nic Fillingham:It sounds like, first of all, it's targeted at businesses as opposed to targeted individuals. In targeted individuals is just more simple scams. We can talk about those, but business email compromise, targeted at businesses- Emily Hacker:Mm-hmm (affirmative).Nic Fillingham:... and the end goal is probably to get some form of compromise, and which could be in different ways, but some sort of compromise of a communication channel or a communication thread with that business to ultimately get some money out of them?Emily Hacker:Yep, so it's a social engineering scheme to get whatever their end goals are, usually money. Yeah.Nic Fillingham:Got it. Like if I buy a gift card for a friend or a family for their birthday, and I give that to them, the wording on the bottom says pretty clearly, like not redeemable for cash. Like it's- Emily Hacker:So- Nic Fillingham:... so what's the loophole they're taking advantage of here?Emily Hacker:Criminals kind of crime. Apparently- Natalia Godyla:(laughs)Emily Hacker:... there are sites, you know, on the internet specifically for cashing out gift cards for cryptocurrency.Nic Fillingham:Hmm.Emily Hacker:And so they get these gift cards specifically so that they can cash them out for cryptocurrency, which then is a lot, obviously, less traceable as opposed to just cash. So that is the appeal of gift cards, easier to switch for, I guess, cryptocurrency in a much less traceable manner for the criminals in this regard. And there are probably, you know, you can sell them. Also, you can sell someone a gift card and be like, "Hey, I got a $50 iTunes gift card. Give me $50 and you got an iTunes gift card." I don't know if iTunes is even still a thing. But like that is another means of, it's just, I think a way of like, especially the cryptocurrency one, it's just a way of distancing themselves one step from the actual payout that they end up with.Nic Fillingham:Yeah, I mean, it's clearly a, a laundering tactic.Emily Hacker:Mm-hmm (affirmative).Nic Fillingham:It's just, I'm trying to think of like, someone's eventually trying to get cash out of this gift card-Emily Hacker:Mm-hmm (affirmative).Nic Fillingham:... and instead of going into Target with 10,000 gift cards, and spending them all, and then turning right back around and going to the returns desk and saying like, "I need to return these $10,000 that I just bought."Emily Hacker:Mm-hmm (affirmative).Nic Fillingham:I guess I'm just puzzled as to how, at scale- Emily Hacker:Yeah.Nic Fillingham:... and I guess that's the key word here, at scale, at a criminal scale, how are they, what's the actual return? Are they getting, are they getting 50 cents on the dollar? Are they getting five cents on the dollar? Are they getting 95 cents on the dollar? Um, it sounds like, maybe I don't know how to ask that question, but I think it's a fascinating one, I'd love to learn more about.Emily Hacker:It is a good question. I would imagine that the, the sites where they exchange them for cryptocurrency are set up in a way where rather than one person ending up with all the gift cards to where that you have an issue, like what you're talking about with like, "Hey, uh, can I casually return these six million gift cards?" Like rather than that, they're, it's more distributed. But there probably is a surcharge in terms of they're not getting a one-to-one, but it's- Nic Fillingham:Yeah.Emily Hacker:... I would not imagine that it's very low. Or like I would not imagine that they're getting five cents on the dollar, I would imagine it's higher than that.Nic Fillingham:Got it.Emily Hacker:But I don't know. So, that's a good question.Natalia Godyla:And we're talking about leveraging this cryptocurrency model to cash them out. So has there been an increase in these scams because they now have this ability to cash them out for crypto? Like, was that a driver?Emily Hacker:I'm not sure. I don't know how long the crypto cash out method has been available.Natalia Godyla:Mm-hmm (affirmative).Emily Hacker:I've only recently learned about it, but that's just because I don't spend, I guess I don't spend a lot of time dealing with that end of the scam. For the most part, my job is looking at the emails themselves. So, the, learning what they're doing once they get the gift cards was relatively new to me, but I don't think it's new to the criminals. So it's hard for me to answer that question, not knowing how long the, the crypto cash out method has been available to them. But I will say that it does feel like, in the last couple of years, gift card scams have just been either increasing or coming into light more, but I think increasing.Nic Fillingham:Emily, what's new about this particular campaign that you discussed in the blog? I-it doesn't look like there's something very new in the approach here. This feels like it's a very minor tweak on techniques that have been employed for a while. Tell me what's, what's new about this campaign? (laughs)Emily Hacker:(laughs) Um, so I would agree that this is not a revolutionary campaign.Nic Fillingham:Okay.Emily Hacker:And I didn't, you know, choose to write this one into the blog necessarily because it's revolutionary, but rather because this is so pervasive that I felt like it was important for Microsoft customers to be aware that this type of scam is so, I don't know what word, now we're both struggling with words, I wanna say prolific, but suddenly the definition of that word seems like it doesn't fit in that