Titania, specialists in continuous network security and compliance assurance solutions, announced the release of compelling new research that highlights a significant shift in cybersecurity spending towards proactive security measures. The report, "Emerging Best Practice in the Use of Proactive Security Solutions," indicates a marked increase in investments aimed at preemptively mitigating cyber threats. According to the study, over 70% of businesses reported increased spending on proactive security solutions, such as attack surface management and risk-based vulnerability management, over the past year. This growth notably outpaces investments in both preventative and reactive measures.

Strategic Implementation and Cybersecurity Industry Trends

Conducted in partnership with Omdia, a global analyst and advisory leader, the study surveyed over 400 security decision-makers across North America, the UK, France, and Germany. The findings highlight a rapid adoption of proactive security measures driven by three key objectives:

• Reducing the opportunity for cyber threats
• Reducing the mean time to remediate known vulnerabilities
• Minimizing the attack surface.

These proactive solutions are becoming an essential layer of protection, providing a comprehensive understanding of the threat landscape and attack surface to enhance organizational resilience and readiness.

Geographic and Sectoral Insights

The trend towards proactive security is particularly pronounced in the EMEA region, where 74% of respondents increased their budgets compared to 67% in North America. The financial services sector (54%) and critical infrastructure organizations, including energy and utilities companies (53%), show a strong inclination towards these investments. Nearly half (47%) of the respondents reported that their top cybersecurity goals for the next 12-24 months include reducing the opportunity for threats through proactive security. In contrast, only 27% of organizations plan to focus on improving tactical outcomes such as better threat prevention, detection, and response.

Enhancing Security Posture

Organizations are increasingly recognizing the need to improve their security posture through proactive security tools, which significantly enhance attack surface management and security control optimization. Many organizations reported limited visibility into the security posture of their network assets, such as firewalls, switches, and routers. Approximately half of the surveyed organizations check their network devices at most monthly, and some only monitor devices in critical segments or a sample of devices across their networks. Critical infrastructure organizations reported lower confidence than other industries in their ability to maintain adequate network segmentation and prevent unauthorized network access.

Anticipated Organizational Impact

Almost half (48%) of all respondents anticipate a high level of organizational disruption due to the broader adoption of proactive security solutions, highlighting the transformative impact these measures are expected to have. “This research vividly illustrates a widespread and rapid shift towards proactive security to improve operational readiness and resilience,” said Tom Beese, Executive Chairman of Titania. “Organizations recognize the critical need to stay ahead of known threats and shut down attacks by investing in solutions that offer real-time visibility of their security posture and remediation actions that continuously minimize their exposure.” Businesses emphasized the importance of consolidating proactive security tools, with 65% highlighting better visibility and management of the attack surface, 60% focusing on improved security control optimization, and 54% noting manpower productivity improvements.

Critical Proactive Security Capabilities

The survey identified several critical proactive security capabilities:

• The ability to view risks through different attack frameworks (61%).
• Full asset context (60%).
• Integration with existing security fabric to implement temporary mitigations (57%).

Andrew Braunberg, Principal Analyst at Omdia, explained, “While the cybersecurity industry has clung to the 'assume breach' mantra with its preventative and reactive solutions, organizations are awakening to a smarter strategy: proactively understanding attack surfaces, mapping attack paths, and plugging vulnerabilities to prevent breaches. Network device configurations are crucial to security posture management, and the adoption of proactive security solutions that automate configuration assessments could have a transformative impact.” The report highlights a gap in industry guidance on best practices for building a proactive security strategy. It notes that the US Defense Department’s Command Cyber Readiness Inspection program (CORA) and the EU’s Digital Operational Resilience Act (DORA) requirements align well with the need for proactive security solutions.

Researchers from Cyble Research and Intelligence Labs (CRIL) have discovered a QR code-based phishing campaign that uses malicious Word documents masquerading as official documents from the Ministry of Human Resources and Social Security of China. Users are tricked into providing bank card details and passwords under the guise of identity verification and authentication processes.

