What is a Stolen Credit Card Worth?

Solution Providers for Retail
Guest blog by A.N. Ananth

Cybercrime and stealing credit cards has been a hot topic all year. From the Target breach to Sony, the classic motivation for cybercriminals is profit. So how much is a stolen credit card worth?

The reason it is important to know the answer to this question is that it is the central motivation behind the criminal. If you could make it more expensive for a criminal to steal a card than what the thief would gain by selling them, then the attackers would find an easier target. That is what being a hard target is all about.

This article suggests prices of $35-$45 for a stolen credit card depending upon whether it is a platinum or corporate card. It is also worth noting that the viable lifetime of a stolen card is at most one billing cycle. After this time, the rightful owner will most likely detect its loss or the bank fraud monitor will pick up irregularities and terminate the account.

Why is a credit card with a high spending limit (say $10K) worth only $35? It is because monetizing a stolen credit card is difficult and requires a lot of expensive effort on part of the criminal. That is contrary to popular press which suggest that cybercrime results in easy billions. At the Workshop on Economics of Information Security, Herley and Florencio showed in their presentation, “Sex, Lies and Cybercrime Surveys,” that widely circulated estimates of cybercrime losses are wrong by orders of magnitude.For example:

Far from being broadly-based estimates of losses across the population, the cyber-crime estimates that we have appear to be largely the answers of a handful of people extrapolated to the whole population. A single individual who claims $50,000 losses, in an N = 1000 person survey, is all it takes to generate a $10 billion loss over the popu- lation. One unverified claim of $7,500 in phishing losses translates into $1.5 billion. …Cyber-crime losses follow very concentrated distributions where a representative sample of the pop- ulation does not necessarily give an accurate estimate of the mean. They are self-reported numbers which have no robustness to any embellishment or exaggeration. They are surveys of rare phenomena where the signal is overwhelmed by the noise of misinformation. In short they produce estimates that cannot be relied upon.

That’s a rational, fact based explanation as to why the most basic of information security is unusually effective in most cases. Pundits have been screaming this from the rooftops for a long time. What are your thoughts?

Read more at Solution Provider for Retail guest blog.

Are honeypots illegal?

In computer terminology, a honeypot is a computer system set to detect, deflect, or, in some manner, counteract attempts at unauthorized use of IT systems. Generally, a honeypot appears to be part of a network, but is actually isolated and monitored, and which seems to contain information or a resource of value to attackers.

Lance Spitzner covers this topic from his (admittedly) non-legal perspective.

Is it entrapment?
Honeypots are not a form of entrapment. For some reason, many people have this misconception that if they deploy honeypots, they can be prosecuted for entrapping the bad guys. Entrapment, by definition is “a law-enforcement officer’s or government agent’s inducement of a person to commit a crime, by means of fraud or undue persuasion, in an attempt to later bring a criminal prosecution against that person.”

Does it violate privacy laws?
Privacy laws in the US may limit your right to capture data about an attacker, even when the attacker is breaking into your honeypot but the exemption under Service Provider Protection is key. What this exemption means is that security technologies can collect information on people (and attackers), as long as that technology is being used to protect or secure your environment. In other words, these technologies are now exempt from privacy restrictions. For example, an IDS sensor that is used for detection and captures network activity is doing so to detect (and thus enable organizations to respond to) unauthorized activity. Such a technology is most likely not considered a violation of privacy as the technology is being used to help protect the organization, so it falls under the exemption of Service Provider Protection. Honeypots that are used to protect an organization would fall under this exemption.

Does it expose us to liability?
Liability is not a criminal issue, but civil. Liability implies you could be sued if your honeypot is used to harm others. For example, if it is used to attack other systems or resources, the owners of those may sue. The argument being that if you had taken proper precautions to keep your systems secure, the attacker would not have been able to harm my systems, so you share the fault for any damage occurred to me during the attack. The issue of liability is one of risk. First, anytime you deploy a security technology (even one without an IP stack), that technology comes with risk. For example, there have been numerous vulnerabilities discovered in firewalls, IDS systems, and network sniffers. Honeypots are no different.

Obviously this blog entry is not legal advice and should not be construed as such.

SIEM or Log Management?

Security Information and Event Management (SIEM) is a Gartner coined term to describe solutions which monitor and help manage user and service privileges, directory services, and other system configuration changes in addition to providing log auditing, and review and incident response.

SIEM differs from Log Management, which refers to solutions which deal with large volumes of computer-generated log messages (also known as audit records, event-logs, etc.)

Log management is aimed at general system troubleshooting or incident response support. The focus is on collecting all logs for various reasons. This “input-driven” approach tries to get every possible bit of data.

This model fails with SIEM-focused solutions. Opening the floodgates, admitting any/all log data into the tool first, then considering what (if any) use is there for the data, reduces tool performance as it struggles to cope with the flood. More preferable is an “output-driven” model where data is admitted if and only if its usage is defined. This use can be defined to include alerts, dashboards, reports, behavior profiling, threat analysis, etc..

Buying a SIEM solution and using it as log management tool is a waste of money. Forcing a log management solution to act like a SIEM is folly.

4 Fundamentals of Good Security Log Monitoring

Effective security log monitoring is a very technical challenge that requires a lot of arcane knowledge and it is easy to get lost in the details. Over the years, there are 4 things that stand out to me as fundamentals when it comes to keeping the big picture and meeting the challenge: