Key cybersecurity threats in the telecoms industry

Telecommunications keep the world connected. More than that: our economies and entire business infrastructures are built on modern telecoms. From email and messaging to phone calls and video calls, we rely on them every second of every day. In fact, telecoms have become such an intrinsic part of our lives that we take their constancy…

Telecommunications keep the world connected. More than that: our economies and entire business infrastructures are built on modern telecoms. From email and messaging to phone calls and video calls, we rely on them every second of every day. In fact, telecoms have become such an intrinsic part of our lives that we take their constancy for granted, like water or food: fundamental and readily available.

This ubiquity combined with our reliance on them make telecoms a major target for cyber criminals. According to a 2018 report by EfficientIP, a network security and automation company, the sector is one of the worst at tackling cyber threats. In 2018, 43% of telco organisations were victimised by DNS-based malware and 81% took three days or more to apply a critical security patch.

So, why are telecoms a target? What are the risks? And what can be done about it?

Why are telecoms companies a target for cyber criminals?

Telecoms are big business: in the second quarter of 2018, the UK telecoms industry was worth £2.69 billion.

In order to meet our communications needs, telecoms companies build and operate complex networks and store vast amounts of sensitive data. These two factors combined make this sector highly attractive to cyber criminals.

Telecoms providers find themselves under fire from two specific types of cyber attack. On one side, there are direct attacks from criminals who aim to access their organisation, network operations and data. On the other side are indirect attacks which target the company’s subscribers.

“In recent years, cyber attacks on telecoms companies have grown in frequency and sophistication.”

As telecoms are often a gateway into multiple businesses, the ultimate aim of direct cyber attacks is to access the core infrastructure of a telecoms company. Once inside the network, cyber criminals can easily access data and intercept calls, as well as controlling and impersonating subscribers. Luckily, this remains extremely difficult – although not impossible. In recent years, cyber attacks on telecoms companies have grown in frequency and sophistication, creating a significant threat.

What are the challenges?

One of the most common types of direct cyber attack is DDoS (distributed denial of service). While this type of cyber crime isn’t exclusive to the telecoms industry, the 2016 Data Breach Report found that the telecommunications sector faces this type of attack more than any other industry – almost twice that of the sector in second place (Financial Exchanges). More recently (and a little more generally), Nexguard’s Q3 2018 DDoS Threat Report found that nearly two thirds of DDos attacks in the third quarter of last year targeted communications service providers.

A DDoS attack reduces network capacity, increases traffic costs, disrupts availability of service, and – if ISPs are hit – can even crash internet access. This type of attack is often used as a gateway or smokescreen for a second, more malicious and damaging attack. The 2015 cyber attack on TalkTalk illustrates this perfectly.

The hack wasn’t the work of sophisticated criminals, rather two teenagers who used a DDoS as a distraction while they stole 157,000 customers’ personal information including names, emails, dates of birth and financial information. If two boys in a bedroom can access this type of information, what can be achieved by more experienced hackers?

In recent years, DDoS attacks have been evolving and growing in sophistication. Attackers have been making use of smartphone-based botnets as well as using standard network protocols to launch their attacks, such as NTP (Network Time Protocol ) and BGP (Border Gateway Patrol).

BGP serves as a sorting system for the internet. When you send something, BGP looks at all the available pathways and picks the best route, allowing information to jump between autonomous systems. One way in which cyber criminals target telecoms companies is by intercepting these pathways and misconfiguring service. This type of attack is known as MITM (Man in the middle).

In March 2015, internet traffic for 167 BT customers (including the contractor responsible for the UK’s nuclear warhead program) was illegally diverted to servers in Ukraine and held there for five days. This type of hijacking is one of the oldest and easiest methods of cyber crime which allows criminals to steal information, spy on victims or corrupt data. As all businesses have internet pipes going in and out, targeting telecoms companies can give criminals direct access to businesses and their data.