QR Code-Based Phishing Campaign

QR code phishing attacks have escalated significantly this year, with cybercriminals leveraging this technology to steal personal and financial information. Threat actors (TAs) are embedding QR codes in office documents and redirecting users to fraudulent websites designed to harvest sensitive data. In the ever-evolving cyber threat landscape, a new vector has emerged: QR code-based phishing campaign. Cybercriminals are increasingly embedding QR codes in malicious documents, which when scanned direct users to fraudulent websites. This tactic has seen a marked rise in 2024 following a trend that started during the COVID-19 pandemic, when QR codes became widely adopted for contactless transactions and information sharing. The Hoxhunt Challenge highlighted a 22% increase in QR code phishing during late 2023, and research by Abnormal Security indicates that 89.3% of these attacks aim to steal credentials. The growing familiarity with QR codes has created a false sense of security, making it easier for cybercriminals to exploit them. QR codes can mask destination URLs, preventing users from easily verifying the legitimacy of the site they are being redirected to.

Recent QR Code Campaigns and Techniques

Recently, Cyble Research and Intelligence Labs uncovered a sophisticated phishing campaign targeting individuals in China. This campaign saw the use of Microsoft Word documents embedded with QR codes, which are distributed via spam email attachments. The documents were designed to appear as official notices from the Ministry of Human Resources and Social Security of China, offering labor subsidies above 1000 RMB to lure victims. [caption id="attachment_77666" align="aligncenter" width="769"] MS Word file containing QR code (Source: Cyble)[/caption] The documents are meticulously crafted to look authentic, complete with official logos and language that mimics government communications. Once the QR code in the document is scanned, it redirects the user to a phishing site designed to collect sensitive information. This particular campaign stands out due to its use of a Domain Generation Algorithm (DGA), which generates a series of seemingly random domain names. DGA is a program that generates large numbers of new domain names. Cybercriminals and botnet operators generally use it to frequently change the domains used to launch malware attacks. This technique enables hackers to avoid malware-detection solutions that block specific domain names and static IP addresses. The latest campaign isn't an isolated incident. A similar phishing operation was documented in January 2023 by Fortinet, where cybercriminals impersonated another Chinese government agency. This resurgence in QR code phishing attacks indicates a persistent threat targeting Chinese citizens, with malicious actors continually refining their tactics to evade detection.

The QR Code Phishing Process

The phishing process begins with the user scanning the QR code from the malicious Word document. This action takes them to the phishing site, which initially displays a dialogue box promising a labor subsidy. The site is designed to appear official, complete with government logos and formal language to enhance credibility. The phishing site instructs the user to provide personal information, starting with their name and national ID. This step is presented as a necessary part of the application process for the subsidy. Once the user enters this information, they are directed to a second page that requests detailed bank card information, including the card number, phone number, and balance. This information is ostensibly required for identity verification and to process the subsidy. After collecting the bank card details, the phishing site asks the user to wait while their information is "verified." This waiting period is a tactic used to add a sense of legitimacy to the process. Following this, the site prompts the user to enter their bank card password, under the guise of further verification. This password is suspected to be the same as the payment password used for domestic credit card transactions. By obtaining this password along with the card details, the threat actors can perform unauthorized transactions, leading to significant financial losses for the victim.

Phishing Activity Technical IoCs

The phishing activity begins when the user scans the QR code embedded in the Word document. This action directs them to the link “hxxp://wj[.]zhvsp[.]com”. This initial URL then redirects to a subdomain, “tiozl[.]cn”, created using a DGA. The use of a DGA means the phishing URLs are constantly changing, making them harder to block preemptively. [caption id="attachment_77670" align="aligncenter" width="1024"] Landing page of phishing site (Source: Cyble)[/caption] The domain “tiozl[.]cn” is hosted on the IP address “20.2.161[.]134”. This IP address is associated with multiple other domains, suggesting a large-scale phishing operation. The domains linked to this campaign are: - 2wxlrl.tiozl[.]cn - op18bw[.]tiozl.cn - gzha31.tiozl[.]cn - i5xydb[.]tiozl.cn - hzrz7c.zcyyl[.]com Further investigation revealed that the SHA-256 fingerprint of an SSH server host key associated with the IP address “20.2.161[.]134” is linked to 18 other IPs, all within the same Autonomous System Number (ASN), AS8075, and located in Hong Kong. These IPs host URLs with similar patterns, indicating a coordinated effort to deploy numerous phishing sites. The rise in QR code phishing attacks underscores the increasing sophistication and adaptability of cybercriminals. By exploiting the widespread use of QR codes - especially in a post-pandemic world - these attacks effectively lure users into divulging sensitive financial information. The recent campaign targeting Chinese citizens highlights the severity of this threat, as malicious actors use seemingly official documents to gather card details and passwords, leading to significant financial losses. This trend emphasizes the need for heightened vigilance and robust security measures to protect against such evolving threats.

