Sikich Report Finds That Manufacturers and Distributors Neglect Key Cybersecurity Activities

Sikich | July 23, 2020

Less than 40% of respondents in Sikich's 2020 Manufacturing and Distribution Report said they perform important data breach prevention activities, such as penetration testing, phishing exercises on employees and assessments of vendors' data security efforts. However, manufacturers and distributors remain vulnerable to breaches. Nearly half of respondents said their companies experienced cyberattacks during the past 12 months. "Cybersecurity is an essential part of a company's operations, but too few manufacturers and distributors take the necessary precautions to protect sensitive data," said Brad Lutgen, partner-in-charge of Sikich's cybersecurity team. "The coronavirus pandemic, which sent many office workers to insecure remote environments, has only elevated the risk these companies face. Manufacturers and distributors must commit to a comprehensive cybersecurity strategy that includes everything from technical updates to employee training." The report also reveals extensive use of some advanced technologies, but stubbornly slow adoption of others. Eighty-six percent of respondents said their companies use cloud storage and solutions, and more than 60% use forecasting software, data-driven customer service technologies, advanced analytical tools, data visualization, and the internet of things. But only about half of the executives surveyed said their companies use robotics, robotic process automation and 3D printing/additive manufacturing. And 39% said they use blockchain and augmented virtual reality.

Spotlight

Our report this quarter opens with a discussion of ransomware. The media tends to cover data breaches more often than ransomware incidents, but ransomware presents a growing threat. The FBI estimates that just one ransomware threat, CryptoWall, has so far netted its operators about USD18 million. Even law enforcement organizations have fallen victim. As the sophistication of the threats and attackers grows, so does the targeting of their operations, to the extent that some attackers specialize in ransoming the local data files of popular online games.


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DATA SECURITY

CloudCover Continues to Move Into a New Era of CyberSafety with the Launch of CloudCover’s Cyber Liability

CloudCover | December 27, 2021

The cybersecurity insurance market is in trouble, fueled by a rapid increase in cyber attacks – up 486% from the beginning of 2018 through the end of 2021, according to Aon. As a result, insurers have little choice but to raise rates and scrutinize policy terms and conditions, as there’s no historical data to set policies and premiums like traditional insurance products. CloudCover, the company Reimagining CyberSecurity, is making strides to improve cyber safety by creating the first end-to-end cyber security technology and insurance platform. Today, the company announces the continued rollout of its suite of CloudCover insurance products with the launch of a new insurance offering: CloudCover Cyber Liability (CCCL) and Information Systems Business Interruption (ISBI) insurance. The release of the cybersecurity insurance coverage brings forward an entirely new market category: cybersecurity network and data insurance cover that utilizes the CC/B1 PlatformTM to obtain the data analytic set required to efficiently underwrite and set accurate premiums. CloudCover’s $1 Million Ransomware Warranty was launched in September 2021. Through its CCCL insurance, CloudCover will issue a $1 million cover per occurrence and a $10 million aggregate policy. This insurance option covers: First-party response costs, including any costs associated with the investigation and remediation of cybersecurity breaches, as well as payment for costs associated with notifying affected parties of the breach, Third-party liability and regulatory costs, including any costs associated with the defense of lawsuits, regulatory fines, and penalties in addition to the costs associated with any judgements rendered from those activities, and Cover for any ransom demanded by cyber criminals who have locked the insured company’s network or computer systems. Similar to the CCCL coverage, CloudCover will also issue $1 million coverage per occurrence and a $10 million aggregate policy for its ISBI coverage. The insurance policy provides payment for lost revenue in the event that a Distributed Denial of Service (DDoS) attack disrupts or compromises the insured party’s network. Both insurance covers are powered by CloudCover’s CC/B1 Platform, an advanced Intelligent Threat ManagementTM security solution. The CC/B1 relies on a patented AI/ML (automated intelligence/machine learning), X-NDR (extended network detection and response), SOAR (security, orchestration, automation and response) technology that empowers risk awareness, risk control, and risk transfer in near real time. The platform operates as a Firewall EverywhereTM, collecting data from all corners of an organization’s network, streamlining and utilizing machine learning to detect, analyze, and stop suspicious activity – all while using the collected network patterns with risk scoring and building actuarial models for incremental cybersecurity network insurance. “This marriage of cybersecurity technology and cyber insurance represents the creation of a new market,No other security vendor is able to provide cybersecurity risk scoring, risk event mitigation and mediation, accurate identification and threat stopping, and cyber risk insurance underwriting and auto-adjudication for claims in one platform. Using cybersecurity technology to learn about a company’s network and utilizing that data to create more accurate premiums and better coverage gives our industry the opportunity to better control cybersecurity insurance losses in the future, as we’ll be able to detect threats and issue micro-policies in a fraction of a second.” Stephen Cardot, founder and CEO of CloudCover In the months ahead, CloudCover plans to debut the final product in its initial CyberSafety Insurance Coverage portfolio: Cybersecurity Network Data Insurance, which will be the first insurance policy to insure data in motion with both first- and third-party liability coverage. This insurance, which will launch in February 2022, makes it possible for organizations to insure and thereby value their intangible assets, i.e., data, just as they would other company assets – something that’s been long seen as impossible in the FASB/GAAP industry. In order to purchase CloudCover’s insurance offerings, a company will need to have the CC/B1 Platform installed on its network in addition to completing CloudCover’s CyberSafety Registry. About CloudCover CloudCover is an AI-driven, virtual machine-learning cybersecurity platform. CloudCover has reimagined cybersecurity as a risk-predictive CyberSafety Platform – delivering real-time extended network detection and response through a patented, math-based security orchestration automated response risk aware/control solution. The CloudCover SOAR capability accumulates data between an organization’s diverse security technologies and environments and streamlines them into holistic actions on potential risks. The CC/B1 Platform provides an ever-evolving, protective security layer to your existing cybersecurity tech stack – meaning network threats are detected in near zero-second speed with near zero-threat accuracy. With CloudCover, the elusive “single pane of orchestration” capability of an organization’s network security isn’t a myth – it’s reality.

