Security and Relationships

May 23 started out like a quiet day, but one phone call created a two-day scramble to quell a crisis. The solution included working around an unresponsive bank, rapidly deploying technology tools, and cashing in the benefits of good working relationships. It was the stuff of a thriller novel.

It had been a couple of very tough weeks. Your special agent/tech guy (me) was at the carwash when the cell phone rang. A client reported $140,000 was missing. It had been wired out of an account that day, and they couldn’t get anyone from their bank to respond to their phone calls.

“Hmm,” the special agent/tech guy thought, “$140,000 can cover the detailing work for several fleets of Corvettes,” but reality took hold. He couldn’t wait for them to clean his car’s interior. He jumped behind the wheel and headed for his client’s office.

With $140,000 missing and nobody at the bank picking up the phone, we found the police already involved in the case. We quickly realized there would be no telephone solution to the problem, and it took us until the early evening to solve this problem. The good news is that we were able to reverse the wire transfer all on our own after trying for hours to get phone support.

Here are the facts – just the facts, ma’am.

Obviously, our client’s system was hacked. It was a complicated case because it involved the email of an employee in the finance department who had just left the company. That’s one reason why the police were involved. There was no criminal activity, but there was a lot of sloppiness.

The hackers got into the former employee’s email account and saw that one password opened up a lot of doors in the company’s financial system. They reset the account’s password, created a new account that they could use to “approve” new transactions, and used it for the $140,000 wire transfer.

However, they made one mistake: They forgot to turn off forwarding in the account they hacked, and that’s how they were discovered. Our client had done the right thing by having the ex-employee’s email forwarded, and they created a special rule so that all the emails went into a separate folder. Several people monitored that folder periodically, and as soon as one of them saw the emails, the alarm went off. In most cases, this kind of wire fraud isn’t discovered for days, and the money is lost.

Our client was able to freeze their account immediately online, but they still had outstanding checks on that account. That matter also needed immediate attention.

So, the special agent/tech guy took advantage of a good relationship with another bank, which is also a client, first thing the next morning. He jumped in his car. The interior was still dirty. He drove to the bank, where he was able to help his other client open a new account and get checks they could print immediately to replace those outstanding in the frozen account.

But his work wasn’t done. The victimized client had resisted instituting multifactor authentication for all financial transactions. So, the rest of the day was spent instituting a two-factor authentication system and training everyone in its use.

We like to think the goodwill we’d built up with both clients helped one client get out of a hole and another gain a new customer. But it all could have been prevented with better passwords and an authentication system. Don’t wait for a disaster to strike. Call us – 973-433-6676 – or email us to discuss your online security and the steps we can take to improve it.

The 2FA Police

Microsoft is enforcing requirements for 2FA (two-factor authentication) for many of its apps. The good news is that it protects your data better. The bad news is that you must use authenticator codes and messages. It’s time to ensure everyone in your office (or family for home users) is up to speed on using authenticators and other 2FA measures.

Microsoft’s Authenticator App gets downloaded onto your iPhone or Android phone and helps to verify it’s you when you log in to an online account using two-step or two-factor verification. It uses a second step, such as a code sent to your phone, to make it harder for others to break into your account. Two-step verification helps you use your accounts more securely because passwords can be forgotten, stolen, or compromised.

One common way to use the Authenticator app is through 2FA, where one of the factors is your password. After you sign in using your username and password, you can either approve a notification or enter a provided verification code. Options include:

  • Signing in by phone with a version of two-factor verification that lets you sign in without requiring a password. It uses your username and your mobile device with your fingerprint, face, or PIN.
  • Using a code generator for any other accounts that support authenticator apps.
  • Using it with any account that uses 2FA and supports the time-based one-time password (TOTP) standards.

Any organization can require using the Authenticator app to sign in and access its data and documents. Even if your username appears in the app, the account isn’t set up as a verification method until you complete the registration. The entire process can be done more efficiently with a mobile phone that can scan a QR code on a computer screen.

Remember that most authenticator apps still require a password in commercial use, and every user must know their password or risk being locked out. The consequences can be time-consuming and costly – if not fatal. Everyone should write their passwords on a piece of paper and store them in a safe place.

