A year after the Panama Papers, a massive leak of confidential information from the Bermuda law firm Appleby Group Services, dubbed the Paradise Papers, has shone another light on the use of offshore accounts, writes RUDI DICKS, Head of Cyber Security at BDO Cyber and Forensics Lab
A new set of data taken from an offshore law firm again threatens to expose the hidden wealth of individuals and show how corporations, hedge funds and others may have skirted taxes. A year after the Panama Papers, a massive leak of confidential information from the Bermuda law firm Appleby Group Services, dubbed the Paradise Papers, has shone another light on the use of offshore accounts.
1. What are your views / interpretation on / of the ‘Paradise Papers’ data leaks?
Appleby publicly stated that it was not the subject of a leak but of an illegal computer hack. Their systems were accessed by an intruder who deployed the tactics of a professional hacker and covered his/her tracks to the extent that the forensic investigation concluded that there was no definitive evidence that any data had left their systems. While the mechanics of the breach itself have yet to be revealed, this was clearly a targeted attack. Law firms are particularly susceptible to hacking as they house a treasure trove of sensitive data that, when compromised, can result in sometimes irrecoverable damage.
The paradise papers, like the panama papers is an excellent example of the reputational harm that attackers can cause, rather than financial. Here we saw many wealthy people shown to have offshore accounts in tax havens. Most of these transactions are perfectly legal but the implication is that these wealthy and often famous people are skirting their tax obligations. For the company that these documents were stolen from, this leak will most likely destroy the business.
This class of events demonstrates why law firms must protect their clients’ confidential information. No amount of cyber insurance, data backup strategies, nor business continuity planning can ever put this genie back in the bottle.
2. In your opinion, should we concentrate on the content aspect of these leaks or the security aspect?
For Appleby, the concern is with the content because their clients will be far less likely to conduct sensitive business with them in the future. By releasing the Paradise Papers, the aim of the International Consortium of Investigative Journalists (ICIJ) was to expose significant failures and weaknesses inside the offshore industry. As per ICIJ, “those stories and others they are pursuing serve the public interest by bringing accountability to the offshore industry, its users and operators. Other parts of the data are of a private nature and of no interest to the public. ICIJ will not release personal data en masse but will continue to mine the full data with its media partners.” The content released will certainly have far-reaching impacts for those affected.
For security specialists, the concern is with how this happened, and making sure we do everything possible to ensure that the same attack vectors cannot be used against our clients. This event, allegedly conducted by external hackers, could likely have been detected and mitigated. What ends in a business disrupting event often begins with the ‘click’ on a harmless looking link. Sometimes it involves complex social engineering, credential harvesting and clandestine operations inside the network to locate and slowly exfiltrate valuable data. Thus, considering heightened cyber risks, organisations have to make sure that they are taking reasonable steps to protect their clients’ confidential data. These include:
· Ensuring that software used is up-to-date and that available patches are implemented as soon as reasonably practical.
· Configuring Intrusion Prevention Systems and Firewalls policies to reject information gathering events
· Reviewing access controls regularly to ensure that they are up to date and that they restrict electronic data users to their necessary business functions.
· Utilising antivirus and malware detection software.
· Conducting periodic cybersecurity audits and penetration testing.
· Requiring multi-factor authentication for remote access into computer systems and for very sensitive internal access points.
· Requiring rotating complex passwords.
· Monitoring the activity of authorised users to detect any unauthorised file access, as well as, any large-scale downloading, copying or tampering with confidential information.
· Conducting regular cybersecurity awareness training together with phishing attacks.
3. With ‘Offshore Leaks’, ‘Panama Leaks’, ‘Paradise Papers’ – what should we be aware of / conclude?
We are living in an age of internet activism or hacktivism, which is the subversive use of computers and computer networks to promote a political agenda or a social change. With roots in hacker culture and hacker ethics, its ends are often related to the free speech, human rights, or freedom of information movements. Hacktivists seek to expose social injustice. The hack is a reminder that cybercrime is sometimes motivated by loftier aspirations than making money.
4. How come hackers can still obtain sensitive information when security conscious companies invest so much in safeguarding their data?
No matter how much a company invests in latest security technologies, the human factor remains the weakness link. The lack of effective cybersecurity training for all employees is the root cause of companies failing to keep their data safe. It is extremely pertinent to every organisation to protect its reputation, competitive advantage and operational stability against social engineering with effective company-wide security awareness. BDO’s cybersecurity education program sets employees up for success by instilling cutting edge knowledge and practical know-how into the workplace. Through integrated communication and hacker-led training, BDO helps organisation fight cybercrime strategically and beyond the scope of technology.
Tech promotes connections across groups in emerging markets
Digital technology users say they more regularly interact with people from diverse backgrounds
Smartphone users – especially those who use social media – say they are more regularly exposed to people who have different backgrounds. They are also more connected with friends they don’t see in person, a Pew Research Center survey of adults in 11 emerging economies finds.
South Africa, included in the study, has among the most consistent levels of connection across age groups and education levels and in terms of cross-cultural connections. This suggests both that smartphones have had a greater democratisation impact in South Africa, but also that the country is more geared to diversity than most others. Of 11 countries surveyed, it has the second-lowest spread between those using smartphones and those not using them in terms of exposure to other religious groups.