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ENTERPRISE SECURITY

iTecs Enters Into A Partnership With Check Point

iTecs | December 20, 2021

iTecs, a Dallas based IT MSP, Cybersecurity, and Cloud Hosting Provider (https://itecsonline.com) enters into a partnership with Check Point, a leader in enterprise and SMB cybersecurity products and solutions, to provide iTecs clients with efficacious cybersecurity protection. The collaboration between the two parties enables iTecs to deliver the various services and products to clients as a managed service. "The traditional 'perimeter-based' security model is not aging well in this new landscape, and binary access tools are proving to be cumbersome and unscalable. Fixed perimeters no longer govern working environments. Instead, users work on their own devices and sensitive company data stored in third-party cloud services. As a result, companies can no longer rely on binary security models that focus on letting good guys in and keeping bad guys out. The challenge for modern enterprises is how to give users the required access while reducing set-up and maintenance costs without compromising security. Check Point's Zero Trust Network Access model provides the tools to safeguard companies in today's ever-growing work-from-home demand. Especially with the growing popularity and development of 'METAVERSE' work environments, it's essential to adopt new and intelligent ways of protecting your users," says Brian Desmot, CEO & Founder of iTecs. Currently in partnerships with Sophos, SentinelOne, Cisco, CoSoSys, and now Check Point, iTecs' Managed Security Services (MSS) division provides SMB and Enterprises with an array of sophisticated and synergistic threat-preventing solutions. "Our propensity of testing cybersecurity solutions has led us to the conclusion that Check Point is the right partner to provide our clients with maximum ROI. As a result, we are redesigning our website and will include new pages devoted to the broad menu of services our alliance with Check Point is providing," Brian Desmot iTecs is going through a rebranding campaign with the launch of a new logo and website which will be completed by early 2022. About iTecs IT Outsourcing and Support Brian Desmot founded iTecs in 2002, a white-glove IT support, consulting, managed IT services provider. The firm delivers an umbrella of IT services from break-fix, consulting, cybersecurity, to procurement for businesses of all sizes. If you need a professional, customer-centric offsite IT department, iTecs is the best choice.

