FTP/WatchDog Business Justification Most companies have insufficient knowledge about the FTP activity taking place on their network, what data is moving in and out of the enterprise and who (or what) is initiating the FTP activity. Knowing where FTP servers are and what they are being used for enables an organization to address concerns and exposures to sensitive data. Management Summary FTP creates risk for companies and FTP/WatchDog provides the tools and information necessary to assess and eliminate the risk wherever possible. FTP is here to stay and aggressive FTP auditing and management is required to mitigate risk. FTP/WatchDog makes it possible to properly manage the FTP risk with a minimum of employee time and effort. One inadvertent breach of sensitive company or customer data through FTP (average cost of $6.65 million) would cost a company hundreds of times more than it would cost to avoid the breach through proper FTP management with FTP/WatchDog. FTP Creates Risk Improperly managed FTP servers create unnecessary risk and expose companies to inadvertent breach of sensitive company and customer data. Most FTP transactions transmit logon sequences (user ID and password) and data in “clear text”, creating a risk of exposure. In addition, FTP servers offer only rudimentary protection over data access to the users that are authorized to access the servers. Without regular auditing and proper management of the FTP servers and FTP server users, sensitive data can be left unprotected, a risk companies shouldn’t tolerate. Much FTP activity is “ad-hoc” in nature, requiring diligence on the part of IT management to ensure that unauthorized FTP activity isn’t occurring. In spite of all of this, the reality is that FTP is not going to go away anytime soon. It is too entrenched in day-to-day business processes. The only way to effectively mitigate the risk FTP creates and avoid costly and embarrassing breaches is to perform regular audits and proactively manage FTP availability and usage. Cost of a Breach The Ponemon Institute, a well-respected privacy consultancy interviewed companies that announced breaches over the past few years and published their findings in a recent study. According to the study which examined 43 organizations across 17 different industry sectors, data breach incidents cost U.S. companies $202 per compromised customer record in 2008, compared to $197 in 2007. Within that number, the largest cost increase in 2008 concerned lost business created by turnover of customers. Since the study’s inception in 2005, this cost component has grown by more than $64 on a per victim basis, nearly a 40% increase. Some highlights of the study are: • The average total per-incident costs in 2008 were $6.65 million, compared to an average perincident cost of $6.3 million in 2007. ©Copyright 2009, Software Assist Corporation. All Rights Reserved 1 www.softwareassist.net (408) 973-8374 FTP/WatchDog Business Justification • Healthcare, insurance and financial services companies experienced the highest customer loss rate which reflects the sensitivity of the data collected and the customer expectation that information will be protected. • More than 88% of all cases in this year’s study involved insider negligence. FTP/WatchDog Provides Protection and Visibility FTP/WatchDog provides protection for companies in a number of ways. FTP/WatchDog users can: Block Unauthorized Access FTP/WatchDog-Z can block unauthorized access to the z/OS FTP servers and the mainframe data they make accessible. This is particularly important for Internet-facing z/OS FTP servers which are subject to attack from the outside. Block Unauthorized FTP Usage FTP/WatchDog-Z can block unauthorized usage of z/OS FTP servers by internal employees and outside partners that have legitimate access to the server. Simple SAF rules can be written to control precisely what is allowed and what is not. Eliminate Unauthorized FTP Servers Customers can locate and shut down rogue FTP servers (employees set them up without permission) and ensure that authorized FTP servers are properly configured. Enhance Automation Efforts FTP/WatchDog can generate alerts for FTP failures and abnormal FTP activity, triggering manual and/or automatic intervention to resolve issues early. Perform Comprehensive Audits in Minutes IT auditors require that regular, comprehensive FTP audits be performed on FTP usage to ensure that unauthorized usage isn’t taking place. FTP/WatchDog provides the information necessary to audit how the FTP servers are being used, who is using them and what data is traveling in and out of the organization in just a few minutes. Customer Uses for FTP/WatchDog FTP/WatchDog customers have the information necessary to identify and correct FTP issues in their company. A few examples are shown below: Customer