Recently, it feels like the Internet is filled with stories of cyber-breaches and security breakdowns. As the world is more interconnected than ever, these stories are becoming all too familiar. In fact, there is a malicious web-based hacking event every 39 seconds, and 43% of them target small businesses.
While a breach can occur in any area of a business, a corporate finance department is often uniquely positioned, with touch-points extending further outside the company than other groups. With touch-points up and down the supply chain, the number of potential attack vectors increases, and with cross-functional access, the impact of successful attacks grows exponentially.
Fortunately, there are several small steps any department can take to beef up its policies and awareness to help prevent it from becoming the subject of the next news article. Many organizations overlook the value of programmatic, policy, and procedural controls to manage cybersecurity risks as they purchase the latest, expensive cybersecurity widget. Forward-looking organizations make cybersecurity an integral part of their overall operational resiliency with CISA’s CRR or SEI’s CERT-RMM.
Here are some specific examples where small changes can improve a finance department’s security posture.
Create a Disbursement Process Policy – and Stick to It!
Most of us know that good internal controls are the backbone of preventing fraud within an organization. But what if those controls are circumvented at an appropriate level with the relevant authority? As the pace of business increases, so does the urgency to transact that business and the necessity of off-cycle disbursements. Threat actors know this and take advantage of it. The most popular attack is spear-phishing, often referred to as Business Email Compromise (BEC), where an email is sent by an attacker to a specific person, usually someone with enough authority to transfer money without additional oversight. In many cases, these emails will appear to come from someone high up in a company: an owner, board member, C-Suite, or VP.
It should be the policy of every finance department to individually verify all off-cycle disbursements with a separate email or message to ensure that the request is valid. But usually awareness of simple clues will tell you that the request isn’t valid. For example:
- The sender’s email address doesn’t match the person’s actual email address.
- There are abnormal links within the email message.
- The language doesn’t match the person.
Remember, human intelligence and critical thinking are the best defense against spear-phishing attacks. Making sure you have a good relationship with those that can authorize payments will greatly reduce the likelihood of a successful attack.
Manage Your External Credentials
Depending on the size of your department, you may be more or less able to effectively segregate duties. In most small and medium-sized businesses, the finance department wears multiple hats: accounting, FP&A, tax, treasury, etc. In these cases, there exists an increased need for cross-training. With cross-training and role backups comes the need for passwords to be shared among multiple people.
Your passwords are not always an entry point for your systems,
but weak passwords can jeopardize the information and accounts
That in itself brings inherent dangers. How do you securely share passwords? How do passwords get updated? Many may default to using an Excel spreadsheet or Google doc to keep a list of websites and passwords. While these may be efficient, they are not secure. So what should you do?
- Implement a password management service, such as SecretServer or LastPass. While there is an associated cost, these services allow groups to share passwords in an encrypted and secure environment often with an audit trail.
- Use secure password generators. These services can help you input the password requirements of a website and create the strongest password possible.
- Follow good password hygiene by updating passwords regularly, using random characters, and making them as long as possible. See NIST SP 800-63B Appendix A for additional details.
- Make use of Multi-Factor Authentication (MFA), when possible.
- Don’t reuse passwords. It’s just as convenient for an attacker as it is for your team.
Your passwords are not always an entry point for your systems, but weak passwords can jeopardize the information and accounts stored on third-party systems, like tax agencies or customer portals.
Social Engineering is Real
It is becoming more and more common for threat actors to gain access through means other than technical infiltration. A common way is to get an employee to voluntarily give up information through a pretext. I have personally received phone calls supposedly from our bank asking me to verify my password to them. Remember, banks or other agencies will never ask for sensitive information over the phone. If you ever have doubts as to the authenticity of a request, you can always hang up and call back using verified and published phone numbers. If the request is illegitimate, the caller will do all they can to keep you on the line.
Over 95% of attacks that succeed do so because of human error. It is human nature to want to satisfy the request on the other end of the line, but don’t be afraid to make sure you’re protected.
The Cloud is Safe, Right?
Anyone else remember the days of on-prem hosted accounting software that was clunky and had to be updated every year? Those days are long gone thanks to the proliferation of cloud-based, whole-hosted ERP solutions. And it doesn’t stop there: financial analytics suites, CRMs, and document sharing all have industry leaders that are cloud-only.
Have you asked yourself how safe that data is? Sure, you’ve got high-level password requirements in your environment, but what about your service provider? It’s safe, right?
Is it? Ask yourself how you know. What risks lurk undiscovered in your supply chain?
Technology companies are one of the top three industries to experience an information breach, mainly because they carry a vast amount of very distinct and personally-identifying data. Client names, addresses, and emails are all stored in the cloud and could be prime targets for a cybercriminal. One needs to look no further than the Cloud Hopper campaign to see the risk of using Managed Service Providers (MSPs).
When you are assessing new software, ask for third-party security reports. Almost all storage-based companies can provide you with SOC 2 reports that discuss their practices and policies surrounding IT and IS environments. Have someone who knows how to interpret the contents read those reports and comments so you can make an informed risk assessment.
If you want to feel extra secure, consider having an assessment performed.
If you want to feel extra secure, consider having an assessment performed. At IOActive, we perform security assessments of the key products and providers we utilize in our operations as part of our internal Supply Chain Integrity program. Not every organization has the skills or resources to perform such assessments, but several great third-party assessor organizations exist to help. If specific vulnerabilities are identified, most providers are happy to know about them and, depending on the severity, will work to remediate those vulnerabilities quickly before you deploy the new service.
Protect What You’ve Built
One of the most popular new products in insurance is a cyber insurance policy. Once upon a time, these policies were designed to help the few companies operating within the cyber landscape. But now, everyone operates in that arena. The insurance industry has responded and offers tailor-made solutions to protect companies from multiple angles in case of a breach, including investigation, forensics, and damages. This is a must-have policy in the new connected world of the 21st century and a core part of firm-level risk management.
This is not a big business policy, either. Remember that 43% of attacks target small businesses. Legal damages resulting from a breach at a small business pose an existential threat to that organization. Talk to your agent about adding a cyber incident policy to help mitigate some of the risks associated with a breach.
The world is changing rapidly and our workspaces are changing just as fast. As remote work becomes the new normal for many companies, our digital footprints are expanding and cybersecurity is the responsibility of everyone in the company, not just the IT or IS departments. Do your part and think about how you could be impacted or used to impact others.
Joshua Beauregard is a Certified Public Accountant and the Senior Director of Finance and Administration at IOActive, the world leader in research-fueled security services.