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SOFTWARE SECURITY

CyCognito and Carahsoft Partner to Deliver Attack Surface Management and Protection Solutions to the Public Sector

CyCognito | December 29, 2021

CyCognito, the leader in external attack surface management and protection, today announced a strategic go-to-market alliance with Carahsoft Technology Corp., the Trusted Government IT Solutions Provider. Under the agreement, Carahsoft will serve as CyCognito’s first Public Sector Distributor. The new relationship expands and deepens CyCognito’s reach across and within the Public Sector through Carahsoft’s NASA Solutions for Enterprise-Wide Procurement (SEWP) V, Information Technology Enterprise Solutions – Software 2 (ITES-SW2), OMNIA Partners, National Association of State Procurement Officials (NASPO) ValuePoint, and National Cooperative Purchasing Alliance (NCPA), as well as through Carahsoft’s reseller partners. “Together with our channel partners, CyCognito is using its platform, program and best practices to help the Public Sector establish a stronger security posture and proactively identify, protect and prevent cyberattacks from happening,” says Channel Chief and CyCognito’s Worldwide Sales Leader Lori Cornmesser. Most of today’s cyberattacks continue to intrude through external attack vectors. CyCognito’s innovative platform automates the discovery, multi-factor security testing and risk prioritization of all externally-exposed assets in an organization’s extended IT ecosystem. Once cyber threats are identified, CyCognito orchestrates data sharing to automatically start the remediation process by creating an incident response ticket. The platform integrates its findings and intelligence into existing vulnerability lifecycle management processes through channels such as Slack, PagerDuty, ServiceNow, and several additional platforms. This proven and proactive layer of automated security ensures an organization’s entire attack surface is protected quickly and efficiently when risks are detected. “Empowering organizations to find and eliminate the paths attackers easily exploit is a vital tactic within any surface management and protection strategy,Prevention and remediation must remain top of mind for channel partners and IT decision makers, especially those working within the Public Sector where the stakes are high and the impact of a single breach has the potential to span states, the nation and even the globe.” Rob Gurzeev, Founder and CEO, CyCognito CyCognito and Carahsoft are enabling forward-thinking security value-added resellers (VARs), managed service providers (MSPs), global systems integrators (GSIs) and managed security services providers (MSSPs) with a new and enhanced lineup of SLED and Federal-focused sales and marketing assets. Offered at no charge, these business-building assets are readily available within CyCognito’s partner portal and include how to market, how to pitch and position, and how to demo the technology. “Agencies today are under tremendous pressure to protect their customers from cybercrime,” said Michael Shrader, Vice President of Intelligence and Innovative Solutions at Carahsoft. “CyCognito’s leading platform preempts attacks and helps businesses satisfy key elements of most common security frameworks and regulatory compliance standards. We look forward to working with CyCognito and our reseller partners to help educate and better enable the Public Sector with the knowledge, specialization and technology needed to properly assess their cyber risk and eliminate exposure.” About CyCognito CyCognito solves one of the most fundamental business problems in cybersecurity: seeing how attackers view your organization, where they are most likely to break in, what systems and assets are at risk and how you can eliminate the exposure. Founded by national intelligence agency veterans, CyCognito has a deep understanding of how attackers exploit blind spots and a path of least resistance. The Palo Alto-based company is funded by leading Silicon Valley venture capitalists, and its mission is to help organizations protect themselves from even the most sophisticated attackers. It does this with a category-defining, transformative platform that automates offensive cybersecurity operations to provide reconnaissance capabilities superior to those of attackers. About Carahsoft Carahsoft Technology Corp. is The Trusted Government IT Solutions Provider, supporting Public Sector organizations across Federal, State and Local Government agencies and Education and Healthcare markets. As the Master Government Aggregator for our vendor partners, we deliver solutions for Cybersecurity, MultiCloud, DevSecOps, Big Data, Artificial Intelligence, Open Source, Customer Experience and Engagement, and more. Working with resellers, systems integrators and consultants, our sales and marketing teams provide industry leading IT products, services and training through hundreds of contract vehicles.

