Integritum – Governance, Risk, Audit, Security, Privacy, and AI

When discussing insider threats, we refer to security risks posed by individuals within businesses with access to sensitive data and systems – intentionally or unintentionally, misusing the access and compromising security.

These threats can come from employees, third-party contractors, or even disgruntled business partners. Insider threats are particularly challenging to detect and prevent because insiders often have legitimate access to systems and data. Segregating duties within businesses is a crucial countermeasure as it forces collusion (less likely to happen if fraud requires more than one person).

I considered writing this article while reminiscing over my days at the University of Teesside (now rebranded as Teesside University). In the first semester back in 1993, our class was broken into teams of 4 or 5 and given topics to research and prepare a 30-minute presentation; ours was computer crime.

I recall concluding with the importance of hiring trustworthy staff. I referred to Gus Gorman, played by Richard Pryor in Superman III, who collected all the ½ cents from everyone’s salary after rounding down to the nearest cent. He added them to his salary and bought himself a new car. Background checks are at the top of my list of countermeasures, including verification of the following:

• Employment History – the investigation into employment history will vary from role to role. At a minimum, it must include verification of the start and end dates of employment, job titles, and responsibilities. Speaking with referees will add additional insights such as:
  • Validation of candidate claims such as achievements and awards
  • Overall attendance records
  • Reason for leaving
  • Job performance

• Academic qualifications and professional certifications – academic institutes, professional bodies, and product vendors offering degree courses, certificates or certifications allow a third party to verify a candidate’s claim, either online or offline. If the human resources onboarding process involves these checks, someone is unlikely to lie about qualifications and get away with it.

• Financial checks – it may seem unfair to deny or deprive someone of an opportunity for work because they have poor finances; the job itself would probably make their problems disappear. However, from a risk perspective, hiring someone with significant financial issues could leave them susceptible to accepting bribes or open to blackmail in cases where someone could lose their job if their employer found out about large debts.

• Disclosure and Barring Service (DBS) – these checks differ depending on the role. Most employment opportunities should only require a basic DBS check, but positions involving children involve a more comprehensive background check. Depending on the type of check, the DBS check returns details of an individual’s criminal record, including spent and unspent convictions, cautions, and any reprimands or final warnings. The DBS certificate can also include soft intelligence held by police that they consider relevant to the role.

Hiring the right people is at the top of my list, but:

• The wrong people might still slip through the net.

• The right people can still become disgruntled over time.

• People do become disillusioned or disenfranchised over time for many reasons.

We must consider a more comprehensive suite of countermeasures to mitigate insider threats. Here is a selection:

• Training and awareness – implement a security awareness programme that:
  • Includes educating employees about the risks of insider threats
  • Encourages reporting of suspicious activities

• Access control
  • Implement strong access controls.
  • Use the Principle of Least Privilege (PoLP) to limit access to systems and sensitive data based on job role and need to know/access.
  • Implement Privileged Access Management (PAM) to control and monitor privileged access.
  • Enable Multi-Factor Authentication (MFA) for access to critical systems and data.
  • Immediately revoke access to systems when employees leave the business.
  • Control physical access to sensitive areas within the business.
  • Conduct regular use access audits.

• User activity monitoring – log and monitor user activities to detect suspicious or unauthorised behaviour. Consider using behavioural analysis tools to identify unusual behaviour patterns.

• Data Loss Prevention (DLP) – deploy a DLP solution to monitor and restrict the movement of sensitive data.

• Segregation of Duties – prevent errors and fraud by ensuring that no individual controls all aspects of any critical financial or operational process. As mentioned earlier, segregating duties forces two or more persons to conspire to carry out fraudulent activities, reducing the risk of it happening.

There is no single countermeasure to provide complete protection against insider threats. An effective strategy involves a combination of:

• Technical solutions

• Employee education and reporting suspicious activity

• Proactive monitoring

• Auditing control effectiveness and strengthening countermeasures

Psychological support also plays an essential role in preventing insider threats, and any number of personal difficulties could be a trigger that leads to malicious behaviour.