sentence.Nic Fillingham:No, yeah, prolific, that makes sense. Emily Hacker:Okay.Nic Fillingham:Like, this is, it sounds like what you're saying is, this blog exists not because this campaign is very unique and some sort of cutting-edge new technique, it exists because it's incredibly pervasive.Emily Hacker:Yes.Nic Fillingham:And lots and lots of people and lots and lots of businesses are probably going to get targeted by it. Emily Hacker:Exactly.Nic Fillingham:And we wanna make sure everyone knows about it.Emily Hacker:And the difference, yes, and the, the only real thing that I would say set this one apart from some of the other ones, was the use of the lookalike domains. Like so many of the gift cards scams that I see, so many of the gift cards scams that I see are free email accounts, Gmail, AOL, Hotmail, but this one was using the lookalike domains. And that kind of gave us a little bit more to talk about because we could look into when the domains were registered. I saw that they were registered the day, I think one to two days before the attack commenced. And that also gave us a little bit more to talk about in terms of BEC in the blog, because this kind of combined a couple of different methods of BEC, right? It has the gift cards scam, which we see just all the time, but it also had that kind of lookalike domain, which could help us talk about that angle of BEC.Emily Hacker:But I had been, Microsoft is, is definitely starting to focus in on BEC, I don't know, starting to focus in, but increasing our focus on BEC. And so, I think that a lot of the stuff that happens in BEC isn't new. Because it's so successful, there's really not much in the way of reason for the attackers to shift so dramatically their tactics. I mean, even with the more sophisticated attacks, such as the ones where they are compromising an account, those are still just like basic phishing emails, logging into an account, setting up forwarding rules, like this is the stuff that we've been talking about in BEC for a long time. But I think Microsoft is talking about these more now because we are trying to get the word out, you know, about this being such a big problem and wanting to shift the focus more to BEC so that more people are talking about it and solving it. Natalia Godyla:It seemed like there was A/B testing happening with the cybercriminals. They had occasionally a soft intro where someone would email and ask like, "Are you available?" And then when the target responded, they then tried to get money from that individual, or they just immediately asked for money.Emily Hacker:Mm-hmm (affirmative).Natalia Godyla:Why the different tactics? Were they actually attempting to be strategic to test which version worked, or was it just, like you said, different actors using different methods?Emily Hacker:I would guess it's different actors using different methods or another thing that it could be was that they don't want the emails to say the same thing every time, because then it would be really easy for someone like me to just identify them- Natalia Godyla:Mm-hmm (affirmative).Emily Hacker:... in terms of looking at mail flow for those specific keywords or whatever. If they switch them up a little bit, it makes it harder for me to find all the emails, right? Or anybody. So I think that could be part of the case in terms of just sending the exact same email every time is gonna make it really easy for me to be like, "Okay, well here's all the emails." But I think there could also be something strategic to it as well. I just saw one just yesterday actually, or what day is it, Tuesday? Yeah, so it must've been yesterday where the attacker did a real reply.Emily Hacker:So they sent the, the soft opening, as you said, where it just says, "Are you available?" And then they had sent a second one that asked that full question in terms of like, "I'm really busy, I need you to help me, can you call me or email me," or something, not call obviously, because they didn't provide a phone number. Sometimes they do, but in this case, they didn't. And they had actually responded to their own email. So the attacker replied to their own email to kind of get that second push to the victim. The victim just reported the email to Microsoft so they didn't fall for it. Good for them. But it does seem that there might be some strategy involved or desperation. I'm not sure which one.Natalia Godyla:(laughs) Fine line between the two.Emily Hacker:(laughs)Nic Fillingham:I'd want to ask question that I don't know if you can answer, because I don't wanna ask you to essentially, you know, jeopardize any operational security or sort of tradecraft here, but can you give us a little tidbit of a glimpse of your, your job, and, and how you sort of do this day-to-day? Are you going and registering new email accounts and, and intentionally putting them in dodgy places in hopes of being the recipient? Or are you just responding to emails that have been reported as phishing from customers? Are you doing other things like, again, I don't wanna jeopardize any of your operational security or, you know, the processes that you use, but how do you find these?Emily Hacker:Mm-hmm (affirmative).Nic Fillingham:And how do you then sort of go and follow the threads and uncover these campaigns?Emily Hacker:Yeah, there's a few ways, I guess that we look for these. We don't currently have any kind of like Honey accounts set up or anything like that, where we would be hoping to be targeted and find