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DNS Security: A Must-Have Under NIS2

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Written by Craig Sanderson, Principal Cyber Security Strategist at Infoblox

On 14 December 2022, the European Commission published “Directive (EU) 2022/2555 on measures for a high common level of cybersecurity across the Union,” otherwise known as the NIS2 Directive. This directive is the EU’s update to the Network and Information Systems Directive (NIS), aimed at strengthening cybersecurity across the EU by setting higher standards for security in essential and important sectors.

The NIS2 Directive focuses on enhancing the resilience of critical infrastructure and improving the ability of EU member states to respond to cybersecurity incidents. It has a broad reach and significant impact on both EU and non-EU entities, applying to a wider range of sectors, including digital infrastructure, healthcare, energy, transportation, and critical public services. Additionally, it expands coverage to include not just essential services but also medium and large entities in critical sectors, including digital services and suppliers of key technologies.

17 October 2024 then marked the deadline for EU Member State implementation of NIS2 into national law. The European Commission has adopted the NIS2 Implementing Regulation which sets out in further detail some of the technological requirements that entities subject to NIS2 are expected to comply with. The requirements of the Implementing Regulation form the baseline of compliance across the EU, and we expect them to be supplemented with further technical details and guidance in the coming months.

Of particular relevance to legal, compliance and cybersecurity practitioners working for entities subject to NIS2, are the requirements of the Implementing Regulation on DNS security. Article 6(7) of the Implementing Regulation requires that “the relevant entities shall . . . apply best practices for the security of the DNS”. The European Union Agency for Cybersecurity (ENISA) will help define what constitutes “best practice for the security of the DNS” and we look forward to collaborating with them in that endeavour.

Infoblox has been providing DNS and DNS security solutions for over 25 years and has performed countless numbers of DNS health and security assessments in organisations across the globe. Based on our experience we expect the best practices to focus on three key areas:

  1. Securing the DNS Platform
  2. Securing the DNS Protocol and
  3. Implementing DNS as a Cyber Security Control

Cybersecurity regulations are increasingly focused on operational risk and digital resiliency. This includes the resiliency and availability of critical infrastructure. DNS is a foundational networking service which users and applications rely on. Any loss of service due to denial-of-service attacks or even misconfiguration can have devastating consequences. It is expected that NIS2, like other regulations, will focus heavily on ensuring that regulated entities have a robust and resilient DNS architecture that is accounted for in business continuity plans and processes.

In Infoblox’s experience, many organisations have not proactively assessed the robustness of their DNS deployments, leaving them exposed to significant operational and cybersecurity risks. Regulated entities are likely to need to undertake a DNS architecture assessment to address risks such as insufficient patch management or architecture resiliency before instituting processes to proactively maintain the DNS infrastructure.

As highlighted by the U.S. Cybersecurity and Infrastructure Security Agency (CISA), DNS is widely abused by threat actors to facilitate a broad range of attacks ranging from ransomware to phishing. Implementing DNS without appropriate security protections has been proven to be an effective means to exfiltrate data out of networks, as most cyber security infrastructure allows DNS traffic to facilitate web browsing.

Similarly, threat actors know that to execute phishing campaigns to target an organisation’s employees or even their consumers, using “lookalike” domains that impersonate the brand leads to a far greater success rate. As a result, organisations that have failed to secure their public-facing domains or register those that users expect they own can lead to devastating consequences. Infoblox research suggests that all sizes of organisations are being targeted with Infoblox detecting 25,000 new lookalike domains every week.

Given the prevalence of threat actor abuse of the DNS protocol and domains it is widely expected that NIS 2 and other regulations will drive regulated entities to formalise a strategy and process to secure their external facing, authoritative domains.

According to U.S. cybersecurity official Anne Neuberger, “using secure DNS would reduce the ability for 92% of malware attacks … from a command-and-control perspective, deploying malware on a given network.” Given that DNS platforms have, in effect, a front-row seat to what malware is operating on a network it seems logical to integrate DNS into any cybersecurity defence strategy.