Shadow IT is the use of unsanctioned systems and technology:

• Individual employees or departments typically adopt it to meet a specific need.

• It is introduced to enhance productivity or to resolve immediate problems and challenges but gradually becomes embedded into the business.

• The deployment bypasses a formal IT procurement and approval process.

• Often, it becomes part of a business-critical process without awareness within the IT or Information Security departments.

• Documentation is not always readily available, if it exists at all.

The proliferation of Shadow IT introduces many risks:

• Information security is a significant concern with Shadow IT as unapproved software and services may not adhere to the implemented security standards and leave data vulnerable to cyber-attacks.

• Shadow IT can result in non-compliance with industry regulations and legal requirements, leading to fines and reputational damage. Uncontrolled IT systems could, for example, bypass data retention policies.

• The IT and Information Security departments lose visibility and control over technology, and that can disrupt troubleshooting, security monitoring, and ongoing maintenance.

• Unsanctioned IT solutions can lead to unexpected expenses such as:
  • Needing to find specialised skills because of staff turnover
  • Replacing the system with an approved alternative
  • Integrating processes into existing solutions

• When employees use unapproved software tools, it can lead to:
  • Information stored in multiple locations without managed data backups
  • Data fragmentation or data loss, and consequently, the use of incorrect versions of data or incomplete data sets to make decisions.

Countermeasures for addressing Shadow IT include:

• Raise awareness throughout the business about the risks to ensure employees understand the importance of IT policies and procedures.

• Develop and communicate clear IT policies and guidelines for requesting new software solutions.

• Implement IT governance that involves key stakeholders in the decision-making process for IT purchases.

• Maintain an inventory and assess the IT environment to identify unauthorised software or services.

• Work closely with business units to understand their needs and make it easier for employees to use approved alternatives that fulfil their requirements.

• Encourage open communication between IT and other departments to understand their needs and challenges.

• Implement robust security measures to mitigate Shadow IT risks.

• Provide training and support for employees in using approved IT solutions to reduce the motivation to seek or develop unauthorised alternatives.

QR codes (Quick Response) are not new but have become extremely popular over the last several years. Sadly, as technologies and human behaviours evolve, so do the risks as fraudsters often adapt faster. QR code creators convert this information into binary and display it as a pattern of squares and spaces; a square barcode. QR code readers do the reverse, converting the binary into usable information. Businesses use this technique and technology for many legitimate purposes, but unfortunately, scammers can also misuse it for fraudulent activities. This article explores the risks and countermeasures.

• Phishing – Scammers can create QR codes linking to fake websites that mimic legitimate businesses in much the same way phishing emails include links to fraudulent sites. Scanning the QR code may unknowingly provide fraudsters with sensitive information. E.g., login credentials and credit card numbers.

• Malware – QR codes can link to websites with malicious content, such as viruses and spyware. Again, this is similar to what happens with phishing emails, but with a difference: you are looking at a square barcode rather than at a link. The link information will not be available until your scanner reads the code.

There are many legitimate uses of QR codes, and it would be a shame if the fraud discourages businesses from using the technology and realising its benefits. Protecting yourself from becoming a QR code fraud victim requires examining the context and situation in which you use them.

Here are some detailed examples and scenarios to illustrate how the technology is in use, how fraudsters target their unsuspecting victims, and countermeasures, which primarily involve being more mindful and taking extra precautions when scanning:

• Business cards, product packaging, and printed advertisements – linking directly to websites to allow quick access to product and service information

• Utility bill payments

• Airline tickets

• Cinema or theatre tickets, concerts, conferences, or other venues that facilitate paperless entry

• Contactless payments through Google Pay, Apple Pay, or any number of mobile banking applications

• QR codes at tourist attractions to link through to historical information or provide current map locations

• Labelling equipment, spare parts, and other warehouse items makes it practical for supplier chain, inventory management and tracking products from production to distribution – the QR code originates from labelling car parts in Japan.
  • The Universal Product Code (UPC) Barcode consists of 12 digits and often needs multiple barcodes to capture the required information.
  • QR codes provide the capacity to store significantly more data – 3 kilobytes.
  • The quantity of useable information differs depending on the data type – numeric, alphanumeric, binary, or Japanese.

