Mike Wyeth, Group Security e ye ,GoupSecu y ... - Retail Knowledge

CYBER CRIME – A RETAIL PERSPECTIVEMike Wyeth, Group SecurityDirector, March UK Ltd

A quick overview ofShop Direct Group

Turnover circa £1.7bnCirca 9,000 employees10.5 million customerson our database5 million tradingcustomers

We sell more than 750brands across 7 fascias

Every year we sell over 50 millionitems:• 800,000 mobile phones• 300,000 beds• 300,000 laptopsp• 200,000 games consoles• 250,000 digital cameras• 300,000 portable audio players• Our call centre's handle over 20 Million inboundand make 5 Million outbound calls every yyyear

Pick, pack and dispatchOur warehouse andreturns operations process53 million items orderedeach year into 28 millionparcels to customersThat’s up to 6,000 parcelsevery hourAverage delivery of 540Kparcels every week

AGENDA‣ Tensions/Issues‣ Problem‣ Examples‣ How we tackle it‣ Law enforcement response‣ Future risks and opportunities

CYBER CRIME V RETAIL– STRATEGIC ISSUES‣ Economic – Public Confidence in trading on line, (UK Cyber strategy2011)‣ Links to Serious & Organised Fraud‣ Industry Tensions – Customer Experience : Fraudster Experience‣ Under reporting – unwilling + unable ?, (CSOC Report 2011)‣ Engagement with Law Enforcement, (CSOC Report 2011)

MAIN CYBER RISKS TO RETAIL‣ Stolen credentials traded on virtual black market‣ Citizens & retailers both victims‣ E Comm Fraud – Financial Loss + Prevention Costs‣ Reputation Risks‣ “Hactivists”

OUR WORLD – NATURE AND EXTENT OFPROBLEM‣ Online Fraud is in the £Millions‣ Thousands of victims‣ It is UK wide albeit the worst is SE London‣ Phishing is a real problem, it’s easier to get info from the public thanbreaking through our firewalls‣ And it’s worldwide – here are some examples………..

From US/Israel/Russia/Greece/Netherlands /G /N l & more

COMPANY RESPONSE -PROACTIVE‣ We go after the fraudsters , we don’t justwriteitoff‣ Team of 9 field based investigators & 6 It security Specialist‣ 257 Fraudsters arrested in last 12 months‣ £2.1 Million of Fraud prevented‣ We can get the Police through the door‣ More than just Fraud when you go through h the door‣ Now focusing on the e-crime gangs‣ Built our own forensics unit‣ Proactively capturing victims details before their credentials areused‣ Proactively taking down phishing sites‣ We want to get the guys who are pulling the strings but need thehelp of the Police

PRO-ACTIVE ANTI PHISHING SERVICE

CAPTURING SCRIPTS WRITTEN BYFRAUDSTERS‣ Script – Rayodark.php

WHICH CAPTURE CUSTOMER CREDENTIALS‣ -----------------rayodark------------------‣ Wed Feb 01, 2012 5:36 am‣ email : nxxxxx74@hotmail.co.uk‣ password : Bxxxxx0y‣ date of birth: xx/Oct/197x‣ zip : SExx 6xx‣ 85.92.208.73‣ -----------------rayodark------------------‣ Wed Feb 01, 2012 5:48 am‣ email : suzxxxx@live.co.uk‣ password : wxxxx48‣ date of birth: xx/Mar/19xx‣ zip : ehxxxh‣ 82.41.59.30‣ -----------------rayodark------------------‣ Wed Feb 01, 2012 5:54 am‣ email : melxxxxx@hotmail.co.uk‣ password : oraxxxxx2‣ date of birth: xx/Feb/19xx‣ zip : Ixx 9xx‣ 178.102.111.78

SHOP DIRECT - EXPERIENCE OF WORKINGWITH UK LAW ENFORCEMENT‣ City Of London – Superb‣ We also get some great results from other forces includingMerseyside & GMP‣ Some forces / officers having difficulty ,try and find an excuse to sayno‣ Officers don’t like working across borders‣ Once you get to know us , the attitude rapidly changes‣ Once we get a contact we never let him/her go‣ We now need to work wider than the UK

INDUSTRY EXPERIENCE & CONCERNS REENGAGEMENT‣ SDG not typical !‣ Barriers to Reporting –reputation, cost, structures, responsibility, patchyresponse se (CSOC Report 2011)‣ Regional Hubs will be welcomed and supported‣ These are NOT victimless crimes‣ We don’t engage well together we need to co-operate operateand SYNDICATE and that includes e-crime data‣ NFIB – In but we don't get data out re suspect hosts etc

FUTURE RISKS FROM OUR PERSPECTIVE‣ Growth in Mobile‣ Growth in Social Networking‣ Expansion of retail into online‣ Reduced funding for Police‣ Real need for forces to co-operate operate world wide not just in UK

INTERNATIONAL RISKS & OPPORTUNITIES‣ UK retailers extending E-Comm market toEurope and beyond‣ Extending Black Market for credentials =

CONCLUSIONS‣ Cyber Crime v Retail is threat to the “Public Interest” as well as“Private”‣ The Cyber Threat is increasing as more retailers major online‣ Engagement, we could do better – BRC/IMRG/ICSPA possiblevehicles, we want to work with all of them but it musn’t just be atalking shop.‣ Regional Hubs 3 cheers !‣ We need to SYNDICATE INTELLIGENCE

THANK YOU – CONTACT INFORMATION‣ March UK Ltd – Mike Wyeth‣ mike.wyeth@marchukltd.com‣ Shop Direct Group – Mike Marshall‣ 07920 467463 michael.marshall@shopdirect.com‣ ICSPA – John Lyons – john.lyons@icspa.org‣ BRC – Catherine Bowen – catherine.bowen@brc.org.uk‣ IMRG – Andrew McClelland –andrew.mcclelland@imrg.org