them this way. I know there are different entities within Microsoft who are, who do different things, right? So my team is not the entity that would be doing that. So my team's job is more looking at what already exists. So we're looking at stuff that customers have reported, and we're also looking at open source intelligence if anyone else has tweeted or released a blog or something about an ongoing BEC campaign, that might be something that then I can go look at our data and see if we've gotten.Emily Hacker:But the biggest way outside of those, those are the two, like I would say smaller ways. The biggest way that we find these campaigns is we do technique tracking. So we have lots of different, we call them traps basically, and they run over all mail flow, and they look for certain either keywords or there are so many different things that they run on. Obviously not just keywords, I'm just trying to be vague here. But like they run on a bunch of different things and they have different names. So if an email hits on a certain few items, that might tell us, "Hey, this one might be BEC," and then that email can be surfaced to me to look into.Emily Hacker:Unfortunately, BEC is very, is a little bit more difficult to track just by the nature of it not containing phishing links or malware attachments or anything along those lines. So it is a little bit more keyword based. And so, a lot of times it's like looking at 10,000 emails and looking for the one that is bad when they all kind of use the same keywords. And of course, we don't just get to see every legitimate email, 'cause that would be like a crazy customer privacy concern. So we only get to really see certain emails that are suspected malicious by the customer, in which case it does help us a little bit because they're already surfacing the bad ones to us.Emily Hacker:But yeah, that's how we find these, is just by looking for the ones that already seem malicious kind of and applying logic over them to see like, "Hmm, this one might be BEC or," you know, we do that, not just for BEC, but like, "Hmm, this one seems like it might be this type of phishing," or like, "Hmm, this one seems like it might be a buzz call," or whatever, you know, these types of things that will surface all these different emails to us in a way that we can then go investigate them.Nic Fillingham:So for the folks listening to this podcast, what do you want them to take away from this? What you want us to know on the SOC side, on the- Emily Hacker:Mm-hmm (affirmative).Nic Fillingham:... on the SOC side? Like, is there any additional sort of, what are some of the fundamentals and sort of basics of BEC hygiene? Is there anything else you want folks to be doing to help protect the users in their organizations?Emily Hacker:Yeah, so I would say not to just focus on monitoring what's going on in the end point, because BEC activity is not going to have a lot, if anything, that's going to appear on the end point. So making sure that you're monitoring emails and looking for not just emails that contain malicious links or attachments, but also looking for emails that might contain BEC keywords. Or even better, if there's a way for you to monitor your organization's forwarding rules, if a user suddenly sets up a, a slew of new forwarding rules from their email account, see if there's a way to turn that into a notification or an alert, I mean, to you in the SOC. And that's a really key indicator that that might be BEC, not necessarily gift cards scam, but BEC.Emily Hacker:Or see if there is a way to monitor, uh, not monitor, but like, if your organization has users reporting phishing mails, if you get one that's like, "Oh, this is just your basic low-level credential phishing," don't just toss it aside and be like, "Well, that was just one person and has really crappy voicemail phish, no one's going to actually fall for that." Actually, look and see how many people got the email. See if anybody clicked, force password resets on the people that clicked, or if you can't tell who clicked on everybody, because it really only takes one person to have clicked on that email and you not reset their password, and now the attackers have access to your organization's email and they can be conducting these kinds of wire transfer fraud.Emily Hacker:So like, and I know we're all overworked in this industry, and I know that it can be difficult to try and focus on everything at once. And especially, you know, if you're being told, like our focus is ransomware, we don't want to have ransomware. You're just constantly monitoring end points for suspicious activity, but it's important to try and make sure that you're not neglecting the stuff that only exists in email as well. Natalia Godyla:Those are great suggestions. And I'd be remiss not to note that some of those suggestions are available in Microsoft Defender for Office 365, like the suspicious forwarding alerts or attack simulation training for user awareness. But thank you again for joining us, Emily, and we hope to have you back on the show many more times.Emily Hacker:Yeah, thanks so much for having me again.Natalia Godyla:Well, we had a great time unlocking insights into security from research to artificial intelligence. Keep an eye out for our next episode.Nic Fillingham:And don't forget to tweet us @msftsecurity, or email us at securityunlocked@microsoft.com with topics you'd like to hear on our future episode. Until then, stay safe.Natalia Godyla:Stay secure.