• Patient wristbands to provide quick access to critical health information in hospitals

• Emergency contact information

• Restaurant menus, ordering and bill payment

General countermeasures to help protect you against QR code fraud include:

• Don’t scan QR codes from sources you don’t trust
  • Verify the origin and legitimacy of QR codes
  • Use official websites and apps from reputable companies.
  • Avoid scanning QR codes if you have never heard of the company
  • Avoid scanning QR codes from unsolicited sources

• Be suspicious of unsolicited QR codes received via email, text messages, or social media, as these are unnecessary:
  • Scammers use these channels to distribute malicious QR codes
  • Businesses would never need to send the information through a QR code; they would send readable text and links through these channels.
  • The exceptions include, for example, QR codes for train tickets, theatre tickets, airline tickets, or other events in the future where the QR code allows paperless entry but would be in response to making a purchase and not unsolicited.

• Examine QR codes closely before scanning. Look for any signs of tampering; if anything looks suspicious, don’t scan the code. Consider:
  • Anything that looks like an alteration or anything added
  • If someone has placed a new QR code sticker over an original

• Check the web address before entering personal information or making payments, and make sure it matches the business’s official website.

• Keep operating system and application software up to date as developers frequently release new updates to address security vulnerabilities.

• Install reputable antivirus or anti-malware software to help detect and prevent malicious software.

The above list is not exhaustive, and it is necessary to change your mindset when using this kind of technology and develop a healthy level of suspicion. As with all types of fraudulent activity, QR code fraud is evolving; therefore, staying informed and being cautious to protect yourself and your personal information is essential.

Here are some scenarios and consequences:

• Restaurant bill payments
  • A scammer adds a QR code sticker over the original on a restaurant menu
  • The customer scans the code and visits a fake restaurant website
  • The customer pays the restaurant bill to a fraudster
  • The restaurant may challenge the customer when they get up to leave, or it may involve authorities at a later date

• Fake event tickets
  • Fraudsters use a fake website to sell tickets to a popular event and deliver the tickets with QR codes to unsuspecting victims.
  • The ticket website and the tickets look convincing and official
  • The customer is unaware of any problems until they are unable to gain entry to the event

• Restaurant orders with upfront payments
  • A scammer covertly swaps official menus with a reproduction containing a different QR code that directs the customer to a convincing website copy.
  • The customer places an order for food and makes a payment
  • The food never arrives
  • The customer complains and provides evidence of payment
  • The restaurant apologises and delivers the food, and suffers a loss in reputation through negative word of mouth

• Parking tickets
  • A scammer places a QR code sticker over the top of the original code
  • An unsuspecting  driver scans the QR code to buy their parking ticket
  • Scanning the code directs the driver through to a fake car park payment website, enters payment details along with the car registration number
  • The site sends a text message confirming receipt of payment and the valid duration of their parking
  • The car parking attendant, traffic warden, or Automatic Number Place Recognition (ANPR) identifies the vehicle as parked without payment
  • The driver receives a fine in the post, and the process to challenge such fines is complex, time-consuming, and, in some cases, more expensive than paying the fine and moving on

• Free parking – a variation on the previous parking ticket example
  • A scammer prints posters and places them in free-parking areas
  • The parking tariff and payment instructions look official and well-presented, but they are fake
  • Drivers park up, pay for parking, and receive a confirmation email or text message
  • The scammer takes the money, and the driver is unaware of what has happened