Recommendations for Mitigation

To mitigate the risk of QR code phishing attacks, CRIL said it is crucial to follow these cybersecurity best practices: 1. Scan QR codes from trusted sources only: Avoid scanning codes from unsolicited emails, messages, or documents, especially those offering financial incentives or urgent actions. 2. Verify URLs before proceeding: After scanning a QR code, carefully check the URL for legitimacy, such as official domains and secure connections (https://). 3. Install reputable antivirus and anti-phishing software: These tools can detect and block malicious websites and downloads. 4. Stay informed about phishing techniques: Educate yourself and others about the risks associated with QR codes to prevent successful phishing attacks. 5. Use two-factor authentication (2FA): This adds an extra layer of security, making it harder for attackers to gain unauthorized access. 6. Keep software up to date: Ensure your operating systems, browsers, and applications are updated with the latest security patches to protect against known vulnerabilities. 7. Use secure QR code scanner apps: Consider apps that check URLs against a database of known malicious sites before opening them. 8. Monitor financial statements regularly: Review your bank and credit card statements for unauthorized transactions and report any suspicious activity immediately.

The University of Arkansas is spearheading a new collaborative effort with researchers and industry partners to address the rising risks and challenges associated with the deployment of solar systems. Historically, little attention has been paid to the risks within solar systems, as they weren't commonly deployed and most solar inverters were not connected to wider networks. However, the potential risks grow as more solar panels are installed and inverters become more advanced. Solar inverters act as the bridging interface between solar panels and the grid, with newer models allowing for monitoring and control. Solar inverters that are not updated or secure enough could potentially be intercepted and manipulated by attackers, allowing them to embed malicious code that could spread into the larger power system.

University of Arkansas Solar Inverter Cybersecurity Initiative

The new project led by the University of Arkansas is funded by the U.S. Department of Energy's Solar Energy Technologies Office (SETO) and aims to strengthen the cybersecurity measures of solar inverters. Solar inverters are used to convert direct current (DC) generated from solar panels into alternating current (AC) that can be used in households and within the energy grid. This effort involves collaboration among multiple universities, laboratories, and industry partners to develop custom-designed controls infused with multiple layers of cybersecurity protocols. [caption id="attachment_75768" align="alignnone" width="800"] Source: news.uark.edu[/caption] Researchers from these groups dismantled conventional commercial solar inverters, stripping away existing controls and technology. They then integrated work from different partners while implementing custom-designed controls designed with multiple additional layers of cybersecurity protocols. The University of Arkansas group then took to solar farms in order to subject these modified inverters to real-world conditions to test them and demonstrate the practicality of their cybersecurity measures. The collaborative partners for this project include the University of Georgia, Texas A&M Kingsville, University of Illinois Chicago, Argonne National Laboratory, National Renewable Energy Laboratory, General Electric Research, Ozarks Electric, and Today's Power Inc. The collaborative efforts from these groups is a further step to fortifying not only the cybersecurity resilience of solar inverters but also to secure the broader landscape of renewable energy technologies.

Securing Renewable Energy and Electric Grids

As electric grids become increasingly digitized and connected, securing these grids becomes a top priority for the U.S. Department of Energy (DOE). The department has stated that while some cyberattacks target information technology (IT) systems, attacks on operating technology (OT) devices such as solar photovoltaic inverters could have potential physical impact, such as loss of power and creation of fires. The department cited an incident in March 2019 in which hackers managed to breach through a utility’s web portal firewall. The attack caused random interruptions to the visibility of segments of the grid from its operators for a period of 10 hours. The DOE's Solar Energy Technologies Office (SETO) is working to ensure that the electric grid is secure and capable of integrating more solar power systems and other distributed energy resources. The agency developed a roadmap for Photovoltaic Cybersecurity, supports ongoing efforts in Distributed Energy Resources (DER) cybersecurity standards, and participates in the Office of Energy Efficiency and Renewable Energy's Cybersecurity Multiyear Program Plan, along with the Department of Energy's broader cybersecurity research activities. The Solar Energy Technologies Office has recommended the use of dynamic survival strategy based on defense-in-depth measures that functional as additional layers of security to secure individual components as well as entire systems. These layers include installing anti-virus software on DER systems (solar inverters and battery controllers) and maintaining virus protection and detection mechanisms on the firewalls and servers integrating these individual systems to the broader system of grid operation. The Office admits that implementation of this strategy into DER technologies can be complex, with different owners, operators, and systems typically involved, but maintains the strategy's importance in reducing potential cyberattacks. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.