When it comes to indirect attacks on telecoms providers, there are a number of malware activities and techniques used by cyber criminals to target subscribers and their devices. These include infecting mobile devices with malware in order to exploit payment services as well as compromising things like Instagram or Snapchat, all with the aim of collecting data.

Social engineering and phishing are also highly successful methods of infiltration. The TeamHans hacking group demonstrated this when they used nothing more than repeated phone calls to IT and impersonation to gain access to sensitive corporate and customer information at Canadian internet provider, Rogers.

While telecoms companies need to be focussed on protecting themselves against these types of cyber threats, it’s also imperative that they plan for the future. With 5G and the fourth industrial revolution around the corner, how will telecoms companies protect themselves and our data?

5G is expected to be 100 times faster than current wireless networks. Besides meaning you can download a film in seconds, the new technology is predicted to lead to a much more advanced IoT, connecting everything in our lives for seamless efficiency. This will also lead to more automation: driverless cars, robotic surgery, automated planes. A more connected world may have many positives but it will also be more susceptible to cyber attacks.

Head of the National Cyber Security Centre and Huawei Oversight Board, Ciaran Martin, believes the telecoms sector needs to step up its game, and that competition in the 5G market could serve as an incentive.

‘We must have higher standards of cybersecurity across the entire telecommunications sector,’ he said. ‘The number one pre-condition for safe 5G is better cybersecurity.’ He went on to say: ‘Any company in an excessively dominant market position will not be incentivised to take cybersecurity seriously.’

What now?

As the 2018 EfficientIP report shows, telecoms companies are struggling to effectively tackle cyber crime. Last year, they took an average of 18 hours to respond to an attack.
 
As companies which hold vast amounts of data and are responsible for providing communication services to businesses, they will always be a target for cyber criminals – even more so with the advent of 5G.

One of the biggest problems is awareness. Both within telecoms companies and amongst subscribers, naivety is still being exploited by cyber criminals through social engineering and phishing. The 2016 Data Breach Report found that 30% of phishing emails were opened, and 12% clicked on the malignant attachment.

By creating a culture of cybersecurity awareness, companies can mitigate for some of the human risks. Ensuring all staff are made aware of how they might be targeted and what the protocol is in case of an attack not only promotes awareness but could save your company money and – more importantly – its reputation.

“A vital element of cybersecurity is having the right technology in place.”

Of course, a vital element of cybersecurity is having the right technology in place. All of your IT infrastructure – from servers and information systems to employee mobiles – need to be sufficiently protected with the appropriate security solutions.

Apart from reducing the risk of infiltration, using sufficient security measures also means that any attacks will be detected quickly. Early detection of cyber attacks is vital – the longer the criminals have access, the more damage they can do.

 
Although full-blown cyber security solutions are unlikely to be cheap, it’s important to think of them as a potentially life-saving investment. The cost of a major security breach will certainly be higher, both in the short and long-term. If customers believe their information isn’t safe with your company, they might switch to another provider.
 
Fundamental to the success of all the above is having the right people on board. Cybersecurity isn’t just a case of paying for some tech and then stepping away. Just as cyber crime evolves and grows in sophistication, so too should your cybersecurity measures.
 
Having the right team in place is crucial for effective implementation and ongoing adaptation of cybersecurity. If your company doesn’t have a cybersecurity lead, appoint one – or perhaps you need a whole team. This person or people will be responsible for promoting best practices, setting up training for staff and managing the tech side of things.
 
The simple act of appointing someone in this position will demonstrate the company’s commitment to fighting cyber crime, which will have a knock-on effect for all employees and the company as a whole. After all, you wouldn’t dream of not having a marketing team or a finance department. Cyber crime needs to be regarded with the same importance as any other business fundamental – especially with future technological advancements like 5G around the corner.
 
Cyber crime in the telecoms sector is both complex and multifarious. Therefore, fighting it requires an equally complex line of defence. For telecommunications companies to effectively resist cybercrime, they need to increase recognition and awareness, educate their employees and invest in adequate technology solutions. But the first step has to be investing in the right people.


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