We had a case with a client who used a customized database that was never upgraded for 20 years. A former IT company did the last work on it. Nobody had the password to get into the account housing the database. They suggested calling the programmer, but the programmer had died. Nobody admitted to changing the password at any time. We spent a few hours trying to access the database to no avail. Finally, we called the former IT company, and they had a password for one file.

That was the password that worked, and we were able to perform the necessary work. But we can’t stop thinking about all the time – and money – that was wasted because nobody had a password.

In today’s world of hacking and cybercrime, it will become more and more challenging to try multiple passwords without severe consequences. It’s up to you to ensure that you and key employees have all your necessary passwords and 2FA to protect your data – and to insist that your employees have 2FA set up for their corporate login info.

We can help you ensure you have all the correct authentication and management systems. Call us – 973-433-6676 – or email us to discuss your needs and develop an action plan.

Is LastPass’s Hack the Last Word?

In a word: hardly. LastPass getting breached seems like the equivalent of Fort Knox getting breached; it’s not supposed to happen. So far as we know, none of the gold, which represented the monetary value of US currency in circulation, was ever taken from Fort Knox. But password manager LastPass was breached, and data was taken.

The implications are stunning, to say the least. We’ve put our trust in password manager programs, and LastPass compounded the problem for its customers by being breached twice and not being as quick or transparent about it. From all reports, the latest breach occurred in late August when access was gained to parts of their developer environment through an individual compromised developer account. They said the intruder took some source code and proprietary technical information. In mid-September, they reported that the intruder was in their system for four days, but the incident did not involve any access to customer data or encrypted password vaults.

Just after Thanksgiving, LastPass reported that the knowledge gained from the first breach was used to breach the system again, and that the hacker gained access to certain elements of customer information. Just before Christmas, the hacker got customer account information such as names, billing addresses, email addresses, telephone numbers, and their encrypted vaults. They hastened to add the data was strongly encrypted and required decryption of the customer’s master password.

The bad news is that this was a series of breaches; not good. Over time, the attacker was able to target a separate employee to gain two critical pieces of information: access keys to a cloud environment and decryption keys for that cloud environment. This means the attacker was able to easily download copies of those vaults and the other customer data there.

Although each customer’s vault was encrypted, the vaults contained unencrypted information. The attacker likely downloaded all the available information from each and could the unencrypted info to try to crack the master password by brute force.

LastPass doesn’t have the best track record in the industry, and what happened there can happen to any password manager. But you can take steps to minimize the impact if it happens to your password manager.

We highly recommend that you activate two-factor authentication (2FA) for every web-based account you have. Some will give you the option to verify a specific computer, phone or tablet one time, while others will require verification every time you log in. Most systems work through text messages to cell phones because you’re most likely to have your phone with you. Some 2FA systems will send you an email with a code to enter or a link to click. They’re good if your email is secure.

So, make sure you secure your email accounts. Require 2FA – to your cell phone if possible – to access your email account from the web. List a secondary email address in case there’s a problem. It can be through another email provider, or it can be a person you trust.

2FA works with password managers, and it’s effective if the PW manager hasn’t been hacked. If the data is unencrypted, it could have been stolen (another good reason to set up 2FA for a text).

You can manage your password manager and enhance security by keeping it updated. You can change your master password at any time, and you can use the manager to change your passwords at any time. The programs offer random generation of passwords, and you can take advantage of that. It takes away any excuse you have for using the same password for multiple websites.

You can back up your password manager by downloading your website login info from the manager. Most people download the info to a .csv or .xls spreadsheet file. It’s a good idea to do this periodically and store a hard copy in a safe place. If you decide to change password managers, you can export your file to a new password manager. We suggest you create a new master password if you do that and then create new passwords for each account.

There are ways to download your password list with encryption, but they can be a little complicated. Call us – 973-433-6676 – or email us to set up a time for us to walk you through it. You can also contact us with any questions you have about password managers – selecting one or installing one.

Email Demands Two-Way Vigilance

Hackers are not always the brightest bulbs in the box. Their success depends more on you making mistakes than almost anything else. When they hack or spoof an email account, you’re dependent on your friends and associates to tip you off. Then, it’s up to you to resolve the problem as soon as you can. Here’s how our client handled their issue and how we handled one of our own.

Our client’s hack of their Comcast email started off simply enough. Hackers got their address book and sent an email to everyone asking if they used Amazon. That’s a normal start to a scam. Our client and spouse got tipped off when both got text messages from recipients – and the spouse got emails – suggesting that one of their email accounts might have been hacked.

Both of them were out of the house when they got word of the problem, but one of them was able to get home and start looking into the problem. The first thing they did was to change the password and the secondary email address used for notifications from Comcast. They also set up two-factor authentication (2FA) to the client’s cell phone number and changed the password again.

Those were two good steps to take, but there were two more surprises. First, they discovered that the hackers had set up an email address that they tied to the Comcast account. Our clients checked through all their accounts but didn’t see an email address that corresponded to the one set up by the hackers. They thought they were in the clear, but they hadn’t found the second surprise.

Later in the day, the client noticed they hadn’t been getting any emails on their Comcast account. They could send messages. Suspecting that a forwarding rule had been inserted by the hackers, they contacted Xfinity by telephone and after a few branches on the phone tree, they were able to speak to a security specialist. After an exhaustive security check, the specialist was able to remove the forwarding rule, securing the account.

They were fortunate that no emails involved responding to financial or healthcare websites. Had that happened, they could have been compromised. They did the right thing by changing the password, setting up 2FA, resetting the secondary email address and changing the password a second time. Those are things you can do immediately. They should have contacted Xfinity immediately after to see about any other changes and had them resolved right then and there.

Those are steps you can take if your email is hacked.

Our hack involved our QuickBooks address, and it’s typical of the problems small businesses can face. I noticed an email that looked like junk mail, so I didn’t pay much attention to it. But soon after, I took a closer look because the email address was [email protected]. It still didn’t seem that urgent, but it began to bother me.

So, I called QuickBooks (remember, we always urge people to pick up the phone if a problem seems bad enough) and explained what was going on. We have a merchant account. They said that hackers had set up an invalid account using the bogus email and an invalid tax ID number. It was a bare, basic account, but it was enough to raise a white-risk flag at QuickBooks. Our phone call put it on their radar screen.

This story should be on your radar screen, too. As small businesses – and even as consumers – we constantly get emails that we’ve been “approved” for something or other. We also get a lot of fake invoices that look like they’re coming from companies we do business with.

We need to be on guard against these. It’s easy to impersonate a business, and if the recipient isn’t careful, they might make a real payment to a real bank account that’s not tied to the legitimate vendor account they thought it was. As a business owner, we likely have no responsibilities or liabilities to the company or person that paid the fake invoice. HOWEVER, this is not a discussion I want to have with anybody.

At the end of the day, small businesses remain a huge target for hackers and cyber thieves. We need to depend on our own vigilance and the help of people we do business with to monitor anything that seems out of the ordinary and let someone know. I want you to let me know you got something odd from me – just like our client was tipped off about the bogus email. Any of these breaches can have serious consequences.

If you’ve been hacked in some way, take immediate steps to secure your accounts, including multiple password changes built around other security measures that you can take. Then, you can call us – 973-433-6676 – to let us know about the breach. We can help you investigate if any further damage was done and help mitigate the consequences as best as possible. If you have security questions, you can call or email us to discuss them.

Living with 2FA

Two-factor authentication has become a necessary part of life for access to critical websites, such as those that deal with your banking and your health. For those of us who are getting older or have parents who are getting older, access to some of those websites could be a life-and-death matter in extreme cases. You may have access to an account or have given someone access to it. But the 2FA is likely still tied to a cell phone, presenting an authentication issue. Workarounds are not easy.

Increasingly, 2FA is a requirement, not an option. If you opt not to use 2FA, you run a security risk. If 2FA is required, many people choose to have a code sent to their cell phone as a text message. The idea behind that is that the user has the device in their hand and is the only one who can see the code. It’s a safe choice. (OK, there’s a chance that someone might be able to intercept the text or that you might be in a kidnap situation. For most of us, the probability is practically nil.)

Fortunately, a cell phone number is not the only method of authentication. Most sites that require 2FA ask you to have an email address on file, too, and you can have that code sent there. If you or someone acting on your behalf has access to that email account, it’s easy to get the code and complete the authentication step.