Across every country surveyed, those who use smartphones are more likely than those who use less sophisticated phones or no phones at all to regularly interact with people from different religious groups. In most countries, people with smartphones also tend to be more likely to interact regularly with people from different political parties, income levels and racial or ethnic backgrounds.
The Center’s new report is the third in a series exploring digital connectivity among populations in emerging economies based on nationally representative surveys of adults in Colombia, India, Jordan, Kenya, Lebanon, Mexico, the Philippines, Tunisia, South Africa, Venezuela and Vietnam. Earlier reports examined attitudes toward misinformation and mobile technology’s social impact.
The survey finds that smartphone and social media use are intertwined: A median of 91% of smartphone users in these countries also use social media or messaging apps, while a median of 81% of social media users say they own or share a smartphone. And, as with smartphone users, social media and messaging app users stand apart from non-users in how often they interact with people who are different from them. For example, 52% of Mexican social media users say they regularly interact with people of a different income level, compared with 28% of non-users.
These results do not show with certainty that smartphones or social media are the cause of people feeling like they have more diverse networks. For example, those who have resources to buy and maintain a smartphone are likely to differ in many key ways from those who don’t, and it could be that some combination of those differences drives this phenomenon. Still, statistical modelling indicates that smartphone and social media use are independent predictors of greater social network diversity when other factors such as age, education and sex are held constant.
Other key findings in the report include:
- Mobile phones and social media are broadening people’s social networks. More than half in most countries say they see in person only about half or fewer of the people they call or text. Mobile phones are also allowing many to stay in touch with people who live far away: A median of 93% of mobile phone users across the 11 countries surveyed say their phones have mostly helped them keep in touch with those who are far-flung. When it comes to social media, large shares report relationships with “friends” online who are distinct from those they see in person. A median of 46% of Facebook users across the 11 countries report seeing few or none of their Facebook friends in person regularly, compared with a median of 31% of Facebook users who often see most or all of their Facebook friends in person.
- Social activities and information seeking on subjects like health and education top the list of mobile activities. The survey asked mobile phone users about 10 different activities they might do on their mobile phones – activities that are social, information-seeking or commercial in nature. Among the most commonly reported activities are casual, social activities. For example, a median of 82% of mobile phone users in the 11 countries surveyed say they used their phone over the past year to send text messages and a median of 69% of users say they took pictures or videos. Many mobile phone users are also using their phones to find new information. For example, a median of 61% of mobile phone users say they used their phones over the past year to look up information about health and medicine for themselves or their families. This is more than the proportion that reports using their phones to get news and information about politics (median of 47%) or to look up information about government services (37%). Additionally, around half or more of mobile phone users in nearly all countries report having used their phones over the past 12 months to learn something important for work or school.
- Digital divides emerge in the new mobile-social environment. People with smartphones and social media – as well as younger people, those with higher levels of education, and men – are in some ways reaping more benefits than others, potentially contributing to digital divides.
- People with smartphones are much more likely to engage in activities on their phones than people with less sophisticated devices – even if the activity itself is quite simple. For example, people with smartphones are more likely than those with feature or basic phones to send text messages in each of the 11 countries surveyed, even though the activity is technically feasible from all mobile phones. Those who have smartphones are also much more likely to look up information for their households, including about health and government services.
- There are also major differences in mobile usage by age and education level in how their devices are – or are not – broadening their horizons. Younger people are more likely to use their phones for nearly all activities asked about, whether those activities are social, information-seeking or commercial. Phone users with higher levels of education are also more likely to do most activities on their phones and to interact with those who are different from them regularly than those with lower levels of education.
- Gender, too, plays a role in what people do with their devices and how they are exposed to different people and information. Men are more likely than women to say they encounter people who are different from them, whether in terms of race, politics, religion or income. And men tend to be more likely to look up information about government services and to obtain political news and information.
These findings are drawn from a Pew Research Center survey conducted among 28,122 adults in 11 countries from Sept. 7 to Dec. 7, 2018. In addition to the survey, the Center conducted focus groups with participants in Kenya, Mexico, the Philippines and Tunisia in March 2018, and their comments are included throughout the report.
Nokia to be first with Android 10
Nokia is likely to be the first smartphone brand to roll out Android 10, after its manufacturer, HMD Global, announced that the Android 10 software upgrade would start in the fourth quarter of 2019.
Previously named Android Q, it was given the number after Google announced it was ditching sweet and dessert names due to confusion in different languages. Android 10 is due for release at the end of the year.
Juho Sarvikas, chief product officer of HMD Global said: “With a proven track record in delivering software updates fast, Nokia smartphones were the first whole portfolio to benefit from a 2-letter upgrade from Android Nougat to Android Oreo and then Android Pie. We were the fastest manufacturer to upgrade from Android Oreo to Android Pie across the range.
“With today’s roll out plan we look set to do it even faster for Android Pie to Android 10 upgrades. We are the only manufacturer 100% committed to having the latest Android across the entire portfolio.”
HMD Global has given a guarantee that Nokia smartphone owners benefit from two years of OS upgrades and 3 years of security updates.