Cyber Threats to Grain and Feed Industry - Overview and Risks

Cyber Threats to the Grain and Feed Industry National Grain and Feed Association Annual Convention 2016 March 14, 2015 Presented by: Michael Zweiback, Partner & Co-Leader, Cybersecurity & Data Protection Group Arent Fox LLP Los Angeles, CA LA / NY / SF / DC / arentfox.com

Agenda Industry Overview Types of Risks Preventative Measures Cyber Threats to the Grain and Feed Industry 2

Industry Overview Food and Agriculture industry 1 of 16 national critical infrastructures - Department of Homeland Security Critical Infrastructure Research and Development Advancement Act of 2013 (CIRDA) Bill requiring the DHS to transmit to the Congress a strategic plan for research and development efforts addressing the protection of critical infrastructure and a report on departmental use of public-private consortiums to develop technology to protect such infrastructure Farming sector is increasingly vulnerable to cyberattacks - 2015 USDA Agricultural Outlook Forum Cyber Threats to the Grain and Feed Industry 3

Industry Overview (continued) 87% of farmers do not have a security breach response plan - October 2014 Farm Bureau survey 84% of farms with sales of $250,000 or more have access to a computer and 72% are using it for their farm businesses - U.S. Department of Agriculture National Agricultural Statistics Service report, 2013 Monsanto, Deere and other agricultural companies are investing more in cybersecurity February 2015, WSJ Cyber Threats to the Grain and Feed Industry 4

What are the Risks? Cyber Threats to the Grain and Feed Industry 5

External Threats Foreign and domestic cyber hackers McAfee estimates the annual cost to the global economy from cybercrimes to be $375B - $575B June 2014 Terrorism Terrorism will increasingly concentrate on cyber attacks, Terrorist organisations are becoming more and more tech savvy exploiting the internet for propaganda, radicalisation and communications. David Ferbrache, KPMG Cyber Security Technical Director Cyber Threats to the Grain and Feed Industry 6

External Threats (continued) Property theft Industry competition The main motivation behind rising online security attacks in Australia is competitors seeking commercial information and advantage, according to the latest Cyber Crime and Security Survey Report, Computer Emergency Response Team (CERT) 2014 Cyber Threats to the Grain and Feed Industry 7

Ukraine Cyber Attack In December 2015 two power distribution companies in Ukraine said that hackers had hijacked their systems to cut power to more than 80,000 people The hackers sabotaged operator workstations to make it harder to restore electricity to customers Then they launched a telephone denial-of-service attack against the utility s call center to prevent customers from reporting the outage They infected PCs and servers with malware Cyber Threats to the Grain and Feed Industry 8

Takeaways Critical infrastructure at all levels are targets for attacks The Justice Department is preparing to indict Iranian hackers in the 2013 infiltration of a New York dam's computer systems CNN, March 2016 Measurements of energy consumption, temperature controls are all done via software solutions connected to the internet Devastation of failure to pay attention Target Corp. breach occurs via HVAC system which resulted in a compromise of payment systems Cyber Threats to the Grain and Feed Industry 9

Insider Threats Malicious insiders 59% of employees steal proprietary corporate data when they quit or are fired Exploited insiders Negligent insiders Study results show 44% percent use their computer most often for business communication, with smartphones second at 36% and tablets coming in at 5% 97% of all business documents are now created electronically Cyber Threats to the Grain and Feed Industry 10

Hypothetical Grain Keeper CEO, Mr. McCreary, walks in to find the company s long-time head of IT, Mr. Shifty, eating the CEO s lunch from the break room refrigerator. The CEO fires Shifty on the spot. A few weeks following Shifty s termination, the IT system begins to experience unexplained lapses and eventually the following image pops up on all employee computer screens before the system shuts down . Cyber Threats to the Grain and Feed Industry 11

Cyber Threats to the Grain and Feed Industry 12

Ransomware February 2016, Hollywood Presbyterian Medical Center paid a $17,000 ransom in bitcoin to a hacker who seized control of the hospital's computer systems Victims incur additional costs associated with network mitigation, network countermeasures, loss of productivity, legal fees, IT services, and/or the purchase of credit monitoring services for employees or customers FBI PSA June 2015 Between April 2014 and June 2015, the IC3 received 992 CryptoWall-related complaints, with victims reporting losses totaling over $18 million FBI PSA June 2015 Cyber Threats to the Grain and Feed Industry 13

Preventative Measures Cyber Threats to the Grain and Feed Industry 14

Tips to Defend Yourself Firewalls cut down access points to your system Anti Virus Software/Logging Do you know if you can monitor events in your system once someone breaks the lock? Secure Connectivity ensure encrypted communication Time notice to terminated employees Cyber Threats to the Grain and Feed Industry 15

Protect Your Data Encryption Limit Access internal and external Back-up Important Data Cyber Threats to the Grain and Feed Industry 16

Educate Your Employees Training phishing training Testing hire security firm to test your employee habits 45% of in-house counsel said that their companies have mandatory training for employees on cybersecurity prevention - The State of Cybersecurity Report, ACC Dec. 2015 Updates on Latest Risks Communicate Cyber Threats to the Grain and Feed Industry 17

QUESTIONS? Contact Information: MICHAEL ZWEIBACK michael.zweiback@arentfox.com (213) 443-7651