Protective DNS refers to a DNS service that intercepts requests from clients to resolve malicious DNS domains. By using threat intelligence optimised for DNS platforms, it provides a highly scalable and pervasive security control that is simple to deploy and based on the industry-recognised DNS standard.

The UK National Cyber Security Center service much like the US government version operated by CISA PDNS, has become a core pillar in government cyber security strategy. With the DNS4EU initiative in the European Union, the use of Protective DNS has become an accepted DNS best practice which is already adopted by not only governments but also public and private sector organisations.

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Positive Technologies Study Reveals Successful Cyberattacks Nett 5X Profits

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Positive Technologies has released a study on the dark web market, analysing prices for illegal cybersecurity services and products, as well as the costs incurred by cybercriminals to carry out attacks. The most expensive type of malware is ransomware, with a median cost of $7,500. Zero-day exploits are particularly valuable, often being sold for millions of dollars. However, the net profit from a successful cyberattack can be five times the cost of organizing it.

Experts estimate that performing a popular phishing attack involving ransomware costs novice cybercriminals at least $20,000. First, hackers rent dedicated servers, subscribe to VPN services, and acquire other tools to build a secure and anonymous IT infrastructure to manage the attack. Attackers also need to acquire the source code of malicious software or subscribe to ready-to-use malware, as well as tools for infiltrating the victim’s system and evading detection by security measures. Moreover, cybercriminals can consult with seasoned experts, purchase access to targeted infrastructures and company data, and escalate privileges within a compromised system. Products and tools are readily available for purchase on the dark web, catering to beginners. The darknet also offers leaked malware along with detailed instructions, making it easier for novice cybercriminals to carry out attacks.

Malware is one of the primary tools in a hacker’s arsenal, with 53% of malware-related ads focused on sales. In 19% of all posts, infostealers designed to steal data are offered. Crypters and code obfuscation tools, used to help attackers hide malware from security tools, are featured in 17% of cases. Additionally, loaders are mentioned in 16% of ads. The median cost of these types of malware stands at $400, $70, and $500, respectively. The most expensive malware is ransomware: its median cost is $7,500, with some offers reaching up to $320,000. Ransomware is primarily distributed through affiliate programs, known as Ransomware-as-a-Service (RaaS), where participants in an attack typically receive 70–90% of the ransom. To become a partner, a criminal must make a contribution of 0.05 Bitcoin (approximately $5,000) and have a solid reputation on the dark web.

Another popular attack tool is exploits: 69% of exploit-related ads focus on sales, with zero-day vulnerability posts accounting for 32% of them. In 31% of cases, the cost of exploits exceeds $20,000 and can reach several million dollars. Access to corporate networks is relatively inexpensive, with 72% of such ads focused on sales, and 62% of them priced at under a thousand dollars. Among cybercriminal services, hacks are the most popular option, accounting for 49% of reports. For example, the price for compromising a personal email account starts at $100, while the cost for a corporate account begins at $200.

Dmitry Streltsov, Threat Analyst at Positive Technologies, says, “On dark web marketplaces, prices are typically determined in one of two ways: either sellers set a fixed price, or auctions are held. Auctions are often used for exclusive items, such as zero-day exploits. The platforms facilitating these deals also generate revenue, often through their own escrow services, which hold the buyer’s funds temporarily until the product or service is confirmed as delivered. On many platforms, these escrow services are managed by either administrators or trusted users with strong reputations. In return, they earn at least 4% of the transaction amount, with the forums setting the rates.”

Considering the cost of tools and services on the dark web, along with the median ransom amount, cybercriminals can achieve a net profit of $100,000–$130,000 from a successful attack—five times the cost of their preparation. For a company, such an incident can result not only in ransom costs but also in massive financial losses due to disrupted business processes. For example, in 2024, due to a ransomware attack, servers of CDK Global were down for two weeks. The company paid cybercriminals $25 million, while the financial losses of dealers due to system downtime exceeded $600 million.

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