Cyber Threats Targeting Mergers and Acquisitions

Recommendations

Info

Table of Contents Executive Summary ............................................................................................................. ..3 1. Introduction ..................................................................................................................... ..4 2. Associated threat actors................................................................................................. ..5 FIN4...................................................................................................................................... ..5 DarkHotel............................................................................................................................. ..5 Other historical cases and risks.......................................................................................... ..6 3. Steps of the Merger/Acquisition Process...................................................................... ..7 Preparation for acquisition and/or valuation....................................................................... ..7 Marketing.............................................................................................................................. ..9 Due Diligence....................................................................................................................... ..9 Negotiations, signing (and announcements)....................................................................... 10 Waiting period and final merge............................................................................................ 10 5. Conclusion........................................................................................................................ 11 End notes.............................................................................................................................. 12 Appendix 1: 10 Risk Considerations for Mergers and Acquisitions................................... 13 2 © All Rights Reserved
Executive Summary Global merger and acquisition (M&A) activity reached record-breaking deal values in 2015 at over $4 trillion, with the resulting deals expected to add $1.5 to $1.9 trillion in value to these companies. 1 In 2016, high levels of activity are expected to continue. While mergers and acquisitions propel companies forward, the M&A process also fuels significant opportunities for cyber criminals. Failure to secure sensitive information during this time opens the door to threat actors looking to profit by exploiting financial markets and proprietary intellectual property (IP). Given the value to be gained once the companies are combined, it’s safe to say that ensuring successful integrations will be a priority on boardroom agendas. Security, both during the M&A process and after the deal is closed, will play a central role in positive outcomes. In this report, Digital Shadows examines cyber risks or possible degradation to a company’s security posture as a result of the M&A process. The report takes historical cases of threat actors and applies other likely threats across the five-stages that companies typically go through during a merger or acquisition. Along each stage new risks emerge and advanced attackers, well-versed in corporate espionage techniques, stand to profit. Individuals’ behaviors, unintentional clues and vulnerabilities in inherited network infrastructure and software can all present risk. However, organizations armed with these insights can better understand the threats they face and mitigate accordingly. 3
Page 1: Cyber Threats Targeting Mergers and
Page 5 and 6: 2. Associated threat actors While c
Page 7 and 8: 3. Steps of the Merger/Acquisition
Page 9 and 10: Marketing Marketing plays an import
Page 11 and 12: Conclusion There is demonstrable ev
Page 13 and 14: 6. Standards and Compliance • Lis

Cyber Threats Targeting Mergers and Acquisitions

Create successful ePaper yourself

Delete template?

Save as template?