closes IE exposure to FTP Server's root folder A large direct mail fulfillment provider discovered recently that users who connected to their z/OS FTP server using Internet Explorer (version 7 and newer) were shown the contents of the z/OS ©Copyright 2009, Software Assist Corporation. All Rights Reserved 2 www.softwareassist.net (408) 973-8374 FTP/WatchDog Business Justification UNIX root folder after successful logon. This is because IE7, after logging on, changes the directory to the root folder. FTP/WatchDog provided the information to diagnose the situation and one simple FTP/WatchDog SAF rule was all that was needed to close this exposure. Insurance Company Plagued by FTP Hackers A large US insurance company has discovered that their Internet-facing FTP servers are regular targets for FTP hackers. Recently, a single IP address somewhere in the Atlanta area attempted to log in 16,500 times in a 10 hour period. FTP/WatchDog-D provided them with the information they needed to close off access to this (and many other) IP addresses and also provided the basis for notification to the hackers ISP. FTP/WatchDog-Z User Solves FTP Performance Issue An FTP/WatchDog-Z customer provider recently resolved an FTP performance problem with the help of FTP/WatchDog-Z's historical analysis capabilities. The customer began noticing long delays in FTPs to a printer on the network. Since printing is this company’s primary business focus, the delay was impacting their core business. A FTP/WatchDog-Z report showed transmissions to the printer in question over the past 6 months and confirmed that a definite increase in transmission times had been occurring during this time period. Having identified the problem as a FTP transmission issue, the team then could focus on network issues and eventually discovered a problem with an OSA card. They corrected the problem and the throughput of the printer returned to normal. FTP/WatchDog-Z User Blocks Hackers A large direct mail fulfillment provider has detected and locked out a number of "bots" that have tried to break into their z/OS (mainframe) FTP servers. FTP/WatchDog-Z reports have unveiled a number of dictionary attack attempts on the company's Internet-facing z/OS FTP servers. The customer added simple RACF rules to block connection requests from the IP address of the bots, thereby eliminating any threat of either accidental break-in or denial-of-service attempts. A search of "FTP Hack" in YouTube reveals a number of detailed videos for mounting attacks on FTP servers, both manually and using free tools for automating the attack. Companies with Internet-facing FTP servers are subject to attack from the outside and need to protect themselves. FTP/WatchDog-Z makes it easy to block attacks from specific or generic IP addresses and/or IP address ranges. Rogue FTP Servers Closed with FTP/WatchDog The Business Protection group in a US health insurer recently completed an audit of the FTP servers running on their network. Their audit uncovered a number of rogue FTP servers that were set up without IT approval. It also identified many FTP servers that allowed anonymous access which was against company policy. ©Copyright 2009, Software Assist Corporation. All Rights Reserved 3 www.softwareassist.net (408) 973-8374 FTP/WatchDog Business Justification They used the information that the FTP/WatchDog-D audit provided to shut down the unauthorized FTP servers. They also used the information that the FTP/WatchDog-D audit provided to have the authorized FTP servers which supported anonymous logon reconfigured to turn this option off. The Business Protection team uses FTP/WatchDog-D's FTP Auditor tool to perform monthly network audits to ensure that no new rogue FTP servers have been set up and also to ensure that authorized FTP servers are not reconfigured to allow anonymous logon. Every month, they discover newly set up FTP servers, some even on employee's desktop computers. US Insurance Company Thwarts Hackers with FTP/WatchDog A large US health insurer recently installed FTP/WatchDog-D to monitor usage on a bank of Windows FTP servers. Within hours, they discovered a number of Eastern European and Far Eastern hackers attempting to break into their publically-accessible FTP servers. Since they do not do business in Eastern Europe or the Far East, they made the decision to close off access to their network for these hackers. They used the information provided by FTP/WatchDog-D to add access rules to their firewall, denying access to their entire network from the IP addresses where the attacks were taking place. Their FTP servers were put in place to support the business data transfer requirements of their business partners, not for use by others. ©Copyright 2009, Software Assist Corporation. All Rights Reserved 4 www.softwareassist.net (408) 973-8374