Those are the easy situations.

Unfortunately, we’re asked to help reactivating and accessing old email addresses and old financial websites. The reasons are varied; helping an elderly parent or spouse or family member is most common. Sometimes, you need access because someone has died. Sometimes, you need access to close up accounts that you forgot about and are no longer using. We find the biggest culprits there are when you open an account somewhere to take advantage of free stuff. You use it for a single transaction and forget about it. Then, all of a sudden, you run into trouble because somebody got into your long-forgotten account. Remember, there’s no such thing as free stuff.

The obvious step to prevent all such problems, of course, is to write down all the login info for all accounts you need for yourself or someone else – even those godforsaken freebies. Equally obvious, close all online accounts or email addresses that you no longer use.

If we need to gain access, it’s a tedious and risky process. We can try to follow all sorts of breadcrumbs from old texts and emails (“to” and “from” addresses, subject lines, dates) to see if there are clues to an access point. We need to be careful at every step along the way because just like in a computer game, one mistake can knock you out. Microsoft, for example, has an automated system that monitors access tries. When the system sees something it doesn’t like, it rejects any future tries. There’s no human intervention involved.

Sometimes, we can help our clients reset a Gmail password; sometimes we can’t.

The key to all this electronic poking around is that you need to know where the pitfalls are in each site’s process for resetting a password. Making the wrong move can strengthen the lockdown. You need to know when you’re jeopardizing the entire reset process.

If you need to deal with resetting login credentials, give us a call – 973-433-6676 – or email us to discuss the problem, process and risks. We want you to be able to make an informed decision on how we can help.

Understanding MFA and Other Security Measures

We recently added a new home-user client through the Nextdoor website, and during our initial conversations, we covered a lot of security issues. The new client, an elderly gentleman, had a really good handle on his online security. There’s a lot for us to unpack as individuals and as those who have elderly parents – though some of this can apply to everyone.

First, let’s look at passwords. While this discussion is inspired by our new client, our conversation can apply to anyone because we never know when someone will not be able to access vital personal information either stored on a computer or device or in the cloud.

When we take on a new elderly client, we spend a lot of time talking about online security, including passwords, password managers and MFA. We were heartened to learn our new client knew all about using his passwords properly. He seemed to understand the system better than many of our younger clients.

When he asked about using a password manager, a subject he brought up, we advised against it. While password managers can greatly enhance online security and can be extremely convenient (think about accessing a website from your mobile phone when you’re in an urgent situation), everyone needs to know the law of unintended consequences. Every password manager has an encryption key, and if you don’t have the master password with that encryption key, you won’t get in. That includes you as the account owner and anyone who might need to get into a website.

We told him it would be preferable to write all his passwords in a book. It doesn’t need to be locked in a safe, but it should be kept in a secure place – and at least one other trusted person should know where it is. This is critically important for the elderly or anyone else who may need someone to manage their affairs because of some impairment or death.

Second, let’s look at forms of security generally known as two-factor authorization (2FA) or multi-factor authorization (MFA).

We discussed using MFA for his online banking and financial activity, and he said: “That is so easy, everyone should be doing it.”

I agree wholeheartedly. It’s not that complicated to use it once you set it up. In most cases, you can link the authorization to a specific device or devices, such as a computer, tablet or phone. When you do that, you can sign into a website account from the authorized device(s) without going through the authorization every time – or you can set it up to require authorization every time. It becomes difficult if somebody is trying to sign into your account from another device, but of course, this is what the process is designed to do.

The way most MFA processes work is that when you sign in from a device, a code is sent by text message to a phone or to an email address. Once you receive the code, you enter it on a designated page associated with the website. The complication will come if someone is truly signing in on your behalf from an “unknown” device. That person will need access to the authorization message.

Another security measure that works for iOS devices is Apple’s iCloud Keychain. Functioning like a password manager to some extent, it allows you to use your device access code to activate a complex password to enter a secure website.

We can help you understand all the benefits and pitfalls of using MFA. The big problems, obviously, are to make sure you don’t lock yourself out of your account and know what do to if your phone is not working. Call us – 973-433-6676 – or email us to get comprehensive information about MFA and password managers and to configure your systems to work best for your needs.