• Train travel – 20 days for the price of 2 days – this example illustrates where passengers avoid paying their fares, which takes advantage of poor staffing levels on some routes and the absence of ticket gates at many stations. In this example, the traveller needs to commute every day. In this case, the unexpected victim is the train company.
  • For day one, the traveller purchases two return tickets using an official ticket website such as Train Line. The 1^st is an open-return ticket from Station A to Station B, and the 2^nd is an open-return ticket return from Station B to Station A
  • On day one, the traveller uses the outbound portions of both tickets for the outbound and return journey. On this day, it doesn’t matter if there is an unexpected ticket inspection as they are only valid for one day.
  • On day two and subsequent days, the traveller uses the return portion of the 2^nd ticket for their outbound journey and the return portion of the 1^st ticket for their return journey. Both return portions are valid for 30 days.
  • If a ticket inspector scans the QR code, it will no longer be valid for subsequent travel on the journey. The traveller can buy a replacement open return ticket and continue.
  • Accepting the losses is likely cheaper than increasing the workforce and ticket gates for the train operators and stations.

To conclude, you should be careful when using QR codes and exercise the same level of caution, scepticism, and suspicion as when you receive social media messages, text messages, or unsolicited emails containing website links.

ISO 14001 is a global standard that sets out Environmental Management Systems (EMS) requirements. Although this standard is relatively new (1996), discussions on environmental issues date back hundreds of years, including laws passed by parliament to reduce the smell from the River Thames in the 14^th century, responses to public anger about smoke from coal-burning factories, and the introduction and rapid expansion of public transport. In the last 50 years, we have seen significant changes in practices at all levels of society and increased public awareness of the damages and consequences of our collective actions.

• Rising public concern about environmental impact

• Expensive legal cases

• Negative publicity on industries

• Voluntary codes of environmental conduct

• Protest movements

• New environmental management regulations

• The strive towards Net Zero

ISO 14001 provides a framework that allows businesses to implement and continually improve their environmental practices. In addition to reducing the impact on the environment, increases in profitability through cost reduction is a significant opportunity. An excellent example is the forced transition to home working in response to the coronavirus and what became hybrid working as society didn’t revert to a pre-COVID state. Reduced or eliminated travel requirements alone benefit the environment and significantly reduce cost and time for a vast portion of the workforce. Reducing the need for office spaces has increased profitability, not to mention all the consequential cost reductions, such as electricity consumption. For ISO 14001, businesses must:

• Establish an environmental policy to outline:
  • Commitment to environmental protection
  • Compliance with relevant laws and regulations

• Communicate the environmental policy to all relevant stakeholders. Establish clear communication on all environmental matters.

• Identify and assess business activities that could significantly impact the environment, including:
  • Products manufactured and sold
  • Services developed and delivered
  • Other business activities

• Identify and understand environmental regulations, legislation, and other applicable requirements. Ensure compliance with these obligations.

• Set specific objectives based on the environmental impact assessment and legal requirements that are:
  • Measurable
  • Achievable
  • In alignment with the established environmental policy

• Develop and implement an environmental management program with specific actions, timescales, and responsibilities to achieve the defined objectives. Businesses must also ensure that they have the necessary resources and personnel with the required competence to implement the EMS effectively.

• Maintain EMS documentation, including:
  • Policies and procedures
  • Environmental performance records and metrics
  • Any other documentation to demonstrate compliance and track progress.

• Implement procedures and controls to manage environmental commitments effectively, including:
  • Reduce or prevent pollution
  • Conserve resources
  • Minimize environmental impacts
  • Reducing waste or effective recycling
  • Responding to environmental emergencies

• Monitor and measure environmental performance to assess progress toward defined objectives and identify areas for improvement. Conduct audits to evaluate the effectiveness of the EMS and compliance with legal and regulatory requirements, and take corrective actions in response to identified non-conformities

• Conduct management-level reviews of the EMS regularly to ensure it is adequate and effective to meet environmental objectives. Management commitment is essential.

Environmental management is a journey and not a destination, and businesses must demonstrate commitment to continuous improvement and movement towards preventing pollution and more efficient use of natural resources.