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DATA SECURITY

Years of Growth Lead to Covail Acquisition by Cybersecurity Firm GoSecure

Covail | December 23, 2021

Covail, a Columbus-based cybersecurity and digital optimization firm founded by Central Ohio’s largest companies, is being acquired by a leading Managed Detection and Response firm. Covail announced today that it has agreed to be acquired by cybersecurity and managed detection and response (MDR) services provider GoSecure. The transaction is estimated to close in December 2021. Terms of the acquisition were not disclosed. “Since our founding six years ago as the Columbus Collaboratory, our goal has been to find ways to leverage collaboration to deliver successful AI, cybersecurity and cloud-based software solutions to our Fortune 500 clients,With this acquisition by GoSecure, our clients will now have access to an even broader set of capabilities and expertise thanks to our ability to leverage GoSecure’s class-leading capabilities and solutions. This will also help to further accelerate market penetration for our leading-edge security products and AI capabilities.” Covail CEO Matt Wald Covail, as Columbus Collaboratory, was born out of the aspiration of seven of the largest companies in central Ohio – American Electric Power (AEP), Battelle, Cardinal Health, Huntington Bank, L Brands (now Bath & Body Works), Nationwide, and OhioHealth – in partnership with One Columbus. The goal of the endeavor was to solve common automation, AI, and cybersecurity challenges across multiple industries. “The diversity and maturity of these founding companies made Covail the innovative, value-driven, solutions partner that it is today”, said Michael Krouse, SVP of Strategy and Transformation at Ohio Health and Chairman of the Covail Board. “Covail accelerated the cybersecurity and AI capabilities of the founding companies, upskilled critical tech talent for the region, and built a high-growth company that contributed to our region’s economic growth engine. It’s exciting to be able to leverage this strategic relationship to secure Columbus as the Midwest’s premier cybersecurity hub.” Through its ecosystem of collaborators and commercial partners, Covail’s technology teams executed over 1,000 engagements and collaboration sessions that solved complex business challenges using machine learning and the latest cyber defense practices. The firm’s work attracted top technology talent to the region, Wald said, and led to the development of software products that enabled advanced cyber threat detection and continuous risk management. GoSecure is a recognized cybersecurity leader and innovator. The company is the first and only to integrate endpoint, network and email threat detection into a single Managed Detection and Response (MDR) service. GoSecure plans to leverage Covail’s talent, proprietary technology, and client relationships to build a regional presence in Central Ohio that will help accelerate its momentum in the US market. GoSecure’s access to technology talent and partnerships made Columbus an attractive, economically viable location for a cybersecurity hub, Wald said. Wald said partnership with the original companies in the Covail firm will continue, along with an expansion to additional businesses with the goal of making Central Ohio a major U.S. cybersecurity operations center. About Covail Covail™ is a trusted solutions partner, enabling organizations to optimize through Intelligent Operations solutions that lower total risk and cost for key business functions, equipping them to transform from a position of strength. Since 2015, Covail’s experts in Cybersecurity, Artificial Intelligence (AI), and Automation have been delivering business results for leading Fortune 500 companies across industries. Trustworthy, Intelligent Operations. Accelerated. Learn more at covail.com. About GoSecure GoSecure is a recognized cybersecurity leader and innovator, pioneering the integration of endpoint, network, and email threat detection into a single Managed Detection and Response service. The GoSecure TitanTM platform delivers predictive multi-vector detection, prevention, and response to counter modern cyber threats. Titan MDR offers a detection to mitigation speed of less than 15 minutes, delivering rapid response and active mitigation services that directly touch the customers’ network and endpoints. For over 10 years, GoSecure has been helping customers better understand their security gaps and improve their organizational risk and security maturity through MDR and Advisory Services solutions delivered by one of the most trusted, skilled and experienced teams in the industry.

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Spotlight

Our report this quarter opens with a discussion of ransomware. The media tends to cover data breaches more often than ransomware incidents, but ransomware presents a growing threat. The FBI estimates that just one ransomware threat, CryptoWall, has so far netted its operators about USD18 million. Even law enforcement organizations have fallen victim. As the sophistication of the threats and attackers grows, so does the targeting of their operations, to the extent that some attackers specialize in ransoming the local data files of popular online games.

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