How to Lock Down Sensitive Data from Increasingly Clever Hackers

For retailers everywhere, it's a challenging new day. Security threats are a constant - both inside their four walls and out. The big security breaches we hear about on the news; the smaller ones sometimes not. But their impact remains costly to us all. The need for mobility, rapidly evolving technology and meeting growing customer expectations for network user access continues to complicate matters for retail IT - and has set the stage for the increased risk with over the air breaches using rogue Bluetooth® devices.

Bluetooth technology has transformed how we connect - both at home and at work. It is intended for consumer product connectivity and can be misused for gaining entry into enterprise applications. The technology is often used for payment card readers, but is also being misused by hackers as an unsecured way to gain access into retailers' networks. Once inside, they can install malware onto point of sale (POS) devices and plant a rogue Bluetooth transmitter. Then, using their own mobile devices, they can download collected information to their device as they walk by undetected - up to 300 feet away.

With virtually every customer in the store using a myriad of wireless devices to check prices, download coupons, etc., the thief - even on video - would be difficult to identify. The reduced risk involved makes this type of crime even more alluring.

A Rapidly Growing Threat
Credit card data theft is becoming increasingly common. Because of this, it's exploding into a full-blown epidemic from which no retailer is exempt. A sophisticated Russian syndicate recently breached a large retailer's credit card payment system, adding to the millions of credit card numbers it's hacked from retailers over the last seven years.

Other skimmers have targeted bank ATMs and gas stations. Here's a startling snapshot of their impact:

• In the U.S. alone, credit card theft has increased 50 percent from 2005 to 2010, according to the U.S. Department of Justice.
• Identity theft cost Americans $24.7 billion in 2012[1]
• During that same year, an estimated 16.6 million people (approximately 7 percent of all people age 16 or older in the U.S.) experienced at least one incident of identify theft.
• According to a January 2014 report, the Federal Bureau of Investigation (FBI) warned retailers to prepare for more cyber POS attacks.[2]

For retailers, the costs associated with a credit card breach are substantial. From the direct remediation costs of offering credit card monitoring for any affected customers, to the costs of any lawsuits filed by consumers, it's an expensive proposition. Not to mention, the incalculable brand damage a breach causes in loss of customer trust and loyalty.

Hackers running skimming operations have upped their game, improving their technology to make stealing credit card data even easier by installing a Bluetooth-based skimmer inside the targeted POS machine.

In January of this year, the first arrests were made for Bluetooth Skimming. Thirteen individuals were indicted with running a multi-million dollar fraud ring using gas pump skimmers at stations throughout the southern U.S.[3] The defendants allegedly encoded the stolen card data onto counterfeit cards, and armed with stolen PINs, withdrew funds from victim accounts at ATMs. When all was said and done, they managed to steal more than $2 million from approximately 70 bank accounts.

Why Manual Network Monitoring Is Not the Answer
It's tough for retailers to keep up. Sophisticated criminals are constantly searching for gaps in their security measures and access into their networks. And unlike Wi-Fi or cellular technologies which are encrypted and/or firewalled for consumer use, Bluetooth devices are not and have traditionally not been a concern until recently. However, as stores enable shoppers to use their networks to do more, firewall precautions need to be taken to protect sensitive network data and retain the PCI compliance required to enable secure transactions.

New Effective Options
With all the challenges this new threat brings - along with others no doubt on the horizon - the good news is there are solutions available now to minimize Bluetooth intrusion risks.  When evaluating your security options, make sure:

• You select a provider with proven experience and a platform that detects suspicious Bluetooth devices and sends an alert when unusual usage patterns or repetitive devices are identified.
• The solution delivers a single management interface, allowing you to easily define different classes of devices which eliminate false alarms generated by Bluetooth-enabled devices in the hands of your customers, your associates and workers in neighboring businesses.

Retailers have a lot to lose when a data breach occurs, and the associated costs are dramatic as we've seen in multiple cases over the last year. With Bluetooth monitoring in place, retailers can expand their wireless network security to include both the Wi-Fi and Bluetooth spectrum and defend against this new and previously unguarded threat.  Valuable customer data - and your business - depend on it.

References

1. http://www.bjs.gov/content/pub/press/vit12pr.cfm
2. http://mobile.reuters.com/article/topNews/idUSBREA0M1UF20140124?irpc=932
3. http://krebsonsecurity.com/category/all-about-skimmers/